FINANCIAL DEFINITIONS
The financial data files are presented in two formats, firstly in the general Access database, and secondly, in the various spreadsheets. In the financial tables and spreadsheets are found as F?? (the forecast balance sheets) and G?? (the forecast financial margins and ratios); where, ?? are the various forecasted financial scenarios:


Each of the above forecast balance sheets (F??) contain the following data:


Each of the above forecast financial margins and ratios (G??) contain the following data:

Data given on: 
Definition: 
% OF CUSTOMERS = 50% SALES: 
The best estimate of the percentage of immediate customers accounting for 50% of the sales of the business. 
% SHARE OF 4 LARGEST FIRMS: 
The combined market shares of the four leading firms in the industry, expressed as a percentage. 
ACTUAL RETURN ON INVESTMENT: 
The actual, pretax net income expressed as a percentage of investment for the business, used to adjust the future estimates of ROI. 
ASSET UTILIZATION: 
Sales as a ratio of total sales. 
AVERAGE REMUNERATION: 
Total employee remuneration divided by the number of employees. 
BORROWING RATIO: 
Total debt as a ratio of net worth. 
CAPACITY UTILIZATION: 
The average % percentage of standard capacity utilized during the year. Standard capacity is the sales value of the maximum output the business can sustain with

CAPITAL EMPLOYED: 
The sum of long term liabilities. It represents the counterpart of the net assets employed by the firm. 
CREDIT PERIOD: 
Debtors over sales times 365 days. 
CREDITORS RATIO: 
Creditors over sales times 365 days. 
CREDITORS: 
Trade creditors and bills payable within one year. 
CURRENT RATIO: 
Current assets as a ratio of current liabilities. 
DEBT GEARING RATIO: 
Long term loans as a ratio of net worth. 
DEBTORS: 
Trade debtors and trade bills receivable due within one year. 
DEPRECIATION: 
Includes amounts written off tangible fixed assets, including leased assets. 
DIRECTORS REMUNERATION: 
Includes all payments made to directors including pension fund contributions, exgratia payments and payments to directors' family. 
DISCOUNT CASH FLOW YIELD RATE: 
The internal rate of return after tax earned in this business when this strategy is executed. It is the time discount rate at which discounted cash flow plus residual is equal to initial investment. 
DISCOUNTED CASH FLOW: 
The cash generated over ten years from net income, less the cash absorbed by increases in the net investment in the business. The annual cash flows are discounted to a present value, using the time discount rate. 
DISCOUNTED NET INCOME (10 YEARS): 
From pretax net income in each year is deducted a capital charge on the increase in investment since the base period to reflect the cost of these funds. The time discount rate is then applied to obtain the present value of the income stream for the 10 year period. 
DOMESTIC SALES: 
Wherever applicable, domestic Sales represents the proportion of total turnover generated locally less exports produced by the same companies. 
EMPLOYEES UNIONIZED: 
The percentage of total employees of the business who are unionized. 
EQUITY GEARING: 
Shareholders funds as a ratio of total liabilities. 
EXPORTS / SALES: 
Exports divided by sales. 
EXPORTS: 
This figure will be shown where it has been disclosed. 
FIFO VALUATION: 
The accounting method used for inventory valuation FIFO, or another method (e.g. LIFO). 
FIXED ASSETS / EMPLOYEES: 
Fixed assets divided by the number of employees. 
FIXED ASSETS: 
Property, plant, fixtures and fittings, office equipment and motor vehicles wholly owned and shown at their written down book value. 
FIXED CAPITAL INTENSITY: 
Gross book value of plant and equipment expressed as a percentage of sales. Gross book value includes original value of buildings, real estate manufacturing equipment and transportation equipment. 
FIXED CAPITAL INTENSITY: 
The gross book value of plant and equipment, expressed as a percentage of sales. 
FORECAST REAL MARKET GROWTH RATE (% / YEAR): 
An estimate of the future annual real growth rate of the served market. 
FORECAST SELLING GROWTH RATE (% / YEAR): 
A forecast of the annual growth rate of the selling prices. 
IMMEDIATE CUSTOMER FRAGMENTATION: 
The proportion of the total number of immediate customers accounting for 50% of total sales, expressed as a percentage. For example, if 5 of a business's 100 immediate customers represent 50% of the business's sales, immediate customer fragmentation is 5%. 
INCOME GEARING: 
Interest paid as a percentage of profit before tax and before interest paid. 
INDUSTRY (SIC/NAICS) GROWTH, LONG RUN: 
The annual long term (10 year) growth rate of the SIC/NAICS industry in which the business is located, expressed as a percentage. 
INDUSTRY CONCENTRATION RATIO: 
The amount of industry shipments accounted for by the four largest firms in the industry expressed as a percentage. 
INTANGIBLE ASSETS: 
Nontangible assets such as good will, trade marks, patents and copyrights owned. 
INTEREST PAID: 
Gross interest paid. It should be noted that many private companies either do not disclose this figure in full or aggregate shortterm, longterm and hire purchase interest together. 
INTERMEDIATE ASSETS: 
Includes investments in subsidiary and associated companies, trade investments and other unquoted investments, insurance premiums on life policies, and Advanced Corporation Tax recoverable. In addition, amounts due from other Group companies (as necessary), associated and affiliated companies, receivable after one year and with no stated fixed repayment terms will be included. Long term portions of trade and sundry debtors will also be included, wherever they are disclosed separately in the accounts. 
INVENTORY / SALES: 
The sum of raw materials, workinprocess inventory and finished goods inventory (each net of reserve for losses) as a percentage of sales. 
INVESTMENT / SALES: 
Investment as a percentage of sales. Investment can be measured in any of the following ways:

