Price/Growth Flow

Posted in Finance, Accounting and Economics Terms, Total Reads: 330
Advertisements

Definition: Price/Growth Flow

Measure used to indicate how much a company spends on its research and development (R&D). A high ratio indicates that the company has very high earnings and is also spending significantly on its R&D while a small ratio implies the opposite.


It is calculated as follows:

Price/Growth flow = (Earnings per share + R&D per share) / Price per share.


But the drawback is that it doesn’t convey how successful is the R&D expenditure, that is, whether there are any innovative products coming out of the research.

 

Search & Explore : Management Dictionary

Browse the definition and meaning of more terms similar to Price/Growth Flow. The Management Dictionary covers over 7000 business concepts from 6 categories.



Share this Page on:

Similar Definitions from same Category: