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The Total Asset Turnover indicates the efficiency with which the business uses all of its assets to generate sales. Sales, divided by Total assets = TAT.

The Debt Ratio measures the proportion of total assets financed by the business' creditors. The higher the ratio, the greater the amount of other people's money being used in an attempt to generate profits. Total Liabilities, divided by Total assets = Debt Ratio.

The Times Interest Earned Ratio measures the business' ability to make contractual interest payments. The higher the ratio, the better able the business is to fulfill its interest obligations. Earnings before interest and taxes, divided by Interest = Times Interest Earned Ratio.

The gross profit on inventory is divided by the average profit of the inventory. Low end items may be marked up 500% while a high end is only 30%. Use the average profit across all inventory items. If the average is 10, which means for every dollar you invested, you earned $10 more in profit.

The Operating Profit Margin measures the percentage of profit earned on each sales dollar before interest and taxes. It measures only the profits earned on operations. Operating profits, divided by Sales = Operating Profit Margin.

The Net Profit Margin measures the percentage of each sales dollar remaining after all expenses, including taxes, have been deducted. The higher the business' net profit margin the better. "Good" net profit margins differ considerably across industries. Net profits after taxes, divided by Sales = Net Profit Margin.

GAAP is the abbreviation for "generally accepted accounting principles". They are the U.S. practice and procedure guidelines used to prepare and maintain financial records and reports and statements. They are authorized by the Financial Accounting Standards Board. Officially established accounting principles consist of FASAB Statements of Federal Financial Accounting Standards (Standards) and Interpretations. FASAB Standards and Interpretations will be periodically incorporated in a publication by the FASAB.

The SEC is the abbreviation for the Securities and Exchange Commission. It is the federal regulatory body that governs the sale and listing of securities.

A publically-held corporation is a corporation whose stock is traded on either an organized securities exchange or on the over-the-counter exchange, or those with more than $5 million in assets and 500 or more stockholders.

The amount of the elected non-taxable deferral is reported On Form W-2 in box 12. Enter the code of D and the section 401(k) amount. Do not include this amount in the W-2, box 1, Taxable wage amount.