Banks and investors evaluate the profitability of business assets to make financing decisions. Profitability reflects a company's profitability and cash flow.
RTV Profitability: This is calculated by dividing the sum of interest, net profit, and taxes by total assets and multiplying the result by 100%.
RVV Profitability: The return on short-term debt, calculated by dividing interest paid by average invested short-term debt and multiplying by 100%.
REV Profitability: This is the net profit divided by the average net equity, multiplied by 100%.
