Significant performance indicators, Financial Management

Assignment Help:

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

What is percentage of sales method, Q. What is Percentage of Sales Method? ...

Q. What is Percentage of Sales Method? Percentage of Sales Method: - Under this process certain key ratios based on past year's information are established. These ratios is abl

OPERATING CYCLE, DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE TO APOULTR...

DISCUSS THE APPLICABILITY OF AN OPERATING CYCLE TO APOULTRY BUSINESS (BROILERS)

Companies that would be best able to handle high debt levels, Give two exam...

Give two examples of types of companies that would be best able to handle high debt levels. Companies that manage local telephone service and those that manage natural gas deli

Example of a budget, Group Activity An example of a budget can be seen ...

Group Activity An example of a budget can be seen below. After viewing the budget, identify the possible reasons for the variations. Budget - Jul / Dec 200X

General functions of financial management, GENERAL FUNCTIONS Several f...

GENERAL FUNCTIONS Several functions of financial management currently range from planning of funds to distribution of earnings and also are extend beyond.  Some of the well-kn

Future value, you just started your first job, and you want to buy a house ...

you just started your first job, and you want to buy a house within 3 years. you are currently saving for the down payment. you plan to save $5,000 the first year. You also anticip

Divisional performance evaluation, In modern strategic management accountin...

In modern strategic management accounting it is important to use appropriate performance measurements and control concepts, underpinned by theories and models applied in a variety

Share holder value maximizations , Question based on Share Holder Value Max...

Question based on Share Holder Value Maximizations ? Hatsun Agro Product limited (HAPL) over the last Five years has shown a steady growth in its sales revenue and profits. The

What is deferred incomes, Q. What is Deferred Incomes? Deferred incomes...

Q. What is Deferred Incomes? Deferred incomes are incomes received in advance before supplying goods or services. They represent funds received by a firm for which it has to su

Difference euronote market and euro medium term note market, What is the di...

What is the difference between the Euronote market, the Euro-medium-term-note market, and the Eurocommercial paper market? Answer:  Euronotes are short-term notes guarantees by

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd