Profitability Ratio

Profitability Ratio is a very good metrics to calculate the entity’s strnegth in generating profit while incurring expenses and other costs to generate the revenue. There are so many types of profitability ratios which are as follows.

Return on equity (ROA)

Return on capital employed (ROCE)

Net profit margin

Gross margin ratio

Price to cash flow ratio

Operating margin ratio

Return on assets ratio

Retention ratio

Price earning (PE) ratio

Dupont Analysis

Dividend yield

Dividend payout

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top