asked 230k views
3 votes
Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability

asked
User Zelinka
by
8.3k points

1 Answer

1 vote

Company’s profitability is important for a business to survive and remain strong in giving the benefits that shareholder or investors expect. Profitability ratios help measure a company's ability to generate income and profits based on its invested capital. In addition, most analysts and decision makers used these ratios as an indicator of certain aspects of a company's performance.

answered
User Sawant
by
8.1k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.