Open AccessFinancial results of the basic activity and their application
Author(s) -
Biruta Garanča
Publication year - 2009
Publication title -
latgale national economy research/latgales tautsaimniecības pētījumi
Language(s) - English
Resource type - Journals
eISSN - 2256-0955
pISSN - 1691-5828
DOI - 10.17770/lner2009vol1.1.1762
Subject(s) - profitability index , cash flow , business , profit margin , cash , finance , investment (military) , politics , political science , law
Two parameters have been developed: Profit margin of the basic activity ROP and profitability of the basic activity PIE. By modifying the proportion of investment activity net cash flow against the net turnover and the Boston Consulting Group Matrix, as well as merging them with the profitability of the basic activity PIE, the enterprises can be classified as problem child (question marks), stars, cash cows and dogs.