This document discusses various profitability ratios used to measure a company's ability to generate profits. It defines ratios like gross profit margin, operating profit margin, net profit margin, return on assets, return on equity, and return on capital employed. These ratios are calculated using figures from a company's income statement and balance sheet like sales, costs, assets, liabilities, and equity. Higher ratios generally indicate better profitability performance, allowing companies and investors to evaluate performance and compare across firms.