In this very aggressive and nervous financial market, investors are looking at the bottom line. They want to know a company's return on equity and return on investment and they don't want to fool around. Doing a complete profitability analysis and having it available for your investors is a smart thing for any publicly traded firm to do.
There are different types of ratios that tell you, as a business owner, and your investors different things. Margin ratios spit out one type of information and returns ratios another. Put everything together for your investors in the DuPont Model and you have a complete profitability analysis. Check out this latest article on the Business Finance website.