Gross Profit Margin: This ratio shows the percentage of revenue remaining after deducting the Cost of Goods Sold (COGS). It indicates the profitability of a company's core production activities. For the banking sector in Pakistan, this is often referred to as the Gross Spread Ratio. For example, a high gross profit margin for Nishat Mills Limited (NML) on the PSX might suggest efficient raw material sourcing and production processes in their textile business.

Operating Profit Margin: This ratio reveals the percentage of revenue left after deducting both the Cost of Goods Sold (COGS) and Operating Expenses. It reflects the profitability of a company's core business operations. For instance, comparing the operating profit margins of Lucky Cement Limited (LUCK) and DG Khan Cement Company Limited (DGKC) listed on the PSX can highlight which company is managing its operational costs more effectively in the cement sector.

Return on Capital Employed (ROCE): ROCE measures how effectively a company generates profit from the total capital invested in its business (including both debt and equity). It indicates the efficiency of capital utilization. For example, a consistently high ROCE for an oil and gas exploration and production company like Oil and Gas Development Company Limited (OGDC) on the PSX suggests it's generating good returns on its significant capital investments.

Profit Before Tax Margin: This ratio shows the percentage of revenue remaining after all operating expenses and interest costs have been deducted, but before accounting for income taxes. Analyzing the profit before tax margin of companies in the automobile sector on the PSX, such as Indus Motor Company Limited (INDU) (makers of Toyota) and Pak Suzuki Motor Company Limited (PSMC), can show their underlying profitability before tax implications.

Net Profit Margin: This ratio represents the percentage of revenue that remains as profit after all expenses, including taxes, have been deducted. It's a key indicator of a company's overall profitability. Investors often look at the net profit margin of major banks listed on the PSX, such as Habib Bank Limited (HBL) or Meezan Bank Limited (MEBL), to gauge their overall financial performance.

Other Operating Income: This refers to income generated from activities outside the company's primary business operations. Examples can include gains from the sale of assets or rental income. For a diversified conglomerate listed on the PSX, like Engro Corporation Limited (ENGRO), other operating income from its various business segments (including fertilizers, foods, polymers) might contribute noticeably to its overall profitability.

Return on Equity (ROE): ROE measures how effectively a company generates profit from the shareholders' equity. It shows the return generated on the capital invested by the owners. Comparing the ROE of different fertilizer companies on the PSX, such as Fauji Fertilizer Company Limited (FFC) and Engro Fertilizers Limited (EFERT), indicates how effectively they are using shareholders' investments to generate profit in the fertilizer sector.

Return on Assets (ROA): ROA indicates how efficiently a company uses its total assets to generate profit. It measures the profitability generated per unit of asset. Analyzing the ROA of a telecommunications service provider listed on the PSX, like Pakistan Telecommunication Company Limited (PTCL), can show how efficiently they utilize their network infrastructure and other assets to generate profits.

Dividend Per Share (DPS): This is the total amount of dividends paid out by a company divided by the number of outstanding shares. It represents the dividend income received per share held. For example, Oil and Gas Development Company Limited (OGDC) on the PSX declared a DPS of PKR 3 per share for March 2025.

Dividend Yield: This ratio compares the annual dividend per share to the current market price per share. It indicates the percentage return an investor can expect from dividends at the current stock price. For instance, if Meezan Bank Limited (MEBL) has a DPS of PKR 28 and its share price was PKR 275.51 at end of FY24, the dividend yield was 11.57%.

Dividend Cover: This ratio shows how many times a company's earnings can cover its dividend payments. A higher dividend cover generally indicates a more sustainable dividend policy. For example, if Fauji Fertilizer Company Limited (FFC) has an EPS of PKR 45.49 and a DPS of PKR 36.50, its dividend cover is approximately 1.24 times for FY24.

Equity Multiplier: This ratio measures the extent to which a company uses debt to finance its assets. A higher multiplier indicates a greater reliance on debt financing. For instance, Hub Power Company Limited (HUBC), being in the power generation sector, might have a higher equity multiplier compared to a tech company due to the capital-intensive nature of its business.

Retention Ratio: This is the percentage of a company's earnings that are retained within the business for reinvestment rather than being paid out as dividends. For example, a growing technology company listed on the PSX might have a higher retention ratio than a mature, stable company like Pakistan Tobacco Company Limited (PAKT).

Payout Ratio: This is the percentage of a company's earnings that are distributed to shareholders as dividends. For instance, Service Industries Limited had an EPS of PKR 6.90 and a DPS of PKR 15, its payout ratio was 217.39% for FY24.

Number of Shares: This is the total number of shares that a company has issued and are outstanding in the market. For example, Pakistan International Airlines Corporation Limited (PIA) has a specific number of outstanding shares listed on the PSX.

Sales per Share: This ratio represents the revenue generated by a company for each outstanding share of its stock. For instance, Maple Leaf Cement Factory Limited (MLCF), a listed cement manufacturer on the PSX, would have its total revenue for a period divided by its total number of outstanding shares to calculate its sales per share

Market Price per Share: This is the current price at which a single share of the company's stock is trading on the PSX. For example, on a given day, the market price per share of Nishat Mills Limited (NML) might be PKR 150.

Earnings per Share (EPS): EPS is the portion of a company's profit allocated to each outstanding share of common stock. It's a key measure of profitability per share. For example, Lucky Cement Limited (LUCK) might report an EPS of PKR 25 for a fiscal year.

Book Value per Share: This represents the net asset value of the company divided by the number of outstanding shares. It can be seen as the theoretical value of each share if the company were to liquidate its assets and pay off its liabilities. For instance, a bank like Allied Bank Limited (ABL) would have its total equity divided by its outstanding shares to get the book value per share.

Price Earnings Ratio (P/E Ratio): This ratio compares the market price per share to the earnings per share. It indicates how much investors are willing to pay for each rupee of the company's earnings. For example, if Mari Petroleum Company Limited (MARI) has a market price of PKR 1000 and an EPS of PKR 50, its P/E ratio is 20.

Price to Book Ratio (P/B Ratio): This ratio compares the market price per share to the book value per share. It can help identify whether a stock is overvalued or undervalued relative to its net assets. For instance, if National Bank of Pakistan (NBP) has a market price of PKR 40 and a book value per share of PKR 30, its P/B ratio is approximately 1.33.

Price To Sales Ratio (P/S Ratio): This ratio compares the market price per share to the sales per share.It can be useful for valuing companies that are not yet profitable or have cyclical earnings. For example, Systems Limited (SYS), a listed technology company on the PSX, can be valued using its P/S ratio. If SYS has a market price per share of PKR 538.56 and its sales per share for the last fiscal year were PKR 254.04 (calculated by dividing total revenue by the number of outstanding shares), its P/S ratio would be approximately 2.12.

Net Assets per Share: This is similar to book value per share and represents the company's total assets minus its total liabilities, divided by the number of outstanding shares. For instance, a capital-intensive company like Pakistan State Oil Company Limited (PSO) would have its net assets divided by its outstanding shares to get net assets per share.