Examlex
If markets are efficient, stock prices go up when there is positive information about a company, and go down when there is negative information about the company.
Profit Margin
A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, showing the profitability of a company or product.
DuPont Formula
A financial analysis method that breaks down return on equity into three components: profit margin, asset turnover, and financial leverage, to help understand a company's financial performance.
Operating Income
Earnings generated from a company's core business operations, excluding deductions of interest and taxes.
Return on Investment
A measure of the profitability and efficiency of an investment, calculated as the net profit of the investment divided by its initial cost.
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