Calculate gross margin, operating margin, net margin, ROA, ROE, EPS, and P/E from income statement, balance sheet, share, and price inputs.
$120,000 net income / $950,000 net sales
Profitability ratios need matching periods, one-time item checks, cash-flow context, debt context, share-count notes, and industry context before anyone treats them as strong or weak.
Recent profitability ratio checks will appear here.
Profitability ratio checks stay in this tab. They do not judge accounting quality, debt risk, cash flow, tax treatment, share dilution, market value, or investment quality.
Inputs and recent answers stay in this browser tab and are not sent to a server.
Compare several profitability ratios from one set of statements.
See the difference between gross, operating, and net margin.
Estimate return on assets and return on equity.
Connect earnings per share with a simple P/E ratio.
36.84% gross margin, 18.95% operating margin, and 12.63% net margin
24% ROA and 46.15% ROE
$1.20 EPS and 15x P/E
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Plain-language answers about when to use the estimate, what your numbers mean, what is left out, and how privacy works.
Use it when you want to test the exact inputs on this page: Compare several profitability ratios from one set of statements. See the difference between gross, operating, and net margin. The result is a check against your assumptions, not proof that a lender, tax app, broker, platform, or provider will use the same number.
Net sales, COGS, operating income, and net income means income statement numbers used to calculate margin ratios. Average assets and average equity means balance sheet averages used to estimate returns on assets and equity. Shares outstanding and price per share means per-share inputs used for EPS and price-to-earnings.
In plain language: The calculator subtracts cost of goods sold from net sales for gross profit, divides gross profit, operating income, and net income by net sales for margins, then compares net income with average assets, average equity, shares, and stock price. Use sales, COGS, operating income, and net income from the same income statement period. Use average assets and average equity for that same period, then use the share count and share price that match the EPS and P/E question.
Gross margin shows profit after direct cost. Operating margin shows profit after operating expenses. Net margin shows final profit as a percent of sales. ROA compares profit with assets, ROE compares profit with equity, EPS shows profit per share, and P/E compares price with EPS.
This does not adjust for unusual gains or losses, accounting policy, tax items, share dilution, debt-funded equity changes, industry differences, market expectations, cash flow, restatements, or investment advice. Use full financial statements, footnotes, cash-flow reports, share-count notes, debt ratios, segment results, and industry comparisons before judging whether profitability is strong or weak.
Double-check whether one-time gains, unusual costs, share dilution, debt-funded equity changes, or accounting changes are making the ratio look better or worse than the normal business.
Gross margin looks after product or service cost. Operating margin looks after operating expenses. Net margin looks after all normal income statement layers included in net income. Each one answers a different question.
Be careful. ROE can look high because a company is very profitable, but it can also look high because the company has less equity or more debt. Compare it with debt ratios and industry context.
EPS divides net income by shares, so it needs a share count. P/E compares share price with EPS, so it needs the price per share too. Without those two inputs, margin and return ratios can still work, but per-share ratios cannot.
No. The calculator runs in your browser tab. Recent answers stay only on the page while you use it, and they are not sent to a server.