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 ...

There are several ways of evaluating the profitability of a business, and one of the simplest ways is with the total margin ratio. This ratio shows a company's profitability relative to the total ...

Learn how to calculate the combined ratio for insurance companies, including financial and trade basis methods, using loss and expense ratios for profitability analysis.

Discover how to calculate and understand key income statement ratios to evaluate company performance, including gross margin, ...

It's important to emphasize that you need to account for all revenue, including operating revenue and non-operating revenue, such as investment income. Similarly, be sure to account for all expenses, ...

Profit is the ultimate goal for any business. Business owners selling goods or services use the unit contribution margin to determine the profit per unit. It is calculated as a percentage or dollar ...

The profit margin ratio measures the portion of every dollar that you earn that you keep as profit. The profit margin ratio is reported in the form X:1, where X is the profit per dollar. For example, ...