# Profitability Ratios — ROE, Margins & How Profitable a Company Is

> Profitability ratios measure how efficiently a company turns sales and shareholders' capital into profit. Return on equity (ROE) and the margin ladder (gross, operating, net) are the core measures — a durably high ROE and stable margins are among the strongest signs of a quality business.

## Guides in this cluster

- [Return on Equity (ROE)](https://foliofundamentals.com/learn/roe) — Profit generated on shareholders' capital.
- [Profit Margins](https://foliofundamentals.com/blog/how-to-read-an-income-statement) — Gross, operating, and net margins explained.

## More profitability metrics (coming soon)

Return on Assets (ROA), Net Margin, Gross Margin

## How this fits

Profitability is one of the five pillars of the FolioFundamentals Fundamental Score. See how to analyze stocks (/learn/how-to-analyze-stocks) and the other pillars: Valuation (/stocks/valuation), Profitability (/stocks/profitability), Growth (/stocks/growth), Financial Health (/stocks/financial-health).

Analyze any stock free: https://foliofundamentals.com/analyzer