Focuses on a company's ability to generate net income

A) Solvency
B) Leverage
C) Times interest earned
D) Horizontal analysis
E) Vertical analysis
F) Common-sized financial statements
G) Current position analysis
H) Profitability analysis

Profitability Analysis

The process of examining a company's performance and efficiency in generating profit from sales and investments.

Net Income

The profit of a business after all expenses, taxes, and costs have been subtracted from total revenue.

Income Statement

A document detailing a business's income, expenditures, and earnings during a designated timeframe.