Kamis, 27 Maret 2008


Ratio Analysis:
Ratio analysis involves conversion of financial numbers from a company's financial statement into various ratios. Ratio analysis allows comparison of one company to another. Ratios look at relationships inside a company. A company of one size can be directly compared to a second company or a collection of companies which may be larger or smaller or even in a different business.

Keeps the property in good operating condition. Example: Adding gravel to a driveway is considered a repair.

Reserve For Bad Debts:
See definition of Allowance for Bad Debts.

Return of Capital:
A distribution that is paid out of the shareholder?s investment in the stock of the company.

Retained Earnings (Earned Surplus):
Retained earnings are prior year profits of the corporation that have not been paid out to the stockholders as of the balance sheet date. The earnings have been retained for use of the corporation. Retained earnings is an account in the Capital Section of the corporation balance sheet. Retained earnings increases when there is a profit by the corporation. Retained earnings decreases when there is a loss by the corporation or when cash dividends are paid to the stockholders. Retained earnings also decreases when the corporation buys back common stock. This type of stock is called "treasury stock".

Return On Investment (ROI):
Return on investment, as used by financial management, is the ratio of profits (before or after taxes) to net worth or stockholders equity.

The total of all receipts of an enterprise as a going concern: receipts from sales of products, merchandise, and services, and earnings from interest, dividends, rents and wages.

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