Calculating this figure allows companies to determine profit without having to take production costs into account (Kimmel et. al, 2010). To calculate your profit margin, divide your net profit by your net sales. The profit margin for Huffman Trucking is 59,167 ÷ 1,109,295 = 0.053 which equates to a profit margin of 5.3% for 2011. Return on Assets Return on assets is a ratio that demonstrates how much profit a company makes from every dollar of sales earned. This figure demonstrates how a company uses its money. To calculate your return on assets ratio, divide your net income by your total assets. The return on equity ratio for Huffman Trucking for 2011 is 59,167 ÷ 267,265 = 0.22 or 22%. Return on Common Stock Capital The return on common stock capital ratio is one of the most important considerations for investors before investing. This ratio reveals how much profit a company makes with the capital invested by shareholders. To determine this ratio, divide net income by stockholders' equity. Return on equity to common stockholders for Huffman Trucking in 2011 was 59,167 ÷ 105,617 =