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Category

Financial ratios

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price–earnings ratio
the ratio of a company's share price to the company's earnings per share
return on equity
measure of the profitability of a business
rate of return
finance term; profit on an investment
reserve requirement
type of regulation on commercial banks
return on assets
ratio to express the profitability of a company's assets in generating income
earnings per share
value of earnings per outstanding share of common stock for a company
quick ratio
company's liquid assets divided by its current liabilities
financial ratio
characteristic number
asset turnover
sales generated per dollar of assets
beta
in finance, number describing the correlated volatility of an asset in relation to the volatility of the benchmark
current ratio
liquidity ratio that measures whether or not a firm has enough resources to meet its short-term obligations
profit margin
ratio between turnover and profit
Sharpe ratio
measure of an investment's risk premium
DuPont analysis
expression which breaks ROE (return on equity) into three parts
operating margin
relating operating profits to net sales
inventory turnover
measure of the number of times inventory is sold or used in a time period
price-to-book ratio
expresses the current share price as premium above the book value of a share
gross margin
relating gross profits to net sales
Tobin's q
ratio between a physical asset's market value and its replacement value
times interest earned
ratio measuring a firm's ability to meet its interest payments
debt ratio
financial ratio that indicates the percentage of a company's assets that are provided via debt
dividend yield
latest declared or latest announced dividend expressed as multiple of current share price
Altman Z-score
model for assessing likelihood of bankruptcy
loan-to-value ratio
financial term used by lenders
Greeks
model parameters in mathematical finance
capital adequacy ratio
ratio of a bank's capital to its risk
PEG ratio
price/earnings to growth ratio, a stock price analysis tool
Treynor ratio
measure of financial risk
Price-sales ratio
Measures a company's share price in terms of its sales
equity ratio
financial ratio indicating the proportion of equity used to finance a company's assets
cash conversion cycle
length of time it takes a company to convert resource inputs to cash flows
dividend payout ratio
debt-to-equity ratio
financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets
Alpha
risk-adjusted measure of the so-called active return on an investment
social return on investment
a method for measuring extra-financial value (e.g. social or environmental) of an investment
return on capital
measure for the return an investment generates for capital contributors
debt service coverage ratio
financial metric
return on capital employed
used in finance as a measure of the returns that a company is realising from its capital employed
operating leverage
measure of how revenue growth translates into growth in operating income
Cyclically adjusted price-to-earnings ratio
stock market valuation measure
Sortino ratio
Measurement in finance
financial liquidity
measure of the ability of a debtor to pay their debts as and when they fall due
Accounting rate of return
financial ratio
Risk-adjusted return on capital
profitability measurement framework
Net interest income
Financial ratio
receivables turnover ratio
effectiveness of a business in collecting its credit sales from customers
average propensity to save
ratio
like for like
measure of growth in sales
Days sales outstanding
Average elapsed time (in days) between a sale and the collection of cash. Reciprocal of Receivables turnover ratio.
total expense ratio
Measure of the total cost of an investment fund
Earnings yield
EPS expressesd as a percentage of the share price. Numerically the reciprocal of P/E.
Buffett indicator
aggregate stock market valuation metric
financial result
Deleveraging
At the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic entity, such as a household or a firm. It is the opposite of leveraging, which is the practice of borrowing money to acquire assets and multiply gains and losses.
benefit–cost ratio
indicator of value for money of a project or proposal
efficiency ratio
indicator of expenses as a percentage of revenue; i.e. how many euros one spends to make a euro
Loss ratio
Ratio of losses to gains
fixed-asset turnover
CROCI
financial ratio
Calmar ratio
calculation of investment performance