📊Assessing profitability helps businesses gauge their ability to generate sustainable profits.
🔍The asset turnover ratio measures a company's ability to generate sales using its total assets.
💰Return on total assets (ROA) evaluates the profitability of a business by comparing net income to average total assets.
📈Return on stockholders equity (ROE) measures the profitability of a company based on the funds invested by stockholders.
💡Earnings per share (EPS) indicates the amount of net income allocated to each outstanding share of common stock.