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Meaning of profitability ratios

 

 

 

Profitability ratios

 

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Business glossary

 

Meaning of term profitability ratios :

 

Profitability ratios are ratios that measure the profitability of a company. They include the Return on Total Assets, Return on Capital Employed, Net Profit Margin and Net Asset Turnover and are used to assess how profitable the company is.

 

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