Business Englisch II (Subject) / financial stats (Lesson)

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• Net Worth the book value of a business net worth = shareholder funds - intangible assets
• working capital how much cash is available to cover operations? working capital = total current assets - total current liabilities
• total debt ratio how much debt against the value of the business? total debt ratio = (total short term debtm + total long term debt) : shareholder funds
• current ratio an indicator of the firm's ability to meet short term debt obligations. the higher the ratio, the more liquid the business is current ratio = total current assets : total current liabilities
• quick ratio this indicator of liquidity omits stock there is no guarantee of quickly converting stock into cash quick ratio = (current assets - stocks) : current liabilities
• Give 3 synonyms for Sales income revenue turnover
• Gross profit = sales - cost of sales gross margin = gross profit : sales
• Research & Development includes activities undertaken to improve existing products and procedures or to lead to the development of new ones
• Operating Costs also: overheads includes R&D, SG&A, depreciation and distribution costs necessary for the running of the business not directly related to production of goods or services
• SG&A Selling, general and administrative  includes salaries (excluding production), marketing, rent, distribution, office equipment, executive expenses
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• Operating Income = gross profit - operating costs also known as EBIT (earnings before interest and taxes) operating margin = operating income : sales

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