Table 4 Financial performance metrics Eq... | Emerald Publishing

Table 4

Financial performance metrics

Eq	Variable	Formula	Parameters/Conditions
11	Operating profit margin	((Revenue generation − Operating cost flow − Replacement expenditure) / Revenue generation) × 100	Condition: if Revenue generation >0; otherwise = 0
12	Net book value	max (1, Total investment − Total accumulated depreciation)	Total accumulated depreciation = Accumulated platform depreciation + Accumulated equipment depreciation
13	Return on net assets (RONA)	((Revenue − Operating costs − Replacement exp. − depreciation) × 12 / Net book value) × 100	Condition: if Net book value > 0; otherwise = 0
14	Discount factor	1 / (1 + Monthly discount rate)^Time	Monthly discount rate = (1 + Discount rate)^1/12 − 1; Discount rate = 0.08
15	Profitability index	(Cumulative discounted cash flow + Total investment) / Total investment	Interpretation: Values > 1.0 indicate value creation

Eq	Variable	Formula	Parameters/Conditions
11	Operating profit margin	((Revenue generation − Operating cost flow − Replacement expenditure) / Revenue generation) × 100	Condition: if Revenue generation >0; otherwise = 0
12	Net book value	max (1, Total investment − Total accumulated depreciation)	Total accumulated depreciation = Accumulated platform depreciation + Accumulated equipment depreciation
13	Return on net assets (RONA)	((Revenue − Operating costs − Replacement exp. − depreciation) × 12 / Net book value) × 100	Condition: if Net book value > 0; otherwise = 0
14	Discount factor	1 / (1 + Monthly discount rate)^Time	Monthly discount rate = (1 + Discount rate)^1/12 − 1; Discount rate = 0.08
15	Profitability index	(Cumulative discounted cash flow + Total investment) / Total investment	Interpretation: Values > 1.0 indicate value creation