INVESTMENT / VALUE ADDED: 
Investment expressed as a percentage of value added. Value added is adjusted for profits to minimize that portion of the relationship with ROI which is caused by under or overstated earnings. 
INVESTMENT PER EMPLOYEE: 
Average investment, expressed in monetary units per employee. 
LONG TERM LOANS: 
Includes long term portions of bank and other institutional loans, mortgages, hire purchase repayments and leasing obligations, all of which are due after on year. In addition, amounts due to other group, associated and affiliated companies payable after one year will be included. 
MARKET POSITION: 
A factor combining:

MARKET SHARE GROWTH RATE: 
The annual growth rate of market share expressed as a percentage. 
MARKET SHARE INSTABILITY: 
The instability of the market share of the business, measured as the sum of the absolute values of the business's annual market share changes. 
MARKET SHARE: 
The share of the served market expressed as a percentage. 
MARKETING EXPENSES / SALES: 
The sum of salesforce, advertising, promotion and other marketing expenses expressed as a percentage of sales. Does not include costs of physical distribution. 
MISCELLANEOUS CURRENT ASSETS: 
Cash and near cash items such as quoted investments and tax reserve certificates. In addition, sundry debtors, prepayments and accrued income due within one year, as well as amounts due from other group companies, associated and affiliated companies receivable within one year. 
MISCELLANEOUS CURRENT LIABILITIES: 
Sundry creditors, accrued expenses and prepaid income including dividends, corporation tax, social security and other sundry amounts payable within one year. 
MISCELLANEOUS LONG TERM LIABILITIES: 
Deferred and future taxation, minority interests, pension funds and similar liabilities, provisions for liabilities and charges due. 
NET ASSETS: 
The net assets employed are obtained by subtracting total current liabilities from the total assets. 
NET WORTH: 
Equals shareholders funds less the intangible assets. 
NEW PRODUCT SALES / SALES: 
Percentage of sales accounted for by new products. New products are those products introduced during the three preceding years. 
NEWNESS OF PLANT & EQUIPMENT (NBV / GBV): 
Newness of plant and equipment, measured as the ratio of Net Book Value to Gross Book Value. 
NONTRADING INCOME: 
Comprises Investment income received, such as income from quoted & unquoted investments, rents received, share of profit from associated companies; as well as Reserves adjustments, such as transfers from capital grant reserve, interest relief grants. 
NUMBER OF EMPLOYEES AND THEIR REMUNERATION: 
The average number of employees together with their aggregate wages and salaries. 
OPERATING PROFIT MARGIN: 
Operating profit as a percentage of sales. 
OPERATING PROFIT: 
Pretax profit plus interest, less nontrading income. 
PRETAX PROFIT MARGIN: 
Pretax profits as a percentage of sales. 
PRETAX PROFIT: 
The net trading profit figure declared after deducting all operating expenses including depreciation and finance charges but before deduction of tax, dividends, subventions or group relief and other appropriations. Consolidated data is included where applicable in respect of the share of profits and losses of associated companies. Items described by the company as exceptional are included. Those described as extraordinary items are excluded. 
PROFIT / EMPLOYEES: 
Profit before tax divided by the number of employees. 
PURCHASE AMOUNT IMMEDIATE CUSTOMERS: 
The typical amount of products or services bought by an immediate customer in a single transaction. 
QUICK RATIO: 
Current assets less stocks as a ratio of current liabilities. 
RESEARCH & DEVELOPMENT EXPENSES / SALES: 
Product or Service R & D expenses plus Process R & D expenses expressed as a percentage of sales. Product or Service R&D expenses include all expenses incurred to secure innovation and advances in the products or services of the business, include improvements in packaging as well as product design, features and functions. Process R & D expenses include all expenses for process improvements for the purpose of reducing the cost of manufacturing, processing and physical handling of goods by the business. Sales is the net sales billed including lease revenues of the business. 
REAL MARKET GROWTH, SHORTRUN: 
The annual growth rate of the size of served market, deflated by the selling price index, expressed as a percentage. 
REAL MARKET GROWTH RATE: 
The historical annual real (unit) growth rate of the market which the business serves, expressed as a percentage. 
RELATIVE COMPENSATION: 
The average of hourly wage rates relative to leading competitors and salary levels relative to competitors. Competitors' wage rates and salary levels are 100%; if ones wage rates and salary levels are 5% higher, ones relative hourly wage rates are 105%, relative salaries are 105%, and ones average relative compensation is 105%. 
RELATIVE INTEGRATION BACKWARD: 
The degree of backward vertical integration (i.e. toward suppliers) of the business relative to its leading competitors. 
RELATIVE INTEGRATION FORWARD: 
