What are the most relevant KPIs for investors?

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The list below is not intended to be exhaustive. After all, financial performance can be assessed in countless ways, including through international auditing firm reports .

In fact, the indicators we will present are elementary in the context of the el salvador phone number list and for a good assessment of financial health. That said, let's see what they are.

1. ROE
The first indicator to be considered is the so-called Return on Equity (ROE). Therefore, before measuring it, it is essential to know what the PL consists of and how to calculate it.

In short, it is the equity and available capital that a company has in its financial reserves. Therefore, assets such as real estate, vehicles and anything that cannot be converted into cash quickly are excluded from this account.

This is an indicator measured in percentage values, so the higher it is, the healthier the company will be financially. ROE is calculated based on the share price by applying the formula, with LL representing Net Profit and PL, Net Equity.

ROE = (LL/ PL) x 100

As an example, suppose the profit obtained from a share was R$5.00 and the value of that share is R$90.00. In this case:

ROE = 5 / 90 X 100 = 5,55%

Calculate the profitability in one year and compare it with the benchmark rate for asset yield, such as the DI or Selic rates. If the ROE is lower, your business will not be as attractive to investors, who will prefer more profitable or lower-risk assets .