Profitability metrics are financial indicators that help assess a company's ability to generate profit relative to its revenue, assets, or equity. Common metrics include net profit margin, which shows the percentage of revenue that remains as profit after all expenses, and return on equity (ROE), which measures how effectively a company uses shareholders' equity to generate profit. These metrics are essential for investors and management to evaluate financial performance and make informed decisions. By analyzing profitability metrics, stakeholders can identify trends, compare performance against industry benchmarks, and determine areas for improvement to enhance overall profitability.