YOU'LL NEVER TRADE ALONE

Profitability ratios tell us about the profitability of the company. The greater the ratio, the more profits the company generates! These ratios include:

1. Operating Margin (operating profit/net sales)

2. Gross Margin (gross profit/net sales)

3. Net Profit Margin (net profit/net sales)

4. Return On Equity (net profit/net worth of the company)

5. Return On Investment (operating profit/total assets)

6. Return On Asset (net income/total asset)