Term
| Return on Investment (ROI) |
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Definition
=Interest/Assets
=Pretax Operating income/average assets |
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Definition
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Definition
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Definition
| =Operating profit -(assets * borrowing rate) |
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Term
| Economic Value Added (EVA) |
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Definition
| = Profit after tax - (WACC * Capital) |
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Term
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Definition
| =Amount borrowed * Borrowing rate charged by bank * (1-Tax Rate) |
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Term
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Definition
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Definition
| =Debt capital + equity capital |
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Term
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Definition
| = Amount borrowed from equity capital + amount borrowed from debt capital |
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Term
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Definition
| = Total cost of borrowing/Total capital |
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Term
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Definition
| Total Assets- Current liabilities |
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Term
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Definition
| = Pretax income - (assets * borrowing rate) |
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Term
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Definition
| responsible for keeping costs down |
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Term
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Definition
measured strictly on sales
Responsible only for revenues |
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Term
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Definition
| Concerned with costs & sales |
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Term
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Definition
Concerned about profits and related investments required
-ROI, residual income, EVA |
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Definition
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