Table 2 Key ratios of companies in 2001 (N = 6 271)
From: Promoting prevention with economic arguments – The case of Finnish occupational health services
Key ratio | Mean | Median | Standard Deviation |
|---|---|---|---|
Profitability | |||
Operating margin, % What is left over from the company's earnings after paying for variable costs of production divided by net sales. | 10.03 | 8.73 | 8.29 |
Operating profit, % Earnings before interest and taxes (EBIT) divided by net sales. | 6.5 | 5.67 | 7.15 |
Net result, % (Total revenues - total expenses) divided by net sales = Shows whether a company has earned or lost money with its business in the accounting period. | 4.25 | 3.65 | 6.15 |
Total result, % Net result + extraordinary revenues - extraordinary expenses divided by net sales | 4.05 | 3.27 | 5.76 |
Profit/loss for the accounting period, % The profit/loss result after tax payments divided by net sales. | 4.11 | 3.25 | 5.57 |
Solidity | |||
Return on capital assets, % Shows how profitable the company is relative to its total assets. = Net income/total assets | 14.05 | 12.43 | 13.59 |
Return on investment, % Evaluates the efficiency of an investment = (gain from investment - cost of investment)/cost of investment. | 26.83 | 21.5 | 32.28 |
Return on equity, % Shows how much profit is made relative to the owners' investment in the company = Net income/shareholders equity | 24.71 | 21.01 | 59.87 |
Relative indebtedness, % Company's liabilities divided by its turnover. | 32.18 | 23.92 | 28.39 |
Less than 40%: Good | |||
40–80%: Satisfactory | |||
More than 80%: Poor | |||
Equity ratio, % The percentage of equities from the balance sheet | 43.43 | 43.13 | 23.37 |
Over 40%: Good | |||
20–40%: Satisfactory | |||
Less than 20%: Poor | |||
Liquidity | |||
Quick Ratio Company's ability to meet its obligations. | 0.51 | 0.23 | 0.73 |
Over 1: Good | |||
0.5–1: Satisfactory | |||
less than 0.5: Poor | |||
Current Ratio Company's ability to meet short term debt obligations. | 0.54 | 0.38 | 0.61 |
Over 2: Good | |||
1–2: Satisfactory | |||
less than 1: Poor |