Profitability refers to the ability of an enterprise to obtain profits, also known as the capital or capital appreciation ability of an enterprise, and usually reflects the amount and level of income of the enterprise within a certain period of time. The profitability indicators mainly include six items: operating profit margin, cost expense profit margin, surplus cash security multiple, total asset return, net asset return and capital return. The stronger the profitability of an enterprise, the higher the return to shareholders, and the greater the value of the enterprise. At the same time, the stronger the profitability of the enterprise, the more cash flow, the stronger the solvency.
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