FINANCIAL DEFINITIONS

 

FINANCIAL DATA FILES

The financial data files are presented in two formats, firstly in the general Access database, and secondly, in the various spreadsheets.

In the financial tables and spreadsheets are found as F?? (the forecast balance sheets) and G?? (the forecast financial margins and ratios); where, ?? are the various forecasted financial scenarios:

FINANCIAL SCENARIOS

FILE

SCENARIO

F or G : 01

MARKETING EXPENDITURE

F or G : 02

NEW PRODUCT DEVELOPMENT

F or G : 03

MARKET SEGMENTATION

F or G : 04

NEW PLANT + EQUIPMENT INVESTMENT

F or G : 05

NEW TECHNOLOGY INVESTMENT

F or G : 06

DISTRIBUTION CHANNEL IMPROVEMENT

F or G : 07

COST STRUCTURE IMPROVEMENT

F or G : 08

SHORT-TERM PRICE CUTTING EFFECT

F or G : 09

SHORT-TERM PRICE INCREASE EFFECT

F or G : 0B

BASE FORECAST : BEST

F or G : 0M

BASE FORECAST : MEDIAN

F or G : 0W

BASE FORECAST : WORST

F or G : 10

QUALITY IMPROVEMENT

F or G : 11

EXPORT SALES IMPROVEMENT

F or G : 12

PERSONNEL + STAFF IMPROVEMENT

F or G : 13

MARKETING EXPENDITURE INCREASE : +2%

F or G : 14

MARKETING EXPENDITURE INCREASE : +4%

F or G : 15

MARKETING EXPENDITURE INCREASE : +6%

F or G : 16

MARKETING EXPENDITURE INCREASE : +8%

F or G : 17

MARKETING EXPENDITURE INCREASE : +10%

F or G : 18

MARKETING EXPENDITURE INCREASE : +12%

F or G : 19

MARKETING EXPENDITURE DECREASE : -2%

F or G : 20

MARKETING EXPENDITURE DECREASE : -4%

F or G : 21

MARKETING EXPENDITURE DECREASE : -6%

F or G : 22

MARKETING EXPENDITURE DECREASE : -8%

F or G : 23

MARKETING EXPENDITURE DECREASE : -10%

F or G : 24

MARKETING EXPENDITURE DECREASE : -12%

F or G : 25

FIXED MARKETING COST OBJECTIVES

F or G : 26

VARIABLE MARKETING COST OBJECTIVES

F or G : 27

GENERAL MARKETING PROCESS COST OBJECTIVES

F or G : 28

DISTRIBUTION & PRODUCT DELIVERY COST OBJECTIVES

F or G : 29

ADMINISTRATIVE & GENERAL EXPENSE OBJECTIVES

F or G : 30

SELLING COST OBJECTIVES

F or G : 31

ADVERTISING COST OBJECTIVES

F or G : 32

PROMOTIONAL & PRICING COST OBJECTIVES

F or G : 33

RESEARCH & PRODUCT COST OBJECTIVES

F or G : 34

MARKET SHARE BUILDING OBJECTIVES

F or G : 35

MARKET SHARE HOLDING OBJECTIVES

F or G : 36

MARKET SHARE HARVESTING OBJECTIVES

F or G : 37

SALES COST IMPROVEMENT

F or G : 38

LONG-TERM PRODUCT PRICE CUTTING

F or G : 39

LONG-TERM PRODUCT PRICE INCREASE

F or G : 40

PROMOTIONAL EXPENDITURE

F or G : 41

TARGET MARKETS DEVELOPMENT

F or G : 42

ORDER TAKING IMPROVEMENTS

F or G : 43

PRODUCT POSITIONING

F or G : 44

PRODUCT BRANDING + MULTI-BRANDING INVESTMENT

F or G : 45

CUSTOMER / ORDER PROCESSING SYSTEMS INVESTMENT

F or G : 46

SYSTEMS INVESTMENT

F or G : 47

OVERSEAS DEVELOPMENT

F or G : 48

SALES PERSONNEL + STAFF IMPROVEMENT

F or G : 49

MATERIALS & ENERGY COST SCENARIOS

F or G : 50

PAYROLL & STAFF COST SCENARIOS

F or G : 51

ADMINISTRATION COST SCENARIOS

F or G : 52

CAPITAL COST SCENARIOS

F or G : 53

PLANT & EQUIPMENT COST SCENARIOS

F or G : 54

SALES & MARKETING COST SCENARIOS

F or G : 55

NEW PRODUCT & NEW TECHNOLOGY COST SCENARIOS

F or G : 56

DEPRECIATION & CAPITALIZATION SCENARIOS

F or G : 57

