#1  
Old 17-Sep-2008, 02:01
Senior Member
 
Join Date: Sep 2004
Posts: 752
Member Type: Student or Learner
Default compound annual rate?

Hello Everyone,

Can you explain more about compound annual rate in the following paragraph? Can you offer some examples about compound here?


Our success shows in earnings per share that have grown at an average compound annual rate of 24 percent. Our operating margins have increased by more than 65 percent. We have reduced working capital investments by about 56 percent, increased inventory turnover by nearly 43 percent, reduced outstanding receivables by over 15 percent, and saved $150 million in purchasing costs via a corporate-wide strategic sourcing initiative.

And I search by google that there is total receivables? Are outstanding receivables and total receivables the same in meaning?


Regards

Sky

Last edited by sky753; 17-Sep-2008 at 02:24.
  #2  
Old 17-Sep-2008, 02:22
Raymott's Avatar
VIP Member
 
Join Date: Jun 2008
Posts: 13,996
Home Country: Australia
Native Language: English
Current Location: Australia
Member Type: Academic
Default Re: compound annual rate?

Quote:
Originally Posted by sky753 View Post
Hello Everyone,

Can you explain more about compound annual rate in the following paragraph? Can you offer some examples about compound here?


Our success shows in earnings per share that have grown at an average compound annual rate of 24 percent. Our operating margins have increased by more than 65 percent. We have reduced working capital investments by about 56 percent, increased inventory turnover by nearly 43 percent, reduced outstanding receivables by over 15 percent, and saved $150 million in purchasing costs via a corporate-wide strategic sourcing initiative.

Regards

Sky
There are two common types of interest rates: Simple and Compound.
With a simple rate of 24%, you get 24% of the principal (initial amount) each year.
So, if you invest $100; after one year you have $124, at two years, you have $148. (Each year you get $24).
In compound interest, the rate applies to your total current amount.
$100 - $124 - $153.76 [which is 124 + (24% of 124)] - 190.66 - $235.42
Principal: $100; Interest 24%
Simple: $220.00 at five years
Compound: $293.16 at five years
Closed Thread

Bookmarks

Tags
compound, rate, share, stock


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rate of OR rate for devp Ask a Teacher 2 06-Jun-2008 03:17
rate Unregistered Ask a Teacher 2 01-Jan-2008 03:24
Banking English Flash Editing & Writing Topics 3 19-Apr-2006 05:13
Who could do me a huge fafour and have a look at my essay??? Dina1978 Editing & Writing Topics 4 06-Nov-2005 01:31
a rate of per call and per minute? Eway Ask a Teacher 10 09-Jun-2004 05:03


All times are GMT. The time now is 11:43.



Content Relevant URLs by vBSEO ©2011, Crawlability, Inc.