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The profitability ratio is considered one of the most important performance indicators for any organization or industry. If this ratio is good, it means that the business has been efficiently used to generate profit and return on investment. It helps in comparing the profitability of different periods in order to assess the progress. For example- let us assume that we have two companies, where one has a profit of $300 and the other has a loss of $200.
*Please ensure the reporting is done in the right spirit.
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