SHORT TERM BORROWING SCENARIOS

F or G : 58

LONG TERM FINANCIAL SCENARIOS

F or G : 59

FINANCIAL & DEBT SERVICING COST SCENARIOS

F or G : 60

TRADING & OPERATING MARGINS & PROFITABILITY SCENARIOS

F or G : 61

PROFIT IMPACT FROM MATERIALS COST REDUCTION

F or G : 62

PROFIT IMPACT FROM PAYROLL COST REDUCTION

F or G : 63

PROFIT IMPACT FROM PROCESS COST REDUCTION

F or G : 64

PROFIT IMPACT FROM DISTRIBUTION COST REDUCTION

F or G : 65

PROFIT IMPACT FROM CUSTOMER HANDLING COST REDUCTION

F or G : 66

CAPITAL INVESTMENTS OPTIONS: PROCESS PLANT & EQUIPMENT

F or G : 67

CAPITAL INVESTMENTS OPTIONS: PREMISES

F or G : 68

CAPITAL INVESTMENTS OPTIONS: DISTRIBUTION / HANDLING

F or G : 69

CAPITAL INVESTMENTS OPTIONS: CUSTOMER HANDLING SYSTEMS

F or G : 70

PRODUCT COST IMPROVEMENTS

F or G : 71

PRODUCT QUALITY IMPROVEMENT

F or G : 72

CUSTOMER HANDLING IMPROVEMENTS

F or G : 73

NEW EQUITY SCENARIOS

F or G : 74

BANK BORROWING: BASE SCENARIOS

F or G : 75

BANK BORROWING: 3% INFLATION SCENARIOS

F or G : 76

BANK BORROWING: 6% INFLATION SCENARIOS

F or G : 77

BANK BORROWING: 9% INFLATION SCENARIOS

F or G : 78

BOND / DEBENTURES SCENARIOS

F or G : 79

CORPORATE ASSET SALES: 5% OF ASSETS SCENARIOS

F or G : 80

CORPORATE ASSET SALES: 10% OF ASSETS SCENARIOS

F or G : 81

CORPORATE ASSET SALES: 25% OF ASSETS SCENARIOS

F or G : 82

SELF GENERATED FUNDS: WORST SCENARIOS

F or G : 83

SELF GENERATED FUNDS: BEST SCENARIOS

F or G : 84

TRADING CREDIT EXTENSION & MARGIN REDUCTION SCENARIOS

F or G : 85

NEW CAPITAL SCENARIOS

F or G : 86

SHORT-TERM LOAN: BASE SCENARIOS

F or G : 87

SHORT-TERM LOAN: 3% INFLATION SCENARIOS

F or G : 88

SHORT-TERM LOAN: 6% INFLATION SCENARIOS

F or G : 89

SHORT-TERM LOAN: 9% INFLATION SCENARIOS

F or G : 90

LONG-TERM LOAN SCENARIOS

F or G : 91

FIXED ASSET SALES: 5% OF ASSETS SCENARIOS

F or G : 92

FIXED ASSET SALES: 10% OF ASSETS SCENARIOS

F or G : 93

FIXED ASSET SALES: 25% OF ASSETS SCENARIOS

F or G : 94

PROFIT IMPROVEMENTS: WORST SCENARIOS

F or G : 95

PROFIT IMPROVEMENTS: BEST SCENARIOS

F or G : 96

CREDIT EXTENSION & COST REDUCTION SCENARIOS

F or G : DB

DERIVED : BEST

F or G : DM

DERIVED : MEDIAN

F or G : DW

DERIVED : WORST

F or G : PL

PRODUCT LAUNCH

Each of the above forecast balance sheets (F??) contain the following data:

FINANCIAL BALANCE SHEETS

ID

Row

TITLE

LEGEND

Field name

1

TOTAL SALES

The TOTAL SALES figure given in all the Financial Scenario Forecasts are synchronized with the Median Market Forecast and not to the individual Market Scenario Forecasts. This is to ensure that users can use a standardized market measure to compare the Financial data and not have the additional complication of interpreting the financial data in relation to the market scenarios.

CURRENCY DATA:  The currency figures given in this report are in U.S. Dollars. If the Windows Regional Settings on your computer is set to a non-U.S. setting then the currency symbol ($) may appear in the local currency (€, £, ¥, etc.). Either reset your Regional settings, or alternatively read all currency figures in this report as being U.S. Dollars (US$).

