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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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Growth Capacity Benchmark Calculation

How it’s calculated ((Net Profit (bos) – Current assets – Current liabilities) / Total Income) * 100 See our for explanation of Net Profit (bos) (link to https://benchmarking.com.au/net-profit-benchmark-calculation/) How it’s used Growth Capacity is a benchmark which shows whether the business can afford to fund its growth. If the result here is a large positive […]

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Net Profit Benchmark Calculation

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 […]

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Net Profit per Owner Benchmark Calculation

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 […]

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Employee Wages as a Percentage of Total Income Benchmark Calculation

How it’s calculated   Employee Wages as a percentage of Total Income is calculated as:   (Employee Wages & Salaries / Total Income) * 100   Note: Employee wages does not include superannuation, owner’s wages or owner’s superannuation.   How It’s Used When benchmarking expense items, such as employee wages, treating them as a percentage […]

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Revenue Per Employee Benchmark Calculation

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 […]

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