Gross Margin Gross margin measures the amount of revenue that remains after subtracting costs directly associated with production.
EBITDA Margin The EBITDA margin is a measure of a company's operating profit desconsidering D&A costs as a percentage of its revenue.
EBIT Margin The EBIT margin is a measure of a company's operating profit considering D&A costs as a percentage of its revenue.
Net Margin The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment.
D&A/EBITDA Many companies have a high D&A in relation to the company's operating profit (EBITDA) and although this indicator does not have an effective cash effect, it ends up influencing the accounting net income, so analyzing this relationship can help to understand when D&A has a relevant impact to the company's results.
Capex/Revenue Shows the amount spent on investments in Capex in relation to Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Capex/OCF It shows the percentage of operating cash flow that the company uses in Capex (investments in fixed and intangible assets). When your result is greater than 100%, it demonstrates that there are expenses greater than what the company produces in its operations.
SBC/OCF It demonstrates the percentage cost of Stock-Based Compensation compared to the company's operating cash flow. In some companies, the OCF is positive because of the SBC, which can lead to an incorrect cash flow analysis.
SBC/EV Compares Stock-Based Compensation spend with Enterprise Value, which adjusts the company's market value to a multiple closer to its true value, also considering debt and cash on hand. your calculation.
% PPE If the company has a lot of D&A, it helps to see if most of it tends to come from fixed assets. The account can include machinery, equipment, vehicles, buildings, land, office equipment, and furnishings, among other things.
ROE Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity and is a gauge of a corporation's profitability and how efficiently it generates those profits.
ROA Return on assets is a metric that indicates a company's profitability in relation to its total assets and can be used by management, analysts, and investors to determine whether a company uses its assets efficiently to generate a profit.
ROIC Return on invested capital (ROIC) is a calculation used to assess a company's efficiency in allocating capital to profitable investments. The formula for calculating ROIC in Morningstar involves dividing Net Income by the average of invested capital.