Profitability Ratios, Objectives and Benefits for the Company
The purpose of using profitability ratios for companies, as well as for outside parties, i.e.
1. To measure or calculate profits earned by a company in a certain period
2. To assess the company's previous year's profit position with the current year
3. To assess the development of earnings over time
4. To assess the amount of net profit after tax with own capital
5. To measure the productivity of all company funds used for both loan capital and own capital
6. To measure the productivity of all company funds used both own capital
7. And other objectives
Among the benefits of profitability ratios namely
1. Knowing the level of profit earned by the company in one period
2. Knowing the company's previous year's profit position with the current year
3. Knowing the development of profits from time to time
4. Knowing the amount of net profit after tax with own capital
5. Knowing the productivity of all company funds used both loan capital and equity
6. And other benefits
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