# Profitability Ratios Calculator

> Calculate gross, operating, and net margins plus return on assets, equity, and capital employed.

Page: https://askcalculators.com/calculator/profitability-ratios-calculator/
Definition: https://askcalculators.com/calculator/profitability-ratios-calculator/definition.json
JSON Schema: https://askcalculators.com/calculator/profitability-ratios-calculator/schema.json
Version: 1.0.0
Maintained by: AskCalculators (software project; not a credentialed reviewer)
Qualified review: pending. Automated checks do not establish professional approval.
Page status: Live
Review status: Pending

## Use
Open the calculator page and enter values. Query-string parameters can restore and bookmark a calculation.
Example: https://askcalculators.com/calculator/profitability-ratios-calculator/?revenue=1000000&costOfGoodsSold=600000&operatingIncome=150000&netIncome=100000&averageAssets=800000&averageEquity=400000&currentLiabilities=150000

## Inputs
- revenue: Revenue / net sales; type=money; required; default=1000000; min=0
- costOfGoodsSold: Cost of goods sold; type=money; required; default=600000; min=0
- operatingIncome: Operating income (EBIT); type=money; required; default=150000
- netIncome: Net income; type=money; required; default=100000
- averageAssets: Average total assets; type=money; required; default=800000; min=0
- averageEquity: Average shareholders’ equity; type=money; required; default=400000
- currentLiabilities: Current liabilities; type=money; required; default=150000; min=0

## Outputs
- grossMargin: Gross profit margin; format=percent; primary
- operatingMargin: Operating margin; format=percent
- netProfitMargin: Net profit margin; format=percent
- returnOnAssets: Return on assets; format=percent
- returnOnEquity: Return on equity; format=percent
- returnOnCapitalEmployed: Return on capital employed; format=percent
- grossProfit: Gross profit; format=currency

## Formula
margin = profit ÷ revenue; ROA = net income ÷ average assets; ROE = net income ÷ average equity

## Rules
- Empty optional inputs are undefined, not zero.
- Hidden conditional inputs are ignored.
- Do not invent missing required inputs.

Notice: Financial ratios depend on accounting definitions and should be evaluated in context.