In general, profitability ratios measure the efficiency with which your company turns business activity into profits. Profit margins assess your ability to turn revenue into profits. Return on assets ...

Look for high profitability ratios to identify companies efficiently turning revenue into profits. Analyze margin and return ratios to assess how well a company manages its costs and assets. Compare ...

Financial ratios provide business owners with a quantitative analysis of their company's financial information. Business owners can also use financial ratios to create benchmarks for comparative ...

Return-on-equity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The “advanced ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

Looking at profitability is a very important step in understanding a company. Profitability is essentially why the company exists and a key component in deciding whether to invest or to remain ...

Profitability analysis is considered one of the best possible ways to assess the prospects of a company. This analysis is used to identify a profitable company from a loss-making one. In this context, ...

The Progressive Corporation’s PGR profitability is underpinned by its combined ratio, a key measure of underwriting performance in the property and casualty (P&C) insurance industry. The combined ...

Discover the key financial metrics investors use, like the quick ratio, ROA, and debt-to-capitalization, to evaluate the financial health of airline companies.

Profitability analysis is one of the best ways to evaluate the prospects of a company. It is used in detecting a profitable company over a loss-making one. A company with a high level of sales surplus ...