Profitability ratios

 

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Profitability ratios

Ratios 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 Matches

Profitability index

Profitability index

The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio.


Risk adjusted profitability

Risk adjusted profitability

A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.




 
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