Profitability ratios

Profitability ratios

Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment.

Profitability Ratio

Any ratio that measures a company's ability to generate cash flow relative to some metric, often the amount invested in the company. Profitability ratios are useful in fundamental analysis which investigates the financial health of companies. An example of a profitability ratio is the return on investment which is the amount of revenue an investment generates as a percentage of the amount of capital invested over a given period of time. Other examples include return on sales, return on equity, and return on common stock equity.
References in periodicals archive ?
Profitability ratios compare well with the peer group despite a rise in TF's funding costs.
The Bank's profitability ratios are good overall and the pro forma ROAA was better than the peer group average in 2016.
The award, which is given each year in four categories, recognizes label companies who demonstrate excellence in business management as measured by a set of growth and profitability ratios that are calculated as part of TLMI's annual Management Ratio Study.
A survey of 400 Chartered Financial Analysts (CFAs) demonstrated that CFAs rated profitability ratios such as return on equity, profit margin, and return on assets as the most significant performance measure (Gibson, 1987).
BLOM, which published its unaudited financial results, said high profitability ratios and balanced growth marked the Bank's steady performance, despite the continued economic and political risks in Lebanon and the region.
We have calculated the top five rankings on each category taking into account of the defined set of broad parameters which includes growth factors, return ratios, productivity and the profitability ratios measuring the growth and efficiency of the sample companies.
Profitability ratios Lloyd Maddock, chief executive officer of ahlibank said, "Our profitability ratios compare reasonably well with our peers.
Profitability ratios remain good, although EBITDA margin remains at the same level - 4.
Their capital adequacy ratios are strong, liquidity levels are good and profitability ratios are also good.
The trend analysis is used to compare the pre amalgamation period with post amalgamation period for spread, burden and profitability ratios.
As the economy has slowed significantly and the outlook for growth has diminished, Fitch acknowledges that the current good asset quality and profitability ratios of Argentine financial institutions may be hindered under a scenario of possible sustained lower economic growth, rise of inflation, and macroeconomic volatility.
The award honours companies for excellence in business management as defined by an established set of growth and profitability ratios, through the TLMI Management Ratio Study.