The quarterly earnings season is underway and keenly followed by investors and analysts. For those new to markets, deciphering the complex terms and big figures in the results can be daunting. Here we list some of the key metrics in quarterly reports that are specific to the banking, hotel, airline and e-commerce sectors.

##### Banking industry
• Net interest margin (NIM): This compares what a bank earns as interest from loans against what it pays as interest on deposits. NIM is calculated by dividing the difference between the interest earned and interest paid by the total interest-earning assets (loans) of the bank.
• Credit cost ratio (CCR): This is the amount a lender loses when borrowers fail to repay. CCR =  Provisions for NPA during the year/ average interest-earning asset of the bank.
• Capital adequacy ratio (CAR): It compares the bank’s available capital to its risk-weighted assets, ensuring it can cover potential risks. CAR = (Tier 1 capital + Tier 2 capital)/ ​risk weighted assets. Risk weighted assets is computed by applying the risk weight (as assigned by the regulator) to a specific loan. The risk weight varies according to the type of loan extended by the bank. For example, the RBI has currently assigned risk weight of 50 per cent for home loans and 125 per cent for personal loans. So if a bank has extended ₹100 in home loan and ₹100 in personal loan, the risk weighted assets will be 50*100 + 125*100, or ₹175.
• Gross non-performing assets (GNPA): Gauges the level of non-performing loans. GNPA = Total gross NPAs/ total assets.
• Net non-performing assets (NNPA): Gauges the level of bank asset quality. NNPA = Total gross NPAs – provisions.
• NNPA ratio = NNPA/ total assets.
##### Hotel industry
• RevPAR (revenue per available room): A critical metric unique to the hotel industry, measuring revenue generated per room. RevPAR = Average daily rate (ADR) * occupancy rate (%). Here, occupancy rate = rooms occupied/ total number of rooms.
• Manager fee income: Income from managing a property or facility, where companies follow an asset-light strategy by managing properties owned by others rather than owning and building the hotel themselves.
##### Aviation industry
• ASK (available seat kilometres): Measures passenger carrying capacity for a particular period, such as a quarter. ASK = available seats in an aircraft * number of kilometres travelled.
• RPK (revenue passenger kilometres): Calculates the kilometres travelled by paying customers by multiplying the number of paying passengers by the distance travelled.
• RASK (revenue per available seat-kilometre): Assesses revenue generation per seat kilometre.