Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money for the best return.

How to Calculate the Profitability Index To calculate the profitability index, you first need to determine the present value of the expected future cash flows from the investment.

How to Calculate the Profitability Ratio Several key profitability ratios are commonly used to assess a company’s performance.

How to Calculate an Industry's Profitability. One way to determine profitability is to calculate the ratio of profits to other financial metrics, such as sales, assets or equity. Common ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

To analyze a business’s profitability, the financial statements must be looked at to understand better where the company is succeeding.

Net present value and the profitability index are helpful tools that allow investors and companies make decisions about where to allocate their money.