Profitability Analysis
Profitability is a measurement of efficiency – and ultimately its success or failure. A further definition of profitability is a business's ability to produce a return on an investment based on its resources in comparison with an alternative investment.
Profitability ratios are metrics that assess a company's ability to generate income relative to its revenue, operating costs, balance sheet assets, or shareholders' equity. The higher the ratio, the more it is favourable.
Created by: Nikita
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