Company Rankings Key Terms
Learn company rankings key terms for business promotion and analysisLearn company rankings key terms to establish different methods of valuation and communications. Determine where your own company stands and what areas you might want to work on.
Since investors look at company rankings to determine strategic partnerships, knowing company rankings key terms gives you an edge over competitors. It helps you participate in the business playing field with ease as you negotiate business deals with others interested in your company rankings.
Profit marginsTo stand out in company rankings, a company must show strong enough profit margins to survive market volatility. Businesses determine their profit margin, also called a net margin, net profit ratio or net profit margin, by figuring their net profit as a percentage of revenue.
Market volatilityWhen determining company rankings, professionals look for a company's ability to survive market volatility. This means the business needs to have enough under it to ride unexpected highs and lows of the market without going under.
MethodologySome company rankings use subjective criteria and others use methodology, which includes concepts, comparative studies and individual method critiques, to place businesses in the ranking list.
Return on capital employedReturn on capital employed (ROCE) in companies that achieve high rankings are higher than the company borrowing rate. If it weren't, shareholder's earnings would go down.
SectorThis term refers to subdivisions in the economy. Evaluators often sort company rankings according to sector.
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