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 ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

Learn how to calculate the pretax profit margin, understand its uses in financial analysis, and explore examples for evaluating company efficiency before taxes.

Financial ratios are calculations that compare two (or more) pieces of financial data that are normally found in a company's financial statements. Ratios can be invaluable to investors making ...

Gross Profit Percentage Ratio works out the amount of profit from the buying and selling of goods before all other expenses are deducted.

Learn about underlying profit, a key metric many companies use to illustrate true profitability by excluding one-time charges, with examples and pros and cons.

Ratios: Show the relationship between two quantities, like the teacher to student ratio in a class. Purpose in business: Ratios help analyse a company's performance, liquidity, and overall health. Big ...