The profitability index is calculated with the following formula: We calculated that the net present value of all of the lemonade stand's cash flows was $34.20.

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 ...

To calculate a firm’s profitability Texas Lawyer uses the profitability index, a mathematical formula. The formula, developed by our affiliate The American Lawyer , is this: Profitability ...

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 ...

The profitability index is calculated with the following formula: We calculated that the net present value of all of the lemonade stand's cash flows was $34.20.