HomeDefinitionsCompareDebt Profitability ratiosThe financial definition for Profitability ratios:Ratios 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. Similar MatchesProfitability indexProfitability indexThe present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio. 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 ratios Click to view definitions beginning pr |