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Net income can also be calculated by adding a company's operating income to non-operating income and then subtracting off taxes. [4] The net profit margin percentage is a related ratio. This figure is calculated by dividing net profit by revenue or turnover, and it represents profitability, as a percentage.
Financial ratios are categorized according to the financial aspect of the business which the ratio measures. Profitability ratios measure the firm's use of its assets and control of its expenses to generate an acceptable rate of return. [2] Liquidity ratios measure the availability of cash to pay debt. [3]
It is used to assess the 'operating' profit of the business. It is a rough way of calculating how much cash the business is generating and is even sometimes called the 'operating cash flow'. It can be useful because it removes factors that change the view of performance depending upon the accounting and financing policies of the business.
The Oxford English Dictionary defines a business manager as "a person who manages the business affairs of an individual, institution, organization, or company". [1] Compare manager. Business managers drive the work of others (if any) in order to operate efficiently and (in the case of for-profit companies) to make a profit. [2]
Financial accounting reports the results and position of business to government, creditors, investors, and external parties. Cost Accounting is an internal reporting system for an organisation's own management for decision making.
Net Income per employee (NIPE) is a company's net income divided by the number of employees. This number shows the company how efficient it is with its employees. Theoretically, the higher the net income per employee the better. Aside from increasing the productivity of employees, this number could be increased by a number of other factors.
In business, the comptroller is the person who, independently from the chief financial officer in some countries, oversees accounting, and the implementation and monitoring of internal controls. In countries such as the United States, the United Kingdom, Australia, New Zealand, Israel, and Canada, a comptroller or financial comptroller reports ...
Business management – management of a business – includes all aspects of overseeing and supervising business operations. Management is the act of allocating resources to accomplish desired goals and objectives efficiently and effectively; it comprises planning, organizing, staffing, leading or directing, and controlling an organization (a ...