Investors, and therefore managers, are particularly interested in the profitability of the firms that they own. As we will see, there are many ways to measure profits. Profitability ratios provide an easy way to compare profits to earlier periods or to other firms. Furthermore, by simultaneously examining the first three profitability ratios, an analyst can discover categories of expenses that may be out of line. Profitability ratios are the easiest of all of the ratios to analyze. Without exception, high [...]