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The “Statement of profit or loss” is also known as an “Income statement” (US English) or “Profit and loss account” (UK English).

Often also referred to as a “Profit and loss statement“ (P&L), “Revenue statement“, “Statement of financial performance“, “Statement of revenue and expense“, “Statement of income“, “Statement of operations“, “Statement of operating results“, “Operating statement“, “Statement of earnings”, “Earnings statement“, “Earnings report” or “Income and expense statement”.

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“Revenue” is also referred to as a “REVs”, “Sales”, “Net sales” or “Turnover”.

For non-profit organizations, annual revenue may be referred to as a “Gross receipts”.

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Single-step format (format 1): Goods, raw materials and services.

Multi-step format (format 2): Cost of sales or Cost of goods sold (COGS).

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Abbreviation: G&A.

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“Employee benefits expense” is also referred to as a “Cost of labor“.

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EBITDA - earnings before interest, taxes, depreciation & amortization.

EBITDA = Operating profit + Depreciation and impairment of fixed assets.

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EBITDA margin = EBITDA / (Revenue + Other income or gains).

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Operating profit margin = Operating profit / Revenue.

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Profit margin = Profit for the year / Revenue.

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Changes in receivables and prepayments related to operating activities.
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Changes in payables and prepayments related to operating activities.
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Movements in working capital = Changes in receivables and prepayments + Changes in inventories + Changes in payables and prepayments.

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Net cash flow after investing activities = Net cash flow from operating activities + Net cash flow from investing activities.

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Also known as a “Balance sheet”.

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Also known as an “Accounts receivable” or “Debtors”.

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Also known as a “Goods in process”.

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Also known as a “Other tangible assets”.

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Also known as a “Construction in progress and prepayments”.

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Also known as a “Property, plant and equipment”.

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Also known as a “Non-current assets”.

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Also known as a “Accounts payable” (AP), “Payables”, “Creditors”, “Trade creditors”.

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Also known as a “Payroll liabilities”, “Employee-related liabilities”.

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Also known as a „Customer prepayments“.

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Trade receivables days = Trade receivables / Revenue * length of the period in days.

Also known as an “Accounts receivable days”, “Days sales outstanding”, “Debtors days”.

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Taxes prepayments and receivables days = Taxes prepayments and receivables / Goods, raw materials and services * length of the period in days.

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Other current receivables days = Other current receivables / Revenue * length of the period in days.

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Prepayments for services days = Prepayments for services / Goods, raw materials and services * length of the period in days.

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Raw materials days = Raw materials / Goods, raw materials and services * length of the period in days.

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Work in progress days = Work in progress / Goods, raw materials and services * length of the period in days.

Also known as a “Goods in process days”.

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Finished goods days = Finished goods / Goods, raw materials and services * length of the period in days.

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Goods for resale days = Goods for resale / Goods, raw materials and services * length of the period in days.

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Prepayments for inventories days = Prepayments for inventories / Goods, raw materials and services * length of the period in days.

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Current biological assets days = Current biological assets / Goods, raw materials and services * length of the period in days.

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Trade payables days = Trade payables / Goods, raw materials and services * length of the period in days.

Also known as a “Days payable outstanding” (DPO), “Creditors days”.

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Employee benefits liabilities days = Employee benefits liabilities / Employee benefits expense * length of the period in days.

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Taxes payable days = Taxes payable / Revenue * length of the period in days.

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Other payables days = Other payables / Revenue * length of the period in days.

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Prepayments received days = Prepayments received / Revenue * length of the period in days.

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Operating profit margin = Operating profit / Revenue.

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Profit margin = Profit for the year / Revenue.

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EBITDA margin = EBITDA / (Revenue + Other income or gains).

EBITDA - earnings before interest, taxes, depreciation & amortization.

EBITDA = Operating profit + Depreciation and impairment of fixed assets.

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EBDA margin = EBDA / (Revenue + Other income or gains).

EBDA - earnings before depreciation & amortization. EBDA = Profit for the year - Non-operating income and expense + Depreciation and impairment of fixed assets.

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Return on equity = Profit for the year / Total equity.

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Return on assets = Profit for the year / Total assets.

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Return on investment = (Profit before income tax + Interest expense) / (Total equity + Total financial liabilities).

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Working capital = - Total receivables and prepayments - Total inventories - Current biological assets + Total payables and prepayments.

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Net working capital = Total current assets - Total current liabilities.

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Current ratio = Total current assets / Total current liabilities.

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Quick ratio = (Total current assets - Total inventories - Current biological assets) / Total current liabilities.

„Quick ratio“ is also referred to as a „Acid-test ratio“.

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Cash ratio = Cash and bank / Total current liabilities.

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Revenue growth = (Revenue in current period - Revenue in previous period) / Revenue in previous period.

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Working capital growth = (Working capital in current period - Working capital in previous period) / Working capital in previous period.

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Cumulative cash flow = Net cash flow in current period + Cumulative cash flow in previous period.

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Debt service coverage ratio = (Operating profit + Depreciation and impairment of fixed assets) / (Principal payments on loans + Interest expense).

Principal payments on loans = Net changes in loans and finance (capital) leases.

„Debt service coverage ratio“ (DSCR) is also known as a "Debt coverage ratio" (DCR).

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Equity ratio = Total equity / Total assets.

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Gearing = Interest-bearing liabilities / Total equity.

Interest-bearing liabilities = Total financial liabilities.

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Current assets to assets = Total current assets / Total assets.

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Cash and bank to assets = Cash and bank / Total assets.

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Receivables and prepayments to assets = Total receivables and prepayments / Total assets.

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Inventories to assets = Total inventories / Total assets.

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Fixed assets to assets = Total fixed assets / Total assets.

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Tangible assets to assets = Total tangible assets (residual value) / Total assets.

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Intangible assets to assets = Total intangible assets (residual value) / Total assets.

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Biological assets to assets = (Current biological assets + Long-term biological assets (residual value)) / Total assets.

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Financial investments to assets = (Short-term financial investments + Long-term financial investments) / Total assets.

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Loans and other receivables to assets = (Short-term loans + Long-term loans and other receivables) / Total assets.

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Investment property to assets = Investment property (residual value) / Total assets.

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Asset turnover = Revenue / Total assets.

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Inventory turnover = Revenue / Total inventories.

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Days in inventory = Total inventories / Goods, raw materials and services * length of the period in days.

“Days in inventory” (DII) is also known as a “Days inventory outstanding” (DIO), “Days sales of inventory” (DSI), “Inventory days”.

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Working capital turnover = Revenue / Working capital.

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Fixed asset turnover = Revenue / Total tangible assets (residual value).

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Trade receivables days = Trade receivables / Revenue * length of the period in days.

Also known as an “Accounts receivable days”, “Days sales outstanding”, “Debtors days”.

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Prepayments received days = Prepayments received / Revenue * length of the period in days.

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Trade payables days = Trade payables / Goods, raw materials and services * length of the period in days.

Also known as a “Days payable outstanding” (DPO), “Creditors days”.

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Operating cycle days = Trade receivables days + Days in inventory.

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Cash conversion cycle in days = Operating cycle days - Trade payables days - Prepayments received days.

“Cash conversion cycle” (CCC) is also known as a “Cash cycle”.

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CAPEX to depreciation = CAPEX / Total depreciation & amortization.

CAPEX (Capital expenditures) = Sum on cash flows from Investment property, Freehold land, Buildings, Machinery and equipment, Other plant assets, Unfinished buildings, projects and prepayments, Long-term biological assets and Intangible assets.

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Average interest rate = Interest expense / Total financial liabilities.