Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

Learn how to calculate the combined ratio for insurance companies, including financial and trade basis methods, using loss and expense ratios for profitability analysis.

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

There are several ways of evaluating the profitability of a business, and one of the simplest ways is with the total margin ratio. This ratio shows a company's profitability relative to the total ...

Financial ratios help investors determine which businesses to buy into. These ratios also help business leaders discern whether particular strategies are working. While there are dozens of types of ...

Learn about gross, operating, and net profit margins, how each is calculated, and how businesses and investors can use them to analyze a company’s profitability.

Business accountants measure financial performance and success in myriad ways, including the percentage or ratio known as "operating margin." Operating margin helps accountants and business managers ...

It's important to emphasize that you need to account for all revenue, including operating revenue and non-operating revenue, such as investment income. Similarly, be sure to account for all expenses, ...