Typically, financial ratios are organized into four categories: Profitability ratios Liquidity ratios Solvency ratios Valuation ratios or multiples Generally, ratios are used in combination to ...

Gross Profit Percentage Ratio works out the amount of profit from the buying and selling of goods before all other expenses are deducted.

For example, if a company reports a 35% profit ... over different periods or compare it against competitors. Profitability ratios are often the first thing investors look at before investing ...