For Immediate Release
Chicago, IL – July 31, 2020 – Stocks in this week’s article are TopBuild Corp. (
BLD Quick Quote BLD - Free Report) , Generac Holdings Inc. ( GNRC Quick Quote GNRC - Free Report) , Turtle Beach Corporation ( HEAR Quick Quote HEAR - Free Report) , PennyMac Financial Services, Inc. ( PFSI Quick Quote PFSI - Free Report) and Flagstar Bancorp, Inc. ( FBC Quick Quote FBC - Free Report) . 5 Stocks with High Net Income Ratios to Scoop Up Now
Profitability analysis is considered one of the best possible ways to assess the prospects of a company. This analysis is used to identify a profitable company from a loss-making one. In this context, it can be inferred that a profitable company generally has a high level of sales surplus, which will help it meet all operating and non-operating costs and still offer high returns.
In this context, it may be wise to invest in shares of a company with a high level of profitability as it normally ensures high returns. As a result, the simplest and most transparent way of checking a company’s profitability is by using accounting ratios. There are a variety of profitability ratios, from which we have selected the net income ratio here as it is the most useful and simplest profitability metric.
Net Income Ratio
There are a variety of profit ratios like gross income ratio, operating income ratio, pretax profit margin and net income ratio, which can be used to determine a company’s profit generating abilities. But net income ratio is widely accepted as the most conservative of the above-mentioned ratios.
Net income in simple words is total earnings a company makes after deducting all expenses from its sales revenue. Net income ratio or net profit margin is a ratio of a company’s net income and sales revenue. A high net income ratio shows that the company is able to effectively manage all business activities, including production, administration and selling.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1102335/5-stocks-with-high-net-income-ratio-to-scoop-up Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. About Screen of the Week
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