Cash flow targets
What happens when a business runs out of cash?
Cost minimisation
Think about ways to minimise costs.
Think about possible consequences of reducing costs.
Return on Capital Employed (ROCE) targets
Formula:
Operating Profit x 100
Total equity+non-current liabilities
It is important that you understand what this means.
How can you judge if ROCE is poor, satisfactory or good?
Shareholder returns
Formula 1:
Dividend per share (in pence)
Total dividends
Number of issued ordinary shares
Formula 2:
Dividend yield (%)
Ordinary share dividend (in pence) x 100
Current market price (in pence)
It is important that you understand what this means.
How can you judge if the dividend yield is poor, satisfactory or good?
Assessing internal and external influences on financial objectives: Can you add to this?
