Accountant Metrics – Page 3

The Price-to-Earnings Ratio is a company valuation metric that compares a stock's current share price to its earnings per share, showing how much investors pay for each dollar of earnings.

Purchases is the total amount spent on goods bought from suppliers for the purpose of reselling at a profit. It records procurement spend at the time of purchase, before inventory adjustments or labour costs are applied.

Reactivation MRR is the total recurring revenue generated from customers who previously cancelled and have resumed a subscription in the current tracking period. It measures the revenue impact of win-back efforts and helps distinguish returning-customer growth from new customer acquisition.

Return on Ad Spend (ROAS) is a marketing metric that quantifies the total revenue generated for every dollar spent on advertising. In other words, ROAS measures the effectiveness of your advertising efforts by comparing total ad spend on campaigns to the revenue from those campaigns.

Return on Invested Capital is a profitability metric that measures how efficiently a company generates profit from its deployed capital. It is calculated by dividing Net Operating Profit After Tax (NOPAT) by invested capital and expressed as a percentage.

Return on Investment is a profitability metric that shows how much net gain an investment produced relative to its cost. It is expressed as a percentage. ROI is calculated by dividing net profit by the total cost of the investment, then multiplying by 100. A positive ROI means the investment generated profit above its cost. A negative ROI means the investment lost money. Teams use ROI to compare options, justify spending, and decide where to direct budget.