- EBITDA Margin:
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin measures a company’s operating profitability. It shows the percentage of earnings a company generates from its operations before accounting for non-operating expenses. A higher EBITDA margin indicates better operational efficiency. - PAT Margin (Profit After Tax Margin):
PAT Margin measures a company’s net profitability after deducting all taxes. It’s calculated as the percentage of profit after tax relative to total revenue. This margin indicates how much of the company’s revenue remains as profit after accounting for all costs, taxes, and expenses. - Return on Equity (ROE):
ROE measures a company’s ability to generate profit from its shareholders’ equity. It is calculated by dividing net income by shareholder equity. A higher ROE indicates that a company is effectively using its equity base to grow profits. - Return on Assets (ROA):
ROA assesses how efficiently a company is using its assets to generate profit. It is calculated by dividing net income by total assets. The higher the ROA, the better the company is at converting its investments into earnings. - Gross Margin:
Gross margin represents the percentage of revenue that exceeds the cost of goods sold (COGS). It indicates how efficiently a company produces and sells its goods relative to its production costs. A higher gross margin means more profit is retained from each dollar of sales before accounting for other expenses.
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