"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Warren Buffett

The **Profitability Score** is a unique metric featured on Alpha Spread, aimed to offer investors an efficient way to gauge the financial health of a company in terms of its profitability.

## Calculation

The **Profitability Score** is computed using a multi-factor algorithm that considers various financial metrics like ROE, ROIC, Revenue Growth, Net Margin, Free Cash Flow, and others. These metrics are normalized and weighted to produce a single score on a scale of 0 to 100.

## Interpretation

0-30 |
Poor profitability |

31-69 |
Average profitability |

70-100 |
Excellent profitability |

## The Bottom Line

The Profitability Score is a robust, data-driven metric that offers an at-a-glance view of a company's profitability potential.