Return on Assets (ROA): Definition, Formula & How to Improve It
Picture this: Two companies each have $1 million in assets. Company A generates $200,000 in profit, while Company B only makes…
What Is Profitability Analysis & How to Do It: Metrics, Example & Tips
Imagine running a lemonade stand all summer, working every weekend, and at the end of the season, realizing you have no…
Profitability Ratios: What They Are & Why They Matter
Imagine you’re at a carnival, and you’ve got two lemonade stands side by side. Both sell the same number of cups,…
Gross Profit Margin: Formula, Benchmarks & Guide
Picture this: You’re running a lemonade stand. You spend $10 on lemons, sugar, and cups. You sell all your lemonade for…
Return on Equity (ROE): Definition, Formula, and How to Use It
Picture this: You’re at a coffee shop, and your friend just told you she invested $10,000 in two different companies. One…
