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  2. Financial ratio - Wikipedia

    en.wikipedia.org/wiki/Financial_ratio

    Liquidity ratios measure the availability of cash to pay debt. [2] Activity ratios measure how quickly a firm converts non-cash assets to cash assets. [3] Debt ratios measure the firm's ability to repay long-term debt. [4] Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of ...

  3. Profitability index - Wikipedia

    en.wikipedia.org/wiki/Profitability_index

    Profitability index (PI), also known as profit investment ratio (PIR) and value investment ratio (VIR), is the ratio of payoff to investment of a proposed project.It is a useful tool for ranking projects because it allows you to quantify the amount of value created per unit of investment.

  4. Return on capital employed - Wikipedia

    en.wikipedia.org/wiki/Return_on_capital_employed

    Return on capital employed is an accounting ratio used in finance, valuation, and accounting. It is a useful measure for comparing the relative profitability of companies after taking into account the amount of capital used. [1]

  5. Return on capital - Wikipedia

    en.wikipedia.org/wiki/Return_on_capital

    Return on capital (ROC), or return on invested capital (ROIC), is a ratio used in finance, valuation and accounting, as a measure of the profitability and value-creating potential of companies relative to the amount of capital invested by shareholders and other debtholders. [1] It indicates how effective a company is at turning capital into ...

  6. Return on equity - Wikipedia

    en.wikipedia.org/wiki/Return_on_equity

    The return on equity (ROE) is a measure of the profitability of a business in relation to its equity; [1] where: . ROE = ⁠ Net Income / Average Shareholders' Equity ⁠ [1] Thus, ROE is equal to a fiscal year's net income (after preferred stock dividends, before common stock dividends), divided by total equity (excluding preferred shares), expressed as a percentage.

  7. Asset turnover - Wikipedia

    en.wikipedia.org/wiki/Asset_turnover

    Asset turnover is considered to be a profitability ratio, which is a group of financial ratios that measure how efficiently a company uses assets. [2]

  8. Profit margin - Wikipedia

    en.wikipedia.org/wiki/Profit_margin

    Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it indicates how much profit the company makes for every dollar of revenue generated.

  9. Risk-adjusted return on capital - Wikipedia

    en.wikipedia.org/wiki/Risk-adjusted_return_on...

    Risk-adjusted return on capital (RAROC) is a risk-based profitability measurement framework for analysing risk-adjusted financial performance and providing a consistent view of profitability across businesses. The concept was developed by Bankers Trust and principal designer Dan Borge in the late 1970s. [1]