Information Technology Reference
In-Depth Information
ROIC (
return on invested capital
);
•
•
ROS (
return on sales
);
•
NPM (
net profit margin
);
•
ROCE (
return on capital employed
);
•
RONA (
return on net assets
);
•
return on total assets;
•
IRR (
internal rate of return
);
•
WACC (
weighted average cost of capital
);
•
EPS (
earning per share
);
•
DPS (
dividends per share
);
•
DPR (
dividend pay-out ratio
);
•
PER (
price earning ratio
);
•
DYR (
dividend-yield ratio
).
The above groups of economic and financial indicators is used by cognitive sys-
tems designed to conduct a semantic analysis of the standing of a given enterprise.
4.1 A UBMSS System for a Single-Factor Analysis of the NPV
The simplest type of UBMSS systems are those that analyse single ratios of a
company. The system analysing the NPV (net present value), a selected liquidity
ratio, presented in this chapter can be considered the most important of such sys-
tems. This type of single-factor analysis systems represents the simplest kind of
UBMSS systems. An example of its operation is presented below.
The net present value, as a dynamic method, is used to assess the economic effi-
ciency of a tangible investment. It is used when analysing cash flows discounted at
the current discount rate. The NPV is the difference between discounted cash flows
and the original investment and is calculated using the following formula [9]:
n
=
CF
NPV
=
−
I
t
0
t
(
+
r
)
t
1
where:
CF
t
- the value of cash flows within period
t
;
r
- the discount rate;
I
0
- is the original investment;
t
- subsequent periods of investment operation.
For the proposed UBMSS system conducting an analysis using the NPV, the
following formal grammar was proposed:
