In the context of return metrics, what does the term "Profit after tax" indicate?

The term "Profit after tax" indicates the earnings attributable to shareholders, reflecting the net income that remains after all tax expenses have been deducted from the company's revenue. This figure is crucial because it provides stakeholders, particularly shareholders, with a clear understanding of the company's profitability and financial health after fulfilling tax obligations. This profit is what can be distributed as dividends or reinvested in the business, making it a key metric for assessing the value generated for shareholders.

In contrast, the total revenue represents the gross income from sales before any expenses are deducted, and the ratio of total assets to liabilities provides insight into the company's financial leverage but does not directly relate to profit metrics. Operating profit before tax is also not the same as profit after tax, as it does not account for the tax expenses that will ultimately affect the amount available to shareholders.