Add all the money you earned. Plus the capital. You got the gross.
Profitability is an important factor when running a business. Businesses calculate profitability in many ways, but figuring out profits after expenses is their goal. Profitable ratios is a measure of profitability that can be used to assess a business's ability to generate earnings.
to calculate the prospect & future profitability of the organization
Profitability index is the "rolling forward" of indices of profitability. For example, a company has a turnover of
how is the profitability of scheme determined
these are ratios which analyze profitability of a company. higher ratios imply higher profitability and value of a company.
A good profitability ratio is a measure of a company's ability to generate profit relative to its revenue or assets. One commonly used profitability ratio is the return on equity (ROE), which calculates the profit generated for each dollar of shareholder equity. To calculate ROE, divide the company's net income by its average shareholder equity. This ratio provides insight into how effectively a company is using its equity to generate profit. A higher ROE indicates better profitability.
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diferent Authers definition of profitability
Profitability Index AdvantagesTells whether an investment increases the firm's valueConsiders all cash flows of the projectConsiders the time value of moneyConsiders the risk of future cash flows (through the cost of capital) Useful in ranking and selecting projects when capital is rationedDisadvantagesRequires an estimate of the cost of capital in order to calculate the profitability indexMay not give the correct decision when used to compare mutually exclusive projects
trade off between ris and profitability
impact on organizational profitability
Profitability