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Chapter 7 Explanation on the References Provided

5. Open item code book

Data codifying the subjective responses on the survey including the name of qualification, college/university, department, Master's degree course major, and Doctor's degree course major. For details on how to assign codes and code values, refer to the

"open item code book" file.(English version is not available, only in korean)

patents (patents, utility models, design)

<Appendix 1> NICE Data Financial Ratio Formulas

Name of variable Formula

Total assets increase ratio (Current assets grand total / Previous assets grand total) * 100 - 100 Tangible fixed assets increase

ratio (Current tangible assets / Previous tangible assets) * 100 - 100 Liquid assets increase ratio (Current liquid assets / Previous liquid assets) * 100 - 100 Inventory assets increase ratio (Current inventory assets / Previous inventory assets) * 100 - 100 Equity capital increase ratio (Current assets total / Previous assets total) * 100 - 100 Sales increase ratio (Current sales / Previous sales) * 100 - 100

Operating profit increase ratio (Current operating profit / Previous operating profit) * 100 - 100 Ordinary profit increase ratio (Current ordinary profit / Previous ordinary profit) * 100 - 100 Net profit increase ratio (Current net profit / Previous net profit) * 100 - 100 Number of employees increase

ratio (Number of current employees / Number of previous employees) * 100 - 100 Total capital operating profit

ratio (Current operating profit / ((Current total capital + Previous total capital) / 2)) * 100 Total capital ordinary profit

ratio (Current ordinary profit / ((Current total capital + Previous total capital) / 2)) * 100 Total capital net profit ratio (Current net profit / ((Current total capital + Previous total capital) / 2)) * 100

Corporate ordinary profit ratio ((Current ordinary profit + Financial cost) / ((Current total capital + Previous total capital) / 2)) * 100 Corporate net profit ratio ((Current net profit + Financial cost) / ((Current total capital + Previous total capital) / 2)) * 100

Management capital operating profit ratio

Current sales profit / ((Current total capital - Current assets in construction - Current investment assets - Current deferred assets - Business start-up cost in the current intangible assets - Development cost in the current intangible assets + Current total capital - Previous assets in construction - Previous investment assets - Previous deferred assets - Business start-up cost in the previous intangible assets - Development cost in the previous intangible assets) / 2) * 100

Equity capital ordinary profit

ratio (Current ordinary profit / ((Current assets total + Previous assets total) / 2)) * 100 Equity capital net profit ratio (Current net profit / ((Current assets total + Previous assets total) / 2)) * 100 Capital ordinary profit ratio (Current ordinary profit / ((Current capital + Previous capital) / 2)) * 100 Capital net profit ratio (Current net profit / ((Current capital + Previous capital) / 2)) * 100 Sales ordinary profit ratio (Current ordinary profit / Current sales) * 100

Sales net profit ratio (Current net profit / Current sales) * 100 Sales total profit ratio (Current sales total profit / Current sales) * 100 Sales operating profit ratio (Current operating profit / Current sales) * 100

Balance ratio (Current sales cost + Current sales management cost + Current non-operating cost + Special loss) / (Current sales + Current non-operating profit + Current special profit) * 100

Sales cost ratio (Current sales cost / Current sales) * 100

Depreciation ratio

(Tangible assets depreciation on the cash flow analysis statement or depreciation on the cash flow statement or depreciation on the P&L statement and manufacturing statement) / (Tangible assets - Assets in construction - Land + (Tangible assets depreciation on the cash flow analysis statement or depreciation on the cash flow statement or depreciation on the P&L statement and manufacturing statement)) * 100

Depreciation/Total cost ratio

(Tangible assets depreciation on the cash flow analysis statement or depreciation on the cash flow statement or depreciation on the P&L statement and manufacturing statement) / (Sales cost + Sales and management cost + Non-operating cost + Special loss) * 100

Labor cost/Total cost ratio (Labor cost on the P&L statement + Labor cost on the manufacturing statement + Welfare and benefits on the manufacturing statement) / (Sales cost + PR cost + Non-operating cost + Special loss)

Taxes/Net profit before tax deductions ratio

(Corporate tax, etc. + Taxes and duties of the general management cost + Taxes and duties on the manufacturing statement) / (Net profit before corporate tax + Taxes and duties of the general management cost + Taxes and duties on the manufacturing statement)

* 100

Taxes and dues/Total cost ratio (Corporate tax, etc. + Taxes and duties of the general management cost + Taxes and duties on the manufacturing statement) / (Sales cost + PR cost + Non-operating cost + Special loss) * 100

Financial cost/Total liabilities Financial cost / ((Current total liabilities + Previous total liabilities) / 2) * 100

Name of variable Formula

Average interest rate for loans

(Financial cost - Interests on the cash flow statement) / ((Current short-term loans + Current liquidity long-term liabilities - Current other liquidity long-term loans + Current bonds + Current long-term loans + Current single-marked financial lease liabilities + Repaid liabilities including current long-term loans) + (Previous short-term loans + Previous liquidity long-term liabilities - Previous other liquidity long-term loans + Previous bonds + Previous long-term loans + Previous single-marked financial lease liabilities + Repaid liabilities including current long-term loans)) / 2 * 100

Financial cost/Total cost

ratio (Financial cost / (Sales cost + PR cost + Non-operating cost + Special cost) * 100 Financial cost/Sales ratio (Financial cost / Sales) * 100

Business activity cash flow

Interest compensation ratio Cash flow by operations on the operation cash flow / Financial cost Operating profit interest

compensation ratio Operating profit / Financial cost Ordinary profit interest

compensation ratio (Ordinary profit + Financial cost) / Financial cost Before corporate tax

Net profit interest compensation ratio

(Profit before corporate tax + Financial cost) / Financial cost

Equity capital ratio Capital grand total / Total capital * 100 Liquidity ratio Liquid assets / Liquid liabilities * 100 Quick ratio Quick assets / Liquid liabilities * 100

Cash ratio Cash and cash equivalents / Liquid liabilities * 100

Fixed ratio (Fixed assets - Deferred assets + Lease assets + Leased residence assets) / Capital grand total * 100 Liabilities ratio Liabilities grand total / Capital grand total * 100

Liquid liabilities ratio Liquid liabilities / Capital grand total * 100 Fixed liabilities ratio Fixed liabilities / Capital grand total * 100

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