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5 Cards in this Set
- Front
- Back
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Gross Margin ratio
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GM / Sales
- effect COGS |
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Operating margin ratio
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Operating income / sales
effect COGS and other operating cost |
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profit margin ratio
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= After tax income / sales
- effect of divisional activities on taxes |
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RI - residual income
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= After tax income -
Cost of Invested Capital (=Assets x Cost of Capital%) |
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EVA
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= Adjusted divisional INCOME - COST of Adjusted Investments (=%cost of capital*net BV of Assets)
Adjusted Divisional Income -- >END YEAR:= After-tax income + added value expenses ( total for the current year) - % amortization of added value expenses from current year & previous year Adjusted Investments -> BEGINNING YEAR = Net BV of assets + Unamortized added value expenses as at the beginning of the current year (if said that for calculation of EVA is used divisional investment for the beg of the year!!!) |
