EPS: Earnings per share serves as an indicator of a company's profitability. Earnings per share is generally considered to be the single most important variable in determining a share's price. It is also a major component used to calculate the price-to-earnings valuation ratio.
Profit Margins: A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Profit margin is displayed as a percentage; a 20% profit margin, for example, means the company has a net income of INR 0.20 for each Rupee of sales.
PBIT: Profit before interest and taxes ( PBIT ) or operating income is a investment formula to measure of a corporation's profitability by subtracting operating expenses from revenue excluding tax and interest.
DE Ratio: It is a measure of a company's financial leverage. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
Fixed Asset Turnover Ratio: The fixed-asset turnover ratio measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the company has been more effective in using the investment in fixed assets to generate revenues.
Dividend Payout Ratio: The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio.
ROCE: A ratio that indicates the efficiency and profitability of a company's capital investments. ROCE is used to prove the value the business gains from its assets and liabilities, a business which owns lots of land but has little profit will have a smaller ROCE to a business which owns little land but makes the same profit. It basically can be used to show how much a business is gaining for its assets, or how much it is losing for its liabilities.
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