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

Explain the working of insurance companies, Insurance companies The pri...

Insurance companies The primary purpose of insurance companies is to protect individuals and firms known as policy-holders from adverse events. Insurance companies receive prem

Capiital budgating, calculate payback period of each project and according ...

calculate payback period of each project and according to payback whice project should be accepted

Bond indenture, Bond Indenture An indenture builds the formal conditio...

Bond Indenture An indenture builds the formal conditions of a lending relationship between a borrower and a lender. It is a written record, and it outlines most important func

Role of interest groups in public policy making, Question 1: Explain cl...

Question 1: Explain clearly why "Public Policy Making constitutes a major part of the work of the Government. Question 2: Consider the role of interest groups in public

Noi approach, Two companies are identical in all aspects except in the debt...

Two companies are identical in all aspects except in the debt-equity profile. Company X has 14% debentures worth Rs. 25,00,000 whereas company Y does not have any debt. Both compan

What do you mean by marketability, Q. What do you mean by Marketability? ...

Q. What do you mean by Marketability? Marketability: The firm must be able to sell its holdings and realize cash as and when required. The securities must be readily marketable

Cash flow& funds flow statement , Explain cash flow and funds flow analysis...

Explain cash flow and funds flow analysis with suitable example from an existing corporate entity for at least three years i.e. 2008, 2009.2010.

NPV, Roxanne invested $560,000 in a new business 7 years ago. The business ...

Roxanne invested $560,000 in a new business 7 years ago. The business was expected to bring in $8,000 each month for the next 26 years (in excess of all costs). The annual cost of

Profitability ratios, Profitability Ratios   Profit Margin  ...

Profitability Ratios   Profit Margin  It is a measure of the profit margin of the company. This is important to gauge the financial position of the company.

A-b trust, It is a trust developed by a married couple with the purpose of ...

It is a trust developed by a married couple with the purpose of minimizing estate taxes. An A-B trust is a trust that splits into two on the death of the first spouse. It is produc

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