Profitability ratios can help investors and analysts compare the financial efficiency of competing companies. People are often advised to do “the best they can with what they have,” and the same goes ...

Investing is really about one thing, and one thing only: the ability to participate alongside the profit generating ability of a business. With profits at the very foundation of investing, it means ...

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

In this post I want to talk about profitability, which is a good indicator of a company's quality and a key driver of dividend growth. I’ll cover return on equity, net return on capital and profit ...

Financial ratios are an important tool that managers and investors use to evaluate company performance. Because ratios convert financial data into a standardized format, they're used to compare ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them ...

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, ...

Profitability analysis is considered one of the best possible ways to assess the prospects of a company. This analysis is used to identify a profitable company from a loss-making one. In this context, ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Eric's career includes extensive work ...

A combined ratio under 100% indicates an insurance firm's underwriting profitability. A good combined ratio is usually below 100%, with the industry average around 97.5%. Combined ratio plus ...

The Progressive Corporation’s PGR profitability is underpinned by its combined ratio, a key measure of underwriting performance in the property and casualty (P&C) insurance industry. The combined ...