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

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 ...

One way to determine profitability is to calculate the ratio of profits to other financial metrics, such as sales, assets or equity. Common profitability measures include the net income margin, which ...

An industry or financial ratio compares sets of financial or other data within a company to measure its operating performance and financial condition. A company's management uses ratios to make key ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...

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 ...

Here are some of the most common, and most useful, financial ratios you can calculate for your business, as well as links to more details about the most relevant ones. 1. Current ratio-- It's current ...

Profit margin is one of the simplest and most widely used financial ratios in corporate finance. A company’s profit is ...

When you want to get an idea of a company's financial condition, ratio analysis is one of the tools of the trade. In the following article, you'll learn about two useful balance sheet ratios: the debt ...