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 ...

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

Businesses exist to produce goods or services at a profit. A variety of financial ratios can help evaluate how well a business is performing financially. The gross profit margin is one of the most ...

Christina Majaski writes and edits finance, credit cards, and travel content. She has 14+ years of experience with print and digital publications. Gordon Scott has been an active investor and ...

The income statement is significant among the major financial statements in that it sheds light on how well the company performed in earning a profit. As such, using the income statement to spot ...

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, ...