The net profit margin is one of the essential calculations used to determine a company’s financial health — it refers to the percentage of profit a company earns out of its total overall revenue.

Dividend yield is a tool for comparing the size of a company's dividend to its share price.It's the annual dividend divided by the stock price.However, a higher dividend doesn't always signal a high potential investment.

A company's stock price is driven by its ability to generate profits.The P / E ratio compares those two things directly - It's the company's share price divided by its earnings per share.