Accounts receivable includes all claims against debtors arising from the sale of goods and services and any other miscellaneous claims with respect to non-trade transaction. It excludes loan receivables and some receivables from related parties.
Advertising and promotion
Advertising and promotion covers all advertising expenses, such as promotions, signs, window dressings, catalogues, etc.
All other revenues
All other revenue includes revenue from interest, dividends, commissions, rent, and other sources of revenue.
Amortization and depletion
Amortization and depletion includes allocation of the cost of revenue producing assets (which are assumed to be around for more than a year) among the life of the asset. The items that correspond to this amortization and depletion definition are: declaration allowance on capital property amount, capital cost allowance amount.
Closing inventory includes tangible assets held for sale in the ordinary course of business, or goods in the process of production for such sale, or materials to be consumed in the production of goods and services for sale. It excludes assets held for rental purposes.
Collection period for accounts receivable
Collection period for accounts receivable gives the estimate of the average number of days it takes to collect receivables from the day of the transaction. It is calculated as (accounts receivable) / (average daily revenue). Average daily revenue is calculated as (total revenue) / (365 days). This ratio measures liquidity by indicating the effectiveness of the credit-granting and collection activities of the business. Increases in the collection period indicate an increasing time lag between credit sales and cash realization. This ratio is not very relevant for financial, construction and real estate industries. Or it can be calculated as 365(days)/ Accounts receivable turnover. Accounts receivable turnover is calculated as sales revenue (on account) /average trade accounts receivable.
Cost of sales (direct expenses)
Cost of sales (direct expenses) represents direct costs incurred by businesses from the process of selling goods. This item is calculated as wages and benefits + purchases, materials and sub-contracts + opening inventory - closing inventory.
Current bank loans
Current bank loans include all current loans and notes payable to Canadian chartered banks and foreign bank subsidiaries, with the exception of loans from a foreign bank, loans secured by real estate mortgages, bankers acceptances, bank mortgages and the current portion of long term bank loans.
Current debt to equity
Current debt to equity is calculated as (current liabilities * 100) / (equity). This percentage is a measure of liquidity, which indicates a firm's relative ability to pay its short-term debts. The lower the positive ratio, the more liquid the business. The current debt to equity percentage also provides information on the capital structure of a business, the extent to which a firm's capital is financed through current debt. This ratio is relevant for all industries.
Current ratio is a liquidity ratio that indicates the firm's ability to pay liabilities with current assets. It is calculated as (total current assets) / (total current liabilities). The larger the ratio, the more liquid the business is. It isn't very relevant for financial, construction and real estate industries. This ratio is also known as the working capital ratio.
Debt ratio is calculated as (total liabilities) / (total assets). This is a solvency ratio indicating a firm's ability to pay its long-term debts, the amount of debt outstanding in relation to the amount of capital. The lower the ratio, the more solvent the business is.
Debt to equity ratio
Debt to equity ratio is calculated as (total liabilities) / (total equity). This is a solvency ratio, which indicates a firm's ability to pay its long-term debts. The lower the positive ratio is, the more solvent the business. The debt to equity ratio also provides information on the capital structure of a business - the extent to which a firm's capital is financed through debt. This ratio is relevant for all industries.
Delivery, shipping and warehouse expenses
Delivery, shipping and warehouse expenses include expenses for delivery, shipping, courier and distribution services used by businesses, except for those in the transportation industry, which are contained in purchases and materials.
Efficiency ratios measure the efficiency with which businesses utilize their assets.
Employment represents the average number of paid employees for each business. This figure is derived from the data file for the Longitudinal Employment Analysis Program (LEAP), which is maintained by the Business and Labour Market Analysis Division of Statistics Canada.
The number of employees is derived by dividing total labour costs from the Small Business Profiles 2000 by the average annual earnings (AAE).
The AAE is derived by dividing the total payroll for each industry by the average number of employees (ALU or average labour unit) by province. Based on a concordance table derived from the Unified Enterprise Survey (UES) frame each record in the sample is associated with an AAE. Therefore all records within a specific province and NAICS 4 have the same AAE.
Insurance includes all types of insurance such as bonding, car insurance, fire and liability insurance, premium expenses, etc.
