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Business averages These are derived by dividing the estimate of the financial variable in question by the number of operating businesses for that year. Business comparisons Compares the profit margin, return on assets and return on net worth for each industry across quartiles. The quartiles divide the units at the 75, 50 and 25 percentile point. For example, table 10 shows that in the Retail industry, those businesses in the highest quartile (75% mark or higher) had a profit margin of 11.8% or more in 2000–01. While those in the lowest quartile (25% mark or lower) had a profit margin of less than 0.3%. The median value was a profit margin of 4.4%. For conceptual reasons, the calculation of the quartiles do not include units which reported zero profit, zero assets or zero net worth. For example where net worth equals zero, it was not possible to calculate Return on net worth. Business profitability Business profitability refers to the proportion of businesses that made a profit, loss or broke even. Broke even is defined as those businesses incurring a profit or loss of less than $500. Economic Activity Survey (EAS) An annual business survey which is the main source of the statistics presented in this publication. Employment Includes working proprietors, working partners, permanent, part-time, temporary and casual employees, and managerial and executive employees working for a business during the last pay period in June each year. Employees absent on paid or prepaid leave are included. Gross fixed capital formation (GFCF) Gross fixed capital formation is measured by the total value of a producers acquisitions, less disposals of fixed assets during the accounting period, plus certain additions to the value of non-produced assets realised by the productive activity of institutional units. Fixed assets are tangible or intangible assets produced as outputs from processes of production that are themselves used repeatedly or continuously in other processes of production for more than one year.
plus Other transport equipment plus Industrial machinery and equipment plus Computer software capitalised plus Computers and computer peripherals plus Electronic and electrical machinery and communications equipment plus Other plant and equipment plus Dwellings, buildings and other structures plus Computer software expensed plus Mining exploration expenditure expensed plus Mining exploration expenditure written-off less Disposal of plant, machinery and equipment less Disposal of dwellings and other structures. equals GFCF Represents the value added by an industry to the intermediate inputs used by that industry. From 1997–98, IVA has replaced IGP as the official measure of the contribution by industries to GDP. While IVA and IGP both represent gross output less intermediate inputs (or alternatively, the value added to intermediate inputs), introduction of new international standards for measuring economic variables has meant changes to the way in which gross output and intermediate inputs are defined, as follows.
plus Operational funding from Government plus Own account capital work equals Capitalised wages and salaries plus Capitalised purchases less Capitalised purchases equals Industry Gross Product (IGP) plus Computer software (non capitalised) expense plus Indirect taxes (fringe benefits tax, payroll tax, land rates and taxes) plus Exploration expenditure written off less Intellectual property royalty expense equals IVA. The number of times over that businesses can meet their interest expenses from their earnings before interest and taxation, i.e The proportion of industry value added used to acquire capital, i.e. Large businesses See under 'Classification by size' in paragraph 13 of the Explanatory Notes. Other businesses See under 'Classification by size' in paragraph 13 of the Explanatory Notes. Net worth Total assets minus total liabilities. This is equal to the interests of shareholders or other owners in the assets of the business. Management unit See under 'Statistical unit' in paragraph 6 of the Explanatory Notes. Operating business A management unit which is still in existence at the end of the financial reporting period. See 'Management unit' above. Operating profit before tax (OPBT) A measure of profit (or loss) before extraordinary items are brought to account and prior to the deduction of income tax and apportions to owners It is derived as:
plus Closing inventories less Total expenses less Opening inventories equals OPBT The percentage of operating income available as operating profit i.e. Return on assets Operating profit before tax as a percentage of the total book value of assets, i.e. Return on net worth Operating profit before tax as a percentage of shareholders' funds, i.e. Total operating expenses The total expenses of a business, excluding extraordinary items. Total operating income The total income of a business, excluding extraordinary items
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8140.0.55.002 - Summary of Industry Performance, 2000-01
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 06/12/2002 Final
This page last updated 20 June 2006