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View Full Version : Profitability ratios


indra_955
May 1, 2007, 12:57 AM
Dear sir /madam
I am doing my project in ratio analiysis were my company balance sheet is showing lose account .so weather I can take a net lose instead of net profit to calculate profitebilty ratio or I should ignore the profitabilty ratio . Please guide me



Yours faithfully
Surendra kumar

CaptainForest
May 1, 2007, 02:03 PM
If you have Net Loss, you use that number.

So if you are calculating Return on Assets or Equity for example, you would have a negative amount.

And it should be negative because overall, you LOST money, not GAINED any.