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what tw ratios measure factors

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Q: What two ratios measure factors that affect profitability?
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profitability ratios?

these are ratios which analyze profitability of a company. higher ratios imply higher profitability and value of a company.


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 measures of profitability?

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.


What are 3 types of ratios?

1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios


What are the three types of ratios?

1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios


Types of ratios?

1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios


types of profitability ratios?

there are many profitability ratios which are calculated. some of them are:profit marginoperating margintotal asset turnoverreturn on assets (ROA)return on equity (ROE)


How are ratios classified?

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


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

a propretary ratio


What are four major financial ratios?

Liquidity, Profitability, Leverage, and Activity/Efficiency


Which financial ratios are used by banks?

1. Liquidity Ratios - Ability of the company to pay off debt 2. Activity Ratios - How quickly a firm can convert its non-cash assets to cash assets 3. Debt Ratios - Ability of the firm to repay long-term debt 4. Profitability Ratios - To Measure the firms use of its assets and control of its expenses to generate an acceptable rate of return 5. Market Ratios - To Measure the investor response to owning a company's stock and also the cost of issuing stock


What is the Formula for calculating profitability ratios?

profit margin = net income / total revenue