Results 1 to 2 of 2
    • Member Info
      • Native Language:
      • Chinese
      • Home Country:
      • China
      • Current Location:
      • China

    • Join Date: Sep 2004
    • Posts: 773
    #1

    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.

  1. Raymott's Avatar
    • Member Info
      • Native Language:
      • English
      • Home Country:
      • Australia
      • Current Location:
      • Australia

    • Join Date: Jun 2008
    • Posts: 24,103
    #2

    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

Similar Threads

  1. Rate of OR rate for
    By devp in forum Ask a Teacher
    Replies: 2
    Last Post: 06-Jun-2008, 03:17
  2. rate
    By Unregistered in forum Ask a Teacher
    Replies: 2
    Last Post: 01-Jan-2008, 04:24
  3. Banking English
    By Flash in forum Editing & Writing Topics
    Replies: 3
    Last Post: 19-Apr-2006, 05:13
  4. Who could do me a huge fafour and have a look at my essay???
    By Dina1978 in forum Editing & Writing Topics
    Replies: 4
    Last Post: 06-Nov-2005, 02:31
  5. a rate of per call and per minute?
    By Eway in forum Ask a Teacher
    Replies: 10
    Last Post: 09-Jun-2004, 05:03

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •