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Home Categories Financial Ratios Profit margin before tax is a financial accounting tool used to measure the operating performance of a company before taxes. Price elasticity of demand is a measure of the change in the consumption of a good with respect to the change in its price. Price to tangible book value (PTBV) measures a company’s market value in relation to its hard or tangible assets. The P/B ratio measures a company’s market value relative to its book value. The price-to-cash flow ratio (P/CF) is a multiplier that compares a company’s market value to its operating cash flow, or its share price per share to operating cash flow per share. The price-to-sales ratio (P/S) shows how much investors are willing to pay per dollar of sales per share. The PEG ratio improves the P/E ratio by adding expected earnings growth into the calculation. Profit ratios measure a company’s ability to make a profit from sales or operations, balance sheet assets or share capital. The Q relation was popularized by Nobel laureate James Tobin and invented in 1966 by Nicholas Kaldor. The quick liquidity ratio is the total amount of a company’s quick assets divided by the amount of its net liabilities and reinsurance liabilities.