The period of time a firm takes to pay back their suppliers or creditors for their material purchases is known as payable deferral.

EBIT return on asset measures the firm’s earnings before interest and tax with respect to the firm’s total asset. The main focus on this ratio is the income and the total asset.

The Du Pont analysis was created by the Du Pont corporation and is similar to the Return on Equity (ROE) but more accurate.

The present value is the current value of future cash flows at a specific rate of return. The present value indicates that an amount of money today has a higher value than that same amount in the future.

The return on assets focuses on how profitable a company is in relation to its total assets. The ratio is always presented in the form of a percentage.

The gross profit margin compares the difference between the revenue and cost of goods sold, against revenue. It is represented in the form of a percentage and is used to evaluate the company’s financial health.