3 years ago

Decision makers and analysts look deeply into profitability ratios to identify trends in a company's profitability

1 answer:

3 0

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 <span>indicator of certain aspects of a company's performance.</span>

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