What are the top 10 financial metrics used by analysts to evaluate company performance?

1. Revenue growth rate: This metric calculates the percentage increase or decrease in a company’s revenue over a specific period.

2. Gross profit margin: This metric determines the percentage of revenue that a company keeps after deducting the cost of goods sold.

3. Operating profit margin: This metric calculates a company’s operating income as a percentage of its revenue.

4. Net profit margin: This is the percentage of revenue that a company keeps as net income after all expenses are deducted.

5. Return on assets (ROA): This metric measures how efficiently a company is using its assets to generate profits.

6. Return on equity (ROE): This metric calculates the return that a company generates on its shareholders’ equity.

7. Debt-to-equity ratio: This ratio compares a company’s total debt to its total equity and shows how much of a company’s financing comes from debt.

8. Earnings per share (EPS): This metric shows how much profit a company is making per share of stock outstanding.

9. Price-to-earnings (P/E) ratio: This ratio compares a company’s stock price to its earnings per share and helps investors determine if a stock is overvalued or undervalued.

10. Free cash flow: This metric measures a company’s cash flow available to fund operations, pay dividends, and invest in growth opportunities.