Seven ratios and twelve trends developed by Lord Weinstock , practised by many boards of directors
Ratios
Trend lines
These are commonly used in corporations
Ratios
- Sales in terms of each pound of emoluments
- Dales divided by number of staff
- sales divided by capital employed
- sales in relation to debtors
- sales in terms of actual number of units sold
- profits in terms of voulme of sales
- profts divided by capital employed
Trend lines
- Capital invested
- orders in hand
- orders received
- number of employees
- number of direct and indirect staff
- wages(direct)
- avg hourly wages per worker ( direct)
- DEPTORS ( TRADE)
- export sales out of total sales
- profits net
- level of stocks
- expenditure
These are commonly used in corporations