Interest and bank charges
Interest and bank charges include all interest expense and discounts paid by the business, such as real estate mortgages, chattel mortgages, mortgage bonds, advances and demand loans, bank interest, etc.
Interest coverage ratio
Interest coverage ratio is calculated as (net profit + interest and bank charges) / (interest and bank charges). This ratio calculates the average number of times that interest owing is earned and, therefore, indicates the debt risk of a business. The larger the ratio, the more able a firm is to cover its interest obligations on debt. This ratio is not very relevant for financial industries. This ratio is also known as "times interest earned".
Labour and commissions include remuneration paid to the employees of the business not shown in the cost of sales and includes: salaries and wages.
Liquidity ratios deal with a firm's ability to meet its current financial obligations and to withstand adverse economic conditions. Liquidity refers to liquid assets, which are assets easily converted to cash and that will be converted to cash in the near future, and is an indication of short term financial strength.
Long term assets
Long term assets include all other assets not elsewhere recorded, such as long term bonds.
Long term liabilities
Long term liabilities are obligations that are not reasonably expected to be liquidated within the normal operating cycle of the business but, instead, are payable at some date beyond that time. It includes obligations such as long term bank loans and notes payable to Canadian chartered banks and foreign subsidiaries, with the exception of loans secured by real estate mortgages, loans from foreign banks and bank mortgages and other long term liabilities.
North American Industry Classification System (NAICS) - Statistics Canada's standardized coding system for grouping businesses engaged in similar types of activity into non-overlapping industry categories. The first two digits designates the sector, the third digit designates the subsector, the fourth digit designates the industry group and the fifth digit designates industries.
Net fixed assets to equity
Net fixed assets to equity is calculated as (net fixed assets * 100) / (equity). Net fixed assets represent long term investment, so this percentage indicates relative capital investment structure.
Net profit/loss is the profit or loss resulting from normal business operations, recorded before income taxes, extraordinary items and other income not related to normal operations. For unincorporated firms, the owners' or partners' salaries and withdrawals are included.
Net profit to equity
Net profit to equity is calculated as (net profit * 100) / (equity). This percentage indicates the profitability of a business, relating the business income to the amount of investment committed to earning that income. This percentage is also known as "return on investment" or "return on equity." The higher the percentage, the relatively better the profitability is.
Net tangible and intangible assets
Net tangible and intangible assets represents tangible or intangible property held by businesses for use in the production or supply of goods and services or for rental to others in the regular operations of the business. It excludes those assets intended for sale. Examples of such items are plant, equipment, patents, goodwill etc. Valuation of net fixed assets is recorded net of accumulated depreciation, amortization and depletion.
Non-profitable businesses are those for which expenses exceed revenue.
Opening inventory includes tangible assets held for sale in the ordinary course of business, or goods in the process of production for such sale, or materials to be consumed in the production of goods and services for sale. It excludes assets held for rental purposes.
Operating expenses (indirect expenses)
Operating expenses are all expenses incurred in the course of running the business or in the operation of the business. It includes labour and commissions + amortization and depletion + repairs and maintenance + utilities and telephone/telecommunication + rent + interest and bank charges + professional and business fees + advertising and promotion + delivery, shipping and warehouse expenses + insurance + other indirect expenses.
Other current assets
Other current assets include all current assets not accounted for in accounts receivable and closing inventory.
Other current liabilities
Other current liabilities include short-term loans other than bank loans, accounts payable, the current portion of long term debt, advances and prepayments due to affiliates, and other current liabilities.
Other indirect expenses
Other indirect expenses includes all other expenses such as bad debts, laundry and cleaning expenses, some taxes (such as beverage licences, business charges and taxes, interest on taxes, and fines and penalties), etc. This item is calculated as operating expenses; labour and commissions; amortization and depletion; repairs and maintenance; utilities and telephone/telecommunication; rent; interest and bank charges - professional and business fees; advertising and promotion; delivery, shipping and warehouse expenses; insurance = other indirect expenses.
The percentage of businesses in the sample that reported each expense item on their tax return.
