Profitability index

/ˌprɑfɪtəˈbɪləti ˈɪndɛks/ noun

Definition

A capital budgeting tool that measures the ratio of the present value of future cash flows to the initial investment, also known as the benefit-cost ratio. A profitability index greater than 1.0 indicates a profitable investment.

Etymology

Developed in the 1960s as a refinement of NPV analysis, particularly useful when capital is limited and projects must be ranked. The index format allows for easy comparison of projects of different sizes, addressing a key limitation of absolute NPV measures.

Kelly Says

The profitability index is like getting a 'bang for your buck' score for investments - it tells you how many dollars of value you get for every dollar you invest! It's especially powerful when you have limited money and need to choose between a small project that doubles your money and a large project that adds 50%.

Translations

AMአማርኛ
利潤 መ Öl
li-jun me-ol
ARالعربية
مؤشر الربحية
mu-wa-shir al-rub-hi-ya
BNবাংলা
লাভজনকতা সূচক
laabh-jon-ka-ta soo-ch-ok
CACatalà
índex de rendibilitat
in-dex de ren-di-bi-li-tat
CSČeština
index ziskovosti
in-dex zi-sko-vosti
DADansk
profitabilitetsindeks
pro-fit-a-bi-li-tets-in-dex
DEDeutsch
Rentabilitätsindex
ren-ta-bi-li-taet-in-dex
ELΕλληνικά
δείκτης αποδοτικότητας
dei-ktis a-po-do-ti-ko-ta-tas
ESEspañol
índice de rentabilidad
in-dee-ce de ren-tan-bi-li-dad
FAفارسی
شاخص سودآوری
sha-kh-es sood-a-vari
FISuomi
tuotonen indeksi
tuo-to-nen in-dexi
FRFrançais
indice de rentabilité
in-dee-ce de ren-ta-bi-li-te
GUGU
लाભકારકતા માપांक
laabh-kaar-ka-ta maap-aank
HAHA
gona daraja
go-na da-ra-ja
HEעברית
מדד רווחיות
me-dad ro-o-chi-yut
HIहिन्दी
लाभप्रदता सूचकांक
laabh-pra-da-ta soo-cha-kaank
HUMagyar
profitabilitási index
pro-fit-a-bi-li-ta-si in-dex
IDBahasa Indonesia
indeks profitabilitas
in-dek-s pro-fit-a-bi-li-tas
IGIG
nwee ọnọ
nwee on-o
ITItaliano
indice di redditività
in-dee-ce di red-di-ti-vi-ta
JA日本語
収益性指数
shu-eki-sei-shi-jyu
KKKK
тиршілік индексі
tir-shi-lik in-dex-i
KMKM
គណនាប់ប្រាក់
kon-na-na-p-braak
KO한국어
수익성 지수
su-ik-seong ji-su
MRMR
लाभप्रदता निर्देशांक
laabh-pra-da-ta ni-re-shaank
MSBahasa Melayu
indeks keuntungan
in-dek-s ke-u-tan-an
MYမြန်မာ
စီးပွား တွဲ
si-bo-ar twe
NLNederlands
rendabiliteitsindex
ren-da-bi-li-teits-in-dex
NONorsk
profitabilitetsindeks
pro-fit-a-bi-li-tets-in-dex
PAPA
ਲਾਭ tragen
laabh tra-gen
PLPolski
wskaźnik rentowności
w-ska-znik ren-to-w-nosci
PTPortuguês
índice de rentabilidade
in-dee-ce de ren-ta-bi-li-da-de
RORomână
indicele de profitabilitate
in-dee-ce-le de pro-fit-a-bi-li-tate
RUРусский
индекс рентабельности
in-dex ren-ta-be-l-no-sti
SVSvenska
avkastningsindex
av-kast-nings-in-dex
SWKiswahili
index ya faida
in-dex ya fai-da
TAதமிழ்
நன்மதிப்பு குறியீடு
nan-ma-thi-ppu ku-ri-i-du
TEతెలుగు
లాభదాయకత 지수
laabh-da-ya-ka-ta ji-su
THไทย
ดัชนีความสามารถในการทำกำไร
dut-ch-ni-kwan-sam-ap-rai-dan-ra-kan-tham-kam-rai
TLTL
pagsusukat ng kita
pagsus-ukat ng ki-ta
TRTürkçe
karlılık endeksi
kar-li-lik en-dek-si
UKУкраїнська
індекс рентабельності
in-dex ren-ta-be-l-no-sti
URاردو
فائدہ کا معیار
fa-i-da ka ma-i-yar
VITiếng Việt
Chỉ số sinh lời
chi so sinh loi
YOYO
àìṣẹ ìṣẹ̀
ai-she i-she
ZH中文
盈利能力指数
yínglì nénglì zhǐshù
ZUZU
umkhulu i-index
um-khu-lu i-in-dex

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