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    indra_955's Avatar
    indra_955 Posts: 1, Reputation: 1
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    #1

    May 1, 2007, 12:57 AM
    Profitability ratios
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    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.
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