Profitability ratios 


Home Site Map Add Term Search About Us Contributors 
Profitability ratiosRatios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment.Profitability ratios Similar MatchesProfitability indexProfitability indexThe present value of the future cash flows divided by the initial investment. Also called the benefitcost ratio. Risk adjusted profitabilityRisk adjusted profitabilityA probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value. 