$M

MarketDol

2

DOMESTIC SALES

% of Turnover

Domestic

3

EXPORTS

% of Turnover

Export

4

PRE-TAX PROFIT

% of Turnover

PRETAXPROFIT

5

INTEREST PAID

% of Turnover

InterestPaid

6

NON-TRADING INCOME

% of Turnover

NonTradingIncome

7

OPERATING PROFIT

% of Turnover

OPERATEPROFIT

8

DEPRECIATION: STRUCTURES

% of Turnover

DeprecBldg

9

DEPRECIATION: PLANT AND EQUIPMENT

% of Turnover

DeprecMach

10

DEPRECIATION: MISCELLANEOUS ITEMS

% of Turnover

DeprecMisc

11

TOTAL DEPRECIATION

% of Turnover

TOTDEPREC

12

TRADING PROFIT

% of Turnover

TRADINGPROFIT

13

INTANGIBLE ASSETS

% of Turnover

IntangAsset

14

INTERMEDIATE ASSETS

% of Turnover

InterMedAsset

15

FIXED ASSETS: STRUCTURES

% of Turnover

FixAssetBldg

16

FIXED ASSETS: PLANT AND EQUIPMENT

% of Turnover

FixAssetMach

17

FIXED ASSETS: MISCELLANEOUS ITEMS

% of Turnover

FixAssetMisc

18

FIXED ASSETS

% of Turnover

FIXASSET

19

CAPITAL EXPENDITURE ON STRUCTURES

% of Turnover

CapExpndBldg

20

CAPITAL EXPENDITURE ON PLANT AND EQUIPMENT

% of Turnover

CapExpndMach

21

CAPITAL EXPENDITURE ON VEHICLES

% of Turnover

CapExpndVech

22

CAPITAL EXPENDITURE ON DATA PROCESSING EQUIPMENT

% of Turnover

CapExpndDP

23

CAPITAL EXPENDITURE ON MISCELLANEOUS ITEMS

% of Turnover

CapExpndOth

24

TOTAL CAPITAL EXPENDITURE

% of Turnover

TOTCAPEXPEND

25

RETIREMENTS: STRUCTURES

% of Turnover

RetireBldg

26

RETIREMENTS: PLANT AND EQUIPMENT

% of Turnover

RetireMach

27

RETIREMENTS: MISCELLANEOUS ITEMS

% of Turnover

RetireOthr

28

TOTAL RETIREMENTS

% of Turnover

TOTRETIRE

29

TOTAL FIXED ASSETS

% of Turnover

TOTFIXASSETx

30

FINISHED PRODUCT STOCKS

% of Turnover

StockFinish

31

WORK IN PROGRESS AS STOCKS

% of Turnover

StockWork

32

MATERIALS AS STOCKS

% of Turnover

StockMat

33

TOTAL STOCKS & INVENTORY

% of Turnover

Stocks

34

DEBTORS

% of Turnover

Debtors

35

MISCELLANEOUS CURRENT ASSETS

% of Turnover

CurrentAssetsOthr

36

TOTAL CURRENT ASSETS

% of Turnover

TOTCURRENTASSET

37

TOTAL ASSETS

% of Turnover

TOTALASSETS

38

CREDITORS

% of Turnover

Creditors

39

SHORT TERM LOANS

% of Turnover

LoansShort

40

MISCELLANEOUS CURRENT LIABILITIES

% of Turnover

CurrentLiabOthr

41

TOTAL CURRENT LIABILITIES

% of Turnover

TOTCURRENTLIAB

42

NET ASSETS / CAPITAL EMPLOYED

% of Turnover

NETASSETS

43

SHAREHOLDERS FUNDS

% of Turnover

ShareholderFund

44

LONG TERM LOANS

% of Turnover

LoansLong

45

MISCELLANEOUS LONG TERM LIABILITIES

% of Turnover

LongTermLiab

46

WORKERS

persons

Workers

47

HOURS WORKED

Hours

HourWork

48

WORK IN 1ST QUARTER

% of Annual Total

WorkQ1x

49

WORK IN 2ND QUARTER

% of Annual Total

WorkQ2x

50

WORK IN 3RD QUARTER

% of Annual Total

WorkQ3x

51

WORK IN 4TH QUARTER

% of Annual Total

WorkQ4x

52

TOTAL EMPLOYEES

persons

TotEmployee

53

RAW MATERIALS COST

% of Turnover

MatCostRaw

54

FINISHED MATERIALS COST

% of Turnover

MatCostFinish

55

FUEL COST

% of Turnover

MatCostFuel

56

ELECTRICITY COST

% of Turnover

MatCostElect

57

TOTAL INPUT SUPPLIES / MATERIALS AND ENERGY COSTS

% of Turnover

TOTMATCOSTS

58

PAYROLL COSTS

% of Turnover

Payroll

59

WAGES

% of Turnover

Wages

60

DIRECTORS' REMUNERATIONS

% of Turnover

DirectorRem

61

EMPLOYEE BENEFITS

% of Turnover

Benefits

62

COMMISSIONS & INCENTIVES PAID

% of Turnover

Commissions

63

TOTAL REMUNERATIONS

% of Turnover

TOTEmpRemun

64

SUB CONTRACTORS

% of Turnover

SubContract

65

RENTAL & LEASING: STRUCTURES

% of Turnover

RentBldg

66

RENTAL & LEASING: PLANT AND EQUIPMENT

% of Turnover

RentMach

67

TOTAL RENTAL & LEASING COSTS

% of Turnover

TOTRENT

68

MAINTENANCE: STRUCTURES

% of Turnover

MaintBldg

69

MAINTENANCE: PLANT AND EQUIPMENT

% of Turnover

MaintMach

70

TOTAL MAINTENANCE COSTS

% of Turnover

TOTMAINT

71

SERVICES PURCHASED

% of Turnover

ServicePurch

72

COMMUNICATIONS COSTS

% of Turnover

Comm

73

