Expenses : Net Profit

Expenses:Net Profit This ratio is as per the Expenses : EBITDA measure, but with the effects of depreciation, and accounting choices also considered. This will help identify if core overheads are under control and stable, over time. When assessing this measure, also be aware that an increase in staffing may have contributed to the outcome, perhaps in anticipation of an expansion in the business or major sales push, but has yet to impact the accounts or base performance indicators.