Articles

Interest Cover Benchmark Calculation

How it’s Calculated Total Net Profit (before owners’ salaries & remuneration) = _____________________________________                      Total Interest expense   How it’s Used Higher results show that the business is highly capable of servicing its interest expenses. Interest cost is often not reported on its own – it also includes Bank and Credit Card charges.  As a result, […]

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Growth Capacity Benchmark Calculation

  How it’s Calculated   Growth Capacity calculation:   $ of Net Profit – ($ of Current assets – $ of Current liabilities) = ______________________________________  x 100                                        Turnover   How it’s Used   This ratio shows […]

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