Financial Measures
Earnings per Share (EPS)
The Earnings Per Share (EPS) financial measure captures the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share (EPS) serves as an indicator of a company's profitability.
Price/Earnings Ratio (P/E Ratio)
The Price/Earnings Ratio, also Price-to-Earnings Ratio, or shortly the P/E ratio, is a valuation metric of a company's current share price compared to its per-share earnings. The P/E ratio looks at the relationship between the stock price and the company’s earnings.
Cash Asset Ratio (CAR)
The Cash Ratio (CaR) or Cash Asset Ratio (CAR) is a method or a formula for capturing the liquidity of a company by comparing company's cash reserves and liabilities.
Return On Assets (ROA)
Retun On Assets (or ROA for short) is an indicator informing the user about how profitable a company is relative to its total assets. It tells the user how effective a business has been at putting its assets to work.
Capital Adequacy Ratio (CAR)
Capital Adequacy Ratio (CAR) is a ratio that regulators in the banking system use to watch bank's health, specifically bank's capital to its risk. Regulators in the banking system track a bank's CAR to ensure that it can absorb a reasonable amount of loss.
Current Ratio (CuR)
The Current Ratio (CUR) is a model or a method used to measure the liquidity of a company by comparing all current assets to all current liabilities.
Quick Ratio (QuR) and Acid-Test Ratio
The Quick Ratio (QUR) is a model or a method used for measuring the liquidity of a company by calculating the ratio between all assets quickly convertible into cash and all current liabilities.
Return On Investment (ROI)
Return on Investment (ROI) is a traditional financial measure similar to Return on Equity (ROE) that is used to measure corporation's profitability that reveals how much profit a company generates with the money and other sources from investors.
Return On Equity (ROE)
Return On Equity (ROE) is an accounting method similar to Return on Investment (ROI) that is used as a measure of a corporation's profitability that reveals how much profit a company generates with the money raised from shareholders.
Free Cash Flow (FCF)
Free Cash Flow (FCF) is the amount of cash that a company has left over after it has paid all of its expenses, including investments. It is the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.