MISCELLANEOUS EXPENSES

% of Turnover

ExpensesMisc

74

SALES PERSONNEL VARIABLE & COMMISSION COSTS

% of Turnover

SalesPersonVarCost

75

SALES EXPENSES AND COSTS

% of Turnover

SalesExpCost

76

SALES MATERIALS COSTS

% of Turnover

SalesMatCost

77

TOTAL SALES COSTS

% of Turnover

TotSalesCostX

78

DISTRIBUTION FIXED COSTS

% of Turnover

DistrFixCost

79

DISTRIBUTION VARIABLE COSTS

% of Turnover

DistrVarCost

80

WAREHOUSING FIXED COSTS

% of Turnover

WareFixCost

81

WAREHOUSING VARIABLE COSTS

% of Turnover

WareVarCost

82

PHYSICAL HANDLING FIXED COSTS

% of Turnover

HandleCost

83

PHYSICAL HANDLING VARIABLE COSTS

% of Turnover

HandleVarCost

84

PHYSICAL PROCESS FIXED COSTS

% of Turnover

PhysicalFixCost

85

PHYSICAL PROCESS VARIABLE COSTS

% of Turnover

PhysicalVarCost

86

TOTAL DISTRIBUTION AND HANDLING COSTS

% of Turnover

TOTDISTRCOSTx

87

MAILING & CORRESPONDENCE COSTS

% of Turnover

AdvMailCost

88

MEDIA ADVERTISING COSTS

% of Turnover

AdvMediaCost

89

ADVERTISING MATERIALS & PRINT COSTS

% of Turnover

AdvMatCost

90

POS & DISPLAY COSTS

% of Turnover

AdvPOSCost

91

EXHIBITION & EVENTS COSTS

% of Turnover

AdvExhibCost

92

TOTAL ADVERTISING COSTS

% of Turnover

TotAdvCostX

93

PRODUCT RETURNS & REJECTION COSTS

% of Turnover

AFSRetCost

94

PRODUCT INSTALLATION & RE-INSTALLATION COSTS

% of Turnover

AFSInstCost

95

PRODUCT BREAKDOWN & POST INSTALLATION COSTS

% of Turnover

AFSBrkCost

96

PRODUCT SYSTEMS & CONFIGURATION COSTS

% of Turnover

AFSSysCost

97

PRODUCT SERVICE & MAINTENANCE COSTS

% of Turnover

AFSSvcCost

98

CUSTOMER PROBLEM SOLVING & CUSTOMER COMPLAINT COSTS

% of Turnover

AFSProbCost

99

TOTAL AFTER-SALES COSTS

% of Turnover

TotAFSCost

100

TOTAL MARKETING COSTS

% of Turnover

TOTMKTCOSTx

101

NEW TECHNOLOGY EXPENDITURE

% of Turnover

RandDTechExpnd

102

NEW PRODUCTION TECHNOLOGY EXPENDITURE

% of Turnover

RandDProcExpnd

103

TOTAL RESEARCH AND DEVELOPMENT EXPENDITURE

% of Turnover

TOTRandDCOSTx

104

TOTAL OPERATIONAL & PROCESS COSTS

% of Turnover

TOTOperCostX

105

DEBTORS WITHIN AGREED TERMS

% of Turnover

DebtorsAgreed

106

DEBTORS OUTSIDE AGREED TERMS

% of Turnover

DebtorsNotAgreed

107

UN-RECOVERABLE DEBTS

% of Turnover

DebtorsUnRecover

Each of the above forecast financial margins and ratios (G??) contain the following data:

FINANCIAL MARGINS & RATIOS

ID

____

Row

TITLE

LEGEND

FieldName

1

RETURN ON CAPITAL

%

ReturnCapital

2

RETURN ON ASSETS

%

ReturnAssets

3

RETURN ON SHAREHOLDERS' FUNDS

%

ReturnShareFund

4

PRE-TAX PROFIT MARGINS

%

PretaxProfitMarg

5

OPERATING PROFIT MARGIN

%

OperatingProfitMarg

6

TRADING PROFIT MARGIN

%

TradingProfitMarg

7

RETURN ON INVESTMENT

%

ReturnInvestment

8

ASSETS UTILISATION

Ratio : 1

AssetsUtilisation

9

SALES : FIXED ASSETS

Ratio : 1

SalesFixedAssets

10

STOCK TURNOVER

Ratio : 1

StockTurnover

11

CREDIT PERIOD

days

CreditPeriod

12

CREDITORS' RATIO

Ratio : 1

CreditorsRatio

13

DEFAULT DEBTORS' RATIO

Ratio : 1

DefaultDebtorsRatio

14

UN-RECOVERABLE DEBT RATIO

Ratio : 1

UnRecoverDebtsRatio

15

WORKING CAPITAL / SALES

%

WorkingCapitalSales

16

MATERIALS + ENERGY COSTS / SALES

%

MaterialsEnergySales

17

ADDED VALUE

%

AddedValue

18

INVESTMENT : ADDED VALUE

RATIO : 1

InvestmentAddedValue

19

FIXED CAPITAL INTENSITY

RATIO : 1

ValuePESales

20

VERTICAL INTEGRATION

%

VerticalIntegration

21

R + D / SALES

%

RandDInvestSales

22

CAPITAL EXPENDITURE / SALES

%

CapExpendSales

23

MARKETING COSTS / SALES

%

MarketingCostSales

24

CURRENT RATIO

Ratio : 1

CurrentRatio

25

QUICK RATIO

Ratio : 1

QuickRatio

26

BORROWING RATIO

Ratio : 1

BorrowingRatio

27

EQUITY RATIO

Ratio : 1

EquityRatio

28

INCOME GEARING

%

IncomeGearing

29

TOTAL DEBT : WORKING CAPITAL

Ratio : 1

DebtWorkingCapital

30

DEBT GEARING RATIO

Ratio : 1

DebtGearingRatio

31

AVERAGE REMUNERATION

('000)

