Profitability Ratios
Four ratios are considered in this section. Operating margin ratio, Net profit ratio, returns on assets and return on capital are the main ratios. Higher the ratio better it is for the firm, Operating margin ratio and net profit ratio gives information about the cost structure. Higher the ratios better the cost efficiency of the firm.
Operating margin ratio for Mazaya is 71.46% and net profit is 45.25%. The same ratios for UDC are 40.69% and 7.76%. This indicates that Mazaya cost structure is better than UDC.
Return on assets and return on capital indicate on efficiency of assets and capital. Return on assets for Mazaya is 9.2% and return on capital is 13.03%. The same values for UDC are 0.77% and 1.33%. Here too Mazaya ratios are better indicating that its usage of assets and capital is better.