By profitability (synonym net yield) one understands appropriate interest charges of an assigned capital.

Beyond that profitability is an important characteristic number for an enterprise, which makes about it a statement, how highly the profit is in to comparison-to the used capital. Usually profitability is indicated as percentage.

As a function of the base factor one can differentiate different kinds of profitability:

• Own capital funds profitability,
• Total capital profitability,
• Outside capital profitability and
• Turnover profitability.

A good economy or productivity does not suggest that also profitability is to be judged positively.

Computation turnover profitability

\ mbox {Umsatzrentabilit} \ ddot {A} \ mbox {t} = \ frac {\ mbox {profit}} {\ mbox {Umsatzerl} \ ddot {o} \ mbox {SE}} *100

Summary

If the profit of an enterprise is set as difference of yield and expenditure to the assigned capital into the relationship, one speaks of profitability.

Formula for the calculation of profitability:

\ mbox {Rentabilit} \ ddot {A} \ mbox {t} = \ frac {\ mbox {profit}} {\ mbox {capital}} *100

or also

\ mbox {Rentabilit} \ ddot {A} \ mbox {t} = \ frac {\ mbox {outputs}} {\ mbox {inputs}} *100

See also

Profit rate

Articles in category "Profitability"

We found here 28 articles.

Related Websites

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