AverageRemuneration

32

PROFIT PER EMPLOYEE

('000)

ProfitEmployee

33

SALES PER EMPLOYEE

('000)

SalesEmployee

34

REMUNERATIONS / SALES

%

RemunerationsSales

35

FIXED ASSETS / EMPLOYEE

('000)

FixedAssetsEmployee

36

CAPITAL EMPLOYED / EMPLOYEE

('000)

CapitalEmployEmployee

37

TOTAL ASSETS / EMPLOYEE

('000)

TotalAssetsEmployee

38

INVESTMENT / EMPLOYEES

('000)

AverageInvestmentEmployee

39

ADDED VALUE / EMPLOYEES

('000)

ValueAddedEmployee

40

MATERIALS COSTS / SALES

%

MaterialsCostsSales

41

PAYROLL COSTS / SALES

%

PayrollSales

42

PAYROLL : MATERIALS

RATIO : 1

PayrollMaterials

43

VARIABLE COSTS / SALES

%

VariableCostsSales

44

FIXED COSTS / SALES

%

FixedCostsSales

45

FIXED COSTS : VARIABLE COSTS

RATIO : 1

FixedRatioVariableCosts

46

DISTRIBUTION COSTS / SALES

%

DistributionSales

47

WAREHOUSING COSTS / SALES

%

WarehousingSales

48

PHYSICAL COSTS / SALES

%

PhysicalCostsSales

49

FIXED : VARIABLE DISTRIBUTION COSTS

RATIO : 1

FixedVariableDistributionCosts

50

FIXED : VARIABLE WAREHOUSING COSTS

RATIO : 1

FixedVariableWarehousingCosts

51

FIXED : VARIABLE PHYSICAL COSTS

RATIO : 1

FixedVariablePhysicalCosts

52

FIXED : VARIABLE TOTAL DISTRIBUTION + HANDLING COSTS

RATIO : 1

FixedVariableTotalDistribution

53

PRODUCT RETURNS COSTS / SALES

%

ProductReturnsSales

54

PRODUCT INSTALLATION COSTS / SALES

%

ProductInstallationSales

55

PRODUCT BREAKDOWN COSTS / SALES

%

ProductBreakdownSales

56

PRODUCT SYSTEMS COSTS / SALES

%

ProductSystemsSales

57

PRODUCT SERVICE COSTS / SALES

%

ProductServiceSales

58

CUSTOMER COMPLAINT COSTS / SALES

%

CustomerComplaintSales

59

STOCK UTILISATION

RATIO : 1

StockWorkFinishedProducts

60

STOCK EFFICIENCY

RATIO : 1

StockMaterialsWorkProgress

61

DEBTOR EXPOSURE

RATIO : 1

UnDebtsRatioTotalDebt

62

DEBTOR EFFICIENCY

RATIO : 1

UnDebtsRatioAgreedTerms

63

SALES COSTS / SALES

%

SalesCostsSales

64

DISTRIBUTION COSTS / SALES

%

DistributionCostsSales

65

ADVERTISING COSTS / SALES

%

AdvertisingCostsSales

66

AFTER-SALES COSTS / SALES

%

AfterSalesCostsSales

67

CUSTOMER COMPENSATION COSTS / SALES

%

CustomerCompensationSales

68

VARIABLE MARKETING COSTS / SALES

%

VariableMarketingSales

69

FIXED MARKETING COSTS / SALES

%

FixedMarketingSales

70

FIXED MARKETING COSTS : VARIABLE MARKETING COSTS

RATIO : 1

FixedMarketingVariableMarketing

71

VARIABLE SALES COSTS : MARKETING COSTS

RATIO : 1

VariableSalesPersonnelMarketing

72

VARIABLE DISTRIBUTION COSTS : MARKETING COSTS

RATIO : 1

VariableDistributionMarketing

73

VARIABLE ADVERTISING COSTS : MARKETING COSTS

RATIO : 1

VariableAdvertisingMarketing

74

VARIABLE AFTER-SALES COSTS : MARKETING COSTS

RATIO : 1

VariableAfterSalesMarketing

75

SALES PERSONNEL VARIABLE COSTS : SALES

RATIO : 1

SalesPersonnelVariableSales

76

SALES PERSONNEL VARIABLE COSTS : DEBTORS

RATIO : 1

SalesPersonnelVariableDebtors

77

SALES PERSONNEL VARIABLE COSTS : UN-RECOVERABLE DEBTORS

RATIO : 1

SalesPersonnelVariableUnDebts

78

EXPORT / SALES

%

ExportsSales

79

AVERAGE HOURS PAY

$

HourlyPayRate

80

WAGE RATE

$

HourlyWageRate

81

CAPITAL EMPLOYED

%

CapitalEmployed


FINANCIAL DATA DEFINITIONS

Data given on:

Definition:

% OF CUSTOMERS = 50% SALES:

The best estimate of the percentage of immediate customers accounting for 50% of the sales of the business.

