Growth Metrics

CAGR (Compound Annual Growth Rate)

Compound Annual Growth Rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each year of the investment’s life span.

Gross Profit Margin

Gross Profit Margin is a metric analysts use to assess a company's financial health by calculating the amount of money left over from product sales after subtracting the cost of goods sold (COGS). Sometimes referred to as the gross margin ratio, gross profit margin is frequently expressed as a percentage of sales.

EBITDA Margin

The EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. EBITDA stands for earnings before interest, taxes, depreciation, and amortization.

Knowing the EBITDA margin allows for a comparison of one company's real performance to others in its industry. It also helps in gauging the effectiveness of a company’s cost-cutting efforts. The higher a company's EBITDA margin is, the lower its operating expenses are in relation to total revenue.

EBIT Margin

EBIT Margin is the operating profit over as a percentage of revenue. This margin allows investors to understand real business costs of running since it includes the cost of depreciation and amortization, because parts of a company's property, plant, and equipment will eventually need to be replaced as they get used, broken down, etc.

Tax Rate

A tax rate is the percentage at which an individual or corporation is taxed. This rate differs from country to country and is paid as a percentage of a company’s taxable income.