Profit and Loss | ||
Currency | The currency referred to in the figures - GBP = Great British Pound, EUR = Euro. | |
Consolidated A/cs | Are the accounts consolidated - Y = Yes, N = No. | |
Turnover | Income earned from normal business activities, including the sale of goods and services net of VAT. | |
Export | Direct exports from the country of incorporation. | |
Cost of Sales | The direct cost of goods and services supplied. | |
Gross Profit | The difference between Turnover and Cost of Sales. | |
Wages & Salaries | Total employee costs including pensions and social security. | |
Directors Emoluments | Total payment made to directors for services as directors. | |
Operating Profit | The results of the company after deducting its Operating Costs from Gross Profit. | |
Depreciation | The amount written-off Tangible Fixed Assets during the year, including impairment charges. | |
Audit Fees | The amount paid to the auditors for the statutory audit. | |
Interest Payments | Interest paid by the business after any capitalised element, excluding exchange gains or losses. | |
Pre Tax Profit | This equates to Operating Profit less Non-operating Items. | |
Taxation | Tax charges paid against profits. This can be positive representing a Tax credit. | |
Profit After Tax | The profit or loss of the company after the deduction of corporation tax. | |
Dividends Payable | The total amount of profits distributed to shareholders. | |
Balance Sheet | ||
Tangible Assets | Physical assets owned by the company which can be seen or touched such as land, machinery etc. plus Investments and debtors due after 1 year. | |
Intangible Assets | This relates to 'assets' that have a value but have no physical existence such as Trade Marks, Patents, Goodwill, Research & Development etc. | |
Total Fixed Assets | The total of Tangible and Intangible Assets. | |
Stock | Goods on hand as yet to be sold and work in progress (goods not considered to be a final product). | |
Trade Debtors | Amounts owing from customers to the company for goods and services supplied on credit. | |
Cash | Cash includes cash in hand and cash at bank. | |
Other Debtors | Amounts owing from group companies or any other debtors not included in trade debtors. | |
Miscellaneous Current Assets | Any asset due within one year that isn't included in Debtors, Stocks and Cash such as short term investments. | |
Total Current Assets | The total of Stocks, Debtors, Cash and other assets due within one year. | |
Trade Creditors | The amount owing to suppliers for goods and services provided on credit. | |
Bank Loans & Overdrafts | Total amount of Bank loans and overdrafts. | |
Other Short Term Finance | Any finance to the company due within one year from any organisation other than banks. | |
Miscellaneous Current Liabilities | Any liability due within one year that isn't included in Trade Creditors, Bank Loans and Overdrafts and Other Short Term Finance e.g. Accruals and deferred income | |
Total Current Liabilities | The total of Trade Creditors, Bank Loans & Overdrafts, Other Short Term Finance and Miscellaneous Current Liabilities. | |
Bank Loans & Overdrafts and LTL | The total of Total Long Term Liabilities and Bank Loans and Overdrafts. | |
Other Long Term Finance | Any finance to the company due after one year from any organisation other than banks. | |
Total Long Term Liabilities | The total of Other Long Term Finance, long term bank loans, Pension Liability, Provisions and any other non-current liabilities. | |
Capital & Reserves | ||
Called Up Share Capital | This is the issued and paid share capital from shareholders. | |
P & L Account Reserve | The accumulation of profits/losses from previous trading periods. | |
Revaluation Reserve | Any unrealised gains on revaluations of Fixed assets. | |
Sundry Reserves | The total of Capital reserves, Share premium account, any other related company reserves and capital grants. | |
Shareholder Funds | The total of Called up Share Capital, P&L Account Reserve, Sundry Reserves and Revaluation Reserve. | |
Other Financial Items | ||
Net Worth | Often referred to as the 'book value' of the business this equals Shareholders Funds less Intangible Assets. | |
Working Capital | Total Current Assets less Total Current Liabilities. This represents the surplus/deficit of funds from normal trading activities. | |
Total Assets | The total of Total Fixed Assets and Total Current Assets. | |
Total Liabilities | The total of Total Long Term Liabilities and Total Current Liabilities | |
Net Assets | Total Assets less Total Liabilities | |
Cash Flow | ||
Net Cashflow from Operations | Net cash from buying/selling goods and services from commercial transactions. | |
Net Cashflow before Financing | This is the total cash generated or used by the business before any funding activity and movements in the cash balances. If positive, the business has generated a cash surplus, which can be used as liquid funds or to repay debt. | |
Net Cashflow from Financing | Cash derived from the issue of equity capital or the use of loan facilities matched against the cash utilised in repaying borrowings. | |
Increase in Cash | The difference between the current and previous year's cash totals. | |
Miscellaneous | ||
Contingent Liability | Whether or not the company has any potential liabilities. These include guarantees, indemnities and letters of credit. | |
Capital Employed | The total of Shareholders Funds and Total Long Term Liabilities. | |
Number of Employees | Total number of personnel employed by the company. | |
Ratios | ||
Pre-tax profit margin % | Pre-tax profits / Turnover x 100. This shows the percentage of Profit in each pound of sales or the equivalent of retailers 'mark-up'. | |
Current ratio | Total Current Assets / Total Current Liabilities. This is an indication of a company's ability to meet short-term debt obligations; the higher the ratio, the more liquid the company is. | |
Sales/Net Working Capital | Turnover / (Total Current Assets - Total Current Liabilities). The higher the ratio the higher the volume of Sales made per the companies working capital. | |
Gearing % | Bank Overdraft and Loans plus Total Long Term Liabilities/Shareholders funds x 100. This is the relationship between the size of the companies debt in proportion to Equity (Shareholders Funds). | |
Equity in % | Shareholder Funds / (Total Current Assets + Tangible Fixed Assets) x 100. This ratio shows the worth of the company (shareholders funds) as a percentage of total current and tangible assets. | |
Creditor Days | Trade Creditors / Turnover x 365 days. This is a calculation that predicts the average time taken for the company to settle its invoices for goods and services provided by it suppliers. | |
Debtor Days | Trade Debtors / Turnover x 365 days. This is a calculation that predicts the average time taken for the company to collect its invoices for goods and services provided to its customers. | |
Liquidity/Acid Test | Current assets - Stocks/Current Liabilities. This, like the current ratio, measures how quickly in the short term a company can meet its debts. However, this ratio excludes stock as there is no guarantee the value of Stocks can be realised quickly. | |
Return On Capital Employed % | Pre-Tax Profit / Capital Employed x 100. This ratio measures the profits a business yields in return for the money (Capital) invested. | |
Return On Total Assets Employed % | Pre-Tax Profits / Total Assets x 100. This shows the 'return' or 'profit' on each pound of Assets used as a percentage. | |
Current Debt Ratio | Total Current Liabilities / Shareholders Funds. This measures the amount of short term debt in relation to the value of shareholders funds. | |
Total Debt Ratio | Total Short Term & Long Term Debt / Shareholder Funds. This shows the relative indebtedness of a company in relation to the worth of the company. | |
Stock Turnover Ratio % | Stocks / Turnover x 100. This shows the number of times the trading stock of a company is "turned over" in a trading period. If the ratio is low this indicates that relatively little money is tied up in Stocks. | |
Return on Net Assets Employed % | Pre-Tax Profits / Net Assets x 100. This shows the return in percent on the net assets of the company. The higher the percentage the more profitable the company. | |
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