answersLogoWhite

0

Profitability is an important factor when running a business. Businesses calculate profitability in many ways, but figuring out profits after expenses is their goal. Profitable ratios is a measure of profitability that can be used to assess a business's ability to generate earnings.

User Avatar

Wiki User

10y ago

What else can I help you with?

Related Questions

Which is the best example of a financial metric?

Return on investment (ROI) is often considered one of the best financial metrics as it measures the profitability of an investment relative to its cost. It helps evaluate the efficiency and profitability of an investment, making it a key metric for decision-making in finance.


What is a profitability index?

Profitability index is the "rolling forward" of indices of profitability. For example, a company has a turnover of


How is the profitability of a scheme determined?

how is the profitability of scheme determined


profitability ratios?

these are ratios which analyze profitability of a company. higher ratios imply higher profitability and value of a company.


What is the definition of profitability according to different scholars?

diferent Authers definition of profitability


What is the net effect of cost to income ratio to profitability?

The cost-to-income ratio measures a company's operating efficiency by comparing operating costs to its income. A lower ratio indicates better efficiency and higher profitability, as it means a larger portion of income is retained as profit. Conversely, a higher ratio suggests higher costs relative to income, potentially reducing profitability. Thus, effectively managing this ratio is crucial for enhancing a firm's financial performance.


What similarities and differences are there between profit and profitability?

Profit is a valuable return.Profitable will be the gain of a selling price that is over price and it sales.Profit is the total or absolute monetary difference between sales revenues and operating costs. Profitability measures how well a company is making use of it's capital by investing in resources that make goods and services that generate profits


The trade off between profitability and risk is?

trade off between ris and profitability


What is the impact of purchasing and supplies management on organizational efficiency and profitability?

impact on organizational profitability


Is accrual accounting more closely related to a company's goal of profitability or liquidity?

Profitability


Is profitability of a firm an adequate measure of its efficiency?

to what extent does profitability of a firm measure its efficiency


Is accrual accounting more closely related to a company’s goal of profitability or liquidity?

Profitability