Search results
Results from the WOW.Com Content Network
Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Gross working capital is equal to current assets.
Working capital is an important metric because of what it says about management's ability to deploy capital for expansion or acquisitions. Think of it like you would Major League Baseball's ...
Return on net assets = net income / (Fixed assets) + (working capital) where Working capital = (current assets) − (current liabilities) [5] In a manufacturing sector, this is also calculated as: Return on net assets = (plant revenue) − costs /
The current ratio is calculated by dividing total current assets by total current liabilities. [3] It is frequently used as an indicator of a company's accounting liquidity, which is its ability to meet short-term obligations. [4] The difference between current assets and current liability is referred to as trade working capital.
This measure compares a post-tax, pre-interest cash flow to the gross level of capital invested and is a useful measure of a company’s ability to generate cash returns on its investments. In principle, this ratio is similar to the ROE ratio, but CROCI is calculated on a cash basis and on an EV -basis, taking into account assets funded by all ...
It is commonly represented as total assets less current liabilities (or fixed assets plus working capital requirement). [2] ROCE uses the reported (period end) capital numbers; if one instead uses the average of the opening and closing capital for the period, one obtains return on average capital employed (ROACE). [citation needed]
Gross fixed capital formation (GFCF) is a component of the expenditure on gross domestic product (GDP) that indicates how much of the new value added in an economy is invested rather than consumed. It measures the value of acquisitions of new or existing fixed assets by the business sector , governments , and "pure" households (excluding their ...
Starting off with Gross Output, expenditure on intermediate goods and services are deducted, to arrive at gross value added. Value added may be stated gross (equal to the net output value, including consumption of fixed capital, i.e. depreciation charges) or net (excluding consumption of fixed capital). The net operating surplus (NOS) is thus ...