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

Finance, Ashok is to receive an amount of Rs. 15,00,000 from his relative a...

Ashok is to receive an amount of Rs. 15,00,000 from his relative after 3 years. He wants to buy a house for which he wants the money to be paid now. His relative had al

State the term- dividend cover, Dividend cover Dividend cover = Profit ...

Dividend cover Dividend cover = Profit available to ordinary shareholders (PAT) / Annual dividend(no. of times) Or =    EPS/Dividend per share Dividend cover shows safety

What is inherent risk, What is Inherent risk Susceptibility  of  an  ac...

What is Inherent risk Susceptibility  of  an  account  balance  or  class  of  transactions  to  material  misstatement either  individually  or  when  aggregated  with misstat

Beta, what is the value of beta for this fund ? If the benchmark index for ...

what is the value of beta for this fund ? If the benchmark index for this mutual fund increased by 11.00% during the period covered by beta measure, what was the rate of return for

Show example on cross currency swap, 1. Of course a swaption will be needed...

1. Of course a swaption will be needed. The major reasons being that Bond A is callable after 3 years and matures in 4 years whereas Bond B matures in 5 years. It is understandable

Market mechanism, Market mechanism: Market mechanism is a term from ec...

Market mechanism: Market mechanism is a term from economics denoting to the use of money exchanged by sellers and buyers with an open and understood system of time and value t

Define pro forma financial statements and cash budget, What is the differen...

What is the difference among pro forma financial statements and a cash budget?  Explain why pro forma financial statements are not employed to forecast cash needs. Pro forma inco

Cash flow statement, Given below are the cash flows of a project. Find out ...

Given below are the cash flows of a project. Find out the net present value of the project. Cost of capital is 18% and initial investment is Rs. 2,00,000. Year Cash Flows (lakhs)

Analyse the characteristics of good governance, Question 1: "Good Gover...

Question 1: "Good Governance is an ideal. To ensure sustainable development, actions must be taken to work towards this ideal with the aim of making it a reality." With ref

Certificate of deposits, A Certificate of Deposit (CD) can be defined...

A Certificate of Deposit (CD) can be defined as a negotiable promissory note, secure and short-term in nature. CDs are issued at a discount to the face value, the

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