Financial managers and analysts can discern how profitable a company is based on profitability ratios. A company is profitable when its expenses and other costs associated with producing products or offering services for customers is lower than its related earnings and income. A company may not generate profit but be able to stay in business for some period. Many growth-oriented start-up companies initially run their business based on investors’ capital before they earn any income or profit. However, a business without profit cannot sustain its business in the long run.
Profitability ratios show a company’s overall efficiency and performance. We can divide profitability ratios into two types: margins and returns. Ratios that show margins represent the firm’s ability to translate sales dollars into profits at various stages of measurement. Ratios that show returns represent the firm’s ability to measure the overall efficiency of the firm in generating returns for its shareholders.
Fifth Third Bancorp (NASDAQ:FITB) has the market capitalization of $ 15.77B. The stock has P/B ratio of 1.13 while EPS was 1.67. Institutional ownership of the company was 80% while 794.33M shares were outstanding. Net profit margin of the Company was 34.00%. Share of the company moved above its SMA 50 with 4.00%. ROE ratio was 9.50% while ROI was 9.30%.
Potash Corporation of Saskatchewan (USA) (NYSE:POT) has return on equity ratio of 16.70%. The company has $ 14.00B in market worth. Earnings per share of the company were 1.76 while 834.24M shares were outstanding. The company earned $ 1.48B in prior twelve months.
PacWest Bancorp (NASDAQ:PACW) has 83% institutional ownership while its EPS ratio was 2.90. The company has 120.20M shares outstanding while market capitalization of the company was $ 5.19B. Price to book ratio was 1.27. Net profit margin of the company was 43.30%. Stock volatility for the month was booked as 2.23% while for the week was recorded as 2.86%.
KeyCorp (NYSE:KEY) has market capitalization of $ 10.61B while its Price to book ratio was 1.05. The company offered EPS of 1.07 while its 835.37M shares were outstanding. its operating profit margin was 84.20%. The company earned $914.00M in prior 12 months. ROE ratio was 8.90% while ROA was 1.00%.