Difference between revisions of "Basic earning power"
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| − | + | [[Basic earning power]] ([[BEP]]) is the ratio that indicates the ability of the firm's assets to generate operating income; it is calculated by dividing [[EBIT]] by total assets. | |
==Definitions== | ==Definitions== | ||
According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| − | : | + | :[[Basic earning power]] ([[BEP]]). This ratio indicates the ability of the firm's assets to generate operating income; it is calculated by dividing [[EBIT]] by total assets. |
==Related concepts== | ==Related concepts== | ||
Latest revision as of 18:18, 1 November 2019
Basic earning power (BEP) is the ratio that indicates the ability of the firm's assets to generate operating income; it is calculated by dividing EBIT by total assets.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Basic earning power (BEP). This ratio indicates the ability of the firm's assets to generate operating income; it is calculated by dividing EBIT by total assets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
