Significant Performance Indicators
Following are the most commonly used performance indicators used to assess the financial, and general health of any company:
Growth Measure - Compounded Annual Growth Rate of Total Assets (CAGRTA)
Profitability Measure - ROA
Profit Margin Measure - NPM
Asset Utilization Measure - Sales-to-Asset Ratio (STA)
Risk Measure - Variance of ROA (VROA)
Tobin's Q Ratio
Total Sales
Earnings per Share (EPS)
EPS = {PAT / n}, where 'n' is the number of equity shares
Market Capitalization = MV per Share * n
Book Value (BV) of Equity = {Net Worth / n}
Price-to-Earnings Ratio (P/E Ratio)
P/E Ratio = Market Price per Share / EPS
= Market Capitalization / PAT
Price-to-Book Value Ratio (P/BV Ratio)
P/BV Ratio = Market Value per Share / Book Value per Share
= Market Capitalization / Net Worth