meaning of variable

variable

variable name

calculation method

Responsibility to shareholders

X1

Capital appreciation and appreciation rate

Owner’s Equity at the end of the year ÷ Owners’ equity

Responsibility to creditors

X2

Interest coverage ratio

EBITDA ÷ interest expense

Responsibility to customers

X3

Sales growth rate

(Main Business Revenue of the Year − Main Business Revenue of the Previous Year) ÷ Main Business Revenue of the Previous Year

Responsibility to employees

X4

Wage and welfare rate

Payable employee benefits ÷ net profit

Responsibility to suppliers

X5

Inventory turnover

Main business cost ÷ Average balance of accounts payable