Profitability is one of four building blocks for analyzing financial statements and company … See more

The two key aspects of profitability are revenues and expenses. Revenues are the business income. This is the amount of money earned from customers by selling products o… See more

Resources, like cash, are used to pay for expenses like employee payroll, rent, utilities, and other necessities in the production process. Profitability looks at the relationshi… See more

There are many reports to use when measuring the profitability of a company, but external users typically use the numbers reported on the income statement. The financi… See more

The first signs of profit show in the profit margin or gross margin usually calculated and reported on the face of the income statement. These ratios measure how well the compa… See more