AgdaPkt 2002-08-12 - Laserfiche WebLink

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PATIOS U ED IN REPORT The ratios presented in this report are among the major categories of ratios used in financial statement analysis and measure operating performance, short-term liquidity, retUrn on investment, capital structure, and asset utilization. Since there are no established benchmark industry standards, the ratios presented can best be interpreted corn arison with paSt ratios of the same port or compariSOn with other ports having tbhYe sa~~ charecterist~cs of operation and financing Ratios which measure operating performance include operating ratio, operating margin, · enue (3ross sales), and operating income to operating net income to operating rev L !-g.....~all,~ adonted as a benchmark in MARAD's revenue (gross sales). Althougn nu~ ,v .... ~ ,- and Self-Su. fficiently 1997 publication, An Analysis of U.S. public port Profitability at a ort could at the present time maintain a 1994), it was fou.n. ,d. that,~...it_~.P.P~a~rs, tnhr~eretiPnc~[ ratio of 850/0, provided the interest from profitable status rr ~t coupe rnu.,,~ ...... ,- - operating income plus interest its debt load and other expenses did not exceed its income.' Short-term liquidity ratios include the current ratio and two measures of the quality and liquidity of accounts receivable - (1) the percentage of accounts receivable reseo/ed as bad debts and (2) the collection period for acCounts receivable. Three ratios measure return on investment. They are return on tota~ assets; return on net investment in plant, property, and equipment after depreciation; and retUrn on investment in plant, property, and equipment before depreciation. Asset utilization is measured by the relationship of operating income to the net investment in plant, property, and equipment· Capital structure is measured by the relationship of long-term debt to total equity. vi