The 10 Most Important Profitability Ratios Every Business Needs To Understand

Profitability ratios are key indicators of a company’s financial health and performance. They provide insights into a company’s margin, return on investment (ROI), and ability to generate cash flow.

Various profitability ratios can be used to assess a company’s financial health. However, not all of them are equally important. Some ratios are more relevant to certain industries than others.

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