The degree of forward vertical integration (i.e. toward customers) of the business relative to its leading competitors (less than, the same as, more than). 
RELATIVE MARKET SHARE: 
The market share of the business, relative to the combined market shares of the three leading competitors, expressed as a percentage. 
RELATIVE PRICE: 
The average level of selling prices of the products and service of the business relative to the average level of the leading competitors. The average price of the competitors is 100%; if the average prices of the business are 5% higher when its price relative to competition is 105%. 
RELATIVE PRODUCT QUALITY: 
The percentage of sales volume from products and service that, from the perspective of the consumer, are judged as superior to those available from leading competitors minus the percentage judged as inferior. 
RETURN ON ASSETS: 
Pretax profits as a percentage of total assets. 
RETURN ON CAPITAL: 
Pretax profits as a percentage of capital employed. 
RETURN ON SHAREHOLDERS FUNDS: 
Pretax profits as a percentage of shareholders funds. 
ROI = NET INCOME / INVESTMENT: 
Pretax net income, including special nonrecurring costs, minus corporate overhead costs, as a percentage of average investment including fixed and working capital at book value, but excluding corporate investment not particular to the business. 
SALES / EMPLOYEES: 
Sales divided by the number of employees. 
SALES / FIXED ASSETS: 
Sales as a ratio of fixed assets. 
SALES: 
Gross turnover recorded, including overseas sales, intergroup sales and exports, but excluding Value Added Tax or Sales Tax. 
SALES: 
The net sales billed, including lease revenues. 
SELLING PRICE GROWTH RATE: 
The annual growth rate of selling prices charged by the business, expressed as a percentage. 
SHAREHOLDERS FUNDS: 
The sum of issued, ordinary, and preference share capital, all reserves, the profit and loss balance (retained profits) and government grants. 
SHORT TERM LOANS: 
Includes short term portions of bank and other institutions, loans, bank overdrafts, hire purchase repayments and leasing obligations, all of which are due within one year. In addition amounts due to other group, associated and affiliated companies payable within one year will be included. 
STANDARD PRODUCTS / SERVICES: 
The products or services of the business more or less standardized for all customers, or are they designed or produced to order for individual customers. 
STOCK TURNOVER: 
Sales as a ratio of stocks. 
STOCKS: 
Stocks and work in progress (net of progress repayments) held. 
TOTAL CURRENT ASSETS: 
The sum of stocks, debtors and other current assets, representing the portion of a company's assets which is realizable within a year. 
TOTAL CURRENT LIABILITIES: 
The sum of trade creditors, short term debt and other current liabilities. 
TOTAL DEBT / WORKING CAPITAL: 
Total debt as a ratio of working capital. 
TOTAL DEBT: 
This amount is obtained by adding short term loans to the long term loans. 
TOTAL LIABILITIES: 
The sum of capital employed and total current liabilities. 
TRADING PROFIT MARGIN: 
Trading profit as a percentage of sales. 
TRADING PROFIT: 
Operating profit plus depreciation. 
VALUE ADDED / EMPLOYEES: 
Value added (adjusted for profits) expressed in monetary terms per employee. 
VERTICAL INTEGRATION: 
Value added as a percentage of sales. Both value added and sales are adjusted for profits to minimize that portion of the relationship with ROI which is caused by under or overstated earnings. 
WAGES / SALES: 
Employee remuneration divided by sales. 
WORKING CAPITAL / SALES: 
Working capital over sales. 
WORKING CAPITAL: 
The shortterm funding to carry out day to day trading activities, it is obtained by subtracting total current liabilities from the current assets. 
HISTORIC AND FORECAST FINANCIAL DATA TRANSITION PERIODSThe HISTORIC DATA covers the years from 1997 to Current, and the initial FORECAST DATA series covers the years Current to 2028. There is always a transition period; which is in fact during the last two quarters, i.e. whilst the historic data is being collated. In addition the data given for the next two quarters is considered an estimate rather than a forecast. Thus the 12 month period around the database output date is an estimate. In terms of the various Financial Scenarios it must be assumed that the Scenario factor or strategy being considered will not exert an impact on the forecast immediately and will not become evident for some time after its inception. Whilst the forecasting models used operates on a monthly time scale and does also take account of other temporal factors (for example seasonality of demand, industry accounting periods, stock taking scheduling, et al) it would be too pedantic to express the transition year in greater detail. Therefore in the forecast data a straight line plot is produced between the BASE year (Current), through the transition period (Year +1) to the first forecast year (Year +2). [Users of the more detailed editions of this database will have forecasts on a monthly time series and thus these users will have a monthly, seasonally adjusted plot and not a straight line plot during the transition period.] 