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- Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Profitability is a situation in which an entity is generating a profit. Profitability arises when the aggregate amount of revenue is greater than the aggregate amount of expenses in a reporting period.www.accountingtools.com/articles/profitabilityDefinition: Profitability is ability of a company to use its resources to generate revenues in excess of its expenses. In other words, this is a company’s capability of generating profits from its operations.www.myaccountingcourse.com/accounting-dictiona…
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Jun 25, 2024 · Profitability ratios assess a company's ability to earn profits from its sales or operations, balance sheet assets, or shareholders' equity. They indicate how...
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Jul 19, 2023 · Profitability refers to a company's ability to generate revenue that exceeds its expenses. Ratios such as gross profit margin, net profit margin, and EBITDA are commonly used to assess profitability. Profitability analysis helps …
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Nov 27, 2020 · Accounting profit is a company's total earnings, calculated according to generally accepted accounting principles (GAAP). It includes the explicit costs of doing business, such as operating...
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Jun 13, 2023 · Accounting Profitability: Accounting profitability, sometimes referred to as net profit, is the measure of a company’s income after all expenses and taxes have been paid. It is calculated by subtracting total expenses from …
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