HomeDefinitionsCompareDebt Profitability indexThe financial definition for Profitability index:The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio. Similar MatchesProfitability ratiosProfitability ratiosRatios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. Risk adjusted profitabilityRisk adjusted profitabilityA probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value. Click to compare definitions of Profitability index Click to view definitions beginning pr |