1. Return on Investment (ROI): This metric measures the gain or loss generated on an investment relative to its cost. It is calculated as (Net Profit / Cost of Investment) * 100.
2. Return on Equity (ROE): This measures the profitability of a business in relation to shareholdersâ equity. It is calculated as (Net Income / Shareholderâs Equity) * 100.
3. Earnings Per Share (EPS): This is calculated as (Net Income - Dividends on Preferred Stock) / Number of Outstanding Shares. It indicates the companyâs profitability on a per-share basis.