4 ratios to measure profitability

The profitability of a company is an important metric because it can give a good indication to the company’s financial health. In this article we outline 4 ratios investors can use to evaluate the company’s profitability. 1.EBITDA margin This ratio can identify the earnings of a company before interest, depreciation, and amortization as a percentage of the revenue. This will show the company’s operating profit in comparison to the revenue. The formula for EBITDA Margin = Earnings before interest, depreciation …

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