How to Calculate the Profitability Index To calculate the profitability index, you first need to determine the present value of the expected future cash flows from the investment.

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

Understanding the Profitability Index The PI is a financial tool that helps investors assess the potential profitability of a project or investment. It’s calculated by dividing the present value ...