Earnings Before Interest and Taxes/Total Assets TTM

Earnings Before Interest and Taxes / Total Assets is calculated by simply dividing a company's EBIT by the firm's total assets. Investors can use this ratio to ascertain how effective a company is at using assets to generate profits (ie. earnings before interest and taxes).

Stockopedia explains EBIT / Total Assets

This measures the productivity of the firm’s assets, independent of any tax or leverage factors. Since a firm’s ultimate existence is based on the earning power of its assets, Edward I. Altman found that this measure continually outperforms other profitability measure in assessing the risk of corporate failure, including cash flow.

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