Secured long from financial institutions
and commercial banks.
They have to be repaid/redeemed either
in lumpsum at the maturity of the long/debenture on in installments
over the life of the loan.
Total
debt: Long term debt plus short-term debts. This includes
current liabilities.
Shareholders
Equity: The shareholder's Equity includes
Equity and preference share capital.
Past accumulated profits but excludes
fictious assets like past accumulated losses discount on
issue of shares etc.
Permanent
Capital: This includes shareholders equity and long term
debt.
Total
Assets: The total asset consists of permanent capital
plus current liabilities.
EBIT: Earring
before Interest and Taxes or operating profit before interest
and Taxes.
Interest:This
is the amount to be paid or paid out on interest on long-term
loan.
EAT: Earrings
after Taxes.
Preference
Dividend: The amount paid out as dividend on preference
shares.
Gross
Profit: This amount is calculated by subtracting cost
of goods sold from sales.
Net
Sales: All credit sales plus cash sales.
Cost of goods
sold: Included in this cost are material cost, labour
cost are other manufacturing expenses such as fuel, power,
repairs, maintenance consumable stores, insurance of goods
etc.
Administrative
expenses: This includes all the expenses related to administration
such as salary, managerial remuneration etc.
Selling
Expenses: All expenses related to selling of the product.
Operating
Expenses: The day to day expenses in cured in running
a business such as sales and administration (Selling + Administrative
expenses).
Financial
Expenses: All expenses, which are of monetary nature,
can be measured in terms of money.
Interest
paid to creditors: This is the amount paid to creditors
as interest for loan etc.
Tax
advantage on Interest:
Average
Total Assets: This can be calculated as follows (Opening
Total Assets + Closing Total Assets)/2
Average
Total Capital Employed: The term capital employed refers
to long-term funds. It can be computed in two ways. First
it is equal to non-current liabilities (long-term liabilities)
plus owners equity. Alternatively it is equivalent to net
working capital plus fixed assets.
Avg. Total capital Employed = (Total Opening Capital Employed+Total
Closing Capital Employed)/2
Average
Intangible Assets: Intangible assets do not generate goods
and services directly. In the way reflect all the nights of
the firm. This category of assets comprises patents, copyrights,
trademarks, and goodwill.
Net Profit
Available to Equityholders: It is the profit available
to ordinary shareholders after taxes and preference dividend.
Preference
Dividend Paid: Amount paid as dividend to the preference
shareholders.
No of ordinary
shares: The total number of ordinary shares outstanding.
Market
Value Pershare: The market value per ordinary share.
Current
Assets: The current assets of a firm represent those assets
which can in the ordinary course of business, be converted
into cash within a short period of time, normally net exceeding
one year, and include cash and bank balances, marketable securities
inventory of raw materials, work in progress, finished goods,
debtors net of provision for bad and doubtful debts, bills
receivable and prepaid-expenses.
Current
Liabilities: These are short-term maturing obligations
to be net within a year consist of trade creditors, bills
payable, bank credit, provision for taxation, dividends payable
and outs tending expenses.
Average
Inventory: (Opening Inventory + closing Inventory)/2
Net
Credit Sales: All the sales made in credit minus returns
if any.
Average
Debtors: (Opening Debtors + Closing Debtors)/2
Net
Credit Purchases: All the purchases made in credit minus
returns it any.
Average
Creditors: (Opening Creditors + Closing Creditors)/2
Average
Fixed Assets: They are fixed in the sense that they are
acquired to be retained in business on a long-term basis to
produce goods and services and are not for resale, like land
and buildings, plant, machinery etc.
Average Fixed Assets = (Opening Fixed Assets + Closing Fixed
Assets)/2
Average
Current Assets: (Opening Current Assets + Closing Current
Assets)/2
Quick Assets:
The term quick assets refer to current assets which can be
converted in to cash immediately or at a short notice with
out diminution of value. Current assets included in this category
are:
Cash and bank balances
Short-term marketable securities
Debtors receivable
Thus the current assets which are excluded
are prepaid expenses and inventory.
Projected
Daily Cash Requirement: Projected cash operating expenditure/365
projected cash operating expenditure is based on past expenditures
and future plans. It is equivalent to the cost of goods sold
excluding depreciation, plus selling and administrative expenditure
and other ordinary cash expenses.
