Profitability Ratios of the Gregory St James Executive Corporate Events Centre

The profitability ratios of the corporation show how much profit the corporation is earning. The shareholder takes the keen interest in the profitability of the firm because it determines whether it is operating accurately or not. The investors also evaluate the profitability ratios before making investing decisions. The profitability ratio analysis of Corporate Event Centre indicates that the corporation needs to improve its profitability.  The net profit margin ratio & return on total assets are low and need improvement. In the year 2017 the net profit margin was 0.07 and in 2018 it was 0.06 (Pandey, 2015)

The return on total Asset was 0.15 in 2017 and in 2018 it becomes 0.06. It is suggested that the corporation should recruit a financial analyst that would help them to improve the financial performance. The corporation should enhance its asset utilization so that it can boost its sales and profitability of the firm can increase. Improving the marketing strategy can also help the organization to increase its profitability. The profitability of the firm has huge significance because the main aim of every organization is to earn the profit and if the corporation is not going to earn the profit than sustaining, in the long run, is not possible.