Each company at the end of your tax year or financial year must devise the balance sheet, which summarizes the financial performance and cash flows of its activity. Are then made public the costs and revenues, as well as the assets and liabilities, debts and credits. The numerical display of the variables listed above, although detailed, does not allow to frame the situation where there is a certain company. In fact it is necessary to analyze inter dependencies that characterize and relate all the individual elements (headings) of the budget, building synthetic measurements: indexes. In the guide we see just how to calculate budget indices.

Each budget that you index I is a formula, usually not particularly complicated, which has among its elements coming directly from the balance sheet values you’re analyzing. The greatness that is obtained after the application of the formula is normally expressed in percentage mode. Let’s start from budget index called ROA. It calculates by the ratio of budgetary income and assets available. For example, if your company’s activities consist of one million in cash and 3 million loans and advances to customers, while the profit was EUR 200000, then the ROA this badge is 200000 dividend for the sum of one and three million, then 200000 divided 4000000, get 1/20 or 5%. This value expresses the income generated capacity depending on the active values which constitute the patrimony.


The index however the ROCE calculations by dividing the profit for the difference between assets and liabilities. Referring to the example of the previous step you must first calculate the total liabilities, which consist of two million Pay able and a million debt to the Treasury. Then the total liabilities is three million and the difference between assets and liabilities is equal to 4 – 3 million, i.e. a million. Now you don’t have to calculate the ratio between the useful (200000 USD) and balance sheet million just determined. The ROCE in this case is 1/5, then 20%.

Every company has a share capital, must initially to establish the company which then during the life of the company, can be increased through integration on the part of members of new resources. An indicator that affects social capital is the ROE, which compares your income with social capital, the report said.Always using the numerical values of the sample later in this guide, in the case of a capital of two million, you can determine an ROE equal to 200000/2000000, ratio that is 1/10, then 10%.