Profitability ratios can shed light on how well a company's management is operating a business. Investors can use them, along with other research, to determine whether or not a co… See more

Profitability ratios generally fall into two categories—margin ratios and return ratios. Margin ratios give insight, from several different angles, into a company's ability to turn sales i… See more

Different profit margins are used to measure a company's profitability at various cost levels of inquiry. These income statement profit margins include gross margin, op… See more