Profitability ratios can help investors and analysts compare the financial efficiency of competing companies. People are often advised to do “the best they can with what they have,” and the same goes ...

Investing is really about one thing, and one thing only: the ability to participate alongside the profit generating ability of a business. With profits at the very foundation of investing, it means ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating ...

Financial ratios are an important tool that managers and investors use to evaluate company performance. Because ratios convert financial data into a standardized format, they're used to compare ...

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 ...

Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Gordon Scott has been an active investor and ...

Businesses exist to produce goods or services at a profit. A variety of financial ratios can help evaluate how well a business is performing financially. The gross profit margin is one of the most ...

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