Profitability index


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Profitability index

The present value of the future cash flows divided by the initial investment. Also called the benefit-cost ratio.

Cost-Benefit Ratio

A ratio of whether or not and how much profit will result from an investment. It is calculated by taking the net present value of expected future cash flows from the investment and dividing by the investment's original cost. A ratio above one indicates that the investment will be profitable while a ratio below one means that it will not. A cost-benefit ratio is also called a profitability index.
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Area equivalence index (A), production efficiency index (B), gross income (C), net income (D), return rate (E) and profitability index (F) of the intercropping of beet x vegetable cowpea as a function of hairy woodrose amounts incorporated to the soil
Negative values of operating profit and profitability index of the current year indicate that, in addition to not covering the aforementioned costs, profits do not present a positive margin to cover other production costs.
The cost per kg feed of the NC1 + EC1 diet was lower in relation to the PC diet, and the profitability index was higher in the NC1 + EC1 diet compared to the PC diet.
From the calculations in the previous sections and the application of the Decision Tree Model, we can conclude that in evaluating investment opportunities of different and similar outcomes, even after applying the techniques that return solid and clear numbers, such as Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) and Pay-Back Period, there is still a probability of missing the most optimum and most profitable investment opportunity if a decision is only made based on the mentioned calculations.
Sarafidis highlighted Botswana's second position on the base profitability index of returns on Foreign Direct Investment.
Process descriptions, flow diagrams, KPIs, carbon footprint calculations, the Profitability Index, the Location Factor, the Chemical Plant Cost Index and meaningful technical data about processes or improvements to existing processes are offered in a forever free online access at base.intratec.us to, for example, scale capital costs, in when-to-buy decisions and procurement budgeting.
Early chapters cover financial decision making concepts, while later chapters are devoted to four methods: the payback method, the net present value method, the internal rate of return, and the profitability index method.
Rather than use an internal rate of return (IRR), Kaplan and Schoar measure the net performance by a profitability index or PME (public market equivalent).
The overall industry performance (measured through the Profitability Index) has improved significantly- from 66 in 2008 to 78 in 2010.
The calculation of the ranking is based on the weighted computation derived from the growth index (3 years weighted sales growth rate and profit growth rate), return rate index (3 years weighted ROA and ROE), profitability index (sales profit rate) and scale index of enterprises with some candidates participated in site visits.
The profitability index (PI) was determined as the present value of the inflows divided by the initial capital investment.
The seminars will also examine allocating company resources according to a prioritised list of projects as well as identifying project evaluation and analysis techniques including the discounted payback method, internal rate of return, net present value and profitability index.