answersLogoWhite

0

What is Basic Earnings Power Ratio?

Updated: 9/20/2023
User Avatar

Wiki User

12y ago

Best Answer

The basic earning power ratio (or BEP ratio) compares earnings apart from the influence of taxes or financial leverage, to the assets of the company. It is just a ratio of the earnings of the company and its assets and does not include the capital invested into the company or the tax and interest liabilities.

Formula:

BEPR = EBIT / Total Assets

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is Basic Earnings Power Ratio?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is an example of a market prospects ratio?

Price earnings ratio.


What is cost ratio calculated by?

Cost Ratio = expenses/earnings


What are basic earnings per share?

What is the difference between basic and diluted earnings per share?


What is a bankruptcy predictor?

Dept / earnings ratio.


What is the pe ratio of a business?

Is the Price/Earnings ratio. You can find it by taking the market price per share and dividing it by the annual earnings per share.


What affect does earnings per share have on price earnings ratio?

the price earnings ratio is simply earnings-per-share divided by the share price. OOPS! I got that upside down! It is the share price divided by the earnings per share. The earnings figure might be for the trailing twelve months (ttm) or earnings estimated for the next four quarters.


The ratio percentage of earnings retained is the same as that termed?

This year's retained earnings to net income.


What is meant by Earnings multiplier?

P/E Ratio


What factors might influence a firm's price-earnings ratio?

The price earnings ratio is influenced by: -the earnings and sales growth of the firms -risk -debt-equity structure of the firm -dividend policy -quality of management -a number of other factors


What is the Price and Earnings ratio when a company has an Earnings Per Share of 2.00 and a cash flow per share of 3.00 and a price and cash flow ratio of 8.0?

A company has an EPS of $2.00 Cash flow per share of $3.00 Price/cash flow ratio of 8.0x What is its P/E ratio? Price Per Earnings Ratio = Market Value Per Share / Earnings Per Share (EPS) 8.0 x 3.00 = 24 24/2 P/E = 12X


The earnings of 3 newspaper carriers totaled 7400. The earnings of the 3 carriers individually were in the ratio of 24 21 15. What were the earnings of the carrier who earned the least?

1850


As an investor are basic or diluted earnings per share more important?

Diluted earnings per share Diluted earnings per share