Term
| revenue - operating expenses/ revenue |
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Definition
| operating profit margin-higher is better, trend should be upward. |
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Term
| profits after taxes/revenues |
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Definition
| Net profit margin= after tax profits per dollar of sales |
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Term
| profits after taxes + interest/ total assets |
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Definition
| return on total assets= value of return on total investments |
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Term
| profits after taxes/ total stockholders' equity |
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Definition
| Return on stockholder's equity = return stockholders are earning on their investment. 12-15 is average |
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Term
| current assets/ current liabilities |
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Definition
| current ratio = shows a firms ability to pay current liabilties using current assets should be > 1.0 but > 2.0 is better |
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Term
| current assets - current liabilities |
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Definition
| working capital Bigger amounts ar ebetter. indicates company has more internal funds to pay its current liabilites and finance inventory expansion |
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Term
| after tax profits + depreciation |
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Definition
| Internal cash flow estimate of the cash a company's business generating after the payment of ops expenses, interest and taxes. |
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Term
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Definition
| SWOT-Strengths and weaknesses are considered ______ and opport's and threats are considered _________. |
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Term
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Definition
| _________- something an organization is good at doing. |
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Term
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Definition
| _____ ________- is a proficiently performed internal activity that is central to a company's strategy and competitiveness. |
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Term
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Definition
| Most often, a core competence is k______ based, residing in people and in a company's intellectual capital rather than in its _____ on the balance sheet. |
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Term
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Definition
| ______ _______- competitively valuable activity that a company performs better than its rivals. |
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Term
unmatched
strategy
sustainable competitive advantage |
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Definition
| A distinctive competence is a potent resource strength when it gives competitively valuable capability that is _______ by rivals, underpins and adds real punch to a company's _______ and is a basis for s____ _______ _______. |
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