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Profitability Ratios

Measures how efficiently a company generates profit from its resources.

Margin Ratios

gross_margin

gross_margin(gross_profit, revenue) -> float | None

Formula: Gross Profit / Revenue

operating_margin

operating_margin(ebit, revenue) -> float | None

Formula: EBIT / Revenue

ebitda_margin

ebitda_margin(ebitda, revenue) -> float | None

Formula: EBITDA / Revenue

net_profit_margin

net_profit_margin(net_income, revenue) -> float | None

Formula: Net Income / Revenue

Return Ratios

roe — Return on Equity

roe(net_income, avg_total_equity) -> float | None

Formula: Net Income / Avg. Shareholders' Equity

Warning

Pass average equity (beginning + ending / 2), not ending-period equity.

roa — Return on Assets

roa(net_income, avg_total_assets) -> float | None

Formula: Net Income / Avg. Total Assets

roic — Return on Invested Capital

roic(nopat_value, invested_capital) -> float | None

Formula: NOPAT / Invested Capital

roce — Return on Capital Employed

roce(ebit, capital_employed) -> float | None

Formula: EBIT / (Total Assets − Current Liabilities)

rote — Return on Tangible Equity

rote(net_income, avg_tangible_equity) -> float | None

nopat — Net Operating Profit After Tax

nopat(ebit, tax_rate) -> float | None

Formula: EBIT × (1 − Tax Rate)

invested_capital

invested_capital(total_equity, total_debt, cash) -> float

Formula: Total Equity + Total Debt − Cash

Decomposition

du_pont_3 — 3-Factor DuPont

du_pont_3(net_income, revenue, avg_total_assets, avg_total_equity) -> dict

Returns: {'net_margin': ..., 'asset_turnover': ..., 'leverage': ..., 'roe': ...}

Productivity

revenue_per_employee

revenue_per_employee(revenue, headcount) -> float | None

profit_per_employee

profit_per_employee(net_income, headcount) -> float | None

TypeScript

import { roe, roic, grossMargin, duPont3 } from 'fin-ratios'

roe({ netIncome: 65e9, avgTotalEquity: 60e9 })          // 1.083
roic({ nopat: 70e9, investedCapital: 500e9 })            // 0.14
grossMargin({ grossProfit: 120e9, revenue: 300e9 })      // 0.40