"Production FTEs are those that contribute to the fixed costs of the company (e.g., those employees whose employment costs are not directly associated with the variable costs of a project), and FTEs includes all full-time equivalent personnel employed."
The Times Interest Earned ratio refers to Income Taxes in the formula. We're a Sub-S corporation so there are no corporate taxes. Should I ignore the taxes in this equation?
That is correct, please ignore the income taxes component in your calculation as you're a pass-through entity.
In the Days of Cash metric, Revenue is the divisor. For mid-year analysis, should this be annualized?
The Days of Cash metric should be calculated using a full 12 months of revenue if comparing against the Financial Benchmarker results.
For the Working Capital Turnover, the same question: For mid-year analysis, should this be annualized?
The Working Capital Turnover metric should be calculated using a full 12 months of revenue.
Regarding the calculation of FTE: if overtime has been worked, should I include overtime in the calculation of FTE employees?
Please use total hours worked (e.g., overtime, etc.) when calculating FTEs. (one who worked full-time for three months out of the year as 0.25 employees; and an employee who year-round works 60 hours per week would count as 1.5 FTEs).# # #
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