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Profitability ratios

• Ratios that focus on the profitability of the firm. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment.

 
 

Follow this link for all the terms related to ratio.

 
 Embedded terms in definition
 Firm
Profit margin
Profitability
Profit
Rate of return ratios
Rate of return
Return
Sales
Size
 
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