Professional and business fees
Professional and business fees include all expenditures on external professional advice or services, such as accounting fees, legal fees, management fees and incorporation fees.
Profitability ratios measure the overall success of a firm. Profitability is a necessary condition for the long-term survival of a business. Profitability ratios attempt to measure the adequacy of operating revenue.
Profitable businesses are those for which revenue is equal to or exceeds expenses during the reference period.
Purchases, materials and sub-contracts
Purchases, materials and sub-contracts includes purchases used to produce revenue for product sales, land costs or land purchased for resale and other recorded direct costs including costs incurred by businesses that hire outside firms to perform special trade tasks.
Quality Indicators are available to provide data users with information on the accuracy of the published estimates. Although, as a census, estimates contained in the small business profiles are not subject to sampling error, the quality of displayed values are still subject to other factors, including imputation. Imputation is a process whereby records with missing data are assigned values based on the data of records with more complete data. This is performed in two cases, when a data point reported by a business is judged to fall outside the limits of statistically coherent values or when a business fails to itemize all or part of the required information. Imputation methods used by Statistics Canada include, but are not limited to, historical imputation, donor imputation, and generic-to-detail allocation. The quality indicators below are a measure of the amount of imputation contributing towards a given value.
A Excellent B Very good C Good D Acceptable E Use with caution
Rent includes all rental expenditures paid to other companies or agencies for the use of land, offices, building, machinery and equipment, but excludes capital leases.
Repairs and maintenance
Repairs and maintenance includes costs related to new or replacement parts, or the restoration of plant and machinery to keep properties in efficient working condition.
Return on total assets
Return on total assets is calculated as (net profit + interest and bank charges) * 100 / (total assets). This percentage, also known as "return on total investment", is a relative measure of profitability and represents the rate of return earned on the investment of total assets by a business. It reflects the combined effect of both the operating and the financing/investing activities of a business. The higher the percentage, the better is profitability.
Revenue to closing inventory ratio
Revenue to closing inventory ratio is calculated as (total revenue) / (closing Inventory). This is an efficiency ratio, which indicates the average liquidity of the inventory or whether a business has over or under stocked inventory. This ratio is also known as "inventory turnover" and is often calculated using "cost of sales" rather than "total revenue." This ratio is not very relevant for financial, construction and real estate industries.
Revenue to equity ratio
Revenue to equity ratio is calculated as (total revenue) / (equity). It indicates the profitability of a business, relating the total business revenue to the amount of investment committed to earning that income. This ratio provides an indication of the economic productivity of capital.
Sales of goods and services include revenue from the sales of goods and services.
Solvency ratios deal with a firm's ability to meet its long-term financial obligations and to withstand adverse economic conditions. Solvency is the ability to pay all legal debts. This relates to the financial strength of a firm and its risk of failing. Stronger or more solvent firms have a higher probability of surviving adverse economic conditions.
Total assets are all resources controlled by an enterprise as a result of past transactions or events from which future economic benefits may be obtained.
Total current assets
Total current assets are the total of cash and other resources that are expected to be realized in cash, or sold or consumed within one year, or within the normal operating cycle of the business, whichever is longer.
Total current liabilities
Total current liabilities include obligation that is expected to be paid within one year, or within the normal operating cycle, whichever is longer. Current liabilities are generally paid out of current assets or through creation of other current liabilities. Examples of such liabilities include accounts payable, advance from customers' etc.
Total equity is the net worth of businesses and includes such elements as the value of common and preferred shares, and earned, contributed and other surpluses.
Total expenses include all expenses incurred by firms in order to generate revenues in the normal operation of the business. This item comes directly from tax forms as: total expenses.
Total liabilities are obligations of an enterprise arising from past transactions or events, the settlements of which may result in the transfer of assets, provisions of services or other yielding of economic benefits in the future.
Total revenue includes revenue from the sale of goods and services, interest, dividends, commissions, rent and other sources of revenue. It excludes capital gains or losses, extraordinary gains or losses and equity in net income of related parties. The variable is: total revenue (8299).
Utilities includes expenses for heat, light, water and telephone/telecommunication expenses for the location in which the business operates, as well as the electricity or fuel used to power its factory or plant.