Ratio analysis and types of ratios - Classification of ratios - Profitability ratios
3 important questions on Ratio analysis and types of ratios - Classification of ratios - Profitability ratios
What does a profitability ratio measure?
It measures the ability of a business to generate earnings compared to its costs and expenses.
How is the Net return on assets (ROA) calculated?
Net income / Average total assets or profit margin ration * asset turnover ratio
How do you calculate the management's ability to produce profit through sales while controling departemental costs in this case for rooms?
Income before fixed charges / Available rooms
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