Rarely are firms started for reasons other than profit. In order to improve the effectiveness of their operations, businesses examine a variety of financial metrics. The most significant and prevalent of these indicators are profitability and liquidity indicators.
Profitability is an indicator of a company's economic efficiency. That is, how much profit the invested cash can generate. A company's enormous profits may not necessarily indicate a large margin. The organization's profitability will likewise be low if it generates little profit. The profitability indicator is negative if the business operates at a loss. There are a variety of profitability indicators, which are often computed as the ratio of profit to expenditure of resources. According to the profitability indicator, the efficiency with which a corporation utilises its material or monetary resources is determined (Madushanka & Jathurika, 2018).
Liquidity is a characteristic of an asset that denotes the ability ...
PĒTNIECISKAIS DARBS PĒTĪJUMS Izziņas process, kurā notiek jaunu zināšanu radīšana, līdz pat jaunu teoriju izstrādei. MĒRĶIS Veicināt kritisko un radošo domāšanu, cēloņu – seku analizēšanas