| Performance Indicator | Definition | Measurement |
| Return on Asset (ROA) | ROA is an indicator of how efficient a company’s management is at using its assets to generate earnings. | ROA = (Profit after depreciation, interest and tax )/Total Assets) * 100 |
| Return on Equity (ROE) | ROE is a measure of how well a company uses investments to generate earnings growth. | ROE = (Profit after depreciation, interest and tax )/Total Equity) * 100 |
| Profit Margin (PM) | The profit margin ratio is a profitability ratio that measures the amount of net income earned with each dollar of sales generated by comparing the net income and net sales of a company. | PM = (Profit after depreciation, interest and tax )/Total Equity) * 100 |
| Asset Turnover (AT) | Asset turnover is an important ratio used to analyses how assets are utilized to produce revenues, | AT = (Net Sales/Total Assets) * 100 |
| Sales Growth | Sales Growth is the parameter which is used to measure the performance of the sales team to increase revenue. | SG = [(Sales in year 1 – Sales in year 0)/Sales in year 0] * 100 |
| Age of the Firm | The independent variable age of the firm shows history of operating activity from the start | Age is measured by the length of operating history |
| Size of the Firm | Size of the firm indicates the size of annual total asset of a firm. | Size is measured by the natural logarithm of the total assets. |
| Ownership Structure | Ownership is the state or fact of exclusive rights and control over property | Percentage of shares held by management |
| Capital Expenditure Growth | Capital expenditure is the natural logarithm of the money spent by the IPO firm on acquiring or upgrading physical assets | CEG = [(CE in year 1 – CE in year 0)/CE in year 0] * 100 |
| Total Debt Ratio | TDR is vital in assessing the ability of the firm to meet long-term obligations. | Total Debt Ratio (TDR) = (Total Liabilities/Total Assets) * 100 |