Profitability category (P of GPRV)

Modified on Mon, 10 Aug, 2020 at 4:33 PM

The Profitability category of GPRV includes financial indicators that measure the company’s operating efficiency.

Profitability indicators are first calculated in absolute value for the selected companies, as well as for all companies in the reference universe. In a second phase, for each indicator the absolute value is converted into a score from 0 to 10 based on the ranking of that indicator for the company vs the companies of the reference universe. An aggregated score for the category is also calculated taking the average of the scores of all indicators. A low score (below 5) is a sign of underperformance, while a high score (above 5) is a sign of outperformance.

 

Where do I find it?

GPRV profitability indicators for a company are available in the GPRV view (Companies interface).

GPRV profitability aggregates for industry sectors and market indices are available in the Profitability views under GPRV Tables (Sectors interface).

 

What do I need to know?

A different set of ratios is used for industrial companies, banks, and insurance firms.

Contrary to traditional margin and return ratios that measure the annual growth rate in a variable, GPRV ratios use financial data spanning over several years combined with weights to balance the importance of each year. You can click a ratio figure to check the underlying calculation formula (feature available for individual companies, not for company lists).

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