Tag: Profitability Ratios

Profitability Ratios measure how efficiently a business is making money and are one of the most important financial performance indicators. They provide valuable insight into a company’s ability to generate profits from its operations, and enable stakeholders to analyse a company’s financial performance in comparison to its competitors. By examining a variety of profitability ratios, investors, managers and analysts can study a company’s capacity to generate revenue and control expenses, and assess a company’s financial health against its peers. These ratios are invaluable when assessing a company’s financial future, making them an important part of any financial assessment.