RatiosProfitability ratiosProfitability ratios measure the firms use of its assets and control of its expenses to generate an acceptable rate of return.Gross margin, Gross profit margin or Gross Profit RateOR Operating margin, Operating Income Margin, Operating profit margin or Return on sales (ROS) Note: Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit.10 This is
