Operating Profit gives an indication of the current operational profitability of the business and allows a comparison of profitability between different companies after removing out expenses that can obscure how the company is really performing.
Interest cost depends on the management's choice of financing, tax can vary widely depending on acquisitions and losses in prior years, and depreciation and amortization policies may differ from company to company.
EBITDA, PBT & PAT
EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization. PBT stands for Profit Before Tax, and PAT stands for Profit After Tax.
The graph visually shows how the net profit of the company stand reduced due to the impact of Interest, Depreciation, and Tax.
Total Assets & Asset Turnover Ratio
Total Assets is the sum of all assets, current and fixed. The asset turnover ratio measures the ability of a company to use its assets to efficiently generate sales.
The higher the ratio indicates that the company is utilizing all its assets efficiently to generate sales. Companies with low profit margins tend to have high asset turnover.
Net Sales
Sales is the total amount of products or services sold by the company.
Profit After Tax
Profit after tax, also referred as the bottom-line, is a measure of the profitability of the company after deducting all its expenses.
Networth
Networth is the difference between a company's total assets and its total liabilities. It is also known as shareholder`s equity.
Return On Capital Employed %
Capital Employed is defined as total assets less current liabilities. Return On Capital Employed is a ratio that shows the efficiency and profitability of a company's capital investments. The ROCE should always be higher than the rate at which the company borrows money.
Dividend
The dividend payout ratio is the amount of dividends paid to shareholders relative to the amount of total net profit of a company.