Profitability Ratios

Profitability ratios measure how efficiently a company generates profit relative to its revenue, assets, or equity. They are core metrics used by investors and analysts to compare companies within the same industry

The calculator uses the standard published formula for profitability ratios. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.

This calculator works with inches. You can enter values in the units shown — the calculator handles all conversions internally.

The core formula is: Gross profit margin = (Revenue − COGS) / Revenue × 100. Each step in the calculation is shown so you can verify the result manually.