# cost-benefit ratio

(redirected from Profitability index)
Also found in: Financial, Acronyms, Wikipedia.

## cost-benefit ratio

a mathematic representation of the relationship of the cost of an activity to the benefit of its outcome or product.
Mentioned in ?
References in periodicals archive ?
Negative values of operating profit and profitability index of the current year indicate that, in addition to not covering the aforementioned costs, profits do not present a positive margin to cover other production costs.
The cost per kg feed of the NC1 + EC1 diet was lower in relation to the PC diet, and the profitability index was higher in the NC1 + EC1 diet compared to the PC diet.
From the calculations in the previous sections and the application of the Decision Tree Model, we can conclude that in evaluating investment opportunities of different and similar outcomes, even after applying the techniques that return solid and clear numbers, such as Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI) and Pay-Back Period, there is still a probability of missing the most optimum and most profitable investment opportunity if a decision is only made based on the mentioned calculations.
1: CZ Financial models used in appraising the most recent ICT project Model: (n = 74) Ranked (a) (b) 1st 2nd Payback discounted + conventional * 66 63 37 20 Payback (conventional / non-discounted 48 46 27 14 figures) (PB) Net Present Value (NPV) 29 27 15 6 Return on investment / Accounting rate 24 22 13 4 of return (ROI/ARR) Discounted Payback (using discounted 18 17 10 6 figures) (DPB) Internal Rate of Return + Modified 14 12 4 4 Internal Rate of Return * Internal Rate of Return (IRR) 14 12 4 4 Other 5 4 3 0 Profitability Index (PI) 5 4 1 1 Modified Internal Rate of Return (MIRR) 0 0 0 0 Model: Ranked Ranking 3rd 4th Payback discounted + conventional * 6 0 2.
2%, and the average profitability index (still weighted by committed capital) is 1.
The profitability index (PI) and annualised rate of return (AROR) were 1.
Equally noteworthy is the performance of its sires in terms of the Canadian Proofs' Lifetime Profitability Index (LPI), claiming four out of the top five rankings.
The Profitability Index and Modified Profitability Index: A Technical Note.
Breaking down the profitability index, the financial sector performed the worst at 0.
In any one of the world's bulk market centres, the price of a single product such as gas oil can change in one day by an amount so as to change a refinery's profitability index from positive to negative or vice versa.
Several models are commonly used to evaluate capital budgeting projects: the payback, accounting rate of return, present value, internal rate of return, profitability index models and others.
The company's suggestions are based on the compiled data as it is presented in three different modules: operating data, financial statements, and the profitability index.

Site: Follow: Share:
Open / Close