KPI Profitability ratios - XBRL Reporting Indicators

Analysing company's financial statements comprised of balance sheets, income statements and cash flow statements may attempts creditors to answer several questions like:

How well the business is doing in the company ? What are its strengths ? What are its weakensses ? 

How does the company fair in its Industry ? Is the company's business improving or deteriorating ?

How does the company create value for its stackeholders ?

To that extend is necessary a set of profitability ratios for the global community of creditors to deeply learn about the company's ability to earn good profit and to generate margins and returns of investments which is a typical indicator that express the financial well-being of a company in the market.

More interestingly experience shown that company's profitability can be measured either in term of how efficienct is the business operating cycle compared to those of other companies in the market niche, and also, how the assets in use by management create value for different stakeholders (Return on Investment, Return on Equity, Return on Sales , Return on Assets ) considering that such value can be created based on a certain level of liability exposure.

Since the total net income has itself a low meaning unless it is going to be compared with those of other companies, the dataset of profitability indicators provide an insight on the resources used to get that profit and therefore additional vertical value to the community of creditors.

To that extend the family of profitability ratios can provide either a global profitability situation of one's company financial statement but also a vertical profitability information that one investor or stakeholders is more interested to know.

This family together with others is the key point that can boost better deals and augmenting esponencially one's company profitability.  

To leran more about profitability ratios:    

UNIGIRO is provider of Benchmark Key Performance Indicators 

MONITORING ENTERPRISE CREDIT RISK: we can provide a Smart XBRL Data Analytics Engine Toolkit for Financial Risk Analysis to let Creditors and Investors monitoring company's creditworthiness and financial sustainability

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