Social Earnings Ratio

The Social Earnings Ratio (S/E Ratio) is a metric used to measure the social impact or value generated by an organization relative to its financial earnings. It provides a way to quantify and compare the social benefits of an organization's actions or investments against its economic performance. The ratio is often used by socially responsible organizations and investors looking to evaluate the broader impact of their activities beyond just profit.

Example

A nonprofit organization might use the S/E Ratio to demonstrate that for every $1 of revenue, $2 of social value is generated through its community programs.