% SHARE OF 4 LARGEST FIRMS:

The combined market shares of the four leading firms in the industry, expressed as a percentage.

ACTUAL RETURN ON INVESTMENT:

The actual, pre-tax net income expressed as a percentage of investment for the business, used to adjust the future estimates of ROI.

ASSET UTILIZATION:

Sales as a ratio of total sales.

AVERAGE REMUNERATION:

Total employee remuneration divided by the number of employees.

BORROWING RATIO:

Total debt as a ratio of net worth.

CAPACITY UTILIZATION:

The average % percentage of standard capacity utilized during the year. Standard capacity is the sales value of the maximum output the business can sustain with


a) facilities normally in operation and
b) current constraints (e.g. technology, work rules, labor practices, etc.)


For most manufacturing businesses this will consist of 2 shifts, 5 days per week. For process businesses a 3 shift, 6 day work week is typical.

CAPITAL EMPLOYED:

The sum of long term liabilities. It represents the counterpart of the net assets employed by the firm.

CREDIT PERIOD:

Debtors over sales times 365 days.

CREDITORS RATIO:

Creditors over sales times 365 days.

CREDITORS:

Trade creditors and bills payable within one year.

CURRENT RATIO:

Current assets as a ratio of current liabilities.

DEBT GEARING RATIO:

Long term loans as a ratio of net worth.

DEBTORS:

Trade debtors and trade bills receivable due within one year.

DEPRECIATION:

Includes amounts written off tangible fixed assets, including leased assets.

DIRECTORS REMUNERATION:

Includes all payments made to directors including pension fund contributions, ex-gratia payments and payments to directors' family.

DISCOUNT CASH FLOW YIELD RATE:

The internal rate of return after tax earned in this business when this strategy is executed. It is the time discount rate at which discounted cash flow plus residual is equal to initial investment.

DISCOUNTED CASH FLOW:

The cash generated over ten years from net income, less the cash absorbed by increases in the net investment in the business. The annual cash flows are discounted to a present value, using the time discount rate.

DISCOUNTED NET INCOME (10 YEARS):

From pre-tax net income in each year is deducted a capital charge on the increase in investment since the base period to reflect the cost of these funds. The time discount rate is then applied to obtain the present value of the income stream for the 10 year period.

DOMESTIC SALES:

Wherever applicable, domestic Sales represents the proportion of total turnover generated locally less exports produced by the same companies.

EMPLOYEES UNIONIZED:

The percentage of total employees of the business who are unionized.

EQUITY GEARING:

Shareholders funds as a ratio of total liabilities.

EXPORTS / SALES:

Exports divided by sales.

EXPORTS:

This figure will be shown where it has been disclosed.

FIFO VALUATION:

The accounting method used for inventory valuation FIFO, or another method (e.g. LIFO).

FIXED ASSETS / EMPLOYEES:

Fixed assets divided by the number of employees.

FIXED ASSETS:

Property, plant, fixtures and fittings, office equipment and motor vehicles wholly owned and shown at their written down book value.

FIXED CAPITAL INTENSITY:

Gross book value of plant and equipment expressed as a percentage of sales. Gross book value includes original value of buildings, real estate manufacturing equipment and transportation equipment.

FIXED CAPITAL INTENSITY:

The gross book value of plant and equipment, expressed as a percentage of sales.

FORECAST REAL MARKET GROWTH RATE (% / YEAR):

An estimate of the future annual real growth rate of the served market.

FORECAST SELLING GROWTH RATE (% / YEAR):

A forecast of the annual growth rate of the selling prices.

IMMEDIATE CUSTOMER FRAGMENTATION:

The proportion of the total number of immediate customers accounting for 50% of total sales, expressed as a percentage. For example, if 5 of a business's 100 immediate customers represent 50% of the business's sales, immediate customer fragmentation is 5%.

INCOME GEARING:

Interest paid as a percentage of profit before tax and before interest paid.

INDUSTRY (SIC/NAICS) GROWTH, LONG RUN:

The annual long term (10 year) growth rate of the SIC/NAICS industry in which the business is located, expressed as a percentage.

INDUSTRY CONCENTRATION RATIO:

The amount of industry shipments accounted for by the four largest firms in the industry expressed as a percentage.

INTANGIBLE ASSETS:

Non-tangible assets such as good will, trade marks, patents and copyrights owned.

INTEREST PAID:

Gross interest paid. It should be noted that many private companies either do not disclose this figure in full or aggregate short-term, long-term and hire purchase interest together.

