The indicators in Economics are the magnitude used to measure or compare the actual results in the implementation of a project , program or activity. Index movements of several exchanges factors provides a sense of the behavior of the market in value .
Summary
[ hide ]
- 1 – Liquidity Indicator
- 1 – Immediate Liquidity (Acid Test)
- 2 – Availability Indicator
- 3 – Solvency Indicator
- 4 – Activity Ratio Indicator
- 5 – Working Capital Rotation Indicator
- 6 -Rotation Indicator
- 7 – Collection and Payment Ratio Indicators
- 8 – Profitability Indicators
- 9 – Operating Indicators
- 10 – Productive Indicators
- 2 – Sources
– Liquidity Indicator
- Current Assets / Current Liabilities> 1.5 ( Recommended Value )
It measures the ability of the business to meet its short-term obligations. Current Assets (AC): Accounts Receivable, Inventory etc. Current Liabilities (PC): Accounts Payable, wages etc.
– Immediate Liquidity (Acid Test)
- (AC-Inventory) / PC> 1 ( Recommended value :> 1)
It measures the capacity of the most liquid Current Assets, (less than two months) per Current Liability. Recommended value :> 13.
– Availability indicator
- (Available / PC)> 0.5 ( Recommended Value )
It measures the ability to pay the obligations we have with money.
– Solvency indicator
- (Real Assets (AR) / Liabilities)> 2 ( Rec value )
(financing all that are due except the patrimony). It measures the ability of the company to repay its debts in the short term.
– Indicator of Activity Reasons
They allow studying the performance of the Assets (degree of utility with which the company obtains its assets).
– Working Capital Rotation Indicator
- Working Capital Rotation = Net Sales / Working Capital
- Working Capital = AC / PC
- Net Working Capital = AC-PC
-Rotation indicator
- AC = ( Net Sales / Average AC)> 3 ( Rec value )
Measures the ability of the AC to make sales (Produce and Sell)
- Inventory turnover = ( Net Sales / Inventory)> 1 ( Rec value )
- Rotation of Total Assets = ( Net Sales / Average Total Assets)> 0.2 ( Rec. Value )
– Collection and Payment Ratio Indicators
It is used to check or know the accounts receivable or accounts payable policy.
- Collection cycle = (Accounts receivable / Sales ) x365 (Rec value <60 days)
It expresses the average days it takes for clients to pay their debts.
- Payment Cycle = (Accounts Payable x 365 / Total Purchases)> 30 days ( Rec. Value )
– Profitability Indicators
- Gross Profit Margin (MBR)
MBR = Gross Profit / Net Sales ; where Net Sales = Sales -Production Cost (Rec value must be greater than 50%)
- Gross Profit (UB) = Sales -Cost of Production
- Operating Margin (MO) = Operating Income / Net Sales (Rec value > 20%)
- Net Return (RN) = Net Unit / Sales ( Abs. Value )
- Net Margin (MN) = (Net Income / Sales )% ( Rec value :> 12%)
- Economic Return (ROA) = Operating Income / Average Total Assets ( Rec value :> 2%)
– Operating Indicators
Indicators at the operational level that allows measuring efficiency, effectiveness and profitability at the level of a productive subsystem.
– Productive Indicators
Indicators that allow to measure the productive performance (by area or by time ).
