earnings before interest, taxes, and depreciation and is a measure of the profitability from continuing operations of a retailer and is a useful predictor of the retailer's profitability in the future a measure of how much profit the retailer is making on merchandise sales, without considering the expenses associated with operating the store and corporate overhead expenses the monies owed to the retailer because it has sold merchandise on credit to customers the amount a retailer pays to vendors for the merchandise the retailer sells plus transportation costs the retailer's net sales divided by its assets; this financial measure assesses the productivity of a firm's investment in its assets and indicates how many sales dollars are generated by each dollar of assets. summarizes factors affecting a firm's return on assets (ROA) and decomposes ROA into two components, net profit margin and asset turnover the selling, general, and administrative expenses (SG&A) (costs other than the cost of merchandise, for example, salaries for sales associates and managers, advertising. utilities, office supplies, and rent), plus the depreciation and amortization of assets the total revenue received by a retailer after refunds have been paid to customers for returned i merchandise and payments have been collected from vendors for promotions 1. Net sales 2. Operating profit margin 3. Strategic profit model 4. Accounts receivable 5. Cost of goods sold 6. Operating expenses 7. Gross margin 8. Asset turnover