focus on how well the company is doing at making a profit.

Answer 1

Some key indicators to look at when evaluating a company's profitability include the net income, profit margins, and return on investment. A company that is consistently growing its net income and profit margins, while also providing a solid return on investment for its shareholders, is likely doing well at making a profit.

It is important to also consider other factors that may impact profitability, such as costs, competition, market trends, and economic conditions. Companies that are able to effectively manage these factors and adapt to changes in the external environment are more likely to maintain and increase their profitability over time.

In addition, it is helpful to compare the company's performance to industry benchmarks and competitors to get a better sense of how well it is doing in relation to others in the market. By closely monitoring these indicators and staying informed on developments in the industry, investors and stakeholders can assess the company's profitability and make informed decisions about its future prospects.