Financial results of the basic activity and their application

Biruta Garanča

Abstract


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.

Keywords


profit margin of the basic activity; profitability of the basic activity; cash flow; Boston Consulting Group Matrix

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References


Kārlis Subatnieks. Komercsabiedrības naudas plūsma. Drukātava, 2008., 77.lpp.

Юджин Ф.Бригхэм, Майкл С. Эрхардт. Финансовый менеджмент. 10-е издание. ПИТЕР. 2007., 454., 458. c.




DOI: http://dx.doi.org/10.17770/lner2009vol1.1.1762

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