{"product_id":"business-ratios-and-formulas-9781118169964","title":"Business Ratios and Formulas","description":"\u003cb\u003eBook Synopsis\u003c\/b\u003e\u003cbr\u003eOffers a complete appraisal of analytical tools available to managers to assess performance. This resource allows you to pick and choose the tools you need to best assess your organization's performance. It provides a tool for measuring corporate performance.\u003cbr\u003e\u003cbr\u003e\u003cb\u003eTable of Contents\u003c\/b\u003e\u003cbr\u003e\u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1: Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2: Asset Utilization Measurements 5\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSales to Working Capital Ratio 6\u003c\/p\u003e \u003cp\u003eSales to Fixed Assets Ratio 7\u003c\/p\u003e \u003cp\u003eSales to Administrative Expenses Ratio 8\u003c\/p\u003e \u003cp\u003eSales to Equity Ratio 9\u003c\/p\u003e \u003cp\u003eSales per Person 10\u003c\/p\u003e \u003cp\u003eSales Backlog Ratio 12\u003c\/p\u003e \u003cp\u003eSales Returns to Gross Sales Ratio 13\u003c\/p\u003e \u003cp\u003eRepairs and Maintenance Expense to Fixed Assets Ratio 14\u003c\/p\u003e \u003cp\u003eAccumulated Depreciation to Fixed Assets Ratio 15\u003c\/p\u003e \u003cp\u003eCapital to Labor Ratio 17\u003c\/p\u003e \u003cp\u003eFringe Benefits to Wages and Salaries Expense 18\u003c\/p\u003e \u003cp\u003eSales Expenses to Sales Ratio 19\u003c\/p\u003e \u003cp\u003eDiscretionary Cost Ratio 19\u003c\/p\u003e \u003cp\u003eInterest Expense to Debt Ratio 20\u003c\/p\u003e \u003cp\u003eForeign Exchange Ratios 21\u003c\/p\u003e \u003cp\u003eOverhead Rate 22\u003c\/p\u003e \u003cp\u003eGoodwill to Assets Ratio 25\u003c\/p\u003e \u003cp\u003eOverhead to Cost of Sales Ratio 26\u003c\/p\u003e \u003cp\u003eInvestment Turnover 27\u003c\/p\u003e \u003cp\u003eBreak-Even Point 28\u003c\/p\u003e \u003cp\u003eMargin of Safety 29\u003c\/p\u003e \u003cp\u003eTax Rate Percentage 30\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3: Operating Performance Measurements 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOperating Assets Ratio 31\u003c\/p\u003e \u003cp\u003eSales to Operating Income Ratio 33\u003c\/p\u003e \u003cp\u003eSales Margin 34\u003c\/p\u003e \u003cp\u003eGross Profit Percentage 34\u003c\/p\u003e \u003cp\u003eGross Profit Index 35\u003c\/p\u003e \u003cp\u003eInvestment Income Percentage 36\u003c\/p\u003e \u003cp\u003eOperating Profit Percentage 38\u003c\/p\u003e \u003cp\u003eOperating Leverage Ratio 39\u003c\/p\u003e \u003cp\u003eNet Income Percentage 40\u003c\/p\u003e \u003cp\u003eCore Operating Earnings 41\u003c\/p\u003e \u003cp\u003eProfit per Customer Visit 42\u003c\/p\u003e \u003cp\u003eProfit per Person 43\u003c\/p\u003e \u003cp\u003eCore Growth Rate 44\u003c\/p\u003e \u003cp\u003eQuality of Earnings Ratio 45\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4: Cash Flow Measurements 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCash Flow from Operations 47\u003c\/p\u003e \u003cp\u003eFree Cash Flow 49\u003c\/p\u003e \u003cp\u003eCash Flow Return on Sales 50\u003c\/p\u003e \u003cp\u003eFixed Charge Coverage 51\u003c\/p\u003e \u003cp\u003eExpense Coverage Days 52\u003c\/p\u003e \u003cp\u003eCash Flow Coverage Ratio 54\u003c\/p\u003e \u003cp\u003eCash Receipts to Billed Sales and Progress Payments 55\u003c\/p\u003e \u003cp\u003eCash to Current Assets Ratio 55\u003c\/p\u003e \u003cp\u003eCash Flow to Fixed Asset Requirements 56\u003c\/p\u003e \u003cp\u003eCash Flow Return on Assets 58\u003c\/p\u003e \u003cp\u003eCash to Working Capital Ratio 59\u003c\/p\u003e \u003cp\u003eCash