Business Ratios and Formulas: A Comprehensive Guide
Business Ratios and FormulasA Comprehensive GuideThird EditionWhether you're starting, running, or growing a business, Business Ratios and Formulas, Third Edition is essential reading, with nearly 250 operational criteria and clear, easy-to-understand explanations that can be used right away.An ideal tool for measuring corporate performance, this authoritative resource allows managers and auditors to pick and choose the tools they need to best assess their organization's performance. Each formula includes a complete description, explanation of the calculation, an example, and cautions regarding its use. The cautions are of particular use, since they describe those elements of a measurement that can be modified to deliver misleading results, different measurements that may work better in certain situations, usage on a trend line basis, and which other measurements should be used to reinforce indicated results.The Third Edition includes approximately twenty new ratios and formulas covering fixed-charge coverage ratio; free cash flow formula; capital-labor ratio; cash coverage ratio; value at risk formula; cash conversion efficiency metric; and open/close requisition ratio. For professionals needing to compile information about a company's long-term performance, the new edition describes how to use an electronic spreadsheet to compile a standard set of measurements, using Microsoft Excel as the template.Author and renowned accounting expert Steve Bragg categorizes performance measurements for accounting, engineering, logistics, production, and sales departments and also discusses topics related to efficiency, effectiveness, capacity, and market share. Chapter topics include measurements related to asset utilization, operating performance, cash flows, liquidity, capital structure, return on investment, and market performance.Accounting professionals, business managers, and operational consultants will turn to Bragg's peerless guide again and again to assess a host of organizational performance standards.