Newspaper article St Louis Post-Dispatch (MO)

Annual Report of St. Louis Area Public Firms: Ranking Methodology

Newspaper article St Louis Post-Dispatch (MO)

Annual Report of St. Louis Area Public Firms: Ranking Methodology

Article excerpt

ANNUAL REPORT OF ST. LOUIS AREA PUBLIC FIRMS: RANKING METHODOLOGY

To qualify * A firm must be based in the St. Louis Metropolitan Statistical Area, which includes the Metro East, and its stock must be traded publicly on a major exchange. Each company receives a composite score based on four measures: return on equity, profit growth, revenue growth and total revenue. Profit growth and return on equity reflect a company's talent for making money. The percentage change in revenue shows how a company is growing. We use a size factor total revenue to give bigger businesses a more equitable footing. After all, it's easier for small companies to show sharp percent-change increases in profit and revenue. The rankings are added together and divided by four to obtain scores. …

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