The main financial ratios affected by the use of a CMMS-EAM
Gross profit margin
Gross margin represents the excess of net sales over the cost of goods or products sold. Gross profit margin is expressed as a percentage. This ratio indicates a company’s profit on the sale of its products and services per dollar of sales.
Operating profit margin
The operating profit margin is the difference between total operating revenues and operating expenses. Operating revenues and operating expenses relate to a company’s main business activities. They do not include interest expense, investment income (dividends and interest income), capital gains and losses, unrealized gains and losses, or taxes.
Return on Net Operating Assets
This ratio measures the profitability of the operation. The return on total assets ratio indicates the extent to which a company’s investments generate value, making it an important measure of a company’s productivity. It is calculated by dividing a company’s net (after-tax) income by its total assets and multiplying the result by 100%.
Parts Inventory Turnover
Inventory turnover indicates the time required for inventory to be sold and replaced during the year. This ratio is calculated by dividing total purchases by average inventory over a given period. For most businesses that rely on inventory, this can be a key success factor.