Understanding of Profitability & Market
Value Measures
Profit Margin Ratio
The ratios suggests that in 2020 the company generated $0.07 in profit
for $1 of sales. In 2021 the company generated $0.11 of profit against
$1 of sales which was higher than those of previous years.
Years
2019
2020
2021
Net Income
5,502
5,576
6,912
Sales
79,570
78,908
61,821
Profit Margin (%)
6.91
7.07
11.18
Return on Asset Ratio
The ratio expresses the amount of profit per $1 of asset. As per above
data, the company generated $0.008 profit from every $1 of asset
which was the highest than preceding years.
Years
2019
2020
2021
Net Income
5,502
5,576
6,912
Total Assets
8,09,130
8,80,349
9,17,643
Return on Assets (%)
0.68
0.63
0.75
Return on Equity Ratio
The company valued the shareholders most in 2021 providing 11.74%
return. However, 2020 yielded the lowest return comparatively.
Years
2019
2020
2021
Net Income
5,502
5,576
6,912
Total equity
50,106
53,006
58,869
Return on Equity
10.98
10.52
11.74