Financial ratio
A financial ratio (or accounting ratio) is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard rati...
Financial ratio - Wikipedia
P/E ratio
The price-to-earnings ratio, or P/E ratio, is an equity valuation multiple. It is defined as market price per share divided by annual earnings per share.
There are multiple versions of the P/E rat...
P/E ratio - Wikipedia
Dividend payout ratio
Dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends:The part of the earnings not paid to investors is left for investment to provide for future earnings g...
Leverage (finance)
In finance, leverage (sometimes referred to as gearing in the United Kingdom and Australia) is any technique to multiply gains and losses. Most often it involves buying more of an asset by using borro...
Hansen–Jagannathan bound
Hansen–Jagannathan bound is a theorem in financial economics that says that the ratio of the standard deviation of a stochastic discount factor to its mean exceeds the Sharpe Ratio attained by any por...
DuPont analysis
DuPont Analysis (also known as the dupont identity, DuPont equation, DuPont Model or the DuPont method) is an expression which breaks ROE (Return On Equity) into three parts.The name comes from the Du...
Earnings yield
Earnings yield is the quotient of earnings per share divided by the share price. It is the reciprocal of the P/E ratio.The earnings yield is quoted as a percentage, allowing an easy comparison to goin...
Earnings yield - Wikipedia
Price–sales ratio
Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-s...
Total expense ratio
The total expense ratio, or TER, is a measure of the total cost of a fund to the investor. Total costs may include various fees (purchase, redemption, auditing) and other expenses. The TER is calculat...
Treynor ratio
The Treynor ratio (sometimes called the reward-to-volatility ratio or Treynor measure), named after Jack L. Treynor, is a measurement of the returns earned in excess of that which could have been earn...
V2 ratio
The V2 Ratio (V2R) is a measure of excess return per unit of exposure to loss of an investment asset, portfolio or strategy, compared to a given benchmark.The goal of the V2 Ratio is to improve on exi...
Average accounting return
The average accounting return (AAR) is the average project earnings after taxes and depreciation, divided by the average book value of the investment during its life.There are three steps to calculati...
Debt service coverage ratio
The debt service coverage ratio (DSCR), also known as "debt coverage ratio," (DCR) is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a popular benchmar...
Social return on investment
Social return on investment (SROI) is a principles-based method for measuring extra-financial value (i.e., environmental and social value not currently reflected in conventional financial accounts) re...
Sortino ratio
The Sortino ratio was created in 1983 by Brian M. Rom at the software development company Investment Technologies. The ratio is named for Dr. Frank A. Sortino, an early popularizer of downside risk op...
Return of capital
Return of capital (ROC) refers to principal payments back to "capital owners" (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business or investment. It s...
Debt-to-GDP ratio
In economics, the debt-to-GDP ratio is the ratio between a country's government debt and its gross domestic product (GDP). A low debt-to-GDP ratio indicates an economy that produces and sells goods an...
Debt-to-GDP ratio - Wikipedia
Debtor collection period
In accounting the term Debtor Collection Period indicates the average time taken to collect trade debts. In other words, a reducing period of time is an indicator of increasing efficiency. It enables ...
Debt-to-capital ratio
A company's debt-to-capital ratio or D/C ratio is the ratio of its total debt to its total capital, its debt and equity combined. The ratio measures a company's capital structure, financial solvency, ...
Basic Earnings Per Share
Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company.In the United States, the Financial Accounting Standards Board (FASB) requires EPS inform...
EV/EBITDA
EV/EBITDA (Enterprise value/EBITDA) is a popular valuation multiple used in the finance industry to measure the value of a company. It is the most widely used valuation multiple based on enterprise v...
Beta (finance)
In finance, the beta (β) of an investment is a measure of the risk arising from exposure to general market movements as opposed to idiosyncratic factors. The market portfolio of all investable assets ...
Beta (finance) - Wikipedia
Operating leverage
Operating leverage is a measure of how revenue growth translates into growth in operating income. It is a measure of leverage, and of how risky, or volatile, a company's operating income is.
Ther...
Import ratio
Import ratio, in economics and government finance, is the ratio of total imports of a country to that country’s total foreign exchange (FX) reserves. The ratio can be inverted and is referred to as th...
Return on net assets
The return on net assets (RONA) is a measure of financial performance of a company which takes the use of assets into account. Higher RONA means that the company is using its assets and working capita...
Business efficiency
The efficiency ratio, a ratio that typically applies to banks, in simple terms is defined as expenses as a percentage of revenue (expenses / revenue), with a few variations. A lower percentage is bett...
Reserve requirement
The reserve requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all, of the world's central banks, that sets the minimum fraction of customer deposits and notes ...
Reserve requirement - Wikipedia
Price/sales ratio
Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-s...
Fixed-asset turnover
Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of fixed assets (on the balance sheet). It indicates how well the business is using its fixed assets to generat...
Average propensity to save
In economics, the average propensity to save (APS), also known as the savings ratio, is the proportion of income which is saved, usually expressed for household savings as a fraction of total househol...