A profitability ratio measures the income or operating success of a company for a given period of time.

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A profitability ratio is a financial ratio used to measure the ability of a company to generate earnings relative to its expenses and other costs. It is a measure of how well a company is able to turn its sales/revenue into profits. Thus, a profitability ratio measures the income or operating success of a company for a given period of time.

A Profitability Ratio Measures the Income or Operating Success of a Company