Reinvestment Ratio 60\u003c\/p\u003e \u003cp\u003eCash to Current Liabilities Ratio 61\u003c\/p\u003e \u003cp\u003eCash Flow to Debt Ratio 62\u003c\/p\u003e \u003cp\u003eReinvestment Rate 63\u003c\/p\u003e \u003cp\u003eStock Price to Cash Flow Ratio 64\u003c\/p\u003e \u003cp\u003eDividend Payout Ratio 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5: Liquidity Measurements 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAccounts Receivable Turnover 68\u003c\/p\u003e \u003cp\u003eAverage Receivable Collection Period 69\u003c\/p\u003e \u003cp\u003eDays Delinquent Sales Outstanding 70\u003c\/p\u003e \u003cp\u003eDays Sales in Receivables Index 71\u003c\/p\u003e \u003cp\u003eAccounts Receivable Investment 72\u003c\/p\u003e \u003cp\u003eEnding Receivable Balance 73\u003c\/p\u003e \u003cp\u003eInventory to Sales Ratio 74\u003c\/p\u003e \u003cp\u003eInventory Turnover 75\u003c\/p\u003e \u003cp\u003eInventory to Working Capital Ratio 77\u003c\/p\u003e \u003cp\u003eLiquidity Index 78\u003c\/p\u003e \u003cp\u003eAccounts Payable Days 79\u003c\/p\u003e \u003cp\u003eAccounts Payable Turnover 80\u003c\/p\u003e \u003cp\u003eCurrent Ratio 81\u003c\/p\u003e \u003cp\u003eQuick Ratio 82\u003c\/p\u003e \u003cp\u003eCash Ratio 83\u003c\/p\u003e \u003cp\u003eSales to Current Assets Ratio 84\u003c\/p\u003e \u003cp\u003eWorking Capital Productivity 85\u003c\/p\u003e \u003cp\u003eDays of Working Capital 86\u003c\/p\u003e \u003cp\u003eWeighted Working Capital 87\u003c\/p\u003e \u003cp\u003eDefensive Interval Ratio 88\u003c\/p\u003e \u003cp\u003eCurrent Liability Ratio 89\u003c\/p\u003e \u003cp\u003eRequired Current Liabilities to Total Current Liabilities Ratio 90\u003c\/p\u003e \u003cp\u003eWorking Capital to Debt Ratio 91\u003c\/p\u003e \u003cp\u003eRisky Asset Conversion Ratio 92\u003c\/p\u003e \u003cp\u003eNoncurrent Assets to Noncurrent Liabilities Ratio 93\u003c\/p\u003e \u003cp\u003eShort-Term Debt to Long-Term Debt Ratio 94\u003c\/p\u003e \u003cp\u003eAltman’s Z-Score Bankruptcy Prediction Formula 95\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6: Capital Structure and Solvency Measurements 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTimes Interest Earned 99\u003c\/p\u003e \u003cp\u003eCash Coverage Ratio 100\u003c\/p\u003e \u003cp\u003eDebt Coverage Ratio 101\u003c\/p\u003e \u003cp\u003eAsset Quality Index 102\u003c\/p\u003e \u003cp\u003eAccruals to Assets Ratio 104\u003c\/p\u003e \u003cp\u003eTimes Preferred Dividend Earned 105\u003c\/p\u003e \u003cp\u003eDebt to Equity Ratio 107\u003c\/p\u003e \u003cp\u003eFunded Capital Ratio 108\u003c\/p\u003e \u003cp\u003eRetained Earnings to Stockholders’ Equity 109\u003c\/p\u003e \u003cp\u003ePreferred Stock to Total Stockholders’ Equity 110\u003c\/p\u003e \u003cp\u003eIssued Shares to Authorized Shares 111\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7: Return on Investment Measurements 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNet Worth 113\u003c\/p\u003e \u003cp\u003eBook Value per Share 115\u003c\/p\u003e \u003cp\u003eTangible Book Value 116\u003c\/p\u003e \u003cp\u003eReturn on Assets Employed 117\u003c\/p\u003e \u003cp\u003eReturn on Infrastructure Employed 119\u003c\/p\u003e \u003cp\u003eReturn on Operating Assets 120\u003c\/p\u003e \u003cp\u003eReturn on Equity Percentage 121\u003c\/p\u003e \u003cp\u003eReturn on Common Equity 122\u003c\/p\u003e \u003cp\u003eFinancial Leverage Index 123\u003c\/p\u003e \u003cp\u003eEquity Growth Rate 124\u003c\/p\u003e \u003cp\u003eEarnings per Share 125\u003c\/p\u003e \u003cp\u003ePercentage Change in Earnings per Share 126\u003c\/p\u003e \u003cp\u003eEconomic