DIFFERENCE BETWEEN PROFIT AND PROFITABILITY

Difference Between Profit And Profitability

Difference Between Profit And Profitability

Introduction

For any business the principal purpose of business is to get profits. Profit is one of the financial performance of the company and proof of its success, which is achieved if income exceeds expenses. Otherwise, the company received a loss. Profit growth determines the growth potential of the company, increases its activity. According to the profit they determine the share of income between the founders and owners, the size of dividends and other income. Profit is also used to calculate the return on equity and debt ...