Tag: profitability ratios

  • Profitability Ratios

    Profitability ratios measure a company’s ability to generate profit relative to equity, assets or revenue. Key ratios include return on equity (ROE), return on assets (ROA), and return on sales (ROS). Additionally gross profit margin, and net profit margin are also considered in profitability ratios. Together these ratios help assess financial performance, efficiency, and competitiveness.…