Value Added 127\u003c\/p\u003e \u003cp\u003eEVA Momentum 129\u003c\/p\u003e \u003cp\u003eRelative Value of Growth 130\u003c\/p\u003e \u003cp\u003eDividend Payout Ratio 131\u003c\/p\u003e \u003cp\u003eDividend Yield Ratio 133\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8: Market Performance Measurements 135\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInsider Stock Buy-Sell Ratio 135\u003c\/p\u003e \u003cp\u003eInstitutional Capture Rate 137\u003c\/p\u003e \u003cp\u003eMarket Value Added 138\u003c\/p\u003e \u003cp\u003eEnterprise Value\/Earnings Ratio 139\u003c\/p\u003e \u003cp\u003eStock Options to Common Shares Ratio 140\u003c\/p\u003e \u003cp\u003eCost of Capital 142\u003c\/p\u003e \u003cp\u003eSales to Stock Price Ratio 144\u003c\/p\u003e \u003cp\u003ePrice\/Earnings Ratio 145\u003c\/p\u003e \u003cp\u003eCapitalization Rate 146\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9: Measurements for the Accounting\/Finance Department 147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePurchase Discounts Taken to Total Discounts 148\u003c\/p\u003e \u003cp\u003ePercentage of Payment Discounts Missed 149\u003c\/p\u003e \u003cp\u003eTransactions Processed per Person 150\u003c\/p\u003e \u003cp\u003eTransaction Error Rate 151\u003c\/p\u003e \u003cp\u003eAverage Time to Issue Invoices 152\u003c\/p\u003e \u003cp\u003eAverage Employee Expense Report Turnaround Time 154\u003c\/p\u003e \u003cp\u003ePayroll Transaction Fees per Employee 155\u003c\/p\u003e \u003cp\u003eTime to Produce Financial Statements 157\u003c\/p\u003e \u003cp\u003ePercentage of Tax Filing Dates Missed 158\u003c\/p\u003e \u003cp\u003eProportion of Products Costed Prior to Release 159\u003c\/p\u003e \u003cp\u003eInternal Audit Savings to Cost Percentage 160\u003c\/p\u003e \u003cp\u003eInternal Audit Efficiency 161\u003c\/p\u003e \u003cp\u003eDeduction Turnover 162\u003c\/p\u003e \u003cp\u003eBad Debt Percentage 163\u003c\/p\u003e \u003cp\u003ePercent of Receivables over XX Days Old 164\u003c\/p\u003e \u003cp\u003eAllowance Exhaustion Rate 165\u003c\/p\u003e \u003cp\u003ePercentage Collected of Dollar Volume Assigned 166\u003c\/p\u003e \u003cp\u003eCash Collected per Aging Bucket 167\u003c\/p\u003e \u003cp\u003eCollection Effectiveness Index 168\u003c\/p\u003e \u003cp\u003eBest Possible DSO 169\u003c\/p\u003e \u003cp\u003ePartial Payment Agreement Percentage 170\u003c\/p\u003e \u003cp\u003ePercent of Cash Applied on Day of Receipt 171\u003c\/p\u003e \u003cp\u003eAuto Cash Hit Rate 172\u003c\/p\u003e \u003cp\u003eUnmatched Receipts Exposure 172\u003c\/p\u003e \u003cp\u003eCost of Credit 173\u003c\/p\u003e \u003cp\u003eEarnings Rate on Invested Funds 174\u003c\/p\u003e \u003cp\u003eBrokerage Fee Percentage 175\u003c\/p\u003e \u003cp\u003eBorrowing Base Usage Percentage 176\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10: Measurements for the Engineering Department 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBill of Materials Accuracy 179\u003c\/p\u003e \u003cp\u003eLabor Routing Accuracy 181\u003c\/p\u003e \u003cp\u003eIdea Kill Rate 182\u003c\/p\u003e \u003cp\u003ePercentage of New Products Introduced 183\u003c\/p\u003e \u003cp\u003ePercentage of Sales from New Products 184\u003c\/p\u003e \u003cp\u003ePercentage of New Parts Used in New Products 185\u003c\/p\u003e \u003cp\u003ePercentage of Existing Parts Reused in New Products 186\u003c\/p\u003e \u003cp\u003eAverage Number of Distinct Products per Design Platform 187\u003c\/p\u003e \u003cp\u003ePercentage of Products Reaching Market before Competition 188\u003c\/p\u003e \u003cp\u003eReturn on Innovation Investment 189\u003c\/p\u003e \u003cp\u003eIntangibility Index 189\u003c\/p\u003e \u003cp\u003eScience Linkage Index 190\u003c\/p\u003e \u003cp\u003eRatio of Actual to Target Cost 191\u003c\/p\u003e \u003cp\u003eWarranty Claims Percentage 192\u003c\/p\u003e \u003cp\u003eTime from Design Inception to Production 193\u003c\/p\u003e \u003cp\u003ePercentage of Floor Space Utilization 194\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11: Measurements for the Human Resources Department 197\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEmployee Turnover 197\u003c\/p\u003e \u003cp\u003eAverage Time to Hire 198\u003c\/p\u003e \u003cp\u003eLate Personnel Requisitions Ratio 199\u003c\/p\u003e \u003cp\u003eSendouts per Hire 200\u003c\/p\u003e \u003cp\u003eIntern Hiring Percentage 201\u003c\/p\u003e \u003cp\u003eRatio of Support Staff to Total Staff 201\u003c\/p\u003e \u003cp\u003eEmployment Cost Effectiveness 202\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12: Measurements for the Logistics Department 205\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eProduction Schedule Accuracy 206\u003c\/p\u003e \u003cp\u003eEconomic Order Quantity 207\u003c\/p\u003e \u003cp\u003eNumber of Orders to Place in a Period 208\u003c\/p\u003e \u003cp\u003eEconomic Production Run Size 209\u003c\/p\u003e \u003cp\u003eRaw Material Inventory Turns 209\u003c\/p\u003e \u003cp\u003eRaw Material Content 210\u003c\/p\u003e \u003cp\u003eFinished Goods Inventory Turns 211\u003c\/p\u003e \u003cp\u003eObsolete Inventory Percentage 212\u003c\/p\u003e \u003cp\u003ePercentage of Inventory \u0026gt; XX Days Old 213\u003c\/p\u003e \u003cp\u003ePercentage of Returnable Inventory 214\u003c\/p\u003e \u003cp\u003eExcess Inventory Index 215\u003c\/p\u003e \u003cp\u003eInventory Accuracy 216\u003c\/p\u003e \u003cp\u003ePercentage of Certified Suppliers 217\u003c\/p\u003e \u003cp\u003eElectronic Data Interchange Supplier Percentage 218\u003c\/p\u003e \u003cp\u003eDistribution Turnover 219\u003c\/p\u003e \u003cp\u003eSupplier Fill Rate 220\u003c\/p\u003e \u003cp\u003eOn-Time Parts Delivery Percentage 221\u003c\/p\u003e \u003cp\u003ePurchased Component Defect Rate 223\u003c\/p\u003e \u003cp\u003eIncoming Components Correct Quantity Percentage 224\u003c\/p\u003e \u003cp\u003ePercentage of Actual Payments Varying from Purchase Order Price 225\u003c\/p\u003e \u003cp\u003ePercentage of Purchase Orders Issued below Minimum Dollar Level 226\u003c\/p\u003e \u003cp\u003eProportion of Corporate Credit Card Usage 227\u003c\/p\u003e \u003cp\u003ePercentage of Receipts Authorized by Purchase Orders 228\u003c\/p\u003e \u003cp\u003eFreight Audit Recovery Ratio 230\u003c\/p\u003e \u003cp\u003ePicking Accuracy for Assembled Products 231\u003c\/p\u003e \u003cp\u003eOrder Fill Rate 231\u003c\/p\u003e \u003cp\u003eAverage Time to Ship 232\u003c\/p\u003e \u003cp\u003eOn-Time Delivery Percentage 234\u003c\/p\u003e \u003cp\u003eDock-to-dock Time 234\u003c\/p\u003e \u003cp\u003ePercentage of Products Damaged in Transit 236\u003c\/p\u003e \u003cp\u003ePercentage of Sales through Distributors 237\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13: Measurements for the Production Department 239\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConstraint Productivity 240\u003c\/p\u003e \u003cp\u003eTakt Time 240\u003c\/p\u003e \u003cp\u003eConstraint Rework Percentage 241\u003c\/p\u003e \u003cp\u003eConstraint Schedule Attainment 242\u003c\/p\u003e \u003cp\u003eConstraint Utilization 243\u003c\/p\u003e \u003cp\u003eOperational Equipment Effectiveness 244\u003c\/p\u003e \u003cp\u003eDegree of Unbalance 245\u003c\/p\u003e \u003cp\u003eThroughput Effectiveness 