# Reporting

## Performance measures

### Income statement

The following performance measurements are always compared to previous year and the budget:

* Sales revenue
* Gross profit margin
* Net income
* EBIT margin
* Sales revenue and net income per employee

### Net cash / net debt

Net debt is an indicator of the organizations ability to meet financial commitments, to pay dividends and to undertake acquisitions. The KPI is calculated by subtracting financial liabilities (excluding lease liabilities) and retirement benefit obligations from cash and cash equivalents.
$$
Net Cash = Cash - Current Liabilities
$$

### Free cash flow (FCF)

Free cash flow represents the cash-generating capability of the organization to conduct and maintain its operations, to repay debt and to undertake acquisitions. Free cash flow equals net cash from operating activities less purchase of property, plant and equipment, less purchase of intangible assets, plus net proceeds from property, plant and equipment.
$$
FCF = Gross Profits - Operating Expenses - Taxes - Net Investment in Operating Capital
$$
alternative
$$
FCF = Net Income + Depreciation - Change in Workign Capital - Capital Expenditure
$$

### Net working capital (NWC)

Working capital is capital invested in the organizations operating activities. It is a driver for cash flow and an indicator of operational efficiency. Net working capital combines the subtotals of current assets and current liabilities, excluding the lines cash and cash equivalents, current financial assets and current financial liabilities.
$$
NWC = Current Assets - Current Lieabilities
$$

### Days of sales outstanding (DSO)

The days of sales outstanding indicate the average number of days the organization takes to collect its receivables.
$$
DSO = \frac{Current Accounts Receivables}{Total Sales Revenue}
$$

### Days of purchase outstanding (DPO)

The days of purchase outstanding indicate the average number of days the organization takes to pay its payables.
$$
DPO = \frac{Current Accounts Payables}{COGS}
$$

### Return on assets (ROA)

Return on assets expresses the earning power of the organizations assets.
$$
ROA = \frac{Net Income}{Total Assets}
$$

2022-01-01 - Version 1.0
