All ratios some aspect of a firms performance like a firm’s liquidity, solvency, efficiency of operations profitability etc. These ratios seem to be independent of one another. But actually there exists inter-relationship among these ratios which is brought about by integrated analysis of ratios. The combined profitability is referred to as earning power or return on assets ratio. Earning power is the overall profitability of a firm. It is computed by multiplying net profit margin and assets turnover.

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