Introduction to Profitability Ratio Analysis Project
The primary reason for measurement and analyze the relationship of three banks of profitability to learn and to improve knowledge on the relationship between profitability and also know which bank has the efficiencies to reach the financial goals desire. These measures and the purpose of this relationship is that measures and analyzes the use of the company or the bank of its assets and control of their spending for generating a acceptable rate of return. In short, we could say that profitability ratios are performance measures that show how much the company is making compared to their sales and assets.In this project readers could see the difference in profitability between three banks by comparing the profitability ratio of each. The profitability ratio may include the under below necessary ratios. The project report on profitability ratio analysis is presenting profitability ratio analysis of Askari Bank, Bank Alfalah and Soneri Bank.
Profitability ratio Analysis Ratios
Operating profit Margin
Net Profit margin
Return on assets and return on equity
Other recommended by the university
How Profitability Ratio Helpful
Profitability ratio helps to increase the knowledge to make investment decisions. When considering a company as a prospective investment you should review its financial statement. Pay particular attention to the profitability ratios. If you can, calculate the ratios for the same company over several successive years to see if the company earnings are consistent, growing, declining. Hence Profitability ratio are one of the most vital tools of financial ratio analysis.
These are ratio analysis are very important to the small business owner and any investors in the business. Profitability ratios measure both returns on the investor’s money in the firm and company margins. So Profitability ratios show the firm the firm,s overall efficiency in generating returns and performance.