companies | Insurance Software development

Introduction to Profitability ratios

Profitability ratios are defined as a set of financial metrics that are used to evaluate a business’s ability to make profits relative to its revenue, operating values, balance sheet assets, and shareholders’ equity over time by using the data from a specific point in time. In simple words, with these profitability ratios, insurance companies generally compare numbers from their financial performance to determine how profitable, effective or liquid their businesses are, in certain areas, from year to year. These ratios also allow the insurance companies to compare with their competitors across the street […]