Using information at a single point in time, profitability ratios are a class of financial measurements that are used to evaluate a company's capacity to generate profits in relation to its revenue, operating costs, balance sheet assets, or shareholders' equity over time.
Since most industries often regard 10% as the average and 20% as high or above average, consider aiming for profit ratios between 10% and 20% while keeping an eye on the industry average.
Enterprise resource planning (ERP) has a functionality called profitability analysis that enables administrators to forecast a proposal's profitability or improve the profitability of an ongoing project.
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