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

Subtracting your expenses from your income gives you your bottom-line financial profit but doesn't tell you how you're doing in different areas and how you can improve your operations. You should ...

Total margin ratio is found by dividing net income by total revenue, then multiplying by 100. This ratio aids investors in assessing a company's profitability from its total revenues. Using this ratio ...

A company's profit margin reveals how much of its earnings it gets to keep after it pays all of its expenses. It is a ratio of earnings to revenue. Companies with strong earnings report high profit ...

ROA tells how much profit a company makes for each dollar of its assets. Two methods to calculate ROA: using net income and assets, or profit margin and turnover. High ROA suggests a company uses its ...