Return on Assets = Net Income / Total Assets.
Return on Equity = Net Income / Owners' Equity.
Return on Sales = Net Income / Sales.
Profit ratios can help evaluate a company's ability to make income based on assets, equity, and sales. A good book for further reading is "Barron's Business Keys: Keys to Reading an Annual Report" by George Friedlob and Ralph Welton, page 157.
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