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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, […]

  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 […]

How it’s calculated Net Profit can be calculated before owner’s salary (bos) is removed or after owner’s salary (aos) is removed. Net Profit (bos) calculated as: Total Income – Expenses (excluding Owner’s Wages and Superannuation)   Net Profit (aos) is calculated as: Total Income – Expenses – Owner’s Wages – Owner’s Superannuation   How It’s […]

How it’s calculated Net Profit per Owner can be calculated before owner’s salary (bos) is removed or after owner’s salary (aos) is removed.   Net Profit (bos) per Owner is calculated as: Net Profit (bos)  / Full Time Equivalent (FTE) Owners   Net Profit (aos) per Owner is calculated as: Net Profit (aos) / Full […]

What is ‘Employee Wages as a Percentage of Total Income’? Home Articles Business Benchmarks Reviewing employee wages is a crucial activity for any business owner. When monitoring and evaluating employee wages, the owner’s wage should be excluded. Employee wages also excludes all superannuation and bonuses. Total income refers to the total revenue (being sales and [...]

How it’s calculated   Revenue Per Employee is calculated as:   Revenue Per Employee = Total Revenue / Total Full Time Equivalent Employee   See here for explanation of Full Time Equivalent Benchmark Calculation   How it’s used Revenue per employee is an important financial benchmark because it aids in determining the relative average financial [...]

CALCULATE FTEs NOW - Jump to our FTE Calculator What's an 'FTE'? Full-Time Equivalent (FTE) is the measurement of how many full-time and part-time employees a company has. It is NOT headcount. Some people in your business may have only worked for part of the year, or are on part-time/casual arrangements. In these cases, the [...]