Significant performance indicators, Financial Management

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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


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