IBISWorld provides profiles on the top 2,000 private and public Australian companies ranked by revenue. These expert reports are thoroughly researched, reliable and current. We've provided a glossary of terms below.
Abnormal Items
These are items of revenue and expenditure included in the operating profit (or loss) that are considered abnormal by reason of their size and effect on the operating profit (or loss) for the year.
Audit Fees
Audit fees are the amount charged by the auditor for the purpose of auditing the company’s financial accounts for the current financial year.
Audit Other
Audit other is the amount charged by the auditor for consulting services other than auditing (e.g. computer consultancy work).
Audit Total
Audit total is the sum of audit fees and audit other.
Cash at Bank
Cash at bank represents cash in the bank or on hand.
Current Liabilities
Current liabilities are short-term debts incurred by the company as a result of its normal business operations. Examples include unpaid bills to suppliers, outstanding wages and bank overdrafts.
Depreciation
Depreciation represents the accumulated depreciation for each fixed asset that the company owns other than buildings.
Employees
The number of people employed full-time by the company as at the latest balance date.
Income Tax
Income tax is an expense paid by the company to the government’s tax office in accordance to the current taxation laws.
Intangible Assets
Intangible assets refer to assets that cannot be touched, weighed or physically measured. This figure is taken directly from the company’s balance sheet. Examples include goodwill, copyrights, trademarks, patents, franchises and brand names.
Interest Bearing Debt Current
Interest bearing debt current includes every current liability on which interest is paid or payable. Examples include any loans, bank overdrafts, finance lease liability or debt security such as a bond, debenture or bill of exchange.
Interest Bearing Debt Non-Current
Interest-bearing debt non-current includes every non-current liability on which interest is paid or payable.
Interest Paid
Losses arising from the use of an entity's interest-yielding liabilities.
Interest Received
Revenue arising from the use of the entity's interest yielding assets.
Inventory
Inventory refers to the value of current stock on hand.
Net Profit After Tax
Net profit after tax (NPAT) provides the operating profit after tax and incorporates both the equity profit/loss figure and abnormal items but excludes extraordinary items.
Net Profit Before Tax
Net profit before tax (NPBT) provides the operating profit before abnormal items and income tax are deducted.
Other Current Assets
Other current assets are derived from subtracting total current assets from cash at bank, trade debtors and inventory.
Other Liabilities
Other liabilities are long-term liabilities that are debts of the company that are expected to be paid more than 12 months after the current balance date.
Other Revenue
The other revenue figure is revenue received by the company that is not part of its operations. Examples include revenue received by the sale of plant and equipment or grants received from the government. This amount is normally derived from deducting sales revenue from total revenue.
Outside Equity Interest
Outside equity interest relates to equity in the company other than that which can be attributed to the ownership group of the parent entity.
Sales Revenue
The sales revenue figure is revenue received by the company from its normal operations.
Shareholder Funds
Shareholder funds are calculated by subtracting the sum of current and other liabilities from total assets. This figure is taken directly from the company’s balance sheet.
Total Assets
Total assets is the sum of both current and non-current assets. This figure is taken directly from the company’s balance sheet. Non-current assets include receivables that will not be collected within 12 months (term debtors and loans), investments, property, plant, equipment, intangibles and any future income tax benefit.
Total Current Assets
Total current assets are derived by adding cash at bank, trade debtors, inventory and other current assets.
Total Revenue
The total revenue figure is the combined total of sales revenue and total other revenue.
Trade Debtors
Trade debtors represent amounts of money owed by customers who have purchased goods or services from the company.
Trade Creditors
Trade creditors refer to companies or individuals to which money is owed. This figure is taken directly from the current liabilities section of the balance sheet.
Total Liabilities
Total liabilities is the sum of current liabilities and other liabilities.
FINANCIAL RATIOS
Asset Turnover Ratio
Sales revenue / Total Assets
Creditors T/O
Trade creditors / Cost of goods sold x 365
Current ratio
Current assets / Current liabilities
Days Stock Held
Inventory / Cost of goods sold x 365
Debtors T/O
Trade debtors / Total revenue x 365
Dividend Payout Ratio
Dividends paid / Total revenue
Dividend Per Share
Dividend paid per outstanding share
Earnings Per Share
Net profit after tax / Number of shares outstanding
EBITDA
Profit before tax + Interest expense + Depreciation
Effective Tax Rate
Income tax / Net profit before tax x 100
Gearing
Total liabilities / Total assets x 100
Interest cover
(Profit before tax + Interest expense) / Interest expense
Net Assets Per Share
(Total assets – Total liabilities) / Total outstanding shares
Profit margin
Profit before tax / Sales revenue x 100
Return on assets
Net profit after tax / Total assets x 100
Return on shareholders funds
Net profit after tax / Total shareholders’ funds
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