An annualized rate is an extrapolation of an occurrence lasting a limited time period to determine the amount or rate generated over a year. It is often used to project the yearly performance of an interest rate, investment return, or seasonal business activity such as ice cream sales.
Aptitude refers to the intellectual ability of an individual to learn material sufficiently, enabling them to perform business tasks required on the job efficiently. It delves into a person's natural talent and tendency for specific areas, often reflected in distinctive professional fields.
Financial analysis involves evaluating businesses, projects, budgets, and other financial entities to determine their performance and suitability. This analysis is used to gauge a company’s financial health and operational efficiency.
A flash report is a management tool used in the USA to quickly highlight key data points that require corrective action.
Interfirm comparison is a process used to evaluate the performance of similar organizations by analyzing their accounts and statistical data through ratio analysis.
Net income, also known as net earnings or net profit, is the sum remaining after all expenses have been fulfilled. It serves as a crucial metric that indicates a company's profitability.
The profit or loss generated by a company's core business activities, calculated before accounting for extraordinary items, interest, and taxes.
Profitability and profitability ratios are essential metrics used to measure the efficiency and success of a business in generating earnings relative to various financial aspects like sales, assets, and equity.
Refers to a phase where sales and profits of a new business increase rapidly until a plateau is reached at maturity.
Relationship capital refers to the value created by a business's relationships with external parties, such as customers, suppliers, and partners. This concept is a subcomponent of intellectual capital, focusing on the trust, loyalty, and long-term connections that can enhance business performance.
The safety margin is the excess of actual sales over break-even sales, providing a buffer that measures how much sales can drop before incurring a loss.
Sales volume refers to the number of units sold of each product. It is a key metric in evaluating the performance of a company’s products and its overall market position.
Sales volume variance is the difference between the budgeted sales quantity and the actual sales quantity, valued at the standard profit per unit or standard contribution margin per unit. It measures the impact of sales volume fluctuation on the financial performance of a business.
Share of market refers to the percentage of sales a company or product holds within a specific market relative to its competitors. It's a key indicator of competitive positioning and business performance.
The budgeted revenue from an operation less the standard operating cost.
