# Business ratios and formulas pdf

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## Profitability Ratio Formula (Example) | How to Calculate Profitability Ratio?

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## Profitability Ratio with Formula and examples

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Financial ratios are relationships determined from a company's financial information and used for comparison purposes. Examples include such often referred to measures as return on investment ROI , return on assets ROA , and debt-to-equity, to name just three. These ratios are the result of dividing one account balance or financial measurement with another. Financial ratios can provide small business owners and managers with a valuable tool with which to measure their progress against predetermined internal goals, a certain competitor, or the overall industry. In addition, tracking various ratios over time is a powerful means of identifying trends in their early stages. Ratios are also used by bankers, investors, and business analysts to assess a company's financial status. Ratios are calculated by dividing one number by another, total sales divided by number of employees, for example.

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## List of Profitability Ratios Formula

Updated on Nov 05, - AM. This ratio represents the final result of the company. Profitability represents final performance of company i. Return on Equity. Earnings Per Share. Dividend Per Share.