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

Ratio Analysis is a way to get an objective idea of a company's efficiency, profitability and liquidity by going through its financial statements such as profit & loss statement and balance sheet. It ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

Financial statement analysis is useful in anticipation of future conditions and planning for actions that will improve the firm's future performance. Financial ratios are designed to help you evaluate ...

Look for high profitability ratios to identify companies efficiently turning revenue into profits. Analyze margin and return ratios to assess how well a company manages its costs and assets. Compare ...

Financial matters need to be handled carefully for an organization to perform well. Your organization can use ratio analysis to evaluate its financial status and gauge its performance. Ratio analysis ...

My analysis on large cap tech stocks that offer a good return on investment for a value investor continues. Today, that analysis is based on the profitability ratios in the financial statements of ...

Trading and investing can involve a lot of comparing. We do this to not only get a feel for our investments but to also value new ones. One of the easiest ways to compare anything is via ratios. Three ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Erika Rasure is globally-recognized as a ...