

It is the amount of all loans defaulted on by people who have received loans from the banking institution.Gross NPA ratio is the ratio of total gross NPA to total advances (loans) of the bank They are used to evaluate the health of a company and provide useful insights into the financial well-being of of the company ROIC is the amount of money a company makes that is above the average cost it pays for its debt and equity capital.ĮPS indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value. Look for ROE equal to or high compared with other firms in the same line of business. It signifies how good the company is in generating returns on the investment received from its shareholders. ROA is an indicator of how profitable a company is relative to its total assets.Higher value is desirable. A higher ROCE is generally considered as better. It measures the earnings as a proportion of debt+equity required by a business to continue normal operations. It measures the amount of money banks have raised in the form of deposits and has been deployed as loans. It measures the difference between the interest income generated and the amount of interest paid out to lenders by banks. It is calculated by dividing the net profits by net sales. It measures how much net profit is generated as a percentage of revenue. It is calculated by dividing the operating profit by total revenue.

It measures the percentage of profit a company produces from its operations, prior to subtracting taxes and interest charges. Op profit margin (Operating Profit Margin) Profitability ratios are used to evaluate the ability of a company to generate profit relative to its revenue, assets, operating costs, and equity during a specific period of timeĪ higher ratio or value indicates the company is performing well by generating revenues, profits, and cash flow. These are a number of indicators that can give users valuable guidance on how strong the company is compared to its peers or its past performance.They also provide insights into the operational efficiency and stability of the company
