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there are many profitability ratios which are calculated. some of them are:

profit margin
operating margin
total asset turnover
return on assets (ROA)
return on equity (ROE)

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faizak292

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2y ago

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Related Questions

What are operating ratios?

Operating ratios are types of ratios that serve as gauges of a company's operating success (or profitability) for a given period of time. They are also known as profitability ratios.


What are the three types of ratios?

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What are 3 types of ratios?

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profitability ratios?

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How many types of ratio?

Generally, there are 4 types of finance ratios, (if thats what you want). (A) LIQUIDITY RATIO (B) LONG TERM SOLVENCY AND STABILITY RATIO (C) PROFITABILITY & EFFICENCY RATIOS (D) INVESTORS OR STOCK MARKET RATIOS.


What two ratios measure factors that affect profitability?

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How are ratios classified?

Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.


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Which of the following ratios would tell an investor about the profitability of the organization?

a propretary ratio


Who would interested in the profitability ratios of a business?

Investors and shareholders are primarily interested in the profitability ratios of a business, as these metrics help assess the company's financial health and potential for returns on their investments. Additionally, creditors and lenders analyze these ratios to evaluate the business's ability to generate sufficient profits to meet debt obligations. Management may also use profitability ratios to make informed strategic decisions and improve operational efficiency.


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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.