Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

One way to determine profitability is to calculate the ratio of profits to other financial metrics, such as sales, assets or equity. Common profitability measures include the net income margin, which ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...

Total margin ratio is found by dividing net income by total revenue, then multiplying by 100. This ratio aids investors in assessing a company's profitability from its total revenues. Using this ratio ...

Successful businesses depend on diligent managers to analyze key factors that influence profitability and make changes to the business based on their analyses. Managers use a variety of statistical ...

Here are some of the most common, and most useful, financial ratios you can calculate for your business, as well as links to more details about the most relevant ones. 1. Current ratio-- It's current ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam holder, and ...

Learn how to assess a company's financial strength using the EBITDA-to-interest coverage ratio, focusing on its ability to ...