give two examples of profitability ratio.
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Profitability ratio is used to evaluate the company’s ability to generate income as compared to its expenses and other cost associated with the generation of income during a particular period. This ratio represents the final result of the company.
Let’s understand in detail about Profitability ratio:
Importance
Types of Profitability Ratio
Return on Equity
Earnings Per Share
Dividend Per Share
Price Earnings Ratio
Return on Capital Employed
Return on Assets
Gross Profit
Net Profit
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Answer:
Some examples of profitabity ratio are
- profit margin
- return on assets (ROS)
- return on equity
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