Beyond that profitability is an important characteristic number for an enterprise, those over it a statement makes how high the profit is in the comparison to the assigned capital. Usuallyprofitability 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.
Computation turnover profitability
Formula for the calculation of profitability: