Company profitability equals growth equals life.  If the company is profitable then it will grow and prosper and shareholders will be happy.  This category looks at income, sales, assets and earnings.

 

Low gross margin ratio indicates an inability to control production costs.

 

Low return-on-assets ratio indicating that the company is not efficient in generating  profits from the assets being employed.  Great benchmark when compared against competitors.

 

The dividend payout ratio indicates how well earnings are able to support the dividends being paid.

 

The return-on-total equity is a measure of how profitable a company is when compared to the equity the shareholders have invested.  A high number is very good here.