Profitability ratios are financial metrics offering insights on how good a company is able to generate earnings from revenues, assets and equity. In this post, we will perform a profitability margin analysis with Python by comparing profitability ratios across peer companies. Below are the 5 different related profitability ratios that we will calculate and analyse:

1. Net Profit Margin
2. Gross Profit Margin
3. Operating Profit Margin
4. Return on Assets
5. Return on Equity

How to Calculate Profitability Ratios

Before starting with the Python code to identify peer companies and analyse profitability margins, we will introduce each of the ratios in this section.

#python #finance #financial-analysis #python-for-finance #data-science #investing #backend #math