Basic Earning Power Ratio

Posted by Professor Cram in Ratios of Profitability

Basic Earning Power Ratio

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. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

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One Response to “Basic Earning Power Ratio”

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