
(ROS) Return on sales
 Net profit, generated each year, divided by total sales for the same
 period.

Turn Over (Asset Turn Over)
 Sales, generated in a particular year, divided by the value of total
 assets for the same period.

(ROA) Return on Assets
 Net profit, generated each year, divided by the value of total
 assets for the same period.

Leverage
 Total assets at the end of the period under review divided by
 owners' equity for the same period. A value of 2 indicates that half the
 assets have been bought with equity, and the other half with current
 and/or long term debt.
Example: Assets = $2,000,000Owners' equity = $1,000,000
$2,000,000 /$1,000,000 = 2

(ROE) Return on Equity
 Net profit, generated each year, divided by the value of owners' equity
 for that year.

(EBIT) Earnings Before Interest and Taxes
 Profits before loan interest payments, broker fees, writeoffs, and
 bonus income are taken into account.

Cumulative Profit
 Cumulative total of all profits (losses) generated since the game's
 inception (includes Round 0 profits).

SG+A
 Sales, General and Administrative expenses: In the simulation,
 SG&A includes all R&D, Marketing, and TQM costs.

Contribution Margin
 Contribution Margin = Sales  (Direct Labor + Direct Materials +
 Inventory Carry)
 Contribution Margin % = Sales  (Direct Labor +
 Direct Materials + Inventory Carry) / Sales

(BOND MARKET) Series #
 Label given to a bond when it was issued. The first numbers are the
 interest rate. “S” means series, and the last two digits refer to the
 year the bond is due. 15.4S2011 means that the bond pays a coupon 15.4%
 each year and that the principal is due in 2011.

(BOND MARKET) Face Value
 For each outstanding bond, Face ($000): Principal of the issue. If the
 face is $11,040,000 then $11.04M in bonds were issued (unless a portion
 of the bond was paid off before maturity). Using the 15.4S2006 bond with
 a face value of $11.04M as an example, coupons of 15.4% or a total of
 $1,700,160 will be paid each year until the bond becomes due in 2006. In
 2006, the last coupon and the principal are due. The principal is
 converted automatically to Current (short term) Debt on December 31 of
 the year it is due.

(BOND MARKET) Yield
 A measure of what the bond is worth at current interest rates. To
 calculate, the stated interest rate is divided by the closing bond
 price. For example, if the stated interest is 15.4% and the closing
 price is $115.80 then $15.40 divided by $115.80 gives a yield of 13.3%.

(BOND MARKET) Close (Outstanding Bonds)
 Closing price of the bond last year. Bonds are bought and sold in the
 marketplace, but since their interest payment is fixed, the price of the
 bond fluctuates. A risk assessment is made for each firm, ranging from
 “AAA” to “D.” For each lower grade, investors expect an additional 0.5%
 yield. The simulation adjusts the closing price of the bond so that the
 yield reflects current interest rates and an appropriate risk.

(STOCK MARKET) EPS (Earnings per share)
 Earnings Per Share = Net Profit for the year divided by the number of
 Shares Outstanding.

(STOCK MARKET) P/E (Price Earnings Ratio)
Price Earnings Ratio = Stock Price divided by Earnings Per Share (EPS)

