Term
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Definition
Up is GOOD - Increased profitability
Down is BAD- Decreased profitability
Because of: sales and COGS |
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Term
|
Definition
Up is GOOD - Increased profitability
Down is BAD - Decreased profitability
Because of: Sales and expenses |
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Term
|
Definition
Up is BAD - Expenses managed poorly
Down is GOOD - Expenses under control
Because of: Expenses and sales |
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Term
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Definition
Up is GOOD - Invested funds used effectively
Down is BAD - Invested funds used poorly
Because of: OE and Sales (net profit) |
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Term
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Definition
Up is BAD - Products are slow sellers
Down is GOOD - Products are fast sellers
Because of: Inventories/COGS
How effectively inventories are managed, affects GP |
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Term
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Definition
Up is BAD - Action to retrieve debt is ineffective
Down is GOOD - Debt is managed effectively
Because of: Credit sales and AR |
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Term
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Definition
Up is GOOD - Debt/liabilities are easily covered by assets
Down is BAD - Debt is not covered by assets
Because of: Cash position through assets |
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Term
|
Definition
Up is GOOD - Good overall financial strength
Down is BAD - Poor financial strength where funds are provided by borrowings
Because of: Debts, Loans, OE |
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