return on capital employed (ROCE) = net operating profit / capital employed x100
net operating profit?
revenue - cost of goods sold
liquidity (current ratio)?
current ratio = current assets / current liabilities
gearing?
gearing ratio = non-current liabilities / capital employed x100
payable days?
payable days = payables / cost of sales x365
receivable days?
receivable days = receivables / revenue x365
Inventory turnover?
inventory turnover = cost of goods sold / average inventories
Kaplan and Norton’s balanced scorecard model aims to balance measures of performance for success in the long-term, it is complex and some areas are hard to quantify, however can predict weaknesses early
Elkington’s Triple Bottom Line, emphasises how people, planet and profit all advance the idea of sustainability in business practice
Caroll’s corperate social responsibility pyramid, shows four main areas that a business owes to their stakeholders
Porters 5 forces, enables a business to understand its strengths. Porter further proposed 3 different strategies, cost leadership, differentiation, or a focus strategy
