Profitability ratios

Modified on Mon, 10 Aug, 2020 at 4:33 PM

Profitability ratios measure the returns generated on sales and investment, hence the ability of the company to generate profits. Profitability ratios include margin ratios (such as profit margin or operating margin) and return ratios (such as return on equity or return on assets).

 

Where do I find it?

Historical profitability ratios are available:

  • for a company, in the Ratios view under Company Data;
  • for a list of companies, in the Profitability Ratios view under Comparable Analysis.

Forward-looking profitability ratios for a company are available in the Consensus Estimates view under Company Data.

 

What do I need to know?

Banks and insurance firms have specific ratios, which are different from those traditionally used to analyze industrial companies.

On most views, you can click a ratio figure to check the underlying calculation formula.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article