Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

How to Calculate an Industry's Profitability. One way to determine profitability is to calculate the ratio of profits to other financial metrics, such as sales, assets or equity. Common ...

A profitability ratio is the net profit margin ratio, which measures profit in terms of total sales. To calculate net profit margin, divide after-tax profit by sales revenue.

This ratio shows a company's profitability relative to the total revenue it produces. Here is how you can calculate it, as well as what it means.

What Is Gross Profit Margin? Gross profit margin is a type of profit margin that is used to measure a company’s profitability relative to revenue and is expressed as a percentage. It is a ratio ...

The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt obligations based on its current ...

The article How to Calculate the Debt Ratio Using the Equity Multiplier originally appeared on Fool.com. The Motley Fool owns shares of and recommends Apple.

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...