profitability ratios
Definition
A type of measurement that help to determine the ability of a company to generate earnings in comparison to its costs and expenses over a certain time period. The company with a higher profitability ratio than their competitors is considered to be doing well.
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Debt and OverborrowingDebt and profitability ratios can go hand-in-hand but they rarely function in a directly proportionate manner. For example, if you borrow 10% of your portfolio's net asset value to gain 1% profit, tha ... Read more
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