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. Net present value tells us ...

Our Profitability Index metric looks at a firm's ability to convert revenue into profits. This metric, introduced in 1985, seeks to demonstrate which firms best balance leverage and profit margin for ...

* 2007 numbers are consolidated for Locke Liddell & Sapp and Lord Bissell & Brook, which merged in October 2007 to form Locke Lord Bissell & Liddell. The formula takes some of the variables — although ...

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 ...

Look for high profitability ratios to identify companies efficiently turning revenue into profits. Analyze margin and return ratios to assess how well a company manages its costs and assets. Compare ...

Julie Young is an experienced financial writer and editor. She specializes in financial analysis in capital planning and investment management. Gordon Scott has been an active investor and technical ...

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. Net present value tells us ...