INTERMEDIATE ASSETS:

Includes investments in subsidiary and associated companies, trade investments and other unquoted investments, insurance premiums on life policies, and Advanced Corporation Tax recoverable. In addition, amounts due from other Group companies (as necessary), associated and affiliated companies, receivable after one year and with no stated fixed repayment terms will be included. Long term portions of trade and sundry debtors will also be included, wherever they are disclosed separately in the accounts.

INVENTORY / SALES:

The sum of raw materials, work-in-process inventory and finished goods inventory (each net of reserve for losses) as a percentage of sales.

INVESTMENT / SALES:

Investment as a percentage of sales. Investment can be measured in any of the following ways:


a) net book value of plant and equipment plus working capital
b) equity plus long-term debt
c) total assets employed minus current liabilities attributable to the business.

INVESTMENT / VALUE ADDED:

Investment expressed as a percentage of value added. Value added is adjusted for profits to minimize that portion of the relationship with ROI which is caused by under or overstated earnings.

INVESTMENT PER EMPLOYEE:

Average investment, expressed in monetary units per employee.

LONG TERM LOANS:

Includes long term portions of bank and other institutional loans, mortgages, hire purchase repayments and leasing obligations, all of which are due after on year. In addition, amounts due to other group, associated and affiliated companies payable after one year will be included.

MARKET POSITION:

A factor combining:


a) MARKET SHARE: the share of the served market for the business, expressed as a percentage.


b) RELATIVE MARKET SHARE: the market share of the business relative to the combined market share of the three leading competitors, expressed as a percentage. For example if ones business has 30% of the market and the three largest competitors have 20%, 10% and 10%: 30 divided by (20+10+10) = 75%.

MARKET SHARE GROWTH RATE:

The annual growth rate of market share expressed as a percentage.

MARKET SHARE INSTABILITY:

The instability of the market share of the business, measured as the sum of the absolute values of the business's annual market share changes.

MARKET SHARE:

The share of the served market expressed as a percentage.

MARKETING EXPENSES / SALES:

The sum of salesforce, advertising, promotion and other marketing expenses expressed as a percentage of sales. Does not include costs of physical distribution.

MISCELLANEOUS CURRENT ASSETS:

Cash and near cash items such as quoted investments and tax reserve certificates. In addition, sundry debtors, prepayments and accrued income due within one year, as well as amounts due from other group companies, associated and affiliated companies receivable within one year.

MISCELLANEOUS CURRENT LIABILITIES:

Sundry creditors, accrued expenses and prepaid income including dividends, corporation tax, social security and other sundry amounts payable within one year.

MISCELLANEOUS LONG TERM LIABILITIES:

Deferred and future taxation, minority interests, pension funds and similar liabilities, provisions for liabilities and charges due.

NET ASSETS:

The net assets employed are obtained by subtracting total current liabilities from the total assets.

NET WORTH:

Equals shareholders funds less the intangible assets.

NEW PRODUCT SALES / SALES:

Percentage of sales accounted for by new products. New products are those products introduced during the three preceding years.

NEWNESS OF PLANT & EQUIPMENT (NBV / GBV):

Newness of plant and equipment, measured as the ratio of Net Book Value to Gross Book Value.

NON-TRADING INCOME:

Comprises Investment income received, such as income from quoted & unquoted investments, rents received, share of profit from associated companies; as well as Reserves adjustments, such as transfers from capital grant reserve, interest relief grants.

NUMBER OF EMPLOYEES AND THEIR REMUNERATION:

The average number of employees together with their aggregate wages and salaries.

OPERATING PROFIT MARGIN:

Operating profit as a percentage of sales.

OPERATING PROFIT:

Pre-tax profit plus interest, less non-trading income.

PRE-TAX PROFIT MARGIN:

Pre-tax profits as a percentage of sales.

PRE-TAX PROFIT:

The net trading profit figure declared after deducting all operating expenses including depreciation and finance charges but before deduction of tax, dividends, subventions or group relief and other appropriations. Consolidated data is included where applicable in respect of the share of profits and losses of associated companies. Items described by the company as exceptional are included. Those described as extraordinary items are excluded.

PROFIT / EMPLOYEES:

Profit before tax divided by the number of employees.

PURCHASE AMOUNT IMMEDIATE CUSTOMERS:

The typical amount of products or services bought by an immediate customer in a single transaction.

QUICK RATIO:

Current assets less stocks as a ratio of current liabilities.

RESEARCH & DEVELOPMENT EXPENSES / SALES:

Product or Service R & D expenses plus Process R & D expenses expressed as a percentage of sales. Product or Service R&D expenses include all expenses incurred to secure innovation and advances in the products or services of the business, include improvements in packaging as well as product design, features and functions. Process R & D expenses include all expenses for process improvements for the purpose of reducing the cost of manufacturing, processing and physical handling of goods by the business. Sales is the net sales billed including lease revenues of the business.

REAL MARKET GROWTH, SHORT-RUN:

The annual growth rate of the size of served market, deflated by the selling price index, expressed as a percentage.

REAL MARKET GROWTH RATE:

The historical annual real (unit) growth rate of the market which the business serves, expressed as a percentage.

