Definition of Key Financial Indicators (For Companies Listed in U.S., Hong Kong, and etc.)
Definition of Key Financial Indicators (For Companies Listed in U.S., Hong Kong, and etc.)

1. ROE

Return on Equity (ROE) is a measure of financial performance. It measures how effective the management is using a company's assets to create profits. The formula is:

ROE = Net Income / Average Shareholders' Equity * 100%

2. ROA

Return on Assets (ROA) is a key profitability ratio that measures the amount of profit made by a company per dollar of its assets. The formula is:

ROA = Net Income / Average Total Assets * 100%

3. EPS

Earnings Per Share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock. Here, it refers to the diluted EPS excluding extraordinary items.


Book Value Per Share (BVPS) indicates the book value (or accounting value) of each share of stock. The formula is: 

BVPS = Total Shareholders' Equity / Shares Outstanding

5. Net Margin

Net Margin is a measure of profitability. It is equal to how much net income or profit is generated as a percentage of revenue. The formula is: 

Net Margin = Net Income / Revenue * 100%

6. Debt to Asset

Debt to Asset is a leverage ratio that defines the total amount of debt relative to assets. The formula is:

Debt to Asset = Total Debt / Total Asset * 100%


Cash Flow Per Share (CFPS) is the income (minus investment earnings) less what it spends on rent, equipment, and other costs on a per-share basis that functions as a measure of a company's financial strength. The formula is:

CFPS = Net Change in Cash / Shares Outstanding


Capital Reserve Per Share (CRPS) measures the amount which a company raises in excess of par value on a per-share basis. Capital Reserve represents the accumulated capital surplus of a company (not revenue surplus), created out of capital profit, such as the upward revaluation of its assets to reflect their current market value after appreciation. The formula is: 

CRPS =Capital Reserve / Shares Outstanding

Problem Solved?