Gross profitability

Gross profit divided by total assets: what the business earns per dollar of capital tied up to sell.

How to read it

Separates a fat margin earned on a mountain of assets from the same margin earned on very little.

How to use it

One of the best-documented quality measures in academic work.

In Kereon

Investing · company. Withheld for banks, which have no gross profit.

Also called: gross profitability.

The whole glossary · Investing tools