Return on assets shows the percentage of profit that a company earns in relation to its resources. To calculate return on assets open your income statement and balance sheet. Divide net profit after tax from the income statement with total assets from the balance sheet
Continue readingCategory Archives: Financials
Calculating Net Profit Margin in Excel
Net profit margin shows the ratio of net profit to sales revenue. To calculate net profit margin open your income statement and divide net profit after tax with revenue
Continue readingCalculating Return on Equity (ROE) in Excel
Return on equity shows how much profit a company earned in comparison to the total amount of shareholder equity. To calculate return on equity open your income statement and balance sheet. Divide net profit after tax from income statement with shareholder equity from balance sheet
Continue readingGovernment grants and assistance
Government assistance is something that certain industries come by at least once a year, i.e. agriculture for instance, and in certain industries much more rarely and even so if certain events Continue reading
Purchasing
Purchasing is an important process within an entity’s business. Effectively you’re purchasing everything you need – your supplies, your services, your employees’ time and so on. When we talk about purchasing, we’re talking about things you’re buying for your company for your business. Continue reading
Entity’s equity
As we have discussed earlier, an entity’s capital or equity is something that the owners have effectively invested into the entity in the form of paying in capital and later on leaving profits undistributed – share capital, reserves and retained earnings comprise the most significant part of equity under normal conditions. An entity’s equity is also labelled as ‘net assets’ of a company reflecting the portion of what’s left of the company once it uses up all its assets to settle its liabilities. Continue reading
Payable for expenses
There are two things one can buy from a supplier – an item of inventory or an item of expense (be it service or an item charged directly to expenses). Whilst items of inventory are a topic on their own, with this post we’ll focus on expenses. Continue reading