For Immediate Release
Chicago, IL – September 25, 2023 – Stocks in this week’s article are NVIDIA NVDA, iRadimed IRMD, Perdoceo Education PRDO and Axcelis Technologies ACLS.
4 Top Profitable Stocks to Invest In Using Net Income Ratio
Investors should use the concept of accounting ratios to evaluate a company's profitability. After all, they always seek a profitable company over a loss-making one. They also look for companies that offer sturdy returns even after meeting all operating and non-operating costs.
There are a variety of profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine the bottom-line performance of a company.
To that end, NVIDIA, iRadimed, Perdoceo Education and Axcelis Technologies have been selected as the top picks with a high net income ratio.
Net Income Ratio
The net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a company's effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company's ability to generate ample revenues and successfully manage all business functions.
Here are four of the 12 stocks that qualified for the screening:
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. The 12-month net profit margin of NVDA is 31.6%.
iRadimed engages in developing, manufacturing, marketing and distributing magnetic resonance imaging compatible products. The 12-month net profit margin of IRMD is 24.5%.
Perdoceo Education provides educational services. The 12-month net profit margin of PRDO is 17.5%.
Axcelis Technologies is a leading producer of ion implantation equipment used in the fabrication of semiconductors. The 12-month net profit margin of ACLS is 20.2%.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2154052/4-top-profitable-stocks-to-invest-in-using-net-income-ratio
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