Alpha
A measure of an investment's performance on a risk-adjusted basis. Positive alpha indicates the investment has outperformed its benchmark after accounting for risk.
Related terms
Asset Turnover
Revenue divided by average total assets, showing how efficiently a company converts its asset base into sales.
Operating MarginOperating income as a percentage of revenue, showing profitability from core business activity.
Return on Equity (ROE)A profitability ratio calculated as net income divided by shareholders' equity. It measures how effectively a company uses equity capital to generate profits.
Sharpe RatioExcess return divided by volatility, measuring how much reward an investment delivers per unit of risk.
Total ReturnAn investment's full result including price change plus dividends or interest reinvested.