Table 1

Variables measurement

Performance categoryRatiosMeasurementSource
ProfitabilityReturn on assets (ROA)Net profit after tax (Zakat)/Total assetsPublished financial statements
Return on equity (ROE)Net profit after tax (Zakat)/Shareholders' equityPublished financial statements
Net profit margin (NPM)Net profit after tax (Zakat)/RevenuePublished financial statements
LiquidityCurrent ratio (CR)Current assets/Current liabilitiesPublished financial statements
Quick ratio (QR)(Current assets – Inventory)/Current liabilitiesPublished financial statements
Operating cash flow coverage (OC)Operating cash flow/Current liabilitiesPublished financial statements
LeverageDebt ratio (DR)Total liabilities/Total assetPublished financial statements
Equity ratio (ER)Shareholder equity/Total assetsPublished financial statements
Debt to equity (DTE)Total liabilities/Shareholders equityPublished financial statements

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