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Tag Archives: profitability ratios

Learn About Profitability Ratios

financial figures

The profitability ratios assess a company’s ability to earn profits on sales, assets and equity. These financial ratios are useful to measure a company’s performance. These ratios are considered to be favorable when they improve over a trend line or are comparatively better than the results of competitors. When using profitability ratios, it is best to compare a company’s results ... Read More »