246\u003c\/p\u003e \u003cp\u003eManufacturing Critical Path Time 248\u003c\/p\u003e \u003cp\u003eManufacturing Efficiency 249\u003c\/p\u003e \u003cp\u003eBreak-Even Plant Capacity 250\u003c\/p\u003e \u003cp\u003eManufacturing Effectiveness 251\u003c\/p\u003e \u003cp\u003eProductivity Index 252\u003c\/p\u003e \u003cp\u003e\u003cb\u003eUnit Output per Direct Labor Hour 253\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAverage Equipment Setup Time 255\u003c\/p\u003e \u003cp\u003eUnscheduled Machine Downtime Percentage 255\u003c\/p\u003e \u003cp\u003eMean Time between Failures 257\u003c\/p\u003e \u003cp\u003eAcceptable Product Completion Percentage 258\u003c\/p\u003e \u003cp\u003eWork-in-Process Turnover 259\u003c\/p\u003e \u003cp\u003eWork-in-Process to Standard Work-in-Process 260\u003c\/p\u003e \u003cp\u003eScrap Percentage 261\u003c\/p\u003e \u003cp\u003eFirst-Time-Through Yield 262\u003c\/p\u003e \u003cp\u003eWarranty Claims Percentage 263\u003c\/p\u003e \u003cp\u003eMaintenance Expense to Fixed Assets Ratio 264\u003c\/p\u003e \u003cp\u003eIndirect Expense Index 265\u003c\/p\u003e \u003cp\u003eReorder Point 266\u003c\/p\u003e \u003cp\u003eOn-Time Delivery Ratio 268\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14: Measurements for the Sales and Marketing Department 271\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Share 271\u003c\/p\u003e \u003cp\u003eCustomer Turnover 272\u003c\/p\u003e \u003cp\u003eAdvertising Value Equivalency 273\u003c\/p\u003e \u003cp\u003eNet Promoter Score 274\u003c\/p\u003e \u003cp\u003eBrowse-to-Buy Conversion Ratio 275\u003c\/p\u003e \u003cp\u003eRecency 276\u003c\/p\u003e \u003cp\u003eDirect Mail Effectiveness Ratio 277\u003c\/p\u003e \u003cp\u003eInbound Telemarketing Retention Ratio 279\u003c\/p\u003e \u003cp\u003eProportion of Completed Sales to Home Page Views 280\u003c\/p\u003e \u003cp\u003eQuote to Close Ratio 281\u003c\/p\u003e \u003cp\u003ePull-Through Rate 282\u003c\/p\u003e \u003cp\u003eSales per Salesperson 283\u003c\/p\u003e \u003cp\u003eSales Productivity 284\u003c\/p\u003e \u003cp\u003eSales Effectiveness 285\u003c\/p\u003e \u003cp\u003eSales Trend Percentage by Product Line 286\u003c\/p\u003e \u003cp\u003eProduct Demand Elasticity 287\u003c\/p\u003e \u003cp\u003eDays of Backlog 288\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15: Measurement Analysis with an Electronic Spreadsheet 291\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFinancial Statement Proportional Analysis 292\u003c\/p\u003e \u003cp\u003eFinancial Statement Ratio Analysis 294\u003c\/p\u003e \u003cp\u003eAutomated Ratio Result Analysis 296\u003c\/p\u003e \u003cp\u003eLeverage Analysis 297\u003c\/p\u003e \u003cp\u003eTrend Analysis 298\u003c\/p\u003e \u003cp\u003eForecasting 299\u003c\/p\u003e \u003cp\u003eCash Flow Analysis 303\u003c\/p\u003e \u003cp\u003eCapital Asset Analysis 305\u003c\/p\u003e \u003cp\u003eCompounding Analysis 307\u003c\/p\u003e \u003cp\u003eInvestment Analysis 309\u003c\/p\u003e \u003cp\u003eRisk Analysis 311\u003c\/p\u003e \u003cp\u003eAppendix: Measurement Summary 313\u003c\/p\u003e \u003cp\u003eGlossary 339\u003c\/p\u003e \u003cp\u003eAbout the Author 345\u003c\/p\u003e \u003cp\u003eIndex 347\u003c\/p\u003e","brand":"John Wiley \u0026 Sons Inc","offers":[{"title":"Default Title","offer_id":49406838636887,"sku":"9781118169964","price":51.0,"currency_code":"GBP","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0817\/1739\/5799\/files\/9781118169964.jpg?v=1730497294","url":"https:\/\/bookcurl.com\/products\/business-ratios-and-formulas-9781118169964","provider":"Book Curl","version":"1.0","type":"link"}