Profitability Metrics

Instability Index of Earnings
A measure of the deviation between actual profits of a company and trend profit. The higher the index, the greater the instability of a company's profitability.
Net Profit Percentage
Net Profit Percentage, also known as the Net Margin Ratio, is a critical financial metric that measures a company's profitability by expressing net profit as a percentage of sales revenue.
Return on Sales (ROS)
Return on Sales (ROS) is a key financial performance metric that calculates net pre-tax profits as a percentage of net sales, serving as a useful measure of overall operational efficiency compared with prior periods or other companies.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.