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

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

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 ...

Equity investors typically seek companies with strong earnings growth. Even with a good grasp of profitability ratios, investors must avoid some common pitfalls. Investors shouldn’t be seduced by ...

Look for high profitability ratios to identify companies efficiently turning revenue into profits. Analyze margin and return ratios to assess how well a company manages its costs and assets. Compare ...

IWN's underlying index, the Russell 2000, includes a growing number of unprofitable companies. Unprofitable companies are riskier and more difficult to value, and they tend to underperform profitable ...

Discover how the loss ratio and combined ratio assess insurance profitability by comparing incurred losses to premiums and expenses.

The measures of a company's success go beyond the hard cash it generates as reflected in corporate dividends. Business success also is gauged by the likelihood that the level of the dividends will ...