Profitability Ratios

Profitability ratios are a class of financial metrics that are used to assess a business’s ability to generate earnings relative to its revenue, operating costs, balance sheet assets, or shareholders’ equity over time, using data from a specific point in time.

Key Ratios

• Gross Profit Margin
• Operating Profit Margin
• Return on Capital Employed (ROCE)
• Return on Equity (ROE)