For Immediate Release
Chicago, IL – December 3, 2019 - Stocks in this week’s article are BRP Inc. DOOO, ACM Research, Inc. ACMR, Celsius Holdings, Inc. CELH, Sony Corp. SNE and Deckers Outdoor Corp. DECK.
5 Profitable Stocks to Boost Returns Using Net Income Ratio
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 operating and non-operating costs and still offer high returns.
Thus, it may be wise to invest in shares of a company with a high level of profitability as it normally ensures high returns. 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 determine 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 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 and selling.
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Sony Corporation (SNE) : Free Stock Analysis Report
ACM Research, Inc. (ACMR) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
BRP Inc. (DOOO) : Free Stock Analysis Report
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