Denkschrift betreffend die Neuregelung der handelspolitischen Beziehungen Deutschlands zu den Vereinigten Staaten von Amerika

The financial productivity of public utility companies

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Monograph

Identifikator:: 1031936459

URN:: urn:nbn:de:zbw-retromon-64150

Document type:: Monograph

Title:: Denkschrift betreffend die Neuregelung der handelspolitischen Beziehungen Deutschlands zu den Vereinigten Staaten von Amerika

Place of publication:: Berlin

Publisher:: [Mitteleuropäischer Wirtschaftsverein in Deutschland]

Year of publication:: 1905

Scope:: 1 Online-Ressource (89 Seiten 4"(8"))

Digitisation:: 2018

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

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Document type:: Monograph

Structure type:: Chapter

Title:: XIII.

Collection:: Economics Books

PREFACE In the preface to Bulletin No. 9, the first of this series of studies in Public Utility ratios, the following statement was made: The useful- ness of financial ratios depends somewhat upon the opportunity which individual companies have of comparing their own recent ratios with other similar ratios as standards. There are two ways in which a serviceable “standard” for comparison may be obtained. The individual enterprise may calculate ratios for its business over a sufficiently long period of time to develop in the minds of its executives an approximate “standard” for their own enterprise. On the other hand, the attempt may be made to present a reasonable standard figure for the industry as a whole so that individuals may compare their own ratios with a so-called “standard-of-the-industry” ratio. The Bureau is attempting in these studies to derive reasonable “standard-of-the-industry” ratios by tabulating data in sufficient quanti- ties to permit the determination of modal averages, i. e., averages about which the ratios tend to concentrate. These averages may then be used as the best available standard ratios. The modal averages were calculated by an approximation formula. The formula used is: I Icx.c + f'c + fc where 1 equals lower limit of the modal group c equals class interval fc equals the frequency of the next higher class interval f'c equals the frequency of the next lower class interval. To obtain the mode exactly on the basis of given data, arranged as a frequency distribution, it is necessary to obtain the frequency curve. The highest ordinate of this curve yields the theoretical mode. It was felt, however, that for the purposes of this study, the approximated mode yields a sufficiently accurate figure to indicate characteristic financial ratios. Determinations of the respective modes by both methods dis- closed the fact that the approximations yielded results which are quite close to the more accurately calculated figures. In the present study two ratios are considered, (1) the ratio of Gross Revenue to Total Assets, which expresses the productiveness of the service-producing investment and, (2) the ratio of Gross Revenue 135%

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