For Immediate Release
Chicago, IL – September 27, 2019 - Stocks in this week’s article are Columbia Sportswear Company (COLM - Free Report) , KLA Corporation (KLAC - Free Report) , Funko, Inc. (FNKO - Free Report) , Matrix Service Company (MTRX - Free Report) and PetIQ, Inc. (PETQ - Free Report) .
5 Profitable Stocks Boasting Amazingly High Net Income Ratios
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 its operating and non-operating costs, and still offer high returns.
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 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 find out 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 the 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 its business activities, including production, administration, selling, etc.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/536823/5-profitable-stocks-boasting-amazingly-high-net-income-ratio?cid=CS-ZC-FT-analyst_blog%7Crw-536823
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