5. Key performance measures Measuring Stock Performance An informed and prudent investor uses a variety of measures such as financial ratios, book value, earnings per share, return on equity ete. to evaluate the worthiness and prospects of stocks he/she would invest in. It is important for you as an investor to understand how these values are caiculated and what they mean. Use the following tables to assess the worthiness of verticon stock as an investment. Verticon Stock Data (Current and Historical) One year ago Two years ago Three years ago (Millions of Dollars) \begin{tabular}{lllc} \hline Total Assets & (Minions of Dollars) & \\ Total Liabilities & 195,014 & 195,949 & 111,148 \\ Preferred Shareholders' Equity & 52 & 122,935 & 53,592 \\ Common Shareholders' Equity & 87,761 & 61 & 73 \\ Shares Outstanding & 8,012 & 72,953 & 57,483 \\ Book/Share & ? & 8,070 & 6746 \\ \hline \end{tabular} \begin{tabular}{lll} & Q1 (this year) & Last year \\ \hline Net profit margin & 15.24% & 12.24% \\ Return on equity & 11.60% & 9.30% \end{tabular} One of the most important features of a stock is its book value. The book value per share of Verticon's stock last vear was equal to Verticon's book value per share has been since three years ago, a fact that reflects on the company's overall grawth. You can see from the net profit margin that Verticon's control over its costs has since last year. You can tell based on the RoE that from the equity-holder's perspective, the overall profitability of the firm has since 2010