Briefly describe what a profitability ratio is

Briefly describe what a profitability ratio is

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These rations indicate the ability of a firm to generate returns from investment and from sales. Profitability in this expressed in relation to:-
Returns from sales
Profitability in relation to sales indicates the ability of a firm to control cost of sales, operating financing expense in form of interest charges. These ratios include;

Return from Investments
These ratios determine the percentage yield from investment. They include:

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Titany answered the question on December 14, 2021 at 06:43

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