Where Are Profitability Ratios?

Profitability ratios are one of the most popular metrics used in financial analysis, and they generally fall into two categories—margin ratios and return ratios. Margin ratios give insight, from several different angles, on a company's ability to turn sales into a profit.

Where can I find a company's financial ratios?

Financial ratios are available in several company directory resources: Mergent Online​ - ratios appear under the Company financials tab of the company record. S&P Capital IQ (see access details) - get to ratios from the left-hand menu on a company record (Financials > Ratios).

Who uses profitability ratios?

Investors and creditors can use profitability ratios to judge a company's return on investment based on its relative level of resources and assets. In other words, profitability ratios can be used to judge whether companies are making enough operational profit from their assets.