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BUSINESS AVERAGES These are derived by dividing the estimate of the financial variable in question by the number of operating businesses for that year. Compares the profit margin, return on assets and return on net worth for each industry across quartiles. The quartiles divide the units at the 75, 50 and 25 percentile point. For example, table 8, shows that in the Construction industry, those businesses in the highest quartile (75% mark or higher) had a profit margin of 20.5% or more in 1999–2000. While those in the lowest quartile (25% mark or lower) had a profit margin of less than 0.9%. The median value was a profit margin of 7.5%. For conceptual reasons, the calculation of the quartiles do not include units which reported zero profit, zero assets or zero net worth. For example where net worth equals zero, it was not possible to calculate Return on net worth. The proportion of businesses that made a profit, loss or broke even. Broke even is defined as those businesses incurring a profit or loss of less than $500.
INTEREST COVERAGE The number of times over that businesses can meet their interest expenses from their earnings before interest and taxation, i.e. INVESTMENT RATE The proportion of industry value added used to acquire capital, i.e. LARGE BUSINESSES See under 'Classification by size' in paragraph 13 of the explanatory notes. OTHER BUSINESS See under 'Classification by size' in paragraph 13 of the explanatory notes. NET WORTH Total assets minus total liabilities. This is equal to the interests of shareholders or other owners in the assets of the business. MANAGEMENT UNIT See under 'Classification by size' in paragraph 6 of the explanatory notes. OPERATING BUSINESSES A management unit which is still in existence at the end of the financial reporting period. See 'Management unit' above. PROFIT MARGIN The percentage of operating income available as operating profit, i.e. RETURN ON ASSETS Operating profit before tax as a percentage of the total book value of assets, i.e. RETURN ON NET WORTH Operating profit before tax as a percentage of shareholders' funds, i.e. SALES OF GOODS Includes sales of goods whether or not manufactured by the business and sales or transfers to related businesses. TOTAL OPERATING EXPENSES The total expenses of a business, excluding extraordinary items. TOTAL OPERATING INCOME The total income of a business, excluding extraordinary items. OPERATING PROFIT BEFORE TAX (OPBT) A measure of profit before extraordinary items are bought into account and prior to the deduction of income tax and appropriations to owners (e.g. dividends paid). Document Selection These documents will be presented in a new window.
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