By Tirthankar Chakraborty
Publication Date: 2025-11-14 17:23:00
Investors should search for profitable companies that produce strong returns after covering all operating and non-operating expenditures. Therefore, it’s sensible to invest in a profitable company rather than one that is losing money.
Here, we use accounting ratios to assess a company’s profitability. Among the several profitability ratios available, we hand-picked the most effective and widely used metrics to evaluate a firm’s bottom-line performance. These ratios show how effectively a company generates profit relative to sales, assets, or equity.
To that end, two of the best artificial intelligence (AI) stocks, Broadcom Inc. AVGO and NVIDIA Corporation NVDA, have been selected as top profitable companies for the month due to their high net income ratios.
The net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s…
