Making Sense of Profitability Metrics

Make Earnings Great Again - FinsDontLie Scholastic Series #4

Take ten different companies and analyze the profitability metrics they use in their news releases on earnings and you could easily have five different profitability metrics thrown at you. The choice of which metric the company uses can be very telling in terms of their strengths and more importantly, their weaknesses.

I’m going to walk through the most common, not so commonly used, define what they mean and opine on which ones I embrace or just outright ignore.

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