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 ...

While profit rate is a look at how profitable a company is based on the investment needed to start it, the profit margin ratio looks at how efficiently a business manages its expenses when producing ...

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 ...

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, ...

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 ...