equity. December 31, Activity Ratios December 31, 2016 2017 Portfolio turnover 3.27 1.72 Fixed-asset turnover 4.93 10.30 Operating asset turnover 0.73 1.10 Total asset turnover 0.05 0.05 December 31, December 31, Performance Ratios 2017 2016 margin 100.00% 96.43% Gross income / Operating revenue Operating margin 23.99% -53.91% Operating income / Operating revenue Net margin -14.60% -93.99% Net income / Operating revenue Equity performance -1.06% -6.32% Net income / Average equity Total asset performance -0.75% -4.54% Net income / Average total assets This is a relationship between earnings made in various instances of the income statement and the net income, and a relationship between net income and equity & total assets, showing the ability of these to generate earnings. December 31, Solvency Ratio December 31, 2016 2017 Solvency 3.25 3.49 Total assets / total liabilities This ratio shows Valorem S.A.’s ability to meet its total liabilities. At the close of December 31, 2017, for every peso owed, Valorem S.A. has 3.25 back-up pesos. At the close of December 31, 2016, the company had 3.49 back-up pesos for every owed peso.
equity. Activity Ratios December 31, 2017 December 31, 2016 Portfolio turnover 3.27 1.72 Fixed-asset turnover 4.93 10.30 Operating asset turnover 0.73 1.10 Total asset turnover 0.05 0.05 Performance Ratios December 31, 2017 December 31, 2016 margin Gross income / Operating revenue 100.00% 96.43% Operating margin Operating income / Operating revenue 23.99% -53.91% Net margin Net income / Operating revenue -14.60% -93.99% Equity performance Net income / Average equity -1.06% -6.32% Total asset performance Net income / Average total assets -0.75% -4.54% This is a relationship between earnings made in various instances of the income statement and the net income, and a relationship between net income and equity & total assets, showing the ability of these to generate earnings. Solvency Ratio December 31, 2017 December 31, 2016 Solvency Total assets / total liabilities 3.25 3.49 This ratio shows Valorem S.A.’s ability to meet its total liabilities. At the close of December 31, 2017, for every peso owed, Valorem S.A. has 3.25 back-up pesos. At the close of December 31, 2016, the company had 3.49 back-up pesos for every owed peso.