Across
- 3. The relative ability of a business to generate profit from sales or capital investment.
- 7. Non-physical items of value, such as patents, trademarks and copyrights.
- 10. The number of times in a year that inventory is bought in and sold (the frequency of inventory restocking within a year).
- 13. The sum of share capital plus cumulative retained earnings.
- 15. Compares gross profit (profit before overhead costs) with revenue.
- 16. A ratio comparing current assets to current liabilities (current assets/current liabilities).
- 17. Profit that can be repeated and sustained.
- 23. The overhead costs of operating a business, deducted from gross profit to calculate profit from operations.
- 25. current assets - inventories
- 26. Profit from operations minus interest costs.
- 28. Arises when a business is valued at or bought for more than the balance sheet value of its assets (the extra value paid for a business over its book asset value).
- 29. The present day value of future cash flows
- 31. A financial obligation the business must pay in the future.
- 32. The quoted price of one share on the stock exchange (The market value of a single share.)
- 34. Total capital raised from issuing shares, raised from shareholders.
- 35. The minimum accounting rate of return (ARR) that a business would accept before approving an investment.
- 36. Business debts payable after more than one year.
- 37. Ratio that compares operating profit for the year with revenue.
- 39. Measures the annual profitability of an investment as a percentage of the average investment (average capital cost).
- 40. An item of monetary value owned by a business.
- 41. The total value of all long-term finance invested in a business.
- 42. The average time taken (in days) to receive payment from customers who bought on credit.
Down
- 1. One-time profit that is difficult to repeat or sustain.
- 2. Compares liquid assets to current liabilities to assess short-term financial strength (liquid assets/current liabilities).
- 4. Revenue minus the cost of sales.
- 5. Measures the proportion of capital employed in the business that is financed by long-term borrowing (non-current liabilities).
- 6. The amount of profit after tax and interest earned per share.
- 8. Compares operating profit with capital employed to measure efficiency.
- 9. Profit before tax minus profit (or corporation) tax expenses.
- 11. the value of total assets minus the total value of liabilities
- 12. Gross profit minus overhead expenses (also known as operating profit).
- 14. The value of payments due from customers who purchased goods on credit.
- 18. The present value of estimated future cash flows from an investment.
- 19. The value of debts for goods bought on credit payable to suppliers (accounts payable).
- 20. The total value of assets minus total value of liabilities
- 21. The direct cost of goods sold during the financial year.
- 22. The average time taken (in days) to pay suppliers for purchases of supplies made on credit.
- 24. The share of profits paid to shareholders, in return for investment in company.
- 27. Forecast cash inflows minus forecast outflows.
- 30. Evaluating the profitability or feasibility of an investment project.
- 33. The value of materials and other supplies bought by business on credit (over 1 year).
- 38. The time it takes for an investment's net cash inflows to repay the initial cost.