RELATIVE COMPENSATION:

The average of hourly wage rates relative to leading competitors and salary levels relative to competitors. Competitors' wage rates and salary levels are 100%; if ones wage rates and salary levels are 5% higher, ones relative hourly wage rates are 105%, relative salaries are 105%, and ones average relative compensation is 105%.

RELATIVE INTEGRATION BACKWARD:

The degree of backward vertical integration (i.e. toward suppliers) of the business relative to its leading competitors.

RELATIVE INTEGRATION FORWARD:

The degree of forward vertical integration (i.e. toward customers) of the business relative to its leading competitors (less than, the same as, more than).

RELATIVE MARKET SHARE:

The market share of the business, relative to the combined market shares of the three leading competitors, expressed as a percentage.

RELATIVE PRICE:

The average level of selling prices of the products and service of the business relative to the average level of the leading competitors. The average price of the competitors is 100%; if the average prices of the business are 5% higher when its price relative to competition is 105%.

RELATIVE PRODUCT QUALITY:

The percentage of sales volume from products and service that, from the perspective of the consumer, are judged as superior to those available from leading competitors minus the percentage judged as inferior.

RETURN ON ASSETS:

Pre-tax profits as a percentage of total assets.

RETURN ON CAPITAL:

Pre-tax profits as a percentage of capital employed.

RETURN ON SHAREHOLDERS FUNDS:

Pre-tax profits as a percentage of shareholders funds.

ROI = NET INCOME / INVESTMENT:

Pre-tax net income, including special non-recurring costs, minus corporate overhead costs, as a percentage of average investment including fixed and working capital at book value, but excluding corporate investment not particular to the business.

SALES / EMPLOYEES:

Sales divided by the number of employees.

SALES / FIXED ASSETS:

Sales as a ratio of fixed assets.

SALES:

Gross turnover recorded, including overseas sales, inter-group sales and exports, but excluding Value Added Tax or Sales Tax.

SALES:

The net sales billed, including lease revenues.

SELLING PRICE GROWTH RATE:

The annual growth rate of selling prices charged by the business, expressed as a percentage.

SHAREHOLDERS FUNDS:

The sum of issued, ordinary, and preference share capital, all reserves, the profit and loss balance (retained profits) and government grants.

SHORT TERM LOANS:

Includes short term portions of bank and other institutions, loans, bank overdrafts, hire purchase repayments and leasing obligations, all of which are due within one year. In addition amounts due to other group, associated and affiliated companies payable within one year will be included.

STANDARD PRODUCTS / SERVICES:

The products or services of the business more or less standardized for all customers, or are they designed or produced to order for individual customers.

STOCK TURNOVER:

Sales as a ratio of stocks.

STOCKS:

Stocks and work in progress (net of progress repayments) held.

TOTAL CURRENT ASSETS:

The sum of stocks, debtors and other current assets, representing the portion of a company's assets which is realizable within a year.

TOTAL CURRENT LIABILITIES:

The sum of trade creditors, short term debt and other current liabilities.

TOTAL DEBT / WORKING CAPITAL:

Total debt as a ratio of working capital.

TOTAL DEBT:

This amount is obtained by adding short term loans to the long term loans.

TOTAL LIABILITIES:

The sum of capital employed and total current liabilities.

TRADING PROFIT MARGIN:

Trading profit as a percentage of sales.

TRADING PROFIT:

Operating profit plus depreciation.

VALUE ADDED / EMPLOYEES:

Value added (adjusted for profits) expressed in monetary terms per employee.

VERTICAL INTEGRATION:

Value added as a percentage of sales. Both value added and sales are adjusted for profits to minimize that portion of the relationship with ROI which is caused by under or overstated earnings.

WAGES / SALES:

Employee remuneration divided by sales.

WORKING CAPITAL / SALES:

Working capital over sales.

WORKING CAPITAL:

The short-term funding to carry out day to day trading activities, it is obtained by subtracting total current liabilities from the current assets.

 

HISTORIC AND FORECAST FINANCIAL DATA TRANSITION PERIODS

The HISTORIC DATA covers the years from 1997 to Current, and the initial FORECAST DATA series covers the years Current to 2028 & 2045.  There is always a transition period; which is in fact during the last two quarters, i.e. whilst the historic data is being collated. In addition the data given for the next two quarters is considered an estimate rather than a forecast. Thus the 12 month period around the database output date is an estimate.

In terms of the various Financial Scenarios it must be assumed that the Scenario factor or strategy being considered will not exert an impact on the forecast immediately and will not become evident for some time after its inception. Whilst the forecasting models used operates on a monthly time scale and does also take account of other temporal factors (for example seasonality of demand, industry accounting periods, stock taking scheduling, et al) it would be too pedantic to express the transition year in greater detail. Therefore in the forecast data a straight line plot is produced between the BASE year (Current), through the transition period (Year +1) to the first forecast year (Year +2). [Users of the more detailed editions of this database will have forecasts on a monthly time series and thus these users will have a monthly, seasonally adjusted plot and not a straight line plot during the transition period.]