I need ur help with my assignment :)

Rayan Saeed · #1 (**permalink**) 03-25-2009, 04:34 AM

Hi All,

thanks for openning the thread.

1. Comment on the relative profitability of the companies by using the operating income and income from continuing from operation ratios. Are these ratios appropriate for assessing relative profitability? Explain

could someone help with the ratios and what are they good for?

Many thanx

Bjonsson · #2 (**permalink**) 03-27-2009, 07:25 PM

I'd think that operating income would be a very appropriate metric with which to track relative profitability. Since Op Income is tallied before investing and financing cost/income impact, its a way of measuring the robustness of the core business that's being analyzed.

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