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 |