Profitability Ratios

Profitability ratios address a company, business, or endeavor's ability to create earnings in a specific period of time considering expenses and costs. Thusly, profitability ratios address a family of concepts like return on equity, return on assets, and profit margin, that ought to be utilized together to draw sound decisions about an investment opportunity.

Features

• Profitability ratios evaluate a company's ability to earn profits from its sales or operations, balance sheet assets, or shareholders' equity.
• Profitability ratios show how effectively a company creates profit and value for shareholders.
• Higher ratio results are in many cases better, yet these ratios give significantly more data when compared to consequences of comparative companies, the company's own historical performance, or the industry average.