ECONOMICS

Detailed explanation-1: -An Income Statement is traditionally used to measure profitability of the business for the past accounting period.

Detailed explanation-2: -Profitability ratios are financial metrics used by analysts and investors to measure and evaluate the ability of a company to generate income (profit) relative to revenue, balance sheet assets, operating costs, and shareholders’ equity during a specific period of time.

Detailed explanation-3: -Net profit margin It is the revenue that is left over after all the company’s operating and non-operating costs have been paid. The only outgoing figures that are not included are dividends paid to investors, as these are not classed as an expense.

Detailed explanation-4: -4.9. Hypothesis 2 (H2): profitability is proven to positively affect the stock price variable, meaning that the higher the company generates profits, the higher the stock price in the capital market.