Financiall ISIonS Chapter 12
Chapter 12
Objectives To Define Operations Management To Discuss Profit Planning To Describe Asset Management To EXamine Retail Budgeting To Examine resource allocation
• To Define Operations Management • To Discuss Profit Planning • To Describe Asset Management • To Examine Retail Budgeting • To Examine Resource Allocation
Profit Planning Profit Loss(Income Statement) Net sales Cost of Goods Sold (COGs) Gross Profit( Margin) Operating Expenses Net profit before taxes
• Profit & Loss (Income Statement) – Net Sales – Cost of Goods Sold (COGS) – Gross Profit (Margin) – Operating Expenses – Net Profit Before Taxes
Asset Management Balance sheet Assets Fixed Hidden Liabilities Net worth Net Profit Margin Asset Turnover Return on Assets(ROA) Financial Leverage
• Balance Sheet • Assets – Fixed – Hidden • Liabilities • Net Worth • Net Profit Margin • Asset Turnover • Return on Assets (ROA) • Financial Leverage
Strategic Profit Model Return Net Profit Asset Financial on Margin Turnover Leverage Worth Net Profit X / er Sales X Total Assets Net Profit Net sales Total Sales Net worth Net worth
Return on Net Worth Financial Leverage Net Profit Margin Asset Turnover X X = Net Profit Net Sales X Net Sales Total Sales X Total Assets Net Worth Net Profit Net Worth =