profitability index

Popular Terms
Ratio of the present value of a project's cash flows to the initial investment. A profitability index number greater than 1 indicates an acceptable project, and is consistent with a net present value greater than 0.

Use 'profitability index' in a Sentence

I had to check the profitability index to determine a few things and it was really interesting to me, because I had never done it before.
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You must factor in everything when coming up with the profitability index for a new project that you think is high risk.
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Many of our clients have portfolios with a high rate of investments enjoying profitability indexes over 3.5, which is well above the standard and outperforms others in the industry.
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