Fundamentals Ratio

Fundamentals Ratio

■ Profitability Ratio

●ROE: It measures the ability of a firm to generate profits from its Shareholder’s investments in the company.

                Net Income
   ROE= ---------------------- ×100
         Shareholder's Equity 
  
                                                            Shareholders’ Equity = Share Capital + Retained Earnings – Treasury Stock                            

●ROCE: It measures how efficiently a company is using its capital employed [Debt & Equity].

                     EBIT
 ROCE: --------------------------- ×100
             Capital Employed

Capital Employed = Total assets – Current Liabilities.

●EPS: It is the profit allocated to each outstanding share of common stock.

              Net income of the company  

1. EPS :——————————————‐——-
   Averages Outstanding shares

               Net income after tax - Total dividends
   

2.Weighted EPS:—————————————————
Total number of outstanding shares

■●  EBITDA
           - D&A(Depreciation, and Amortisation)
    ----------------------
           EBIT  
            -   I    (Interest)
     -----------------------
            EBT       
               -T   (Tax)
     ----------------------------
      PAT/NET PROFIT