This post is aimed squarely at measurements that can be used to determine a company’s ability to create a return on investment. These measures encompass net worth, several types of return on assets and equity, earnings per share, economic value added, and return on dividends. They can be used by investors to determine what to pay for a company’s shares as well as to measure the return on investment.

Advertisement

Company management can use these measures to determine its ability to generate a reasonable rate of return. The measures discussed in this post are:

Net Worth
Book Value per Share
Tangible Book Value
Return on Assets Employed
Return on Operating Assets
Return on Equity Percentage
Return on Common Equity
Financial Leverage Index
Equity Growth Rate
Earnings per Share
Percentage Change in Earnings per Share
Economic Value Added
Dividend Payout Ratio
Dividend Yield Ratio

 

Here is the formula list:

Return On Investment Measurement Ratio Formula-2

Return On Investment Measurement Ratio Formula-1

Return On Investment Measurement Ratio Formula

More measurement ratio formula you may want to know as well:

Asset Utilization Measurements (Ratios)

Operating Performance Measurements (Ratios)

Cash Flow Measurements (Ratios)

Liquidity Measurements (Ratio)

Capital Structure and Solvency Measurements (Ratios)

Market Performance Measurements (Ratios)

Measurements and Ratios For Financial and Accounting Department

Measurements and Ratios For Engineering Department

Measurements and Ratios For Logistics Department

Measurements and Ratios For Production Department

Measurements and Ratios For Sales Departments