Significant performance indicators, Financial Management

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

Related Discussions:- Significant performance indicators

State about the equity owners, State about the equity owners Flip side...

State about the equity owners Flip side of the coin is that the equity owners are also owners of all the profits which remain after all the debt holders are paid their interes

Determine the expected return, Question : (a) Lucky Corporation is cons...

Question : (a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Proj

Difference between pay-as-you-use and pay-as-you-go methods, Question 1: ...

Question 1: (a) Explain fully the difference between ‘Pay-As-You-Use' and ‘Pay-As-You-Go' methods of financing infra-structural projects. (b) Write short notes on any ONE of

Illustrate the comparison between equity and debt, Illustrate the compariso...

Illustrate the comparison between equity and debt Equity and Debt: A Comparison 1. Equity shares don't carry any fixed charges on them. If company doesn't generate positiv

Explain in-quote-driven according to trade intermediation, Explain about th...

Explain about the in-quote-driven according to trade intermediation. In quote-driven dealer markets, a market-maker or dealer is onto one side of each trade. (Remember that dea

Calculate super normal profit, The economic analysis is done for Schlumberg...

The economic analysis is done for Schlumberger, oilfield service company. They are # 1 in terms of market caps, revenue and employees globally. If any references are used / outside

What was the first argument against traditional approach, What was the firs...

What was the first argument against traditional approach The first argument against traditional approach was based on its emphasis on issues relating to procurement of funds by

Role of special purpose vehicle, The financial institutions tha...

The financial institutions that originate the loans sell a pool of cashflow-producing assets to a specially created third party that is called a

Macaulay duration and modified duration, We can also express Modified...

We can also express Modified duration as follows: ...Eq. (3) The

Enumerate the cash flow statement analysis, Cash flow statement analysis ...

Cash flow statement analysis Cash flow statement is a primary financial statement and shows cash generating ability of the organisation. Cash generated from operations can b

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages