Philip M. Parker-Renewable Energy Equipment and Services in United Kingdom - A Strategic Reference, 2007 (2007)

Renewable Energy Equipment
and Services in United

Kingdom: A Strategic
Reference, 2007
Edited by
Philip M. Parker, Ph.D.

Eli Lilly Chair Professor of Innovation, Business and Society
INSEAD (Fontainebleau & Singapore)
www.icongrouponline.com
2007 Icon Group International, Inc.
ii
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iv
Table of Contents
1
INTRODUCTION & METHODOLOGY.............................................................................1
1.1
What Does This Report Cover?
1.2
How to Strategically Evaluate United Kingdom
1.3
Latent Demand and Accessibility in United Kingdom
2
2.1
RENEWABLE ENERGY EQUIPMENT AND SERVICES IN UNITED KINGDOM ...5

Latent Demand and Accessibility: Background
2.2
Latent Demand: Market Composition
5
2.2.1
Market Data................................................................................................................................................ 7
2.2.2
Biofuels and Wastes ................................................................................................................................... 8
2.2.3
Hydropower................................................................................................................................................ 8
2.2.4
Wind and Wave Power............................................................................................................................... 8
2.2.5
Solar Power ................................................................................................................................................ 9
2.2.6
Geothermal Aquifers .................................................................................................................................. 9
2.3
Latent Demand: Leading Segments
9
2.3.1
Public Power Supply Projects .................................................................................................................. 10
2.3.2
Individual Business Projects .................................................................................................................... 10
2.3.3
Household Consumer Opportunities ........................................................................................................ 10
2.4
Key Suppliers
10
2.5
Prospective Buyers
11
2.6
Accessibility: Market Entry
12
2.7
Market Issues and Obstacles
13
2.8
Key Contacts
13
2.8.1
Trade Events............................................................................................................................................. 13
2.8.2
Public Sector ............................................................................................................................................ 14
2.8.3
Trade Organizations ................................................................................................................................. 14
2.8.4
Publications and Information ................................................................................................................... 14
3 FINANCIAL INDICATORS: STEAM, GAS AND HYDRAULIC TURBINES AND

TURBINE GENERATOR SET UNITS .....................................................................................15
3.1
Overview
15
3.1.1
Financial Returns and Gaps in United Kingdom...................................................................................... 16
3.1.2
Labor Productivity Gaps in United Kingdom........................................................................................... 19
3.1.3
Limitations and Extensions ...................................................................................................................... 19
3.2
Financial Returns in United Kingdom: Asset Structure Ratios
20
3.2.1
Overview .................................................................................................................................................. 20
3.2.2
Assets Definitions of Terms .................................................................................................................. 20
3.2.3
Asset Structure: Outlook .......................................................................................................................... 23
3.2.4
Large Variances: Assets ........................................................................................................................... 24
Contents
3.2.5
Key Percentiles and Rankings .................................................................................................................. 27
3.3
Financial Returns in United Kingdom: Liability Structure Ratios
42
3.3.1
Overview .................................................................................................................................................. 42
3.3.2
Liabilities and Equity Definitions of Terms .......................................................................................... 42
3.3.3
Liability Structure: Outlook ..................................................................................................................... 44
3.3.4
Large Variances: Liabilities ..................................................................................................................... 45
3.3.5
3.4
Financial Returns in United Kingdom: Income Structure Ratios
61
3.4.1
Overview .................................................................................................................................................. 61
3.4.2
Income Statements Definitions of Terms .............................................................................................. 61
3.4.3
Income Structure: Outlook ....................................................................................................................... 64
3.4.4
Large Variances: Income.......................................................................................................................... 65
3.4.5
3.5
Financial Returns in United Kingdom: Profitability Ratios
83
3.5.1
Overview .................................................................................................................................................. 83
3.5.2
Ratios Definitions of Terms .................................................................................................................. 83
3.5.3
Ratio Structure: Outlook .......................................................................................................................... 86
3.5.4
Large Variances: Ratios ........................................................................................................................... 87
3.5.5
3.6
Productivity in United Kingdom: Asset-Labor Ratios
103
3.6.1
Overview ................................................................................................................................................ 103
3.6.2
Asset to Labor: Outlook ......................................................................................................................... 104
3.6.3
Asset to Labor: International Gaps......................................................................................................... 105
3.6.4
Key Percentiles and Rankings ................................................................................................................ 108
3.7
Productivity in United Kingdom: Liability-Labor Ratios
123
3.7.1
Overview ................................................................................................................................................ 123
3.7.2
Liability to Labor: Outlook .................................................................................................................... 124
3.7.3
Liability and Equity to Labor: International Gaps.................................................................................. 125
3.7.4
3.8
Productivity in United Kingdom: Income-Labor Ratios
141
3.8.1
Overview ................................................................................................................................................ 141
3.8.2
Income to Labor: Outlook ...................................................................................................................... 142
3.8.3
Income to Labor: Gaps ........................................................................................................................... 143
3.8.4
4
4.1
MACRO-ACCESSIBILITY IN UNITED KINGDOM....................................................161

Executive Summary
161
4.2
Economic Fundamentals and Dynamics
161
4.2.1
Principal Growth Sectors........................................................................................................................ 161
4.2.2
Government Intervention Risks.............................................................................................................. 162
4.2.3
Infrastructure .......................................................................................................................................... 162
4.3
Political Risks
162
4.3.1
Political Relationship with the United States ......................................................................................... 162
4.3.2
Politics and the Business Environment .................................................................................................. 163
4.3.3
The Political System............................................................................................................................... 163
Contents
vi
4.4
Marketing Strategies
163
4.4.1
Creating a Sales Office........................................................................................................................... 163
4.4.2
Creating a Joint Venture......................................................................................................................... 164
4.4.3
Agents and Distributors.......................................................................................................................... 164
4.4.4
Hiring Local Counsel ............................................................................................................................. 164
4.4.5
Checking Bona Fides.............................................................................................................................. 164
4.4.6
Distribution and Sales Channels............................................................................................................. 164
4.4.7
Franchising and Direct Marketing.......................................................................................................... 165
4.4.8
Selling Strategies.................................................................................................................................... 165
4.4.9
Pricing and Licensing Issues .................................................................................................................. 166
4.4.10 Advertising and Trade Promotion .......................................................................................................... 166
4.4.11 Government Procurement....................................................................................................................... 167
4.5
Import and Export Regulation Risks
167
4.5.1
Membership in Free Trade Arrangements.............................................................................................. 167
4.5.2
Tariff and Non-Tariff Barriers................................................................................................................ 168
4.5.3
Prohibited Imports and USG-Imposed Export Controls......................................................................... 168
4.5.4
Import Taxes and License Requirements ............................................................................................... 168
4.5.5
Customs Regulations and Contact Information...................................................................................... 168
4.5.6
Temporary Goods Entry Requirements.................................................................................................. 169
4.5.7
Labeling Issues....................................................................................................................................... 169
4.5.8
Warranty and Non-Warranty Repairs..................................................................................................... 169
4.5.9
Free Trade Zones and Warehouses......................................................................................................... 169
4.6
Investment Climate
170
4.6.1
Openness to Foreign Investment ............................................................................................................ 170
4.6.2
Conversion and Transfer Policies........................................................................................................... 171
4.6.3
Expropriation and Compensation ........................................................................................................... 171
4.6.4
Dispute Settlement ................................................................................................................................. 171
4.6.5
Political Violence ................................................................................................................................... 171
4.6.6
Performance Requirements and Incentives ............................................................................................ 172
4.6.7
Right to Private Ownership and Establishment ...................................................................................... 172
4.6.8
Protection of Property Rights ................................................................................................................. 173
4.6.9
Regulatory System ................................................................................................................................. 174
4.6.10 Bilateral Investment Agreements ........................................................................................................... 174
4.6.11 OPIC and Other Investment Insurance Programs................................................................................... 174
4.6.12 Labor ...................................................................................................................................................... 174
4.6.13 Foreign Trade Zones and Free Ports....................................................................................................... 175
4.6.14 Major Foreign Investors ......................................................................................................................... 175
4.7
Trade and Project Financing
176
4.7.1
The Banking System .............................................................................................................................. 176
4.7.2
Foreign Exchange Control Risks............................................................................................................ 176
4.7.3
General Availability of Financing .......................................................................................................... 176
4.8
Travel Issues
176
4.8.1
Local Business Practices ........................................................................................................................ 176
4.8.2
Travel Advisory and Visas ..................................................................................................................... 177
4.8.3
Infrastructure for Conducting Business.................................................................................................. 178
4.8.4
Country Data .......................................................................................................................................... 180
4.9
Key Contacts
180
4.9.1
U.S. Embassy Trade-Related Contacts................................................................................................... 180
4.9.2
Bilateral Business Councils.................................................................................................................... 181
Contents
4.9.3
4.9.4
4.9.5
4.9.6
4.9.7
vii
UK Trade and Industry Associations ..................................................................................................... 182

UK Government Offices ........................................................................................................................ 183
UK Commercial Banks .......................................................................................................................... 185
Multilateral Development Banks............................................................................................................ 186
Washington D.C.-Based U.S. Contacts .................................................................................................. 186
DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS .........187
5.1
Disclaimers & Safe Harbor
187
5.2
Icon Group International, Inc. User Agreement Provisions
188
1
1.1
INTRODUCTION & METHODOLOGY

WHAT DOES THIS REPORT COVER?
The primary audience for this report is managers involved with the highest levels of the strategic
planning process and consultants who help their clients with this task. The user will not only
benefit from the hundreds of hours that went into the methodology and its application, but also
from its alternative perspective on strategic planning relating to renewable energy equipment and
services in United Kingdom.
As the editor of this report, I am drawing on a methodology developed at INSEAD, an
international business school (www.insead.edu). For any given industry or sector, including
renewable energy equipment and services, the methodology decomposes a countrys strategic
potential along four key dimensions: (1) latent demand, (2) micro-accessibility, (3) proxy
operating pro-forma financials, and (4) macro-accessibility. A country may have very high latent
demand, yet have low accessibility, making it a less attractive market than many smaller potential
countries having higher levels of accessibility.
With this perspective, this report provides both a micro and a macro strategic profile of renewable
energy equipment and services in United Kingdom. It does so by compiling published
information that directly relates to latent demand and accessibility, either at the micro or macro
level. The reader new to United Kingdom can quickly understand where United Kingdom fits
into a firms strategic perspective. In Chapter 2, the report investigates latent demand and microaccessibility for renewable energy equipment and services in United Kingdom. In Chapters 3 and
4, the report covers proxy operating pro-forma financials and macro-accessibility in United
Kingdom. Macro-accessibility is a general evaluation of investment and business conditions in
United Kingdom.
1.2
HOW TO STRATEGICALLY EVALUATE UNITED KINGDOM
Perhaps the most efficient way of evaluating United Kingdom is to consider key dimensions
which themselves are composites of multiple factors. Composite portfolio approaches have long
been used by strategic planners. The biggest challenge in this approach is to choose the
appropriate factors that are the most relevant to international planning. The two measures of
greatest relevance to renewable energy equipment and services are latent demand and market
accessibility. The figure below summarizes the key dimensions and recommendations of such
an approach. Using these two composites, one can prioritize all countries of the world. Countries
of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to
other firms) are given highest priority. The figure below shows two different scenarios.
Accessibility is defined as a firms ease of entering or supplying from or to a market (the supply
side), and latent demand is an indicator of the potential in serving from or to the market (the
demand side).
Introduction & Methodology
Framework for Prioritizing Countries

Demand/Market Potential Driven Firm
High
Highest
Priority
High
Priority
Latent
Demand
Moderate
Priority
Low
Priority
Low
Lowest
Priority
Low
High
Relative Accessibility
Accessibility/Supply Averse Firm

High
Highest
Priority
High
Priority
Latent
Demand
Moderate
Priority
Low
Priority
Lowest
Priority
Low
High
Low
Relative Accessibility
In the top figure, the firm is driven by market potential, whereas the bottom figure represents a
firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as
coming from a generic firm approaching the global market neither a market-driven nor a costdriven company. Planners must therefore augment this report with their own company-specific
factors that might change the priorities (e.g. a Canadian firm may have higher accessibility in
Canada than a German firm).
1.3
LATENT DEMAND AND ACCESSIBILITY IN UNITED KINGDOM
This report provides a detailed overview of factors driving latent demand and accessibility for
renewable energy equipment and services in United Kingdom. Latent demand is largely driven
by economic fundamentals specific to renewable energy equipment and services. This topic is
discussed in Chapter 2 using work carried out in United Kingdom on behalf of American firms
and authored by the United States government (typically commercial attachs or similar persons
in local offices of the U.S. Department of State). I have included a number of edits to clarify the
information provided. Latent demand only represents half of the picture. Chapter 2 also deals
with micro-accessibility for renewable energy equipment and services in United Kingdom. I use
the term micro since the discussion is focused specifically on renewable energy equipment and
services.
Chapter 3 is also a stand-alone report that I have authored. It covers proxy pro-forma financial
indicators of firms operating in United Kingdom. I use the word proxy because the provided
figures only cover a what if scenario, based on actual operating results for firms in United
Kingdom. The numbers are only indicative of an average firm whose primary activity is in
United Kingdom. It covers a vertical analysis of the maximum likelihood balance sheet, income
statement, and financial ratios of firms operating in United Kingdom. It does so for a particular
Standard Industrial Classification (SIC) code. That code covers steam, gas and hydraulic
turbines and turbine generator set units, as defined in Chapter 3. Again, while steam, gas and
hydraulic turbines and turbine generator set units does not exactly equate to renewable energy
equipment and services, it nevertheless gives an indicator of how United Kingdom compares to
other countries for a proxy adjacent category along various dimensions.
Chapter 4 deals with macro-accessibility and covers factors that go beyond renewable energy
equipment and services. A country may at first sight appear to be attractive due to a high latent
demand, but it is often less attractive when one considers at the macro level how easy it might be
to serve that entire potential and/or general business risks. While accessibility will always vary
from one company to another for a given country, the following domains are typically considered
when evaluating macro-accessibility in United Kingdom:
Openness to Trade in United Kingdom
Openness to Direct Investment in United Kingdom
Local Marketing and Entry Strategy Alternatives
Local Human Resources
Local Risks
Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These
are covered in the Chapter 4, which is a general overview of investment and business conditions
in United Kingdom. Chapter 4 is also presented from the perspective of an American firm,
though is equally applicable to most firms entering United Kingdom. This chapter is also
authored by local offices of the U.S. government, as is Chapter 2. Likewise, I have included a
number of edits to clarify the provided information as it relates to the general strategic framework
mentioned earlier.
RENEWABLE ENERGY EQUIPMENT AND

SERVICES IN UNITED KINGDOM
2.1
LATENT DEMAND AND ACCESSIBILITY: BACKGROUND
The UKs renewable energy market is set to grow by around 22% per year from $1.7 billion in 2007 to over $30
billion by 2020. Two key factors are driving this growth:
The urgent need to find new sources of energy to replace rapidly diminishing UK oil and gas reserves, and
strong UK and EU environmental legislation aimed at substantially increasing the proportion of energy produced
from renewable sources.
The UK has a target to deliver 10% of its electricity from renewable sources by 2010, and 20% by 2020.
According to industry experts, it may be difficult to achieve the 2020 target unless there is a dramatic increase in
the production of renewable capacity in the short term.
As a result, the renewable energy industry is currently attracting substantial investment. Over 1,000 companies are
actively involved in the renewable energy industry in the UK. Global organizations are attracted to the UK by the
strength of market demand, substantial government investment, and the countrys relatively low-risk business
environment. Partnerships between UK and overseas organizations are increasingly viewed as an important means of
fast-tracking the introduction of additional renewable energy projects into the UK.
Future opportunities for U.S. companies are particularly strong in wind and wave power. The UK has more than 50%
of Europes wind resource, as well as the greatest potential for wave and tidal stream power in Europe.
The main risks and challenges in entering the UK renewables market involve tight government regulation, complex
contracting procedures, planning delays, and a possible longer term shortage of available sitesfor wind farms in
particular. Also, there is a danger that future UK policy makers could switch their focus to nuclear power as a means
of achieving their particularly challenging targets for non-carbon-based energy production.
2.2
LATENT DEMAND: MARKET COMPOSITION
The main forms of renewable energy currently consumed in the UK are biofuels and wastes (83.3%), followed by
hydropower (10%), and wind power (5.9%).
Between 2001 and 2005, biofuels saw year-on-year growth. Hydropower usage, though an important contributor,
variedmostly because of changing weather conditions. Between 2001 and 2005, the fastest percentage growth was
in wind power, which increased by 201% from 83,000 toe (tons of oil equivalent) to 250,100 toe.
In 2005, 88.6% of total consumption of renewable energy was used for electricity generation and 11.4% for heat
production.
Compared to conventional sources, the use of renewable energy will remain a relatively small contributor to overall
energy production in the foreseeable future, even if the government manages to meet its ambitious target of 20% by
2020.
Renewable Energy Equipment and Services
Renewable Energy Demand in the UK, 2005

90.0%
83.3%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10%
10.0%
5.90%
0.0%
Biofuels
Hydro power
Wind power
Source: Digest of UK Energy Statistics 2006, UK Department of Trade and Industry

However, the growth rate in renewable energy production is set to substantially exceed that of conventional energy
sources. The use of renewable energy for electricity production is forecast to grow 430% between 2000 and 2015. In
the same period, the use of gas will advance by 44%, there will be no significant change in the use of oil, and coal
use will decline 11%.
It is this high rate of growth in renewable energy production from a relatively small existing base that is creating
significant new opportunities for businesses that supply renewable energy products and services to the UK.
Forecast Growth in Total UK Energy Production by Type, 2000-2015

Energy Type
Gas
Coal
Oil
Renewables
2000
100
100
100
100
2005
16%
13%
No Change
70%
2010
18%
-5%
No Change
230%
2015
44%
-11%
No Change
430%
Source: The Energy Challenge; UK Department of Trade and Industry

In order to stimulate renewable energy market growth over the next decade, the UK government has approved
substantial funding for research and development. For example, $234 million has been allocated to offshore wind
farm development, $62 million to photovoltaics, $43 million to community electricity projects, and $100 million to
the Marine Renewables Fund for research into wave power.
2.2.1
Market Data
There are 5 main forms of renewable energy in the UK. Recent production trends and compound annual growth
rates (CAGR) for each are shown in the following table.
Total Use of Energy from Renewable Sources in the UK, 2001-2005

(000 toe)
Renewable Energy Source
Biofuels and Wastes
hydropower
Wind Power
Solar Power
Geothermal Aquifers
Total
2001
2,171.6
348.7
83.0
13.4
0.8
2,617.6
2002
2,359.6
411.7
108.0
16.3
0.8
2,896.4
2003
2,706.3
277.5
110.5
20.0
0.8
3,115.2
2004
3,076.4
423.9
166.4
24.9
0.8
3,692.4
2005
3,538.0
426.6
250.1
30.1
0.8
4,245.5
GAGR*%
13.0
5.2
31.8
22.4
0.0
12.9
Note: Totals do not sum due to rounding.

* CAGR is compound annual growth rate.
Source: Key Note Ltd., 2006
Biofuels dominate the market with an 83.3% share of total production in 2005.
All Sources Of Renewable Energy In The UK, 2005
Source: Digest of Energy Statistics 2006, UK Department of Trade and Industry
2.2.2
Biofuels and Wastes
Biofuels and wastes are currently the fastest growing segment in both electricity generation and heating. While the
use of renewable energy for heating has declined due to a decrease in the use of industrial wood combustion, biofuels
and wastes remain the most significant segment in the production of heat. Combined Heat and Power (CHP) is
becoming an increasingly attractive option for biomass plants, offering a reliable low-cost heat source for industrial
or commercial uses. Excess electricity can then be sold to the local grid. Biomass fuels are increasingly being used
with advanced conversion technologies, such as gasification systems, which offer superior efficiencies compared
with conventional power generation.
2.2.3
Hydropower
Currently, the largest regional producers of hydropower are in Wales and Scotland, where geographical and
meteorological conditions are best suited for large-scale hydropower projects. The hydropower sector is the longest
established renewable energy market segment in the UK, with most of the potential for hydropower already
developed. However, the British Hydropower Association forecasts that the greatest potential future growth is in
micro hydro,smaller power systems situated on dams and rivers rather than on major reservoirs.
2.2.4
Wind and Wave Power
The UKs long coastlines offer significant potential for growth in offshore wind farms. The use of wind and wave
power tripled between 2001 and 2005 due to the tremendous growth in offshore power production. In addition, plans
for the worlds largest onshore wind farm, a joint venture between Amec and British Energy, were submitted in mid2006. This project has the potential to provide electricity to over 20% of Scotlands population, indicating
significant growth prospects in this segment.
There are almost twice as many wind farm projects currently approved for construction or in planning (322) as there
are existing wind farms (172). In addition, new project capacity (14,786 megawatts) will be nearly five times that
available from current wind farms (3,019 megawatts).
UK Wind Farm Projects

Operational
Under Construction
Agreed Projects
Planned Projects
Onshore
132
31
79
226
Megawatt
Capacity
1,731
691
1,481
8,196
Offshore
5
4
10
7
Megawatt
Capacity
303
294
2,484
2,625
Source: British Wind Energy Association 2007

The UK Department of Trade and Industry (DTI) suggests that up to half of the UKs 2010 target for electricity
production from renewable sources can be met by wind energy. The International Energy Agency estimates that the
global cost of producing wind energy has dropped from 80 cents a kilowatt hour in 1980 to less than ten cents today.
One issue often highlighted as a possible short-term risk for the continued growth of wind power is the worldwide
shortage of available wind turbines. This supply situation will soon change, however, because major global
manufacturers are currently increasing capacity to meet forecast demand.
The use of wave power in the UK is also set to significantly increase because the Scottish Parliament is planning to
provide funding to create the worlds biggest wave farm off the Orkney Islands north of the Scottish mainland. This
venture, being planned by local supplier Scottish Power, could create enough power for 2,000 homes. A government
funding package of over $25 million has been announced to help get wave and tidal machines in the water within the
next twelve to eighteen months.
2.2.5
Solar Power
Unlike other renewable energy segments, solar power is not generally used for mass production of power or heat.
Most of its applications are small scale; it is used to heat and/or generate electricity for domestic and industrial
buildings. The UK government is currently encouraging the adoption of solar energy solutions at the household level
through its Low Carbon Buildings Program. This initiative offers grants to subsidize the cost of installing solar
panels and roof-mounted wind turbines. However, this heavily oversubscribed funding program is due to end in
2008.
2.2.6
Geothermal Aquifers
This segments share of renewable energy produced between 2001 and 2005 was consistently less than 1%. The
potential for warm aquifer geothermal energy in the UK is limited as most identified sources are too far from major
cities or are not commercially exploitable.
2.3
LATENT DEMAND: LEADING SEGMENTS
A 2006 UK industry study, Business Opportunities for SMEs in Tackling Climate Change, concluded that SMEs
are well placed to benefit from the growth in the UK renewable energy market. This is because newer and smaller
businesses tend to be able to adapt more dynamically to rapid market change, are typically less risk averse, and are
often more technologically innovative than larger, more traditional companies. For these reasons, some of the largest
traditional energy players, such as BP, are themselves establishing smaller specialist divisions focused solely on
addressing the dynamics of the renewables market.
There are three general types of business projects in the renewable energy market.
Business Projects for Renewable Energy Companies

Type
Public power supply.
Products
Power generation equipment and components.
Services
Research, design and
project management.
Individual businesslevel renewables.
Off-grid generation products and equipment to

supply power for internal business use.
Installation and
maintenance.
Household renewable
energy.
Consumer renewable energy products such as

solar panels, roof-mounted wind turbines, etc.
Installation and repair.
2.3.1
10
Public Power Supply Projects
For major public power supply projects, the government or a power generation company will typically appoint a lead
contractor. This main contractor then subcontracts each separate element of a project. In this case, it is the prime
contractor, rather than the end-user, that represents the best sales channel and prospect for the renewable energy
equipment and service suppliers.
Currently, there are a number of major UK renewable energy supply projects under discussion or in planning that
represent significant opportunities for suppliers to the renewable energy industry. One such opportunity recently
given the green light by the government is the Thames Estuary offshore wind farm project. When completed this will
be the worlds largest offshore wind farm. It is expected to cost $2.9 billion and will use 341 wind turbines, with five
offshore substations and four meteorological masts. A second, smaller offshore wind farm at nearby Thanet,
expected to cost $877 million, will consist of 100 wind turbines.
A prime example of a major new opportunity presently under UK government evaluation is the Severn River Tidal
Power Group project. It involves creating a ten-mile wide barrage across the River Severn which has the worlds
second largest tidal range. When built, it would be capable of supplying up to 6% of the UKs total electricity
demand. It is estimated that this project will take six years to complete at a projected cost of over $29 billion.
2.3.2
Individual Business Projects
Internal off-grid renewable energy projects at an individual business level are often contracted out, but some are
procured and delivered directly by the infrastructure and asset management departments of companies.
With the increasing cost and regulatory burden associated with the use of fossil fuels by UK industry, a fast-growing
emerging trend is for individual businesses to source their own power generation solutions, partly or wholly
independent off the national grid. This has created significant opportunity for the suppliers of equipment such as
biogas generators and similar products. Apart from the traditional heavy industrial users of energy such as
manufacturing companies, public sector organizations (hospitals, universities and local government offices) are
increasingly turning to renewable, off-grid energy sources like biogas.
2.3.3
Household Consumer Opportunities
For household renewable products, the traditional route to market is via wholesalers, retailers, and individual
installation companies. As an indicator of the UK public appetite for renewable energy solutions at the household
level, a recent national consumer survey suggested that 73% of UK citizens believe that all new homes should
incorporate microgeneration capabilities. National hardware chains such as B&Q have recently started to stock solar
panels and roof-mountable wind turbines in anticipation of growing demand for these products by individual
consumers.
2.4
KEY SUPPLIERS
Many of the existing key suppliers currently active in the UK market can be identified from the member lists of trade
associations such as The Renewable Energy Association (www.r-p-a.org.uk), The British Wind Energy Association
(www.bwea.com), the Solar Trade Association (www.greenenergy.org.uk) and the British Hydropower Association
(www.british-hydro.org).
11
Some key suppliers to each of the renewable energy market segments include:
Biofuels: Biofuels Corporation plc, Greenergy International Ltd., Compact Power Ltd.
Hydro: Black and Veatch Ltd., The Weir Group plc.
Wind: Novera Energy Ltd., Clarke Energy Ltd.
Wave: Ocean Energy Ltd., Wavegen, EMEC.
Solar: BP Alternative Energy, Solar Logic, Ecovision Systems.
2.5
PROSPECTIVE BUYERS
Prospective buyers fall into two main categories:
Buyers for major public supply and large individual business projects.
Buyers for microgeneration and consumer renewables.
In the major buyers category, existing operators in the UK renewable energy market with large-scale renewable
projects already in planning or on their books include:
AMEC Wind Energy: Part of AMEC plc, a major engineering services company recently nominated to
construct a large offshore wind farm in Scotland.
BP Alternative Energy International Ltd.: Part of the multinational oil and gas company that plans to invest
$8 billion in renewables over the next ten years.
E.ON UK Renewables: A UK subsidiary of the German power company nominated to construct a $3 billion
wind farm in the Thames Estuary in a consortium with Shell, WindEnergy Ltd. and Core Ltd.
Npower Renewables: A UK subsidiary of the German power company RWE AG, which has been nominated to
build a new hydropower scheme in Scotland and is also involved in several new wind farm projects.
Renewable Energy Systems Ltd.: Part of the construction company Sir Robert McAlpine Group, which is
involved in the construction of several wind farms in the UK and Ireland.
Scottish and Southern Energy plc: The UK power company currently involved in several wind farm projects
and a new hydroelectric project in Scotland.
Scottish Power plc: The UK power company that currently has fourteen wind farm facilities and plans for
several more projects, plus hydroelectric facilities in Scotland.
Shell Renewables: Part of the international oil and gas giant and a member of the London Thames Estuary wind
farm consortium.
12
UK Regional Power Distribution Companies
Source: Energy Networks Association

As conventional power supply companies diversify into renewables, these companies will represent a source of new
business for renewable energy industry suppliers. Due to historic licensing arrangements, these traditional power
supply companies operate on a regional basis in the UK.
At the individual business level, U.S. exporters can identify prospective buyers by monitoring invitations to tender
published by such companies as Tenders Direct (www.tendersdirect.co.uk) and The Achilles Group
(www.achilles.com) in the UK, and by identifying appropriate distributors and agents.
At the lower end of the scale, local renewable energy product suppliers and installation companies can be identified
in business directories such as Kelly, Kompass, and Yellow Pages.
2.6
ACCESSIBILITY: MARKET ENTRY
Individual product suppliers typically enter the market through specialist distributors and manufacturers agents.
A further route to UK market entry is through partnership arrangements with existing UK suppliers. This is
particularly relevant for large scale infrastructure projects and opportunities requiring a high level of investment or
research and development input.
13
Also, many of the UKs universities run departments to commercialize new technologies. Some of these specialize in
specific markets, including renewable energy. University spin-outs are increasingly seeking to partner with existing
industry suppliers to help market their innovations.
Another possible method of entering the market is to bid directly for renewable energy tender opportunities. Under
EU legislation, all of the public sector contracts for renewable energy projects in the UK, above a minimum value,
have to be procured via a highly regulated official tendering process designed to ensure open competition. A good
way to identify such opportunities is to monitor the contract notices published in the Supplement to the Official
European Journal, via the EU Web site ted.europa.eu/. The EU Journal not only contains all formal invitations to
tender, but also the notifications of forthcoming projects for which suppliers can register their official interest as part
of a pre-qualification process.
In addition to the EU Journal, most of the UK energy companies subscribe to a procurement administration service
run by the Achilles Group (see www.achilles.com). Achilles offers business opportunity and supplier screening
services to both buyers and sellers in the utilities marketplace. Along with other organizations such as Tenders Direct
(see www.tendersdirect.co.uk) such companies will advise interested suppliers of new contract opportunities as
they arise. They will also provide information to companies new to the UK market on tendering and contract
regulations in the UK.
2.7
MARKET ISSUES AND OBSTACLES
The present rapid growth in investment in renewable energy projects makes the UK an attractive market for U.S.
companies. Also, the EU procurement regulations on open competition help provide a level playing field for
suppliers, irrespective of their country of origin. However, there are a number of issues and potential market
obstacles that companies wishing to enter the UK market should consider.
First, the contract bidding process for energy industry projects, though open, can be complex, financially onerous,
and time-consuming. For smaller companies without access to specialist legal counsel and extensive bid management
resources, the time and expense involved in bidding for such projects can be daunting. For this reason, overseas
companies seeking easier entry into the UK market often consider collaborating with UK-based partners or
distributors familiar with the commercial and regulatory.
Second, the UK energy industry is highly regulated by the Energy Division of the UK Governments Department of
Trade and Industry (see Web site www.dti.gov.uk/energy/index.html) and its associated industry watchdog body,
OFGEM, the Office of Gas and Electricity Markets (see Web site www.ofgem.gov.uk). Companies wishing to enter
the market may face a number of regulatory issues, which apply to various aspects of the energy market including
licensing, competition practices, tariffs and pricing, health and safety, marketing practices, and environmental
management issues.
2.8
KEY CONTACTS
2.8.1
Trade Events
Renewable Energy Association Bioenergy 2007

September 20th 21st, 2007
www.r-p-a.org.uk
14
World Renewable Energy Congress X

July 19th-25th, 2008
www.wrenuk.co.uk
2.8.2
Public Sector
The Carbon Trust: www.carbontrust.co.uk
Department for Trade and Industry: www.dti.gov.uk
The National Energy Foundation: www.nef.org.uk
2.8.3
Trade Organizations
Renewable Energy Association: www.r-p-a.org.uk
British Wind Energy Association: www.bwea.com
Energy Industries Council: www.the-eic.com
Energy Systems Trade Association: www.esta.org.uk
Business Council for Sustainable Energy UK: www.bcse.org.uk
2.8.4
Publications and Information
Renewable Energy News: www.renewableenergy.com
European Power News: www.epnmagazine.com
Energy Engineering Magazine: www.energyengineering.co.uk
Key Note Ltd. Market Report 2006 Renewable Energy: www.keynote.co.uk
15
3.1
FINANCIAL INDICATORS: STEAM, GAS AND

HYDRAULIC TURBINES AND TURBINE
GENERATOR SET UNITS
OVERVIEW
Is The United Kingdom competitive? With the globalization of markets, the increased mobility of corporate assets,
and the need for productive human resources, this question has become all the more complex to answer. The
financial indicators section was prepared to tackle this question by focusing on certain fundamentals: financial
performance and labor productivity. Rather than focus on the economy as a whole, the analysis presented here
considers only one sector: steam, gas and hydraulic turbines and turbine generator set units.
We are essentially interested in the degree to which firms operating in The United Kingdom have fundamentally
different financial structures and performance compared to firms located elsewhere. With respect to this view of
competitiveness, if one were to invest or operate in The United Kingdom, how would the firms asset structure likely
vary compared to a firm operating in some other country in Europe or average location in the world? In The United
Kingdom, do firms typically hold more cash and other short term assets, or do they concentrate their assets in
physical plant and equipment? On the liability side, do firms operating in The United Kingdom have a higher
percent of payables compared to other firms operating in Europe, or do they hold a higher concentration of long term
debt? The structure of the income statement is also telling. Do firms operating in The United Kingdom have
relatively higher costs of goods sold, operating costs, or income taxes compared to firms located elsewhere in the
region or the world in general? Are returns on equity higher in The United Kingdom? Are profit margins greater?
Are inventories held longer? The financial indicators section was designed to answer these and similar questions that
naturally affect ones decision to invest or operate in The United Kingdom. Again, we are particularly interested in
steam, gas and hydraulic turbines and turbine generator set units, and not the economy as a whole.
In many instances, people make all the difference. In addition to financial competitiveness, we consider the extent to
which labor deployment and productivity in The United Kingdom differs from regional and global benchmarks. In
this case, we are interested in the amount of labor required to operate a typical business in The United Kingdom and
the likely returns on this human investment. What is the typical ratio of short-term and long-term assets to employee
(employed in steam, gas and hydraulic turbines and turbine generator set units operations)? What are typical capitallabor ratios? How different are these ratios to those in Europe in general and the world as a whole? What are the
average sales and net profits per employee in The United Kingdom compared to regional benchmarks?
The goal of this section is to assist managers in gauging the competitive performance of The United Kingdom at the
global level for steam, gas and hydraulic turbines and turbine generator set units. With the globalization of markets,
greater foreign competition, and the reduction of entry barriers, it becomes all the more important to benchmark The
United Kingdom against other countries on a worldwide basis. Doing so, however, is not an obvious task.
This report generates international benchmarks and measures gaps that might be revealed from such an exercise.
First, data is collected from companies across all regions of the world. For each of these firms, data are standardized
into comparable categories (assets, liabilities, income and ratios), by country, region and on a worldwide basis. From
there, we eliminate all currency effects by standardizing within each category. Global benchmarks are then
compared to those estimated for steam, gas and hydraulic turbines and turbine generator set units in The United
Kingdom.
Though we heavily rely on historical performance, the figures reported are not historical but are forecasts and
projections for the coming fiscal year.
Financial Indicators
3.1.1
16
Financial Returns and Gaps in United Kingdom
The approach used in this report to evaluate operating performance for steam, gas and hydraulic turbines and turbine
generator set units in The United Kingdom is called "vertical analysis." For those unfamiliar with this type of
analysis, frequently taught in graduate schools of business, the reader is recommended Jae K. Shim and Joel G.
Siegels recent book titled Financial Management.1 In their discussion of financial statement analysis and ratios,
Skim and Siegel (p. 42-43), describe common-size statement (vertical analysis) as follows:
A common-size statement is one that shows each item in percentage terms. Preparation of common-size
statements is known as vertical analysis, in which a material financial statement item is used as a base value and
all other accounts on the financial statement are compared to it. In the balance sheet, for example, total assets
equal 100 percent, and each individual asset is stated as a percentage of total assets. Similarly, total liabilities and
stockholders equity are assigned a value of 100 percent and each liability or equity account is then stated as a
percentage of total liabilities and stockholders equity, respectively. For the income statement, a value of 100
percent is assigned to net sales, and all other revenues and expense accounts are related to it. It is possible to see
at a glance how each dollar of sales is distributed among various costs, expenses, and profits.
The authors suggest that vertical analyses involve industry-based comparisons. Such a comparison allows you to
answer the question, How does a business fare in the industry? You must compare the companys ratios to
industry norms. (p. 43-44) This approach is extended to country competitiveness (in this case The United
Kingdom) for a particular sector (in this case steam, gas and hydraulic turbines and turbine generator set units). This
involves calculating country, regional and global norms. This introduction will describe the seven-stage methodology
used to perform this analysis. Each stage should be seen as a working assumption behind the numbers presented in
later chapters.
Stage 1. Industry Classification. This stage begins by classifying the company into an industry. For this, we have
relied on a combination of the North American Industry Classification System (NAICS pronounced Nakes), a
relatively new system for classifying business establishments, and the older Standard Industrial Classification (SIC)
system. Adopted in 1997, NAICS codes are the new industry classification codes used by statistical agencies of the
United States. NAICS was developed jointly by the U.S., Canada, and Mexico to provide comparability in statistics
about business activity across North America. After 60 years of service, the outdated SIC system was retired on
October 1, 2000, leaving only the NAICS codes for official use. The NAICS classification system adds some 350
new industries and represents a revision to over 60% of the previous SIC industries. Despite its official retirement,
the SIC system is still commonly used (and often reported in firms financial statements).
For most companies in the world, classification within either the new NAICS or older SIC systems is a rather straight
forward exercise. For some, however, it can be problematic. This is true for several reasons. The first being that the
SIC or NAICS classification systems are rather broad for many product and industry categories (a firms products or
services may be only a minor aspect of the classifications definition). The second is that some firms activities span
multiple codes. Finally, it is possible that a firm is classified by one source using its SIC code, and by another using
its NAICS code, and by a third using both. Furthermore, some sources do not report either code, but instead use
qualitative statements of the firms activities. Nevertheless, if one wishes to pursue a vertical analysis, some
classification needs to take place which selects a peer group. In making this classification, one can rely on a number
of sources. In some countries, firms must self classify in official periodic reports (e.g. annular reports, 10Ks, etc.)
to public authorities (such as the Securities and Exchange Commission). These reports are then open for public
scrutiny (e.g. EDGAR filings). In other cases, commercial data vendors or private research firms provide
SIC/NAICS codes for specific companies. These include:
Bloomberg - www.bloomberg.com
Skim and Siegel (2000), Financial Management published by Barrons Educational Series, Inc. (BARONS
BUSINESS LIBRARY Series), ISBN: 0-7641-1402-6.
17
Datastream (Thomson Financial) - www.datastream.com
Dun & Bradstreet - www.dnb.com
Hoovers - www.hoovers.com
HarrisInfoSource - www.HarrisInfo.com
InfoUSA - www.infousa.com
Investext (Thomson Financial) - www.investext.com
Kompass International Neuenschwander SA. www.kompass.com
Moody's Investors Service - www.moodys.com
Primark (Thomson Financial) - www.primark.com
Profound (The Dialog Corporation A Thomson Company) - www.profound.com
Reuters - www.reuters.com
Standard & Poor's - www.standardandpoors.com
It is interesting to note that commercial vendors often report different qualitative descriptions and industrial
classifications from one to another. These descriptions and classifications may also be different from those reported
by the firm itself. Anyone hoping to perform a benchmarking study, therefore, has to make a judgment call across
these various sources in order to determine a reasonable classification. In this report, we have decided a metaanalytic process, by combining various sources (including linking a classifications keywords to qualitative
descriptions of the firms product line). In cases of inconsistency, the most recent or globally comparable available
is chosen. Again, the overall goal is to classify firms, which either produce similar products, offer similar services,
or are in the same stage of the value chain for a particular industrial classification. In the case of this report, the SIC
code selected is: 3511 which is defined as steam, gas and hydraulic turbines and turbine generator set units. This
classification should be seen as a working assumption. In order to obtain a more detailed discussion of this
classification, the reader is referred to the Web sites developed by the U.S. Census Bureau:
http://www.census.gov/epcd/www/naics.html. Basic definitions and descriptions are provided at:
http://www.census.gov/epcd/www/drnaics.htm#q1. A full correspondence table between SIC and NAICS codes,
and detailed definitions are given at http://www.census.gov/epcd/www/naicstab.htm.
Stage 2. Firm-Level Data Collection. A global search was conducted across over 20,000 companies in over 40
major economies, including The United Kingdom, for those that report financials (balance sheet and income
statements) and that are involved in steam, gas and hydraulic turbines and turbine generator set units. It should be
noted that the public-domain financials can be either historic or projections. It should also be noted that even historic
figures can be modified in the future and often represent estimates of performance.
Stage 3. Standardization. Once collected, public domain financial figures of firms identified in Stage 2 are
standardize into comparable categories (assets, liabilities, and income). Again, these are limited to firms involved in
some aspect of steam, gas and hydraulic turbines and turbine generator set units (i.e. are members of the value chain).
From there, we eliminate all currency effects by standardizing within each category (creating ratios). In order to
maintain comparability over time and across countries, vertical analysis is used. In the case of a firms assets, we
treat the total assets as equaling 100, irrespective of the value of the local currency. All other assets are then
calculated as a percent of total assets. In this way, the structure of the firms assets can be easily interpreted and
compared with international benchmarks. For liabilities, total liabilities and equity are indexed to equal to 100. For
the income statement, total revenue is indexed to equal 100, and all other figures are calculated as a percent of these
figures.
Stage 4. Filtering. Not all the firms selected in Stage 2 or the ratios calculated in Stage 3 are used for the country,
regional or global benchmarks, as a number of companies are purposely dropped from the analysis. This is justified
by the outlier phenomenon that plagues such analysis. The problem lies in that any given company in the
benchmarking pool may be facing some exceptional event or may be organized in an exceptional way so as to make
18
its ratios vastly different from the norm. By including such firms, the global benchmarks can be overly skewed. In
many countries, firms are organized into holding groups. These groups nominally have very few employees (e.g. 4
to 25 employees), but have extremely large assets, liabilities, or revenues. As such, the inclusion or exclusion of
firms having this form of management can affect the ratios and benchmarks reported. Likewise, some firms have no
net sales, no assets, no liabilities, or ratios. Others have ratios that appear implausible for a normal or viable
company. In order to not allow these firms to affect the global benchmarks, only those firms with reasonable
financials have been chosen. Finally, in some countries, detailed financials are not available or are not comparable to
either the company in question or the global norm (e.g. various forms of depreciation). In this case, only those which
exist and are comparable are reported. The details, therefore, that comprise a given ratio or set of ratios may not be
reported. This may lead to the addition of several ratios, not summing to the whole.
Stage 5. Calculation of Global Norms. Once the filtering process has eliminated outliers, a final list of companies
included is compiled. Based on this list, the ratios discussed in Stage 3 are calculated for every firm, and then
averaged to create country, regional and global benchmarks. The world average is calculated using each countrys
population as a weight.
Stage 6. Projection of Deviations. The goal of this report is not only to estimate raw ratios or averages, but also to
present the difference between The United Kingdom and projected global averages for that same ratio. Furthermore,
it can be insightful to know the location of each ratio within the distribution of the countries represented in Stage 5.
These deviations, in fact, can be seen as projections or likely scenarios for the future. This is often true for two
reasons. First, while a companys financials change from year to year, its ratios are often stable. This is especially
true for the country, regional and global benchmarks which represent averages across companies. From a purely
Bayesian sense, the difference between the companys recent ratios and the benchmarks are a reasonable prior for
future deviations. This is true, even if the entire industry is hit by an external or exogenous shock, such as an oil
crisis or economic slowdown. In other words, we assume that the structure of the variance in the industrys
financials remains stable. Second, many of the data are based on preliminary reports that might be changed in future
filings. As forecasts, therefore, the numbers derived from these are also forecasts of past and future performance
(with associated uncertainties). The calculation of the difference between a countrys ratios and the global
benchmarks is meant to yield roughly approximate forecasts, or "useful measures". Within Europe, the reliability of
estimates varies from one country to another for those ratios given in tables that report national averages. This is true
because reliable source statistics are not available for all countries in Europe. Countries with the highest reliability, or
sample sizes after filtering in Stage 4, include Denmark, France, Germany, and Netherlands. Others are generally
econometrically extrapolated using models that use country characteristics (e.g. income per capita) as independent
variables (i.e. countries having similar economic structures are assumed to have similar operating ratios). Again, the
forecasts are based on the assumption of relative stability. This assumption has proven extremely robust in previous
applications of this methodology (i.e. todays weather is a good predictor of tomorrows weather, but not the weather
three years from now). The results reported should be viewed as those for a proto-typical firm operating in The
United Kingdom whose primary activity is steam, gas and hydraulic turbines and turbine generator set units.
Stage 7. Projection of Ranks and Percentiles. Based on the calculation of deviations, relative ranks and percentiles
are calculated across the firms used in the benchmarks. The percentile estimates the percent of a representative
sample of countries in the world having values of the ratio lower than The United Kingdom. It is important to note
that a percentile being high (or low) does not mean good (or bad) past, present or future financial performance. The
reader must draw this conclusion on their own. The estimates provided were created to provide managerial insight,
and not a recommendation with respect to particular investments within any country.
We graphically report, for each part of the financial statement, the larger structural differences between The United
Kingdom and the regional and global benchmarks, and provide a summary table of ranks and percentiles. These are
estimates for firm which would be involved in steam, gas and hydraulic turbines and turbine generator set units. A
deviation from the global norm need not be a bad sign. Rather, it is simply a substantial difference that might merit
further attention or perhaps signal a country's relative strength or weakness for the coming fiscal year.
3.1.2
19
Labor Productivity Gaps in United Kingdom
In the case of labor productivity measures, this report maintains comparability over time and across countries by
using a common currency (the US dollar) and relates each measure to a per employee basis. Ratios are projected
using raw financial statistics and, as ratios, are therefore comparable. Given a countrys human resource ratios, the
resulting figures are benchmarked across regional and global averages. The seven stage approach given above is
used in a similar manner.
We then report, for each part of the financial statement, the larger labor productivity gaps that The United Kingdom
has vis--vis the worldwide average (for steam, gas and hydraulic turbines and turbine generator set units). Again, a
gap need not be a bad sign. Rather, it is simply a substantial difference that might merit further attention or signal a
firms relative incentive to invest locally. All figures are projections, so due caution is required.
3.1.3
Limitations and Extensions
Shim and Siegal (p. 60) stress that while ratio analysis is an effective tool for assessing a companys financial
condition, operating The United Kingdom or any other country, its limitations must be recognized. They find that
(p. 59) no single ratio or group of ratios is adequate for assessing all aspects of a companys financial condition
operating in a particular country. The authors note the following limitations associated with ratio analyses which
apply to the global benchmarking and vertical analysis presented here (p.60):
Accounting standards or policies may limit useful comparisons across companies
Management accounting practices across companies and countries may not be performed in the same style
Ratios are static and do not reveal future trends
Ratios do not indicate the quality of the components used to calculate the ratios (i.e. ratios have ambiguous
interpretations)
Reported ratios may not reflect real values
Companies may be highly diversified, limiting the comparability of their ratios to others
Industry averages or norms are approximate; finer industry definitions may be required for certain
interpretations or comparisons
Financial statements and resulting ratios often mean different things to different people depending on their
points of view or motivations.
Again, all figures reported here are estimates, so due caution is required. The above caveats, and the fact that
statements made in this report are forward-looking, requires that this point be emphasized. A number of intervening
factors can have material effect on the ratios and variances forecasted. These include changes in a company's
management style, exchange rate volatility, changes in accounting standards, the lack of oversight or comparability
in accounting standards, changes in economic conditions, changes in competition, changes in the global economy,
changes in source data quality, and similar factors.
3.2
3.2.1
FINANCIAL RETURNS
STRUCTURE RATIOS
IN
UNITED
KINGDOM:
20
ASSET
Overview
In this chapter we consider the asset structure of companies involved in steam, gas and hydraulic turbines and turbine
generator set units operating in The United Kingdom benchmarked against global averages. The chapter begins by
defining relevant terms. A common-size statement, or vertical analysis of assets is then presented for companies
operating in The United Kingdom and the average global benchmarks (total assets = 100 percent). For ratios where
there are large deviations between The United Kingdom and the benchmarks, graphics are provided (sometimes
referred to as a financial gap analysis). Then the distribution of ratios is presented in the form of ranks and
percentiles. Certain key vertical analysis asset ratios are highlighted across countries in the comparison group.
3.2.2
Assets Definitions of Terms
The following definitions are provided for those less familiar with the asset-side of financial statement analysis. As
this chapter deals with the vertical analysis and global benchmarking of assets, only definitions covering certain
terms used in this chapters tables and graphs are provided here . The glossary below reflects commonly accepted
definitions across various countries and official sources.
Accumulated Depreciation - Buildings. Accumulated depreciation is commonly understood as a contra

asset account used to report the accumulation of periodic credits to reflect the use of the estimated service
life of a fixed asset. Buildings are fixed assets which represent the acquisition and improvement costs of
permanent structures owned or held by the company. Such structures typically include office buildings,
storage quarters, or other facilities and also associated items such as loading docks, heating and airconditioning equipment, refrigeration equipment, and all other property permanently attached to or forming
an integral part of the structure. However, it generally does not include furniture, fixtures, or other
equipment which are not an integral part of the building.
Accumulated Depreciation Property, Plant & Equipment Under Capitalized Leases. Accumulated
depreciation of property, plant and equipment under capitalized leases is commonly understood as a contra
asset account used to report the accumulation of periodic credits to reflect the use of the estimated service
life of property, plant and equipment under capitalized lease obligations.
Accumulated Depreciation - Transportation Equipment. Accumulated depreciation of transportation

equipment is commonly understood to be contra asset account used to report the accumulation of periodic
credits to reflect the use of the estimated service life of transportation equipment.
Accumulated Depreciation -Machinery & Equipment. Accumulated depreciation of machinery and

equipment is commonly understood to be contra asset account used to report the accumulation of periodic
credits to reflect the use of the estimated service life of machinery and equipment.
Buildings. Buildings are defined as fixed assets which represent the acquisition and improvement costs of
permanent structures owned or held by the company. Such structures include office buildings, storage
quarters, or other facilities and also associated items such as loading docks, heating and air-conditioning
equipment, refrigeration equipment, and all other property permanently attached to or forming an integral
21
part of the structure. However, it does not include furniture, fixtures, or other equipment which are not an
integral part of the building.
Cash. Cash is typically defined as money on hand, on deposit with chartered bank, or held in the form of
eligible securities.
Current Assets. Current assets are generally defined to be resources which are available, or can readily be
made available, to meet the cost of operations or to pay current liabilities.
Deferred Charges. Deferred charges are generally understood to represent the amount which has been paid
for services already received by the company but has not been charged to operations.
Finished Goods. Finished goods generally comprise the ready-for-sale inventory.
Intangible Other Assets. Intangible assets are generally understood to be nonphysical assets such as legal
rights (patents and trademarks) recorded at their historical cost then reduced by systematic amortization.
Investments in Unconsolidated Subsidiaries. Investments in unconsolidated subsidiaries are typically

defined as investments for the purpose of generating revenue in subsidiaries whose financial statements are
not combined with the company's.
land. Land is generally considered to be a fixed asset. If land is purchased, its capitalized value typically
includes the purchase price plus costs such as legal fees, filling and excavation costs which are incurred to
put the land in condition for its intended use. If land is acquired by gift, its capitalized value typically
reflects its appraised value at the time of acquisition. Land typically does not include depletable resources.
long Term Receivables. Long-term receivables are commonly defined as amounts due within a period
exceeding one year from private persons, businesses, agencies, funds, or governmental units which are
expected to be collected in the form of moneys, goods, and/or services.
Machinery & Equipment. Machinery and equipment is commonly defined as a fixed asset classification
which typically includes tangible property (other than land, buildings, and improvements other than
buildings) with a life of more than one year. Such assets typically include office equipment, furniture,
machine tools, and motor vehicles. Equipment may be attached to a structure for purposes of securing the
item, but unless it is permanently attached to an integral part of the building or structure, it will generally be
classified as equipment and not buildings. Equipment is generally defined as tangible property other than
land, buildings, or improvements other than buildings, which is used in operations. Examples include
machinery, tools, trucks, cars, furniture, and furnishings.
Prepaid Expenses. Prepaid expenses are typically defined as those supplies and/or services (not inventory)
acquired or purchased but not consumed or used at the end of the accounting period.
Progress Payments. Progress payments are commonly defined as periodic payments to a supplier,
contractor, or subcontractor for work as it is completed as desired, in order to reduce working capital
requirements.
Property Plant & Equipment Under Capitalized Leases. Property plant & equipment under capitalized
leases generally consists of the gross book value (rather than the more commonly-used measures of fixed
capital stocks in current or real value), of all commercial buildings, associated land and equipment used
therein that are owned by the company and that are either used or operated by the company or leased or
rented to others (under capitalized leases).
22
Property Plant and Equipment - Gross. Gross property, plant and equipment generally consists of the
gross book value (rather than the more commonly-used measures of fixed capital stocks in current or real
value), of all commercial buildings, associated land and equipment used therein that are owned by the
company and that are either used or operated by the company or leased or rented to others.
Property Plant and Equipment - Net. Net PP&E equals the original cost of property, plant, and
equipment (PP&E), less accumulated depreciation, depletion and amortization (DD&A).
Raw Materials. Raw materials are materials which will be converted by a manufacturer into a finished
product.
Receivables (Net). Net receivables are defined as the net amount due to the company from private persons,
businesses, agencies, funds, or governmental units which is expected to be collected in the form of moneys,
goods, and/or services.
Rental/Lease Property. Rental or leased property is property necessary to the operation of the company
and paid for the use of structures, land, roads, rolling stock and equipment.
Short Term Investments. Short-term investments are investments which can be typically liquidated in less
than one year.
Tangible Other Assets. Other tangible assets are commonly understood to be something substantial or real
that is capable of being given an actual or approximate value (market or estimated), not classified elsewhere.
Total Assets. Total assets are defined as the financial representation of economic resources, the beneficial
interest in which is legally or equitably secured to a particular organization as a result of a past transaction
or event.
Total Inventories. Total inventories are defined as the total amount of goods on hand.
Transportation Equipment. Transportation equipment is equipment used for the transportation of goods
for sale.
Work in Process. Work in progress includes goods which have been started but are not yet ready for sale.
3.2.3
23
Asset Structure: Outlook
Using the methodology described in the introduction, the following table summarizes asset structure benchmarks for
firms involved in steam, gas and hydraulic turbines and turbine generator set units in United Kingdom. To allow
comparable benchmarking, a common index of Total Assets = 100 is used. All figures are current-year projections
for companies operating in United Kingdom based on latest financial results available.
Asset Structure
United Kingdom
Europe World Avg.
_________________________________________________________________________________________________________
Cash & Short Term Investments

Cash
Short Term Investments
Receivables (Net)
Total Inventories
Raw Materials
Work in Process
Finished Goods
Progress Payments & Other
Prepaid Expenses
Other Current Assets
Current Assets - Total
Long Term Receivables
Investments in Unconsolidated Subsidiaries
Other Investments
Property Plant and Equipment - Net
Property Plant and Equipment - Gross
Land
Buildings
Machinery & Equipment
Rental/Lease Property
Transportation Equipment
Other Property Plant & Equipment
Property Plant & Equipment Under Capitalized Leases
Accumulated Depreciation - Total
Accumulated Depreciation - Buildings
Accumulated Depreciation -Machinery & Equipment
Accumulated Depreciation - Rental/Lease Property
Accumulated Depreciation - Transportation Equipment
Accumulated Depreciation - Other Prop & Equip
Accumulated Depreciation - PP&E Under Capitalized Leases
Other Assets
Deferred Charges
Tangible Other Assets
Intangible Other Assets
Total Assets
11.41
8.00
2.31
30.43
21.50
6.78
4.82
9.78
-0.03
1.57
2.41
65.90
0.55
0.92
0.12
25.17
50.47
1.73
15.63
36.80
1.29
4.10
10.90
3.72
25.31
2.68
23.72
0.51
1.81
7.23
1.18
7.56
1.02
0.17
6.10
100.00
9.00
6.65
4.67
28.55
17.79
4.76
5.79
7.09
0.79
0.74
0.99
56.47
1.17
1.64
6.53
24.97
42.67
3.49
11.49
22.16
6.63
0.93
6.61
3.49
21.48
4.02
14.56
4.20
0.54
4.16
0.89
5.54
0.96
0.36
4.31
100.00
11.41
5.50
5.35
27.15
16.97
5.25
3.51
5.61
0.54
1.33
1.23
57.46
0.66
1.56
4.78
25.30
51.05
1.79
8.80
31.90
1.48
0.91
5.20
2.11
27.21
3.05
19.93
0.44
0.56
2.34
0.42
4.21
0.65
0.61
2.24
100.00
_________________________________________________________________________________________________________
Source: Philip M. Parker, Professor, INSEAD, copyright 2007
3.2.4
24
Large Variances: Assets
The following graphics summarize for steam, gas and hydraulic turbines and turbine generator set units the large
asset structure gaps between firms operating in United Kingdom and the world average. A gap cannot necessarily be
interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market
focus, or expertise. More contextual information is required to fully interpret these gaps. The gaps highlighted here
are simply those that are large.
Gap: Total Inventories

25
21.5
17.79
20
16.97
15
10
4.53
5
0
United Kingdom
Europe
World Average
Gap
Gap: Finished Goods

10
9.78
7.09
5.61
4.17
4
2
0
United Kingdom
Europe
World Average
Gap
Gap: Current Assets - Total

80
65.9
56.47
60
57.46
40
20
8.44
0
United Kingdom
Europe
World Average
Gap
25
Gap: Other Investments

8
6
4
2
0
-2
-4
-6
6.53
4.78
0.12
-4.66
United Kingdom
Europe
World Average
Gap
Gap: Buildings
20
15.63
15
11.49
8.8
10
6.83
5
0
United Kingdom
Europe
World Average
Gap
Gap: Machinery & Equipment

40
36.8
31.9
30
22.16
20
10
4.9
0
United Kingdom
Europe
World Average
Gap
Gap: Other Property Plant & Equipment

12
10.9
10
8
6.61
5.2
5.7
4
2
0
United Kingdom
Europe
World Average
Gap
26
Gap: Accumulated Depreciation -Machinery & Equipment

25
23.72
19.93
20
14.56
15
10
3.79
5
0
United Kingdom
Europe
World Average
Gap
Gap: Accumulated Depreciation - Other Prop & Equip

8
7.23
4.89
4.16
4
2.34
2
0
United Kingdom
Europe
World Average
Gap
Gap: Other Assets

8
7.56
5.54
4.21
4
3.35
2
0
United Kingdom
Europe
World Average
Gap
Gap: Intangible Other Assets

8
6
6.1
4.31
3.86
2.24
2
0
United Kingdom
Europe
World Average
Gap
3.2.5
27
Key Percentiles and Rankings
We now consider the distribution of asset ratios for steam, gas and hydraulic turbines and turbine generator set units
using ranks and percentiles. What percent of countries have a value lower or higher than United Kingdom (what is
the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of asset
structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all
countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as
indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the
summary table below, a few key vertical asset ratios are highlighted in additional tables.
Asset Structure
United Kingdom
Rank of Total
Percentile
25 of 53
15 of 46
31 of 42
19 of 53
18 of 53
16 of 46
13 of 46
10 of 46
36 of 44
9 of 32
9 of 47
14 of 53
21 of 40
30 of 43
36 of 39
28 of 53
26 of 49
27 of 37
7 of 44
13 of 46
12 of 17
2 of 38
7 of 45
8 of 21
24 of 49
25 of 39
12 of 43
11 of 15
3 of 35
6 of 42
5 of 17
16 of 53
9 of 36
25 of 35
17 of 43
52.83
67.39
26.19
64.15
66.04
65.22
71.74
78.26
18.18
71.88
80.85
73.58
47.50
30.23
7.69
47.17
46.94
27.03
84.09
71.74
29.41
94.74
84.44
61.90
51.02
35.90
72.09
26.67
91.43
85.71
70.59
69.81
75.00
28.57
60.47
_________________________________________________________________________________________________________

Cash
Receivables (Net)
Total Inventories
Raw Materials
Work in Process
Finished Goods
Prepaid Expenses
Other Investments
Land
Buildings
Accumulated Depreciation - P P & E Under Capitalized Leases
Other Assets
Deferred Charges
Total Assets
11.41
8.00
2.31
30.43
21.50
6.78
4.82
9.78
-0.03
1.57
2.41
65.90
0.55
0.92
0.12
25.17
50.47
1.73
15.63
36.80
1.29
4.10
10.90
3.72
25.31
2.68
23.72
0.51
1.81
7.23
1.18
7.56
1.02
0.17
6.10
100.00
_________________________________________________________________________________________________________
28

Countries
Value (total assets = 100)
Rank
Percentile
22.46
22.29
22.10
20.17
19.72
19.10
18.47
17.20
16.72
16.48
16.28
15.53
15.50
14.82
14.36
14.17
12.80
12.66
12.64
12.39
11.85
11.41
11.40
11.25
10.76
10.72
10.48
9.83
9.66
9.45
9.31
8.53
6.36
6.27
5.03
4.50
4.42
3.68
3.02
2.94
0.74
0.70
0.50
0.50
0.40
1
2
3
4
5
6
8
9
10
11
12
14
15
16
17
19
20
21
22
23
24
25
26
27
28
29
31
32
33
34
35
37
38
39
41
43
44
45
46
47
48
49
50
51
53
98.11
96.23
94.34
92.45
90.57
88.68
84.91
83.02
81.13
79.25
77.36
73.58
71.70
69.81
67.92
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
41.51
39.62
37.74
35.85
33.96
30.19
28.30
26.42
22.64
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
3.77
0.00
Region
_________________________________________________________________________________________________________
Hong Kong
Israel
Ireland
South Africa
Indonesia
Australia
China
South Korea
Norway
Singapore
Japan
USA
Russia
Canada
Spain
France
Malaysia
Taiwan
Greece
Switzerland
Finland
the United Kingdom
Pakistan
Czech Republic
Philippines
Luxembourg
Argentina
Belgium
Italy
Germany
India
Sweden
Austria
Thailand
Denmark
Hungary
Netherlands
Poland
Peru
New Zealand
Brazil
Chile
Turkey
Mexico
Portugal
Asia
the Middle East
Europe
Africa
Asia
Oceana
Asia
Asia
Europe
Asia
Asia
North America
Europe
North America
Europe
Europe
Asia
Asia
Europe
Europe
Europe
Europe
the Middle East
Europe
Asia
Europe
Latin America
Europe
Europe
Europe
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Latin America
Oceana
Latin America
Latin America
the Middle East
Latin America
Europe
_________________________________________________________________________________________________________
29

(Steam, Gas and Hydraulic Turbines and Turbine Generator Set Units)
Countries in Europe
Rank
Percentile
22.10
21.53
16.72
16.58
15.98
15.83
15.79
15.69
15.50
15.46
14.36
14.17
13.48
12.64
12.39
11.85
11.71
11.57
11.56
11.41
11.25
10.72
10.68
10.67
9.83
9.74
9.66
9.45
8.53
6.36
6.30
6.14
6.14
5.03
4.50
4.42
4.05
3.85
3.79
3.68
3.31
3.19
3.18
3.05
2.64
0.47
0.43
0.42
0.41
0.40
0.38
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Ireland
Faroe Islands
Norway
Estonia
Monaco
Belarus
Slovakia
Iceland
Russia
Lithuania
Spain
France
Slovenia
Greece
Switzerland
Finland
Malta
Liechtenstein
Isle of Man
the United Kingdom
Czech Republic
Luxembourg
Latvia
Croatia
Belgium
Vatican City
Italy
Germany
Sweden
Austria
San Marino
Jersey
Guernsey
Denmark
Hungary
Netherlands
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Andorra
Albania
Romania
Bosnia & Herzegovina
Macedonia
Serbia & Montenegro
Portugal
Cyprus
_________________________________________________________________________________________________________

30
Receivables (Net)
Countries
Rank
Percentile
48.48
47.07
40.55
39.45
37.74
37.64
37.09
36.10
35.58
34.41
33.62
33.54
32.87
32.60
31.81
30.71
30.57
30.43
30.27
28.75
28.25
28.08
27.97
27.45
27.38
27.24
26.16
26.11
25.65
25.20
25.08
25.07
24.40
24.35
22.74
22.62
22.21
21.94
21.69
21.23
21.15
19.07
18.76
18.35
15.60
1
2
3
4
5
6
7
8
9
11
12
13
14
15
16
17
18
19
20
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
40
41
42
43
44
45
46
47
51
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
22.64
20.75
18.87
16.98
15.09
13.21
11.32
3.77
Region
_________________________________________________________________________________________________________
Spain
Portugal
Greece
India
Turkey
Mexico
France
Czech Republic
Italy
Philippines
Argentina
Netherlands
Israel
Ireland
Malaysia
Pakistan
Austria
the United Kingdom
South Africa
Denmark
Sweden
Norway
Germany
Japan
Belgium
Peru
Finland
New Zealand
Brazil
Singapore
Switzerland
Taiwan
Chile
South Korea
Canada
Hong Kong
USA
Russia
Luxembourg
China
Thailand
Hungary
Indonesia
Australia
Poland
Europe
Europe
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Asia
Latin America
Europe
the Middle East
Europe
Asia
the Middle East
Europe
Europe
Africa
Europe
Europe
Europe
Europe
Asia
Europe
Latin America
Europe
Oceana
Latin America
Asia
Europe
Asia
Latin America
Asia
North America
Asia
North America
Europe
Europe
Asia
Asia
Europe
Asia
Oceana
Europe
_________________________________________________________________________________________________________
31
Receivables (Net)
Countries in Europe
Rank
Percentile
48.48
47.07
45.51
45.06
40.55
37.58
37.09
37.08
36.10
35.87
35.86
35.58
34.26
34.25
33.54
32.91
32.60
31.98
30.85
30.57
30.43
30.28
29.52
29.52
28.75
28.25
28.08
27.97
27.38
27.04
26.16
25.08
24.44
23.78
23.48
23.40
22.44
22.41
22.36
21.94
21.89
21.69
21.69
19.07
17.15
16.31
16.05
15.60
14.02
13.49
13.47
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Portugal
Slovenia
Cyprus
Greece
Malta
France
Isle of Man
Czech Republic
Vatican City
Romania
Italy
Latvia
Croatia
Netherlands
Ireland
Macedonia
Serbia & Montenegro
Austria
the United Kingdom
San Marino
Jersey
Guernsey
Denmark
Sweden
Norway
Germany
Belgium
Andorra
Finland
Switzerland
Monaco
Albania
Estonia
Liechtenstein
Iceland
Belarus
Slovakia
Russia
Lithuania
Faroe Islands
Luxembourg
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

32
Total Inventories
Countries
Rank
Percentile
39.81
39.65
36.42
31.72
29.43
29.36
28.95
27.32
26.04
25.68
25.57
25.46
25.35
24.70
24.51
24.33
21.52
21.50
21.05
20.66
18.50
18.26
18.25
17.67
17.52
17.47
16.81
16.23
15.53
15.46
15.31
15.28
15.27
14.91
14.52
14.45
14.00
13.99
13.88
13.46
12.49
9.94
8.25
7.20
7.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
28
29
31
32
33
34
35
36
37
38
40
41
42
43
45
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
47.17
45.28
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
22.64
20.75
18.87
15.09
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Pakistan
Peru
South Africa
Denmark
Australia
Portugal
Italy
New Zealand
Germany
Israel
Brazil
Ireland
Netherlands
France
Finland
Chile
Sweden
the United Kingdom
Norway
Thailand
China
USA
Austria
Switzerland
Hong Kong
Spain
Belgium
Greece
South Korea
Singapore
Japan
Luxembourg
Hungary
India
Canada
Czech Republic
Philippines
Russia
Indonesia
Argentina
Poland
Malaysia
Taiwan
Turkey
Mexico
the Middle East

Latin America
Africa
Europe
Oceana
Europe
Europe
Oceana
Europe
the Middle East
Latin America
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Asia
Asia
North America
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Asia
Asia
Europe
Europe
Asia
North America
Europe
Asia
Europe
Asia
Latin America
Europe
Asia
Asia
the Middle East
Latin America
_________________________________________________________________________________________________________
33
Total Inventories
Countries in Europe
Rank
Percentile
34.61
31.72
29.36
29.18
28.95
28.29
28.11
26.04
25.46
25.35
24.70
24.51
21.52
21.50
21.05
18.44
18.25
18.08
17.67
17.63
17.63
17.47
16.81
16.80
16.49
16.40
16.23
15.28
15.27
15.05
14.99
14.97
14.85
14.45
14.28
14.25
13.99
13.96
13.74
13.72
13.71
13.06
12.86
12.49
11.23
10.81
10.79
6.84
6.28
6.10
5.88
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Albania
Denmark
Portugal
Vatican City
Italy
Andorra
Cyprus
Germany
Ireland
Netherlands
France
Finland
Sweden
the United Kingdom
Norway
Iceland
Austria
San Marino
Switzerland
Jersey
Guernsey
Spain
Belgium
Faroe Islands
Liechtenstein
Slovenia
Greece
Luxembourg
Hungary
Malta
Monaco
Estonia
Isle of Man
Czech Republic
Belarus
Slovakia
Russia
Lithuania
Ukraine
Latvia
Croatia
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Romania
Macedonia
Serbia & Montenegro
_________________________________________________________________________________________________________

34

Countries
Rank
Percentile
86.90
83.62
82.93
82.17
80.55
76.94
76.42
75.70
71.16
70.76
69.08
67.43
66.94
65.90
65.79
64.46
64.18
63.35
62.69
62.23
62.21
60.13
60.12
60.06
59.39
59.01
58.46
58.29
57.88
57.61
56.81
56.68
56.05
55.66
54.70
54.01
53.99
53.70
52.68
51.37
49.83
45.44
45.32
38.85
31.77
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
41
42
44
45
46
51
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
22.64
20.75
16.98
15.09
13.21
3.77
0.00
Region
_________________________________________________________________________________________________________
South Africa
Israel
Ireland
Pakistan
Spain
Portugal
France
Italy
Greece
Peru
Denmark
Norway
Germany
the United Kingdom
India
Finland
Netherlands
Czech Republic
Hong Kong
Japan
Australia
USA
China
Sweden
Philippines
Argentina
South Korea
Singapore
Taiwan
Switzerland
New Zealand
Austria
Indonesia
Canada
Malaysia
Belgium
Brazil
Thailand
Russia
Chile
Luxembourg
Turkey
Mexico
Hungary
Poland
Africa
the Middle East
Europe
the Middle East
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Asia
Oceana
North America
Asia
Europe
Asia
Latin America
Asia
Asia
Asia
Europe
Oceana
Europe
Asia
North America
Asia
Europe
Latin America
Asia
Europe
Latin America
Europe
the Middle East
Latin America
Europe
Europe
_________________________________________________________________________________________________________
35

Countries in Europe
Rank
Percentile
82.93
80.55
76.94
76.42
76.31
75.70
75.62
73.65
71.16
69.08
67.43
66.94
65.95
65.90
65.08
64.46
64.18
63.35
61.77
60.75
60.13
60.12
60.10
60.06
58.83
57.61
56.68
56.53
56.36
56.14
54.74
54.74
54.01
53.79
53.76
53.66
52.68
52.55
49.83
43.17
39.62
38.85
38.51
37.14
34.93
33.22
32.70
31.77
28.57
27.49
27.44
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Ireland
Spain
Portugal
France
Vatican City
Italy
Slovenia
Cyprus
Greece
Denmark
Norway
Germany
Malta
the United Kingdom
Isle of Man
Finland
Netherlands
Czech Republic
Albania
Iceland
Latvia
Faroe Islands
Croatia
Sweden
Andorra
Switzerland
Austria
Monaco
Estonia
San Marino
Guernsey
Jersey
Belgium
Belarus
Liechtenstein
Slovakia
Russia
Lithuania
Luxembourg
Romania
Hungary
Macedonia
Serbia & Montenegro
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

36

Countries
Rank
Percentile
60.82
49.74
42.66
40.91
40.59
40.39
35.78
35.48
33.50
32.37
30.55
29.91
29.40
29.17
28.69
28.27
28.01
27.84
27.32
27.30
26.60
25.17
24.64
24.45
24.30
23.31
23.18
22.56
22.36
21.41
20.81
17.57
16.34
15.64
15.45
14.57
14.37
11.74
11.73
9.11
9.04
7.99
6.76
5.72
5.71
1
2
3
4
5
6
7
8
11
13
15
16
18
19
20
21
22
23
24
25
26
28
29
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
79.25
75.47
71.70
69.81
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
47.17
45.28
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Hungary
Poland
Brazil
Thailand
Chile
Philippines
Singapore
Indonesia
Malaysia
South Korea
China
Canada
New Zealand
Russia
Netherlands
Switzerland
Taiwan
Peru
Australia
Japan
Austria
the United Kingdom
Sweden
Luxembourg
Hong Kong
Denmark
Finland
Germany
India
USA
Portugal
Greece
Norway
Czech Republic
Spain
Argentina
Italy
Pakistan
France
Israel
Ireland
Belgium
South Africa
Turkey
Mexico
Europe
Europe
Latin America
Asia
Latin America
Asia
Asia
Asia
Asia
Asia
Asia
North America
Oceana
Europe
Europe
Europe
Asia
Latin America
Oceana
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Asia
North America
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
the Middle East
Europe
the Middle East
Europe
Europe
Africa
the Middle East
Latin America
_________________________________________________________________________________________________________
37

Countries in Europe
Rank
Percentile
60.82
54.69
52.00
51.20
49.74
44.72
43.04
42.96
34.70
31.21
30.44
29.78
29.72
29.17
29.10
28.69
28.27
26.60
26.38
26.35
25.69
25.69
25.17
24.64
24.45
24.30
23.31
23.30
23.18
22.56
21.63
20.81
19.92
17.57
16.34
16.28
16.07
15.64
15.45
14.85
14.84
14.51
14.49
14.37
11.73
9.04
7.99
5.44
4.99
4.85
4.68
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Monaco
Estonia
Andorra
Belarus
Slovakia
Russia
Lithuania
Netherlands
Switzerland
Austria
Liechtenstein
San Marino
Jersey
Guernsey
the United Kingdom
Sweden
Luxembourg
Albania
Denmark
Faroe Islands
Finland
Germany
Iceland
Portugal
Cyprus
Greece
Norway
Malta
Isle of Man
Czech Republic
Spain
Latvia
Croatia
Slovenia
Vatican City
Italy
France
Ireland
Belgium
Romania
Macedonia
Serbia & Montenegro
_________________________________________________________________________________________________________

38

Countries
Rank
Percentile
81.92
76.67
72.95
58.66
47.42
43.93
38.09
38.01
34.66
32.91
30.96
29.08
27.56
27.56
27.13
26.77
26.47
25.42
25.31
23.44
21.19
21.05
20.55
20.05
20.00
18.90
18.66
18.44
16.87
16.81
16.22
15.85
15.72
15.15
9.65
9.63
9.02
7.19
6.40
5.96
5.29
1
2
3
4
5
6
8
9
11
13
14
16
17
18
19
20
21
23
24
25
26
27
28
29
30
32
33
34
36
37
38
39
40
41
42
43
44
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
83.67
81.63
77.55
73.47
71.43
67.35
65.31
63.27
61.22
59.18
57.14
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
34.69
32.65
30.61
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
6.12
4.08
2.04
0.00
Region
_________________________________________________________________________________________________________
Peru
Brazil
Chile
Belgium
Philippines
Thailand
Japan
Germany
India
Austria
Switzerland
Netherlands
New Zealand
Indonesia
Australia
Luxembourg
Sweden
USA
the United Kingdom
France
China
Denmark
Finland
Canada
Singapore
Norway
South Korea
Spain
Italy
Russia
Malaysia
Israel
Ireland
Hong Kong
Turkey
Mexico
South Africa
Greece
Czech Republic
Argentina
Taiwan
Latin America
Latin America
Latin America
Europe
Asia
Asia
Asia
Europe
Asia
Europe
Europe
Europe
Oceana
Asia
Oceana
Europe
Europe
North America
Europe
Europe
Asia
Europe
Europe
North America
Asia
Europe
Asia
Europe
Europe
Europe
Asia
the Middle East
Europe
Asia
the Middle East
Latin America
Africa
Europe
Europe
Latin America
Asia
_________________________________________________________________________________________________________
39

Countries in Europe
Rank
Percentile
71.51
58.66
38.01
32.91
32.59
31.78
31.78
30.96
29.08
28.89
28.54
26.77
26.47
25.68
25.31
23.44
21.05
20.55
19.39
18.90
18.44
17.99
17.32
17.17
17.13
17.00
16.87
16.81
16.77
15.72
14.53
9.17
8.42
8.18
7.89
7.19
6.66
6.58
6.40
6.07
6.07
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
97.56
95.12
92.68
90.24
87.80
85.37
82.93
80.49
78.05
75.61
73.17
70.73
68.29
65.85
63.41
60.98
58.54
56.10
53.66
51.22
48.78
46.34
43.90
41.46
39.02
36.59
34.15
31.71
29.27
26.83
24.39
21.95
19.51
17.07
14.63
12.20
9.76
7.32
4.88
2.44
0.00
_________________________________________________________________________________________________________
Albania
Belgium
Germany
Austria
San Marino
Guernsey
Jersey
Switzerland
Netherlands
Liechtenstein
Andorra
Luxembourg
Sweden
Iceland
the United Kingdom
France
Denmark
Finland
Monaco
Norway
Spain
Estonia
Slovenia
Belarus
Slovakia
Vatican City
Italy
Russia
Lithuania
Ireland
Faroe Islands
Romania
Macedonia
Serbia & Montenegro
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
_________________________________________________________________________________________________________
40

Countries
Rank
Percentile
29.27
14.53
12.58
12.03
10.07
9.91
9.72
8.97
8.70
8.28
7.83
7.20
6.94
6.74
6.71
6.10
4.97
3.59
2.56
2.34
2.19
2.17
2.08
2.01
2.01
1.98
1.94
1.50
1.35
1.15
1.04
0.89
0.54
0.33
0.31
0.31
0.27
0.27
1
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
31
32
33
34
35
36
37
38
40
41
97.67
93.02
90.70
88.37
86.05
83.72
81.40
79.07
76.74
74.42
72.09
69.77
67.44
65.12
62.79
60.47
58.14
55.81
53.49
51.16
48.84
46.51
44.19
41.86
39.53
37.21
34.88
32.56
27.91
25.58
23.26
20.93
18.60
16.28
13.95
11.63
6.98
4.65
Region
_________________________________________________________________________________________________________
Belgium
USA
Canada
Norway
Switzerland
Australia
Sweden
France
Luxembourg
Austria
Finland
Malaysia
New Zealand
Germany
Italy
the United Kingdom
Denmark
Singapore
Spain
Greece
Israel
Ireland
Czech Republic
Hong Kong
Netherlands
China
Argentina
South Korea
Russia
India
Japan
Peru
South Africa
Hungary
Turkey
Mexico
Poland
Thailand
Europe
North America
North America
Europe
Europe
Oceana
Europe
Europe
Europe
Europe
Europe
Asia
Oceana
Europe
Europe
Europe
Europe
Asia
Europe
Europe
the Middle East
Europe
Europe
Asia
Europe
Asia
Latin America
Asia
Europe
Asia
Asia
Latin America
Africa
Europe
the Middle East
Latin America
Europe
Asia
_________________________________________________________________________________________________________
41

Countries in Europe
Rank
Percentile
29.27
14.68
12.03
10.07
9.72
9.39
8.97
8.70
8.28
8.20
8.00
8.00
7.83
7.19
6.77
6.74
6.71
6.10
4.97
3.48
2.56
2.40
2.34
2.17
2.17
2.14
2.08
2.01
1.98
1.98
1.93
1.44
1.38
1.37
1.35
1.35
0.77
0.33
0.30
0.30
0.29
0.28
0.27
0.27
0.26
0.25
0.25
0.24
0.24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Belgium
Iceland
Norway
Switzerland
Sweden
Liechtenstein
France
Luxembourg
Austria
San Marino
Jersey
Guernsey
Finland
Andorra
Vatican City
Germany
Italy
the United Kingdom
Denmark
Monaco
Spain
Slovenia
Greece
Ireland
Malta
Isle of Man
Czech Republic
Netherlands
Latvia
Croatia
Faroe Islands
Estonia
Belarus
Slovakia
Russia
Lithuania
Albania
Hungary
Ukraine
Romania
Gibraltar
Georgia
Poland
Macedonia
Serbia & Montenegro
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
3.3
3.3.1
FINANCIAL RETURNS
STRUCTURE RATIOS
IN
42
UNITED KINGDOM: LIABILITY
Overview
In this chapter we consider the liability structure of firms operating in The United Kingdom benchmarked against
global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical analysis of
liabilities and shareholder equity is then presented for the proto-typical firm operating in The United Kingdom and
the average global benchmarks (sometimes referred to as a financial gap analysis). The figure reflect firms
involved in steam, gas and hydraulic turbines and turbine generator set units in The United Kingdom. For ratios
where there are large deviations between The United Kingdom and the benchmarks, graphics are provided (total
liabilities and equity = 100 percent). Then the distribution of ratios is presented in the form of ranks and percentiles.
Certain key vertical analysis liability ratios are highlighted.
3.3.2
Liabilities and Equity Definitions of Terms
The following definitions are provided for those less familiar with the liability-side of financial statement analysis.
As this chapter deals with the vertical analysis and global benchmarking of liabilities and equity, only definitions
covering certain terms used in this chapters tables and graphs are provided here . The glossary below reflects
commonly accepted definitions across various countries and official sources.
Accounts Payable. Accounts payable are defined as amounts owed on open account to private persons or
organizations for goods or services received.
Capital Surplus. Capital surplus is commonly defined as an amount of equity which is directly contributed
capital in excess of the par value.
Capitalized Lease Obligations. A capitalized lease obligation is commonly defined as an ownership

arrangement in which the item under lease is typically a long-term asset. Capital leases are generally
recorded as assets with liability at the current value of the lease payment.
Common Equity. Common equity is defined to equal the company's net worth. It typically comprises
capital stock, capital surplus, retained earnings, and, in some cases, net worth reserves. Common equity is
the portion of total net worth belonging to the common stockholders. Synonyms which are often used for
common equity are common stock and net worth.
Common Stock. Common stock is defined as the securities which represent the company's ownership
interest. Common stockholders typically assume greater risk than preferred stockholders; although common
stockholders maintain greater control and generally greater dividends and capital appreciation. Common
stock can be used interchangeably with the term capital stock when the company has no preferred stock.
Current Liabilities - Total. Total current liabilities are defined as the total amount of obligations which
would require the use of current assets or other current liabilities to pay.
Current Portion of Long Term Debt. The current proportion of long term debt is typically defined as debt
which is payable in more than one year.
43
Deferred Income. Deferred income is commonly defined as the amount for services rendered that has not
yet been received.
Deferred Taxes. Deferred taxes are compulsory charges from a previous accounting period which are yet
unpaid.
Deferred Taxes - Credit. Deferred tax credits are defined as credits against compulsory charges from a
previous accounting period which are yet unpaid.
Dividends Payable. Dividends payable typically include the declared dividend dollar amount that a
company is obligated to pay. The dividend payment eliminates dividends payable and reduces cash.
Income Taxes Payable. Income taxes payable are understood to mean taxes which are levied by state,
federal, and local governments on the company's reported accounting profit. Income taxes payable are those
which are due in the current accounting period.
Long Term Debt. Long-term debt is defined to be due in a period exceeding one year or one operating
cycle, whichever is longer. Long-term debt can have an extended repayment period such as a many-year
mortgage on land and buildings, or debt that's intended to be permanent such as bonds issued to investors.
Long Term Debt Excluding Capitalized Leases. Long term debt excluding capitalized leases is defined
as debt which is typically due in a period exceeding one year or one operating cycle, whichever is longer,
less capitalized leases (see Long Term Debt for exceptions). Capital leases are generally recorded as assets
with liability at the current value of the lease payment.
Minority Interest. Minority interest is the proportional share of the minority ownership's interest (less than
50 percent) in the earnings or losses.
Non-Equity Reserves. Non-equity reserves are the amount set aside for losses or liabilities which are
certain to arise but cannot be quantified with certainty, and are not part of the firms equity.
Preferred Stock. Preferred stock receives payment of dividends from the company's earnings before
common stock. Preferred stock generally maintains priority in the case of the company's liquidation.
Usually the dividends from preferred stock are priced at a specific rate which has been determined by the
board of directors.
Retained Earnings.
proprietary funds.
Shareholders Equity. Shareholders equity is commonly defined to be the amount of total equity reserved
for common and preferred shareholders.
Short Term Debt. Short term debt is generally defined as debt payable within one year.
Total Liabilities. Total liabilities are generally defined to include all the claims against a corporation.
Liabilities include accounts and wages and salaries payable, dividends declared payable, accrued taxes
payable, fixed or long-term liabilities such as mortgage bonds, debentures, and bank loans.
Retained earnings is an equity account reflecting the accumulated earnings of
3.3.3
44
Liability Structure: Outlook
Using the methodology described in the introduction, the following table summarizes liability and equity structure
benchmarks for firms involved in steam, gas and hydraulic turbines and turbine generator set units in United
Kingdom. To allow comparable benchmarking, a common index of Total Liabilities & Shareholders Equity = 100 is
used. All figures are current-year projections for companies operating in United Kingdom based on latest financial
results available.
Liability Structure
United Kingdom
Europe World Avg.
_________________________________________________________________________________________________________
Accounts Payable
Short Term Debt & Current Portion of Long Term Debt
Income Taxes Payable
Dividends Payable
Other Current Liabilities
Current Liabilities - Total
Long Term Debt
Long Term Debt Excluding Capitalized Leases
Capitalized Lease Obligations
Provision For Risks and Charges
Deferred Income
Deferred Taxes
Deferred Taxes - Credit
Deferred Taxes - Debit
Other Liabilities
Total Liabilities
Non-Equity Reserves
Minority Interest
Preferred Stock
Common Equity
Common Stock
Capital Surplus
Revaluation Reserves
Other Appropriated Reserves
Unappropriated Reserves
Retained Earnings
Unrealized Foreign Exchange Gain/Loss
Total Liabilities & Shareholders Equity
14.52
8.91
2.24
2.16
16.32
42.62
9.49
8.76
0.74
4.05
0.01
1.10
0.41
0.36
0.99
56.35
0.14
0.22
1.19
42.12
7.04
12.92
1.74
2.14
7.75
19.49
-0.57
100.00
12.07
12.07
1.81
1.20
12.86
36.78
9.95
9.81
0.14
4.50
0.20
0.24
1.08
1.00
0.94
50.49
0.63
0.91
0.04
41.30
12.32
13.95
1.42
7.07
7.03
9.93
-0.38
100.00
12.85
10.39
1.08
1.38
11.64
36.82
6.27
6.20
0.07
1.50
0.08
0.48
1.11
0.71
0.63
45.11
0.08
1.39
0.05
46.61
12.23
12.32
0.77
4.64
11.54
7.24
-0.05
100.00
_________________________________________________________________________________________________________
3.3.4
45
Large Variances: Liabilities
liability structure gaps between firms operating in United Kingdom and the world average. A gap cannot necessarily
be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market
Gap: Other Current Liabilities

20
16.32
12.86
15
11.64
10
4.68
5
0
United Kingdom
Europe
World Average
Gap
Gap: Current Liabilities - Total

50
42.62
36.78
40
36.82
30
20
5.8
10
0
United Kingdom
Europe
World Average
Gap
Gap: Long Term Debt

10
9.49
9.95
6.27
6
3.22
4
2
0
United Kingdom
Europe
World Average
Gap
46
Gap: Long Term Debt Excluding Capitalized Leases

10
8.76
9.81
6.2
6
4
2.56
2
0
United Kingdom
Europe
World Average
Gap
Gap: Provision For Risks and Charges

5
4
4.05
4.5
2.55
3
1.5
2
1
0
United Kingdom
Europe
World Average
Gap
Gap: Total Liabilities

60
56.35
50
50.49
45.11
40
30
20
11.24
10
0
United Kingdom
Europe
World Average
Gap
Gap: Common Equity

50
42.12
41.3
46.61
40
30
20
10
0
-4.49
-10
United Kingdom
Europe
World Average
Gap
47
Gap: Common Stock

12.32
15
10
12.23
7.04
5
0
-5
-5.19
-10
United Kingdom
Europe
World Average
Gap
Gap: Other Appropriated Reserves

7.07
8
6
4
4.64
2.14
2
0
-2
-2.5
-4
United Kingdom
Europe
World Average
Gap
Gap: Unappropriated Reserves

15
10
11.54
7.75
7.03
5
0
-3.79
-5
United Kingdom
Europe
World Average
Gap
Gap: Retained Earnings

20
19.49
15
12.25
9.93
10
7.24
5
0
United Kingdom
Europe
World Average
Gap
3.3.5
48
We now consider the distribution of liability ratios for steam, gas and hydraulic turbines and turbine generator set
units using ranks and percentiles. What percent of countries have a value lower or higher than United Kingdom (what
is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of
liability structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the
distribution of all countries considered in the global benchmark (the number of countries in the benchmark per line
item may vary, as indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad
performance. After the summary table below, a few key vertical liability ratios are highlighted in additional tables.
Liability Structure
United Kingdom
Rank of Total
Percentile
14.52
8.91
2.24
2.16
16.32
42.62
9.49
8.76
0.74
4.05
0.01
1.10
0.41
0.36
0.99
56.35
0.14
0.22
1.19
42.12
7.04
12.92
1.74
2.14
7.75
19.49
-0.57
100.00
17 of 50
28 of 53
10 of 43
8 of 27
13 of 53
12 of 53
25 of 48
25 of 48
3 of 30
13 of 39
18 of 21
12 of 39
16 of 26
23 of 27
15 of 43
19 of 53
15 of 26
34 of 41
1 of 8
30 of 53
37 of 46
22 of 41
12 of 33
30 of 49
17 of 37
14 of 48
28 of 34
66.00
47.17
76.74
70.37
75.47
77.36
47.92
47.92
90.00
66.67
14.29
69.23
38.46
14.81
65.12
64.15
42.31
17.07
87.50
43.40
19.57
46.34
63.64
38.78
54.05
70.83
17.65
_________________________________________________________________________________________________________
Accounts Payable
Dividends Payable
Long Term Debt
Deferred Income
Deferred Taxes
Other Liabilities
Total Liabilities
Non-Equity Reserves
Minority Interest
Preferred Stock
Common Equity
Common Stock
Capital Surplus
Retained Earnings
_________________________________________________________________________________________________________
49
Accounts Payable
Countries
Value (total liabilities & equity = 100)
Rank
Percentile
31.84
24.17
22.32
20.60
20.15
19.56
18.99
18.07
15.66
15.51
15.18
14.89
14.85
14.78
14.52
13.84
13.66
13.56
13.26
13.18
13.15
12.44
12.35
11.85
11.72
11.53
11.19
10.99
10.84
10.30
9.38
9.10
9.02
8.97
8.95
8.78
8.71
8.18
7.33
7.01
7.00
2.06
1
2
3
4
5
6
7
9
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
34
36
37
38
39
40
42
43
44
46
47
48
50
98.00
96.00
94.00
92.00
90.00
88.00
86.00
82.00
78.00
76.00
74.00
72.00
70.00
68.00
66.00
64.00
62.00
60.00
58.00
56.00
54.00
52.00
50.00
46.00
44.00
42.00
40.00
38.00
36.00
32.00
28.00
26.00
24.00
22.00
20.00
16.00
14.00
12.00
8.00
6.00
4.00
0.00
Region
_________________________________________________________________________________________________________
Belgium
Italy
Spain
Philippines
India
France
Brazil
Chile
Japan
Hong Kong
Singapore
Greece
Taiwan
Netherlands
the United Kingdom
New Zealand
Canada
Norway
Czech Republic
Denmark
South Korea
Sweden
Argentina
Russia
Australia
Thailand
Austria
Indonesia
Switzerland
China
Luxembourg
Germany
USA
Hungary
Malaysia
Israel
Ireland
Finland
Poland
Turkey
Mexico
Peru
Europe
Europe
Europe
Asia
Asia
Europe
Latin America
Latin America
Asia
Asia
Asia
Europe
Asia
Europe
Europe
Oceana
North America
Europe
Europe
Europe
Asia
Europe
Latin America
Europe
Oceana
Asia
Europe
Asia
Europe
Asia
Europe
Europe
North America
Europe
Asia
the Middle East
Europe
Europe
Europe
the Middle East
Latin America
Latin America
_________________________________________________________________________________________________________
50
Accounts Payable
Countries in Europe
Rank
Percentile
31.84
24.37
24.17
22.32
20.95
19.56
14.89
14.87
14.78
14.72
14.52
14.33
13.80
13.62
13.56
13.26
13.18
12.68
12.58
12.58
12.44
12.10
12.07
11.85
11.82
11.19
11.08
10.84
10.80
10.80
10.12
9.38
9.11
9.10
8.97
8.71
8.18
8.06
7.67
7.55
7.33
6.66
6.59
6.34
6.33
6.12
5.94
5.73
1.80
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Belgium
Vatican City
Italy
Spain
Slovenia
France
Greece
Faroe Islands
Netherlands
Monaco
the United Kingdom
Andorra
Malta
Isle of Man
Norway
Czech Republic
Denmark
Estonia
Latvia
Croatia
Sweden
Belarus
Slovakia
Russia
Lithuania
Austria
San Marino
Switzerland
Guernsey
Jersey
Liechtenstein
Luxembourg
Iceland
Germany
Hungary
Ireland
Finland
Ukraine
Gibraltar
Georgia
Poland
Romania
Moldova
Kazakhstan
Bulgaria
Macedonia
Serbia & Montenegro
Albania
_________________________________________________________________________________________________________
51

Countries
Rank
Percentile
60.54
58.44
57.60
52.51
52.20
49.47
48.47
47.78
45.62
44.98
42.99
42.62
41.74
41.66
41.58
41.02
40.85
40.74
40.61
40.11
39.05
37.83
37.20
36.79
36.11
35.29
34.60
33.26
33.15
33.01
32.94
31.08
31.01
30.90
30.83
29.13
28.86
28.55
27.30
26.03
25.68
25.51
25.28
23.73
23.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
23
24
25
26
27
28
30
31
32
33
34
35
36
37
38
39
40
41
42
45
46
47
50
51
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
56.60
54.72
52.83
50.94
49.06
47.17
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
15.09
13.21
11.32
5.66
3.77
Region
_________________________________________________________________________________________________________
Brazil
Spain
Chile
South Africa
Pakistan
Italy
Portugal
Taiwan
Greece
France
Norway
the United Kingdom
Austria
China
India
Denmark
Turkey
Mexico
Czech Republic
Belgium
Netherlands
Argentina
Japan
South Korea
Finland
Hungary
Hong Kong
Sweden
Russia
Switzerland
Germany
Israel
Thailand
Singapore
Ireland
Philippines
Poland
Luxembourg
Peru
USA
Malaysia
Australia
Canada
New Zealand
Indonesia
Latin America
Europe
Latin America
Africa
the Middle East
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Asia
Asia
Europe
the Middle East
Latin America
Europe
Europe
Europe
Latin America
Asia
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Europe
the Middle East
Asia
Asia
Europe
Asia
Europe
Europe
Latin America
North America
Asia
Oceana
North America
Oceana
Asia
_________________________________________________________________________________________________________
52

Countries in Europe
Rank
Percentile
58.44
54.86
49.87
49.47
48.47
46.40
45.62
44.98
42.99
42.62
42.28
41.74
41.73
41.34
41.02
40.61
40.31
40.31
40.11
39.05
38.81
38.55
38.53
36.11
35.62
35.47
35.29
34.61
33.85
33.77
33.39
33.26
33.18
33.15
33.07
33.01
32.94
31.73
30.83
30.80
30.17
29.96
29.71
28.86
28.55
26.30
25.95
24.97
24.93
24.58
23.83
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Slovenia
Vatican City
Italy
Portugal
Cyprus
Greece
France
Norway
the United Kingdom
Malta
Austria
Isle of Man
San Marino
Denmark
Czech Republic
Guernsey
Jersey
Belgium
Netherlands
Romania
Latvia
Croatia
Finland
Estonia
Hungary
Macedonia
Belarus
Slovakia
Serbia & Montenegro
Sweden
Faroe Islands
Russia
Lithuania
Switzerland
Germany
Ukraine
Ireland
Liechtenstein
Gibraltar
Monaco
Georgia
Poland
Luxembourg
Iceland
Moldova
Kazakhstan
Bulgaria
Andorra
Albania
_________________________________________________________________________________________________________

53
Long Term Debt

Countries
Rank
Percentile
32.68
21.19
19.31
19.13
19.04
18.79
18.33
16.39
16.33
14.29
14.18
13.29
13.18
11.75
10.94
10.59
10.56
10.49
10.03
9.83
9.49
8.50
8.45
8.32
8.20
7.99
7.66
7.48
7.35
6.23
5.50
4.53
3.69
3.63
3.09
2.75
2.56
2.32
1.69
1.55
1.53
1
2
3
4
5
6
7
8
9
12
14
15
16
17
18
19
20
21
22
23
25
26
27
28
29
30
32
33
34
35
37
38
40
41
42
43
44
45
46
47
48
97.92
95.83
93.75
91.67
89.58
87.50
85.42
83.33
81.25
75.00
70.83
68.75
66.67
64.58
62.50
60.42
58.33
56.25
54.17
52.08
47.92
45.83
43.75
41.67
39.58
37.50
33.33
31.25
29.17
27.08
22.92
20.83
16.67
14.58
12.50
10.42
8.33
6.25
4.17
2.08
0.00
Region
_________________________________________________________________________________________________________
New Zealand
Belgium
Portugal
Finland
Thailand
Netherlands
Sweden
Switzerland
Norway
USA
Luxembourg
Denmark
Australia
Canada
Taiwan
Turkey
Mexico
Austria
Hungary
Germany
the United Kingdom
South Korea
Japan
France
Poland
India
Russia
Italy
Spain
Indonesia
Singapore
South Africa
Hong Kong
China
Greece
Czech Republic
Argentina
Malaysia
Peru
Israel
Ireland
Oceana
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
North America
Europe
Europe
Oceana
North America
Asia
the Middle East
Latin America
Europe
Europe
Europe
Europe
Asia
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Asia
Africa
Asia
Asia
Europe
Europe
Latin America
Asia
Latin America
the Middle East
Europe
_________________________________________________________________________________________________________
54
Long Term Debt

Countries in Europe
Rank
Percentile
33.84
21.19
19.31
19.13
18.79
18.48
18.33
16.39
16.33
15.30
14.44
14.18
13.29
10.49
10.39
10.13
10.13
10.06
10.03
9.83
9.49
9.23
9.02
8.97
8.66
8.58
8.44
8.32
8.20
8.19
7.82
7.80
7.66
7.64
7.54
7.48
7.38
7.35
7.10
7.09
6.90
5.33
3.54
3.09
2.86
2.82
2.75
2.61
2.61
1.53
1.47
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Andorra
Belgium
Portugal
Finland
Netherlands
Cyprus
Sweden
Switzerland
Norway
Liechtenstein
Iceland
Luxembourg
Denmark
Austria
San Marino
Jersey
Guernsey
Romania
Hungary
Germany
the United Kingdom
Ukraine
Macedonia
Serbia & Montenegro
Gibraltar
Georgia
France
Poland
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Moldova
Spain
Kazakhstan
Bulgaria
Slovenia
Monaco
Faroe Islands
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Ireland
Albania
_________________________________________________________________________________________________________

55
Total Liabilities
Countries
Rank
Percentile
67.94
67.25
67.09
66.15
64.53
64.47
63.76
63.36
61.47
60.67
60.17
60.05
58.24
57.68
57.21
57.04
56.88
56.64
56.35
53.05
52.06
51.92
51.65
50.71
50.38
49.75
49.19
48.53
45.83
45.42
45.32
44.29
43.73
41.26
40.01
39.43
38.81
37.78
37.07
35.30
35.01
31.52
30.75
29.75
29.13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
30
31
32
34
35
38
39
40
42
43
44
45
46
47
48
49
51
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
43.40
41.51
39.62
35.85
33.96
28.30
26.42
24.53
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
3.77
Region
_________________________________________________________________________________________________________
Portugal
Belgium
Austria
Spain
Italy
Germany
Brazil
Netherlands
Sweden
Chile
Denmark
Norway
France
Finland
Taiwan
New Zealand
Switzerland
South Africa
the United Kingdom
Pakistan
Turkey
Mexico
India
Thailand
Japan
Greece
Luxembourg
South Korea
China
USA
Hungary
Czech Republic
Russia
Argentina
Australia
Canada
Hong Kong
Singapore
Poland
Israel
Ireland
Indonesia
Peru
Malaysia
Philippines
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Oceana
Europe
Africa
Europe
the Middle East
the Middle East
Latin America
Asia
Asia
Asia
Europe
Europe
Asia
Asia
North America
Europe
Europe
Europe
Latin America
Oceana
North America
Asia
Asia
Europe
the Middle East
Europe
Asia
Latin America
Asia
Asia
_________________________________________________________________________________________________________
56
Total Liabilities
Countries in Europe
Rank
Percentile
67.94
67.25
67.09
66.45
66.15
65.05
65.03
64.79
64.79
64.53
64.47
63.36
62.10
61.47
60.17
60.05
59.07
58.24
57.68
56.88
56.35
53.08
49.75
49.47
49.19
46.78
46.11
45.88
45.51
45.39
45.32
44.65
44.55
44.29
44.12
43.73
43.63
42.56
42.04
42.02
40.76
38.75
38.15
37.22
37.07
36.63
35.01
33.33
32.07
32.01
26.84
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Portugal
Belgium
Austria
San Marino
Spain
Vatican City
Cyprus
Jersey
Guernsey
Italy
Germany
Netherlands
Slovenia
Sweden
Denmark
Norway
Andorra
France
Finland
Switzerland
the United Kingdom
Liechtenstein
Greece
Romania
Luxembourg
Estonia
Malta
Iceland
Isle of Man
Hungary
Belarus
Slovakia
Czech Republic
Macedonia
Russia
Lithuania
Serbia & Montenegro
Latvia
Croatia
Ukraine
Gibraltar
Georgia
Faroe Islands
Poland
Monaco
Ireland
Moldova
Kazakhstan
Bulgaria
Albania
_________________________________________________________________________________________________________

57
Common Equity
Countries
Rank
Percentile
70.87
69.29
69.25
64.70
64.69
64.17
60.19
59.97
59.11
56.07
54.68
53.58
50.89
50.04
49.10
48.70
48.32
47.94
47.81
46.95
45.09
44.72
44.36
42.27
42.12
42.01
41.92
41.54
40.96
39.82
39.57
39.49
38.36
36.79
36.37
36.33
34.89
34.43
34.23
34.03
32.76
32.56
32.09
32.06
31.17
1
2
3
4
5
6
8
10
11
12
13
14
15
16
17
18
19
20
21
22
25
26
28
29
30
31
32
33
35
36
37
38
39
41
42
43
44
45
46
47
48
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
84.91
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
52.83
50.94
47.17
45.28
43.40
41.51
39.62
37.74
33.96
32.08
30.19
28.30
26.42
22.64
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Philippines
Malaysia
Peru
Israel
Indonesia
Ireland
Singapore
Australia
Hong Kong
Canada
Hungary
USA
China
South Korea
Thailand
Japan
India
Turkey
Mexico
Pakistan
Russia
Poland
Greece
South Africa
the United Kingdom
Switzerland
Taiwan
New Zealand
France
Denmark
Finland
Czech Republic
Norway
Argentina
Sweden
Luxembourg
Italy
Brazil
Germany
Netherlands
Chile
Belgium
Spain
Portugal
Austria
Asia
Asia
Latin America
the Middle East
Asia
Europe
Asia
Oceana
Asia
North America
Europe
North America
Asia
Asia
Asia
Asia
Asia
the Middle East
Latin America
the Middle East
Europe
Europe
Europe
Africa
Europe
Europe
Asia
Oceana
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Latin America
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
_________________________________________________________________________________________________________
58
Common Equity
Countries in Europe
Rank
Percentile
64.17
60.45
58.37
56.68
54.68
54.13
49.17
48.24
46.75
46.04
46.03
45.94
45.55
45.09
44.99
44.72
44.36
43.01
42.12
42.01
41.80
41.12
40.96
40.62
40.58
40.21
39.82
39.57
39.49
39.20
39.19
38.69
38.62
38.36
37.49
37.47
36.37
36.33
35.17
34.89
34.23
34.03
32.56
32.09
32.06
31.17
30.88
30.69
30.13
30.10
30.10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Ireland
Albania
Monaco
Faroe Islands
Hungary
Iceland
Ukraine
Estonia
Gibraltar
Belarus
Georgia
Slovakia
Romania
Russia
Lithuania
Poland
Greece
Andorra
the United Kingdom
Switzerland
Malta
France
Macedonia
Isle of Man
Moldova
Denmark
Finland
Czech Republic
Liechtenstein
Serbia & Montenegro
Kazakhstan
Bulgaria
Norway
Latvia
Croatia
Sweden
Luxembourg
Vatican City
Italy
Germany
Netherlands
Belgium
Spain
Portugal
Austria
San Marino
Cyprus
Slovenia
Guernsey
Jersey
_________________________________________________________________________________________________________

59
Retained Earnings
Countries
Rank
Percentile
37.15
36.85
31.67
29.75
28.68
26.69
26.15
24.75
22.61
21.44
20.02
19.99
19.49
18.96
18.27
18.13
17.25
15.74
14.98
14.58
14.41
13.06
12.51
11.18
10.38
9.45
8.36
7.53
6.84
6.54
5.97
3.83
3.71
2.72
0.92
-1.89
-2.03
-2.28
-2.46
-2.47
1
2
3
4
5
6
7
8
10
11
12
13
14
15
17
18
19
20
21
22
23
25
26
28
30
31
32
34
35
36
37
38
39
40
41
43
44
45
47
48
97.92
95.83
93.75
91.67
89.58
87.50
85.42
83.33
79.17
77.08
75.00
72.92
70.83
68.75
64.58
62.50
60.42
58.33
56.25
54.17
52.08
47.92
45.83
41.67
37.50
35.42
33.33
29.17
27.08
25.00
22.92
20.83
18.75
16.67
14.58
10.42
8.33
6.25
2.08
0.00
Region
_________________________________________________________________________________________________________
Israel
Ireland
South Africa
USA
Philippines
Hong Kong
Switzerland
Japan
Luxembourg
Malaysia
Canada
Indonesia
the United Kingdom
Finland
Singapore
Brazil
Chile
Austria
Norway
Australia
Thailand
New Zealand
Denmark
Spain
Germany
Netherlands
South Korea
Russia
France
Sweden
Italy
Portugal
Taiwan
China
Peru
Argentina
Czech Republic
Greece
Mexico
Turkey
the Middle East

Europe
Africa
North America
Asia
Asia
Europe
Asia
Europe
Asia
North America
Asia
Europe
Europe
Asia
Latin America
Latin America
Europe
Europe
Oceana
Asia
Oceana
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Asia
Asia
Latin America
Latin America
Europe
Europe
Latin America
the Middle East
_________________________________________________________________________________________________________
60
Retained Earnings
Countries in Europe
Rank
Percentile
36.85
30.06
26.15
25.59
24.40
22.61
19.49
18.96
17.72
15.74
15.59
15.20
15.20
14.98
13.52
12.51
11.18
10.50
10.38
9.45
8.06
7.69
7.67
7.53
7.52
6.84
6.54
6.02
5.97
3.83
3.66
0.80
-1.93
-1.93
-2.02
-2.03
-2.09
-2.09
-2.12
-2.15
-2.28
-2.34
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
97.62
95.24
92.86
90.48
88.10
85.71
83.33
80.95
78.57
76.19
73.81
71.43
69.05
66.67
64.29
61.90
59.52
57.14
54.76
52.38
50.00
47.62
45.24
42.86
40.48
38.10
35.71
33.33
30.95
28.57
26.19
23.81
21.43
19.05
16.67
14.29
11.90
9.52
7.14
4.76
2.38
0.00
_________________________________________________________________________________________________________
Ireland
Iceland
Switzerland
Faroe Islands
Liechtenstein
Luxembourg
the United Kingdom
Finland
Monaco
Austria
San Marino
Guernsey
Jersey
Norway
Andorra
Denmark
Spain
Slovenia
Germany
Netherlands
Estonia
Belarus
Slovakia
Russia
Lithuania
France
Sweden
Vatican City
Italy
Portugal
Cyprus
Albania
Croatia
Latvia
Serbia & Montenegro
Czech Republic
Isle of Man
Macedonia
Malta
Greece
Romania
_________________________________________________________________________________________________________
3.4
3.4.1
FINANCIAL RETURNS
STRUCTURE RATIOS
IN
61
UNITED KINGDOM: INCOME
Overview
In this chapter we consider the income structure of companies operating in The United Kingdom benchmarked
against global averages. The chapter begins by defining relevant terms. A common-size statement, or vertical
analysis of income is then presented for the proto-typical firm involved in steam, gas and hydraulic turbines and
turbine generator set units operating in The United Kingdom and the average global benchmarks (total revenue = 100
percent). For ratios where there are large deviations between The United Kingdom and the benchmarks, graphics are
provided. Then the distribution of ratios is presented in the form of ranks and percentiles. Certain key vertical
analysis income ratios are highlighted across countries in the comparison group.
3.4.2
Income Statements Definitions of Terms
The following definitions are provided for those less familiar with the income-side of financial statement analysis. As
this chapter deals with the vertical analysis and global benchmarking of income, only definitions covering certain
terms used in this chapters tables and graphs are provided here . The glossary below reflects commonly accepted
definitions across various countries and official sources.
Amortization. Amortization generally refers to the depreciation, depletion, or charge-off to expense of

intangible and tangible assets over a period of time. Amortization is commonly understood to be the taking
as an expense (writing off) of the loss of value of an intangible asset such as a copyright, a patent, or a
mailing list, in an accounting period.
Cost of Goods Sold (excluding depreciation). For retail companies, cost of goods sold is generally
defined as the equivalent of starting inventory plus purchases minus ending inventory. In manufacturing,
cost of goods sold is defined to equal the starting inventory plus the cost of goods manufactured minus
ending inventory. Most pure service firms do not generally have cost of goods sold.
Current Domestic Income Tax. Current domestic income taxes are commonly defined as compulsory
charges levied by the government where the company is located on current income.
Current Foreign Income Tax. Current foreign income taxes are commonly defined as compulsory charges
levied by foreign governments on current income.
Deferred Domestic Income Tax. Deferred domestic income tax is defined as a compulsory charge from a
previous accounting period which is yet unpaid to the government where the company is located on current
income.
Deferred Foreign Income Tax. Deferred foreign income tax is generally defined as a compulsory charge
from a previous accounting period which is yet unpaid to foreign governments on current income.
Depletion. Depletion is commonly defined to be included as one of the elements of amortization, and is
understood to be the portion of the carrying value (other than the portion associated with tangible assets)
prorated in each accounting period for financial reporting purposes.
62
Depreciation. Depreciation generally is defined as the expiration in the service life of fixed assets, other
than depletable assets, attributable to wear and tear, deterioration, action of the physical elements,
inadequacy and obsolescence. Depreciation is commonly defined as the portion of the cost of a fixed asset
charged as an expense during a particular period. In accounting for depreciation, the cost of a fixed asset,
less any salvage value, is prorated over the estimated service life of such an asset, and each period is
charged with a portion of such cost. Through this process, the cost of the asset is ultimately charged off as
an expense.
Earnings Before Interest and Taxes (EBIT). EBIT is a financial measure defined as revenues less cost of
goods sold and selling, general, and administrative expenses. In other words, operating and non-operating
profit before the deduction of interest and income taxes.
Equity in Earnings. Equity in earnings is defined as a company's proportional share (based on ownership)
of the net earnings or losses of an unconsolidated company.
Extraordinary Items. Extraordinary items are defined to include income and expense items associated
with events and transactions that possess a high degree of abnormality and are of a type that would not
reasonably be expected to recur in the foreseeable future.
Gain/Loss Sale of Assets. Gains or losses associated with the sale of assets are defined as increases or
decreases in equity (net assets) resulting from the sale of assets.
Gross Income. Gross income is commonly defined as all the money, goods, and property received by the
company that must be included as taxable income.
Income Taxes. Income taxes are defined to include those taxes levied by state, federal, and local
governments on the company's reported accounting profit. Income taxes generally include both deferred
and paid taxes. They are generally determined after the interest expense has been deducted.
Interest Capitalized. Interest capitalized is generally added to a fixed asset instead of expensed.
Capitalized interest can usually be found in footnotes or the face of the income statement.
Interest Expense on Debt. Interest expenses on debt are those which are spent on current debt and added
to the net income so avoid underestimating interest coverage.
Minority Interest. Minority interest is the proportional share of the minority ownership's interest (less than
50 percent) in the earnings or losses.
Net Income Available to Common. Net income available to common is defined as the net income
available to common stockholders.
Net Income Before Preferred Dividends. Net income before preferred dividends is generally calculated as
the difference between total revenues and total expense prior to the granting of preferred dividends.
Net Sales or Revenues. Revenues or net sales are defined as payments made to and received by an entity.
May take the form of taxes, user fees, fines, fees for service, and so on.
Non-Operating Interest Income. Non-operating interest income is generally understood to be any interest
received (e.g., royalty, production payment, net profits interest) that does not involve the operation of the
company.
63
Operating Expenses. Operating expenses are generally defined as those incurred in paying for the
companys day-to-day activities.
Operating Income. Operating income is generally defined to equal operating revenues less operating
expenses. It typically excludes items of other revenue and expense such as equity in earnings of
unconsolidated companies, dividends, interest income and expense, income taxes, extraordinary items, and
cumulative effect of accounting changes.
Preferred Dividend Requirements. Preferred dividend requirements are those dividend requirements set
forth by the board to determine the amount of preferred dividends payable.
Pretax Equity In Earnings. Pretax equity in earnings is generally defined to equal a company's
proportional share (based on ownership) of the gross earnings or losses of an unconsolidated company.
Pretax Income. Pretax income is generally defined as income before tax deductions.
Selling, General & Administrative Expenses. Selling, general and administrative expenses are expenses
independent from cost of sales for the purpose of illustrating the amount of the company's selling and
administrative costs. Generally included in this figure are the costs of employees' salaries, commissions,
and travel expenses; company payroll and office costs; and advertising and promotion.
3.4.3
64
Income Structure: Outlook
Using the methodology described in the introduction, the following table summarizes income structure benchmarks
for firms involved in steam, gas and hydraulic turbines and turbine generator set units in United Kingdom. To allow
comparable benchmarking, a common index of Net Sales or Revenues = 100 is used. All figures are current-year
projections for companies operating in United Kingdom based on latest financial results available.
Income Structure
United Kingdom
Europe World Avg.
_________________________________________________________________________________________________________
Net Sales or Revenues

Cost of Goods Sold (Excluding Depreciation)
Depreciation, Depletion & Amortization
Gross Income
Selling, General & Administrative Expenses
Other Operating Expenses
Operating Expenses - Total
Operating Income
Extraordinary Credit - Pretax
Extraordinary Charge - Pretax
Non-Operating Interest Income
Pretax Equity In Earnings
Other Income/Expense Net
Earnings Before Interest and Taxes (EBIT)
Interest Expense on Debt
Interest Capitalized
Pretax Income
Income Taxes
Current Domestic Income Tax
Current Foreign Income Tax
Deferred Domestic Income Tax
Deferred Foreign Income Tax
Minority Interest
Equity in Earnings
Net Income Before Extra Items/Prefer Dividends
Extraordinary Items & Gain/Loss Sale Of Assets
Net Income Before Preferred Dividends
Preferred Dividend Requirements
Net Income Available to Common
100.00
69.10
3.30
27.60
25.12
93.36
1.25
6.45
0.18
0.78
0.68
-0.09
0.60
6.82
1.38
0.00
5.72
1.90
1.21
0.61
0.01
0.03
0.03
0.03
3.91
0.00
3.91
0.09
3.82
100.00
70.09
4.68
18.16
13.76
88.65
2.71
5.46
0.86
0.63
2.85
0.03
0.83
8.40
4.33
0.00
4.14
1.59
1.39
0.29
-0.03
-0.02
0.20
0.01
2.61
0.00
2.62
0.00
2.61
100.00
69.36
4.50
16.64
9.33
78.12
1.47
6.55
0.17
0.51
1.97
-0.02
1.48
9.61
3.64
0.02
6.00
1.70
1.56
0.07
-0.09
0.00
0.32
0.14
4.29
0.14
4.43
0.00
4.29
_________________________________________________________________________________________________________
3.4.4
65
Large Variances: Income
income structure gaps between firms operating in United Kingdom and the world average. A gap cannot necessarily
be interpreted as a positive or negative reflection on performance. Gaps may signal areas of specialization, market
Gap: Depreciation, Depletion & Amortization

5
4
3
2
1
0
-1
-2
4.68
4.5
3.3
-1.2
United Kingdom
Europe
World Average
Gap
Gap: Gross Income

30
27.6
25
18.16
20
16.64
15
10.96
10
5
0
United Kingdom
Europe
World Average
Gap
Gap: Selling, General & Administrative Expenses

30
25
25.12
20
15.79
13.76
15
9.33
10
5
0
United Kingdom
Europe
World Average
Gap
66
Gap: Other Operating Expenses

100
93.36
88.65
80
78.12
60
40
15.24
20
0
United Kingdom
Europe
World Average
Gap
Gap: Non-Operating Interest Income

2.85
1.97
2
1
0.68
0
-1
-1.29
-2
United Kingdom
Europe
World Average
Gap
Gap: Other Income/Expense Net

1.48
1.5
1
0.6
0.83
0.5
0
-0.5
-0.88
-1
United Kingdom
Europe
World Average
Gap
Gap: Earnings Before Interest and Taxes (EBIT)

10
6.82
8.4
9.61
5
0
-2.79
-5
United Kingdom
Europe
World Average
Gap
67
Gap: Interest Expense on Debt

6
4.33
4
2
3.64
1.38
0
-2
-2.26
-4
United Kingdom
Europe
World Average
Gap
Gap: Current Foreign Income Tax

0.8
0.6
0.61
0.4
0.54
0.29
0.2
0.07
0
United Kingdom
Europe
World Average
Gap
Gap: Net Income Before Preferred Dividends

5
4
4.43
3.91
2.62
3
2
1
0
-0.52
-1
United Kingdom
Europe
World Average
Gap
Gap: Net Income Available to Common

5
4
4.29
3.82
2.61
3
2
1
0
-0.47
-1
United Kingdom
Europe
World Average
Gap
3.4.5
68
We now consider the distribution of income ratios for steam, gas and hydraulic turbines and turbine generator set
is the ratio's rank or percentile)? The table below answers this question with respect to the vertical analysis of income
structure. The ranks and percentiles indicate, from highest to lowest, where a value falls within the distribution of all
countries considered in the global benchmark (the number of countries in the benchmark per line item may vary, as
indicated in the Rank). Again, a high or low figure does not necessarily indicate good or bad performance. After the
summary table below, a few key vertical income ratios are highlighted in additional tables.
Income Structure
United Kingdom
Rank of Total
Percentile
100.00
69.10
3.30
27.60
25.12
93.36
1.25
6.45
0.18
0.78
0.68
-0.09
0.60
6.82
1.38
0.00
5.72
1.90
1.21
0.61
0.01
0.03
0.03
0.03
3.91
0.00
3.91
0.09
3.82
36 of 52
45 of 53
7 of 52
6 of 46
18 of 46
20 of 40
24 of 53
10 of 31
14 of 29
25 of 41
26 of 27
30 of 53
29 of 53
32 of 53
5 of 5
24 of 53
19 of 47
18 of 35
6 of 21
13 of 30
6 of 18
30 of 40
10 of 22
22 of 53
7 of 14
23 of 53
1 of 7
23 of 53
30.77
15.09
86.54
86.96
60.87
50.00
54.72
67.74
51.72
39.02
3.70
43.40
45.28
39.62
0.00
54.72
59.57
48.57
71.43
56.67
66.67
25.00
54.55
58.49
50.00
56.60
85.71
56.60
_________________________________________________________________________________________________________

Gross Income
Operating Income
Pretax Income
Income Taxes
Minority Interest
Equity in Earnings
_________________________________________________________________________________________________________
69

Countries
Value (total revenue = 100)
Rank
Percentile
90.62
89.40
88.70
88.31
87.88
85.34
83.94
82.83
80.14
79.88
78.96
77.69
77.62
76.49
76.48
76.47
75.55
74.93
74.02
73.34
73.18
73.11
72.79
72.53
72.22
71.69
70.30
70.28
70.19
69.67
69.56
69.10
68.44
68.41
67.89
67.33
67.16
64.58
63.43
63.25
62.95
62.88
62.58
58.30
1
2
3
4
5
6
7
8
10
11
12
13
14
16
17
18
19
20
21
23
24
25
26
27
28
29
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
50
98.08
96.15
94.23
92.31
90.38
88.46
86.54
84.62
80.77
78.85
76.92
75.00
73.08
69.23
67.31
65.38
63.46
61.54
59.62
55.77
53.85
51.92
50.00
48.08
46.15
44.23
40.38
38.46
36.54
34.62
32.69
30.77
28.85
26.92
25.00
23.08
21.15
19.23
17.31
15.38
13.46
11.54
9.62
3.85
Region
_________________________________________________________________________________________________________
Philippines
Belgium
New Zealand
Portugal
Taiwan
Denmark
India
France
South Korea
Spain
Hungary
South Africa
Norway
Austria
Finland
Australia
Singapore
Indonesia
Canada
Germany
China
Brazil
Switzerland
Peru
Russia
Japan
Greece
Netherlands
Thailand
Sweden
Chile
the United Kingdom
Hong Kong
Malaysia
Israel
Ireland
Italy
Poland
Turkey
Mexico
Luxembourg
USA
Czech Republic
Argentina
Asia
Europe
Oceana
Europe
Asia
Europe
Asia
Europe
Asia
Europe
Europe
Africa
Europe
Europe
Europe
Oceana
Asia
Asia
North America
Europe
Asia
Latin America
Europe
Latin America
Europe
Asia
Europe
Europe
Asia
Europe
Latin America
Europe
Asia
Asia
the Middle East
Europe
Europe
Europe
the Middle East
Latin America
Europe
North America
Europe
Latin America
_________________________________________________________________________________________________________
70

Countries in Europe
Rank
Percentile
91.86
89.40
88.31
85.34
84.53
82.83
79.88
78.96
77.62
77.26
76.49
76.48
75.76
74.99
73.87
73.87
73.74
73.57
73.34
73.26
72.79
72.22
72.05
71.01
70.30
70.28
69.67
69.10
67.92
67.70
67.51
67.33
67.16
66.47
65.63
65.15
64.58
64.30
63.53
63.31
62.95
62.58
60.26
59.40
59.38
58.06
55.87
55.77
55.30
53.75
51.85
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Andorra
Belgium
Portugal
Denmark
Cyprus
France
Spain
Hungary
Norway
Estonia
Austria
Finland
San Marino
Slovenia
Jersey
Guernsey
Belarus
Slovakia
Germany
Monaco
Switzerland
Russia
Lithuania
Ukraine
Greece
Netherlands
Sweden
the United Kingdom
Liechtenstein
Vatican City
Gibraltar
Ireland
Italy
Georgia
Faroe Islands
Malta
Poland
Isle of Man
Iceland
Albania
Luxembourg
Czech Republic
Romania
Latvia
Croatia
Moldova
Kazakhstan
Bulgaria
Macedonia
Serbia & Montenegro
_________________________________________________________________________________________________________

71

Countries
Rank
Percentile
28.49
28.26
26.51
26.27
25.90
25.12
22.54
21.79
20.82
19.42
18.12
18.08
17.87
17.85
17.15
16.96
16.58
16.50
15.50
14.65
14.27
13.83
12.73
12.54
11.16
10.41
10.40
10.21
9.92
9.39
9.27
8.72
8.51
8.37
8.35
8.29
7.97
6.46
0.93
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
18
19
20
22
23
24
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
42
45
97.83
95.65
93.48
91.30
89.13
86.96
84.78
82.61
80.43
78.26
76.09
73.91
71.74
69.57
67.39
65.22
60.87
58.70
56.52
52.17
50.00
47.83
43.48
41.30
39.13
36.96
34.78
32.61
30.43
28.26
26.09
23.91
21.74
17.39
15.22
13.04
10.87
8.70
2.17
Region
_________________________________________________________________________________________________________
Israel
Ireland
Netherlands
Peru
USA
the United Kingdom
Sweden
Italy
Japan
South Africa
Turkey
Mexico
Thailand
Finland
Germany
Canada
Hong Kong
Switzerland
China
France
Luxembourg
Malaysia
Norway
Greece
Czech Republic
Hungary
Argentina
Denmark
Austria
Australia
South Korea
Taiwan
Poland
Brazil
Russia
Singapore
Chile
Indonesia
Philippines
the Middle East

Europe
Europe
Latin America
North America
Europe
Europe
Europe
Asia
Africa
the Middle East
Latin America
Asia
Europe
Europe
North America
Asia
Europe
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Oceana
Asia
Asia
Europe
Latin America
Europe
Asia
Latin America
Asia
Asia
_________________________________________________________________________________________________________
72

Countries in Europe
Rank
Percentile
28.26
26.51
26.17
25.12
22.93
22.54
21.97
21.79
17.85
17.22
17.15
16.50
15.90
15.80
15.39
15.36
14.82
14.65
14.27
12.73
12.54
11.62
11.47
11.16
10.60
10.59
10.41
10.21
9.92
9.82
9.58
9.58
9.36
8.94
8.90
8.76
8.53
8.51
8.51
8.35
8.33
8.04
7.65
7.36
7.35
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
97.78
95.56
93.33
91.11
88.89
86.67
84.44
82.22
80.00
77.78
75.56
73.33
71.11
68.89
66.67
64.44
62.22
60.00
57.78
55.56
53.33
51.11
48.89
46.67
44.44
42.22
40.00
37.78
35.56
33.33
31.11
28.89
26.67
24.44
22.22
20.00
17.78
15.56
13.33
11.11
8.89
6.67
4.44
2.22
0.00
_________________________________________________________________________________________________________
Ireland
Netherlands
Iceland
the United Kingdom
Albania
Sweden
Vatican City
Italy
Finland
Romania
Germany
Switzerland
Faroe Islands
Liechtenstein
Macedonia
Serbia & Montenegro
France
Luxembourg
Norway
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Hungary
Denmark
Austria
San Marino
Jersey
Guernsey
Ukraine
Estonia
Gibraltar
Georgia
Belarus
Poland
Slovakia
Russia
Lithuania
Monaco
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
73

Countries
Rank
Percentile
14.48
9.69
8.83
8.44
6.61
5.45
4.97
4.71
4.24
4.15
4.14
3.73
2.66
2.62
2.48
2.46
1.80
1.34
1.25
1.23
0.92
0.55
0.29
0.23
0.21
0.19
0.19
0.18
0.17
0.15
0.12
0.12
0.11
0.07
-0.04
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
20
21
23
24
25
26
28
29
30
31
32
33
34
35
36
37
40
97.50
95.00
92.50
90.00
87.50
85.00
82.50
80.00
77.50
75.00
72.50
70.00
67.50
65.00
62.50
60.00
57.50
55.00
50.00
47.50
42.50
40.00
37.50
35.00
30.00
27.50
25.00
22.50
20.00
17.50
15.00
12.50
10.00
7.50
0.00
Region
_________________________________________________________________________________________________________
Australia
Austria
Finland
Germany
Netherlands
Switzerland
Italy
Luxembourg
France
Malaysia
Norway
India
Belgium
Taiwan
Israel
Ireland
Singapore
Indonesia
the United Kingdom
Sweden
Hong Kong
China
Spain
South Korea
Russia
Brazil
Greece
Chile
Czech Republic
Argentina
Denmark
Japan
USA
Canada
Thailand
Oceana
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Asia
Europe
Asia
the Middle East
Europe
Asia
Asia
Europe
Europe
Asia
Asia
Europe
Asia
Europe
Latin America
Europe
Latin America
Europe
Latin America
Europe
Asia
North America
North America
Asia
_________________________________________________________________________________________________________
74

Countries in Europe
Rank
Percentile
9.69
9.60
9.36
9.36
8.83
8.44
6.61
5.45
5.09
5.01
4.97
4.71
4.24
4.14
2.66
2.46
1.75
1.25
1.23
0.88
0.29
0.27
0.22
0.21
0.21
0.21
0.21
0.19
0.17
0.17
0.17
0.16
0.16
0.12
0.11
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
97.14
94.29
91.43
88.57
85.71
82.86
80.00
77.14
74.29
71.43
68.57
65.71
62.86
60.00
57.14
54.29
51.43
48.57
45.71
42.86
40.00
37.14
34.29
31.43
28.57
25.71
22.86
20.00
17.14
14.29
11.43
8.57
5.71
2.86
0.00
_________________________________________________________________________________________________________
Austria
San Marino
Jersey
Guernsey
Finland
Germany
Netherlands
Switzerland
Liechtenstein
Vatican City
Italy
Luxembourg
France
Norway
Belgium
Ireland
Monaco
the United Kingdom
Sweden
Faroe Islands
Spain
Slovenia
Estonia
Belarus
Slovakia
Russia
Lithuania
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Denmark
Iceland
_________________________________________________________________________________________________________
75
Operating Income
Countries
Rank
Percentile
13.67
11.79
11.49
11.22
11.15
11.12
11.05
9.82
8.69
8.64
8.46
7.86
7.83
7.64
7.42
7.41
7.00
6.96
6.87
6.52
6.45
6.40
6.27
6.10
5.94
5.61
5.30
5.16
4.51
3.95
3.86
3.72
3.67
3.52
3.17
2.78
2.54
2.12
1.73
1.50
1.39
0.95
0.69
-2.29
-2.31
1
2
3
4
5
6
7
10
11
12
13
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
34
35
36
38
39
40
42
43
44
45
46
47
48
50
51
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
81.13
79.25
77.36
75.47
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
45.28
43.40
41.51
39.62
35.85
33.96
32.08
28.30
26.42
24.53
20.75
18.87
16.98
15.09
13.21
11.32
9.43
5.66
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Spain
Brazil
Indonesia
Chile
Turkey
Mexico
Hong Kong
Singapore
South Africa
India
Malaysia
Greece
Netherlands
New Zealand
USA
Canada
Czech Republic
South Korea
Pakistan
Argentina
the United Kingdom
Italy
Russia
France
Belgium
Sweden
China
Norway
Thailand
Japan
Finland
Portugal
Switzerland
Austria
Luxembourg
Denmark
Germany
Hungary
Poland
Philippines
Taiwan
Australia
Peru
Ireland
Israel
Europe
Latin America
Asia
Latin America
the Middle East
Latin America
Asia
Asia
Africa
Asia
Asia
Europe
Europe
Oceana
North America
North America
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Asia
Oceana
Latin America
Europe
the Middle East
_________________________________________________________________________________________________________
76
Operating Income
Countries in Europe
Rank
Percentile
13.67
12.83
10.60
10.60
9.73
9.52
9.45
9.12
7.92
7.86
7.83
7.50
7.28
7.19
7.00
6.71
6.64
6.64
6.45
6.45
6.40
6.40
6.39
6.27
6.25
6.10
5.94
5.61
5.16
3.86
3.72
3.67
3.56
3.52
3.48
3.42
3.39
3.39
3.17
2.78
2.54
2.12
1.91
1.81
1.79
1.73
1.56
1.50
1.50
0.60
-2.29
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Slovenia
Faroe Islands
Romania
Monaco
Macedonia
Serbia & Montenegro
Andorra
Greece
Netherlands
Iceland
Malta
Isle of Man
Czech Republic
Estonia
Latvia
Croatia
Vatican City
the United Kingdom
Belarus
Italy
Slovakia
Russia
Lithuania
France
Belgium
Sweden
Norway
Finland
Portugal
Switzerland
Cyprus
Austria
San Marino
Liechtenstein
Guernsey
Jersey
Luxembourg
Denmark
Germany
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Albania
Ireland
_________________________________________________________________________________________________________

77

Countries
Rank
Percentile
35.95
35.85
27.11
25.79
13.70
13.08
11.65
11.48
10.85
10.78
10.66
9.91
9.81
9.08
8.82
7.99
7.82
7.73
7.59
7.56
7.53
7.39
7.34
7.32
6.82
6.68
6.66
6.61
6.36
6.06
5.61
5.49
4.89
4.71
4.07
3.73
3.16
3.04
3.00
2.78
2.71
2.45
2.04
-1.63
-1.65
1
2
4
5
6
7
8
9
10
11
12
14
15
16
18
19
20
22
23
24
25
26
27
28
29
31
32
33
35
36
38
39
40
41
42
43
44
45
46
47
48
49
50
52
53
98.11
96.23
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
73.58
71.70
69.81
66.04
64.15
62.26
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
41.51
39.62
37.74
33.96
32.08
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
11.32
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Brazil
Chile
Spain
Greece
Czech Republic
India
Argentina
Indonesia
Malaysia
Singapore
Hong Kong
New Zealand
South Africa
Italy
Netherlands
Thailand
USA
Canada
France
China
South Korea
Norway
the United Kingdom
Pakistan
Sweden
Russia
Finland
Taiwan
Germany
Austria
Portugal
Switzerland
Luxembourg
Belgium
Denmark
Australia
Hungary
Japan
Peru
Poland
Philippines
Ireland
Israel
the Middle East

Latin America
Latin America
Latin America
Europe
Europe
Europe
Asia
Latin America
Asia
Asia
Asia
Asia
Oceana
Africa
Europe
Europe
Asia
North America
North America
Europe
Asia
Asia
Europe
Europe
the Middle East
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Oceana
Europe
Asia
Latin America
Europe
Asia
Europe
the Middle East
_________________________________________________________________________________________________________
78

Countries in Europe
Rank
Percentile
34.16
31.35
30.47
29.39
13.70
13.08
12.86
12.13
11.97
11.65
11.05
11.05
9.61
9.41
9.40
8.05
7.99
7.82
7.67
7.53
7.32
7.07
6.82
6.75
6.73
6.66
6.61
6.59
6.36
5.61
5.49
5.44
5.30
5.30
4.89
4.71
4.68
4.39
4.07
3.73
3.16
3.00
2.70
2.57
2.53
2.45
2.36
2.21
2.12
2.12
-1.63
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Spain
Greece
Slovenia
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Monaco
Faroe Islands
Andorra
Vatican City
Italy
Netherlands
Iceland
France
Norway
Estonia
the United Kingdom
Belarus
Slovakia
Sweden
Russia
Lithuania
Finland
Germany
Austria
San Marino
Guernsey
Jersey
Portugal
Switzerland
Cyprus
Liechtenstein
Luxembourg
Belgium
Denmark
Hungary
Ukraine
Gibraltar
Georgia
Poland
Albania
Moldova
Kazakhstan
Bulgaria
Ireland
_________________________________________________________________________________________________________

79
Pretax Income
Countries
Rank
Percentile
15.44
14.69
13.06
11.91
10.76
9.67
9.58
9.47
9.21
9.11
8.92
7.87
7.25
6.56
6.43
6.27
6.02
5.99
5.76
5.73
5.72
5.45
5.07
5.04
4.74
4.57
4.34
4.29
4.15
3.43
3.39
3.35
2.97
2.46
2.14
1.83
1.39
1.30
1.29
1.25
1.05
-1.98
-1.99
-6.48
-6.50
1
2
3
4
5
6
7
8
9
10
11
14
15
16
18
19
20
21
22
23
24
25
27
28
30
32
33
34
35
36
37
38
39
40
41
42
44
45
46
47
48
49
50
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
73.58
71.70
69.81
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
43.40
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
11.32
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Brazil
Chile
Spain
Hong Kong
Greece
India
Czech Republic
Malaysia
Singapore
Indonesia
Argentina
South Africa
New Zealand
Canada
USA
Thailand
France
Italy
Netherlands
Norway
the United Kingdom
Pakistan
South Korea
China
Sweden
Russia
Finland
Germany
Austria
Switzerland
Portugal
Taiwan
Luxembourg
Belgium
Japan
Philippines
Denmark
Australia
Hungary
Peru
Poland
Ireland
Israel
Mexico
Turkey
Latin America
Latin America
Europe
Asia
Europe
Asia
Europe
Asia
Asia
Asia
Latin America
Africa
Oceana
North America
North America
Asia
Europe
Europe
Europe
Europe
Europe
the Middle East
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Asia
Asia
Europe
Oceana
Europe
Latin America
Europe
Europe
the Middle East
Latin America
the Middle East
_________________________________________________________________________________________________________
80
Pretax Income
Countries in Europe
Rank
Percentile
13.06
12.26
11.42
10.76
9.97
9.84
9.58
9.09
9.09
8.93
7.51
6.50
6.04
6.02
5.99
5.76
5.73
5.72
4.89
4.74
4.67
4.66
4.57
4.56
4.34
4.29
4.15
4.11
4.00
4.00
3.43
3.39
3.25
3.20
2.97
2.46
1.39
1.29
1.16
1.10
1.09
1.08
1.05
0.95
0.91
0.91
-1.98
-5.31
-5.51
-5.67
-6.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Spain
Slovenia
Faroe Islands
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Monaco
Andorra
Iceland
Vatican City
France
Italy
Netherlands
Norway
the United Kingdom
Estonia
Sweden
Belarus
Slovakia
Russia
Lithuania
Finland
Germany
Austria
San Marino
Guernsey
Jersey
Switzerland
Portugal
Cyprus
Liechtenstein
Luxembourg
Belgium
Denmark
Hungary
Ukraine
Gibraltar
Albania
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
Serbia & Montenegro
Macedonia
Romania
_________________________________________________________________________________________________________

81
Income Taxes
Countries
Rank
Percentile
5.16
4.60
4.28
4.19
4.09
3.89
3.09
3.05
2.82
2.81
2.51
2.23
2.12
2.09
2.01
1.90
1.85
1.76
1.72
1.50
1.39
1.38
1.35
1.29
1.24
1.24
1.23
1.08
1.08
1.06
0.91
0.87
0.83
0.79
0.74
0.42
0.42
0.26
0.17
0.01
1
2
3
4
5
6
8
9
10
11
13
14
15
16
18
19
20
21
22
23
24
25
26
27
29
30
31
32
33
34
35
36
37
38
39
42
43
44
45
46
97.87
95.74
93.62
91.49
89.36
87.23
82.98
80.85
78.72
76.60
72.34
70.21
68.09
65.96
61.70
59.57
57.45
55.32
53.19
51.06
48.94
46.81
44.68
42.55
38.30
36.17
34.04
31.91
29.79
27.66
25.53
23.40
21.28
19.15
17.02
10.64
8.51
6.38
4.26
2.13
Region
_________________________________________________________________________________________________________
Greece
Czech Republic
Argentina
Spain
Brazil
Chile
Italy
India
Malaysia
Indonesia
South Africa
Belgium
France
USA
Norway
the United Kingdom
Sweden
Canada
Netherlands
Austria
Singapore
South Korea
Germany
Finland
New Zealand
Russia
Japan
Hong Kong
Portugal
Switzerland
Luxembourg
Australia
Thailand
Denmark
China
Israel
Ireland
Taiwan
Peru
Philippines
Europe
Europe
Latin America
Europe
Latin America
Latin America
Europe
Asia
Asia
Asia
Africa
Europe
Europe
North America
Europe
Europe
Europe
North America
Europe
Europe
Asia
Asia
Europe
Europe
Oceana
Europe
Asia
Asia
Europe
Europe
Europe
Oceana
Asia
Europe
Asia
the Middle East
Europe
Asia
Latin America
Asia
_________________________________________________________________________________________________________
82
Income Taxes
Countries in Europe
Rank
Percentile
5.16
4.79
4.72
4.60
4.36
4.36
4.19
3.94
3.11
3.09
2.23
2.12
2.11
2.01
1.90
1.85
1.72
1.50
1.49
1.45
1.45
1.35
1.35
1.33
1.29
1.29
1.27
1.27
1.24
1.24
1.08
1.06
1.04
1.03
0.99
0.91
0.79
0.42
0.15
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
97.44
94.87
92.31
89.74
87.18
84.62
82.05
79.49
76.92
74.36
71.79
69.23
66.67
64.10
61.54
58.97
56.41
53.85
51.28
48.72
46.15
43.59
41.03
38.46
35.90
33.33
30.77
28.21
25.64
23.08
20.51
17.95
15.38
12.82
10.26
7.69
5.13
2.56
0.00
_________________________________________________________________________________________________________
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Spain
Slovenia
Vatican City
Italy
Belgium
France
Iceland
Norway
the United Kingdom
Sweden
Netherlands
Austria
San Marino
Guernsey
Jersey
Germany
Monaco
Estonia
Finland
Andorra
Belarus
Slovakia
Russia
Lithuania
Portugal
Switzerland
Faroe Islands
Cyprus
Liechtenstein
Luxembourg
Denmark
Ireland
Albania
_________________________________________________________________________________________________________
3.5
3.5.1
FINANCIAL RETURNS
RATIOS
IN
83
UNITED KINGDOM: PROFITABILITY
Overview
In this chapter we consider additional financial ratios estimated for firms involved in steam, gas and hydraulic
turbines and turbine generator set units operating in The United Kingdom benchmarked against global averages. The
chapter begins by defining relevant terms. Estimates are then presented for the proto-typical firm operating in The
United Kingdom compared to average global benchmarks. For ratios where there are large deviations between the
average firm in The United Kingdom and the benchmarks, graphics are provided. Then the distribution of ratios is
presented in the form of ranks and percentiles. Certain key ratios are highlighted across countries in the comparison
group.
3.5.2
Ratios Definitions of Terms
The following definitions are provided for those less familiar with financial ratio analysis. As this chapter deals with
the global benchmarking of ratios, only definitions covering certain terms used in this chapters tables and graphs are
provided here . The glossary below reflects commonly accepted definitions across various countries and official
sources.
Accounts Receivables Days. The number of days' receivable sales generally correlates to the amount of the
accounts receivables to the average daily sales on account. Accounts receivables days is often determined
by dividing the gross receivables by (net sales/365).
Cash Earnings Return On Equity (%). Cash earnings return on equity generally measures the return of
revenues to the shareholders. This ratio is generally calculated by dividing (net income before nonrecurring
items minus preferred dividends) by the average common equity.
Cash Flow. Cash flow is generally defined as being equal to the company's net income plus the charge-off
amounts for depreciation, depletion, amortization, extraordinary charges to reserves. These are
bookkeeping deductions which are not paid out as cash.
Current Ratio. The current ratio is generally defined as a ratio of liquidity measuring the ability of a
business to pay its current obligations when due. The current ratio is generally calculated by dividing total
current assets by total current liabilities. Managers and lenders often want the current ratio to be 2.00 or
greater. This ratio is often seen as an indication of short-term debt-paying ability. The higher the ratio, the
more liquid the company.
Dividend Payout (% Earnings) - Total Dividends (%). The dividend payout ratio is generally used to
measure the amount of current earnings per common share which are paid out in dividends. This ratio is
generally determined by dividing dividends per common share by diluted earnings per share.
Fixed Charge Coverage Ratio. The fixed charge coverage ratio is generally seen as an indication of the
company's ability to cover its fixed charges. This ratio is typically determined by dividing recurring
earnings excluding interest expense, tax expense, equity earnings, and minority earnings plus interest from
rentals by interest expense including capitalized interest and interest from rentals.
84
Gross Profit Margin (%). The gross profit margin is typically defined to equals the difference, in percent,
between net sales revenue and the cost of goods sold.
Inventories (# of Days) Held. Inventory days held is generally determined by dividing the ending
inventory by (the cost of goods held/365). The number of days held results in the average daily cost of
goods held.
Inventory Turnover (%). Inventory turnover is used as a measure of the balance of inventory. It generally
compares the amount of inventory with the total sales for the year. The ratio can reflect both on the quality
of the inventory and the efficiency of management. Typically, the higher the turnover rate, the greater the
likelihood that profits would be larger and less working capital bound up in inventory.
Net Margin (%). The net margin is the ratio of net income dollars generated by each dollar of sales.
Operating Profit Margin (%). Operating profit margin percent is the ratio of operating profit to net sales.
Operating profit (loss) is income or loss before taxes calculated by the difference between total revenues and
total expense disregarding the effects of any extraordinary transactions.
Quick Ratio. The quick ratio, also commonly known as the acid test ratio, is a refined current ratio and is
often seen as a more conservative measure of liquidity. The quick ratio is generally determined by dividing
cash and equivalents plus trade receivables by total current liabilities. The ratio shows the degree to which a
company's current liabilities can be covered by the most liquid current assets. Financial management texts
generally conclude that any value of less than 1 to 1 implies a reciprocal dependency on inventory or other
current assets to liquidate short-term debt.
Reinvestment Rate - Total (%). The reinvestment rate is typically defined as the rate at which an investor
assumes interest payments made on a debt security can be reinvested over the life of that security.
Return on Assets (%). Return on assets is generally used to measure a company's ability to use assets to
create profit.
Return on Equity - Total (%). The return on total equity ratio is often seen to reflect the profitability of
the company's operations after income taxes. Return on equity is often considered to be a good measure of
the company's profitability. Tax laws and tax loss carryovers can affect the net income and therefore can
also affect the return on equity.
Return on Invested Capital (%). The ratio of return on invested capital is typically defined as an
evaluation of earnings performance without regard to the method of financing. This ratio measures the
earnings on investment and is an indication of how well the company utilizes its asset base. Return on
investment is a type of return on capital, therefore this ratio can be an indication of the companys ability to
reward investors who provide long-term funds and to attract future investors.
Tax Rate (%). The tax rate is typically defined as the average rate of domestic tax owed to government by
the company.
Working Capital. Net working capital equals the difference between total current assets and total current
liabilities. Working capital often reflects a company's ability to expand volume and meet obligations. Since
growth is usually one goal, the amount of working capital on this year's balance sheet should be greater than
that of the previous year's. This is an efficiency, or turnover, ratio which benchmarks the rate at which
current assets less current liabilities are used by the company in making sales. A low ratio can indicate a
less profitable use of working capital in making sales. On the other hand, a very high ratio can indicate the
company is wasting current assets which could be more efficiently deployed in production and in increasing
85
sales and profits; or that the company my be undercapitalized, and thus vulnerable to liquidity problems in a
period of weak business conditions.
3.5.3
86
Ratio Structure: Outlook
Using the methodology described in the introduction, the following table summarizes ratio structure benchmarks for
firms involved in steam, gas and hydraulic turbines and turbine generator set units in United Kingdom. All figures
are current-year projections for companies operating in United Kingdom based on latest financial results available.
Ratios
United Kingdom
Europe World Avg.
_________________________________________________________________________________________________________
Profitability
Return on Equity - Total (%)
Reinvestment Rate - Total (%)
Return on Assets (%)
Return on Invested Capital (%)
Cash Earnings Return On Equity (%)
Cash Flow % Sales
Cost Goods Sold / Sales (%)
Gross Profit Margin (%)
Selling, General & Administrative Expense/Net Sales (%)
Research & Development / Net Sales (%)
Operating Profit Margin (%)
Operating Inc / Total Capital (%)
Pretax Margin (%)
Tax Rate (%)
Net Margin (%)
Total Asset Turnover (X) th USD
Asset Utilization
Inventory Turnover (%)
Net Sales % Working Capital
Capital Expenditure % Gross Fixed Assets
Capital Expenditure % Total Assets
Capital Expenditure % Total Sales
Accumulated Depreciation % Gross Fixed Assets
Leverage
Total Debt % Total Capital
Long Term Debt % Total Capital
Equity % Total Capital
Preferred Stock % Total Capital
Fixed Charge Coverage Ratio
Dividend Payout (% Earnings) - Total Dividends
Fixed Assets % Common Equity
Working Capital % Total Capital
Liquidity
Quick Ratio
Current Ratio
Accounts Receivables Days
Inventories (# of Days) Held
21.86
3.36
6.66
11.49
26.58
7.18
69.10
27.60
22.34
3.25
6.45
18.98
5.72
33.83
3.91
1.37
8.41
0.54
5.54
8.99
19.12
7.04
70.09
18.16
12.56
2.44
5.46
11.46
4.14
31.19
2.62
1.00
11.23
4.31
7.52
11.23
13.86
8.76
69.36
16.64
8.76
0.97
6.55
13.01
6.00
22.52
4.43
0.97
6.81
9.43
8.51
3.95
3.12
50.46
5.77
7.78
23.69
6.00
8.77
46.43
5.42
0.95
13.04
4.74
7.07
43.04
28.49
19.04
77.63
2.56
18.98
34.53
25.81
41.04
31.57
17.99
72.70
0.08
16.50
22.31
67.92
36.06
23.33
11.25
79.34
0.08
61.22
27.60
67.16
33.69
1.06
1.70
79.96
90.97
1.13
1.67
108.30
80.22
1.20
1.75
110.57
99.11
_________________________________________________________________________________________________________
3.5.4
87
Large Variances: Ratios
ratio structure gaps between firms operating in United Kingdom and the world average. A gap cannot necessarily be
Gap: Return on Equity - Total (%)

25
21.86
20
15
8.41
10
11.23
10.63
5
0
United Kingdom
Europe
World Average
Gap
Gap: Cash Earnings Return On Equity (%)

30
26.58
25
19.12
20
13.86
15
12.72
10
5
0
United Kingdom
Europe
World Average
Gap
Gap: Gross Profit Margin (%)

30
27.6
25
18.16
20
16.64
15
10.96
10
5
0
United Kingdom
Europe
World Average
Gap
88
Gap: Selling, General & Administrative Expense/Net Sales (%)

25
22.34
20
13.58
12.56
15
8.76
10
5
0
United Kingdom
Europe
World Average
Gap
Gap: Tax Rate (%)

40
33.83
31.19
30
22.52
20
11.31
10
0
United Kingdom
Europe
World Average
Gap
Gap: Net Sales % Working Capital

10
9.43
8.48
7.78
8
6
4
0.95
2
0
United Kingdom
Europe
World Average
Gap
Gap: Long Term Debt % Total Capital

20
19.04
17.99
15
11.25
7.79
10
5
0
United Kingdom
Europe
World Average
Gap
89
Gap: Fixed Charge Coverage Ratio

80
60
40
20
0
-20
-40
-60
61.22
18.98
16.5
-42.24
United Kingdom
Europe
World Average
Gap
Gap: Fixed Assets % Common Equity

80
60
40
20
0
-20
-40
-60
67.92
67.16
25.81
-41.35
United Kingdom
Europe
World Average
Gap
Gap: Accounts Receivables Days

150
100
108.3
110.57
79.96
50
0
-30.61
-50
United Kingdom
Europe
World Average
Gap
Gap: Inventories (# of Days) Held

100
90.97
80
99.11
80.22
60
40
20
0
-8.14
-20
United Kingdom
Europe
World Average
Gap
3.5.5
90
We now consider the distribution of financial ratios for steam, gas and hydraulic turbines and turbine generator set
is the ratio's rank or percentile)? The table below answers this question with respect to financial ratios. The ranks and
percentiles indicate, from highest to lowest, where a value falls within the distribution of all countries considered in
the global benchmark (the number of countries in the benchmark per line item may vary, as indicated in the Rank).
Again, a high or low figure does not necessarily indicate good or bad performance. After the summary table below, a
few key financial ratios are highlighted in additional tables.
Ratios
United Kingdom
Rank of Total
Percentile
21.86
3.36
6.66
11.49
26.58
7.18
69.10
27.60
22.34
3.25
6.45
18.98
5.72
33.83
3.91
1.37
8 of 53
33 of 53
21 of 53
18 of 53
13 of 53
34 of 53
36 of 52
7 of 52
2 of 46
8 of 30
24 of 53
10 of 53
24 of 53
19 of 47
23 of 53
8 of 53
84.91
37.74
60.38
66.04
75.47
35.85
30.77
86.54
95.65
73.33
54.72
81.13
54.72
59.57
56.60
84.91
6.81
9.43
8.51
3.95
3.12
50.46
17 of 53
4 of 53
33 of 49
34 of 53
39 of 53
23 of 49
67.92
92.45
32.65
35.85
26.42
53.06
28.49
19.04
77.63
2.56
18.98
34.53
25.81
41.04
27 of 53
21 of 48
27 of 53
1 of 7
17 of 53
14 of 46
46 of 53
24 of 53
49.06
56.25
49.06
85.71
67.92
69.57
13.21
54.72
1.06
1.70
79.96
90.97
33 of 53
31 of 53
32 of 53
20 of 53
37.74
41.51
39.62
62.26
_________________________________________________________________________________________________________
Profitability
Return on Equity - Total (%)
Reinvestment Rate - Total (%)
Return on Assets (%)
Return on Invested Capital (%)
Cash Earnings Return On Equity (%)
Cash Flow % Sales
Cost Goods Sold / Sales (%)
Selling, General & Administrative Expense/Net Sales (%)
Research & Development / Net Sales (%)
Operating Profit Margin (%)
Operating Inc / Total Capital (%)
Pretax Margin (%)
Tax Rate (%)
Net Margin (%)
Total Asset Turnover (X) th USD
Asset Utilization
Inventory Turnover (%)
Net Sales % Working Capital
Capital Expenditure % Gross Fixed Assets
Capital Expenditure % Total Assets
Capital Expenditure % Total Sales
Accumulated Depreciation % Gross Fixed Assets
Leverage
Total Debt % Total Capital
Long Term Debt % Total Capital
Equity % Total Capital
Preferred Stock % Total Capital
Fixed Charge Coverage Ratio
Dividend Payout (% Earnings) - Total Dividends
Fixed Assets % Common Equity
Working Capital % Total Capital
Liquidity
Quick Ratio
Current Ratio
_________________________________________________________________________________________________________
91

Countries
Value
Rank
Percentile
USA
Turkey
Italy
Mexico
Israel
Ireland
the United Kingdom
Hong Kong
Sweden
Netherlands
Malaysia
Japan
Peru
Germany
Thailand
Switzerland
South Africa
China
Canada
Brazil
Greece
Singapore
Luxembourg
Chile
Finland
Australia
Austria
Norway
Indonesia
Czech Republic
Spain
South Korea
Argentina
Russia
France
India
Hungary
Denmark
Poland
Portugal
Taiwan
Belgium
New Zealand
Philippines
32.95
29.28
29.27
29.20
28.66
28.43
27.60
27.47
26.24
25.80
25.29
24.37
24.36
22.73
22.57
22.47
21.38
21.33
21.30
20.35
19.74
19.63
19.43
19.37
19.31
19.19
19.14
18.87
17.67
17.57
17.29
16.48
16.37
14.85
13.40
12.57
12.50
10.84
10.22
10.08
9.82
8.31
7.64
2.42
1
2
3
4
5
6
7
8
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
30
31
32
34
36
37
39
40
42
43
44
45
46
47
48
50
51
98.08
96.15
94.23
92.31
90.38
88.46
86.54
84.62
80.77
78.85
76.92
75.00
73.08
71.15
69.23
67.31
65.38
63.46
61.54
59.62
57.69
55.77
53.85
51.92
50.00
48.08
46.15
42.31
40.38
38.46
34.62
30.77
28.85
25.00
23.08
19.23
17.31
15.38
13.46
11.54
9.62
7.69
3.85
1.92
Region
_________________________________________________________________________________________________________
North America
the Middle East
Europe
Latin America
the Middle East
Europe
Europe
Asia
Europe
Europe
Asia
Asia
Latin America
Europe
Asia
Europe
Africa
Asia
North America
Latin America
Europe
Asia
Europe
Latin America
Europe
Oceana
Europe
Europe
Asia
Europe
Europe
Asia
Latin America
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Oceana
Asia
_________________________________________________________________________________________________________
92

Countries in Europe
Value
Rank
Percentile
Iceland
Vatican City
Italy
Ireland
Romania
the United Kingdom
Faroe Islands
Sweden
Netherlands
Macedonia
Serbia & Montenegro
Germany
Switzerland
Albania
Liechtenstein
Greece
Luxembourg
Finland
Austria
Monaco
San Marino
Norway
Guernsey
Jersey
Malta
Isle of Man
Czech Republic
Spain
Latvia
Croatia
Slovenia
Estonia
Belarus
Slovakia
Russia
Lithuania
France
Hungary
Ukraine
Denmark
Gibraltar
Georgia
Poland
Portugal
Cyprus
Moldova
Kazakhstan
Bulgaria
Belgium
Andorra
33.29
29.51
29.27
28.43
27.82
27.60
26.34
26.24
25.80
25.53
24.81
23.93
22.73
22.47
21.27
20.97
19.74
19.43
19.31
19.14
19.03
18.96
18.87
18.49
18.49
18.29
18.05
17.57
17.29
16.68
16.67
16.23
15.89
15.16
15.13
14.85
14.82
13.40
12.50
11.24
10.84
10.68
10.52
10.22
10.08
9.65
9.19
8.84
8.83
8.31
7.92
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

93
Pretax Margin (%)

Countries
Value
Rank
Percentile
Brazil
Chile
Spain
Hong Kong
Greece
India
Czech Republic
Malaysia
Singapore
Indonesia
Argentina
South Africa
New Zealand
Canada
USA
Thailand
France
Italy
Netherlands
Norway
the United Kingdom
Pakistan
South Korea
China
Sweden
Russia
Finland
Germany
Austria
Switzerland
Portugal
Taiwan
Luxembourg
Belgium
Japan
Philippines
Denmark
Australia
Hungary
Peru
Poland
Ireland
Israel
Mexico
Turkey
15.44
14.69
13.06
11.91
10.76
9.67
9.58
9.47
9.21
9.11
8.92
7.87
7.25
6.56
6.43
6.27
6.02
5.99
5.76
5.73
5.72
5.45
5.07
5.04
4.74
4.57
4.34
4.29
4.15
3.43
3.39
3.35
2.97
2.46
2.14
1.83
1.39
1.30
1.29
1.25
1.05
-1.98
-1.99
-6.48
-6.50
1
2
3
4
5
6
7
8
9
10
11
14
15
16
18
19
20
21
22
23
24
25
27
28
30
32
33
34
35
36
37
38
39
40
41
42
44
45
46
47
48
49
50
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
73.58
71.70
69.81
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
43.40
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
11.32
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Latin America
Latin America
Europe
Asia
Europe
Asia
Europe
Asia
Asia
Asia
Latin America
Africa
Oceana
North America
North America
Asia
Europe
Europe
Europe
Europe
Europe
the Middle East
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Asia
Asia
Europe
Oceana
Europe
Latin America
Europe
Europe
the Middle East
Latin America
the Middle East
_________________________________________________________________________________________________________
94
Pretax Margin (%)

Countries in Europe
Value
Rank
Percentile
Spain
Slovenia
Faroe Islands
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Monaco
Andorra
Iceland
Vatican City
France
Italy
Netherlands
Norway
the United Kingdom
Estonia
Sweden
Belarus
Slovakia
Russia
Lithuania
Finland
Germany
Austria
San Marino
Guernsey
Jersey
Switzerland
Portugal
Cyprus
Liechtenstein
Luxembourg
Belgium
Denmark
Hungary
Ukraine
Gibraltar
Albania
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
Serbia & Montenegro
Macedonia
Romania
13.06
12.26
11.42
10.76
9.97
9.84
9.58
9.09
9.09
8.93
7.51
6.50
6.04
6.02
5.99
5.76
5.73
5.72
4.89
4.74
4.67
4.66
4.57
4.56
4.34
4.29
4.15
4.11
4.00
4.00
3.43
3.39
3.25
3.20
2.97
2.46
1.39
1.29
1.16
1.10
1.09
1.08
1.05
0.95
0.91
0.91
-1.98
-5.31
-5.51
-5.67
-6.18
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

95
Quick Ratio
Countries
Value
Rank
Percentile
Australia
Hong Kong
Malaysia
Israel
Ireland
Indonesia
Canada
USA
Singapore
Japan
Philippines
South Korea
Greece
Germany
Switzerland
Norway
France
Russia
Czech Republic
India
New Zealand
Thailand
Sweden
Peru
Finland
Argentina
Luxembourg
Spain
the United Kingdom
Italy
China
Netherlands
Denmark
Portugal
South Africa
Belgium
Turkey
Mexico
Austria
Taiwan
Pakistan
Hungary
Poland
Brazil
Chile
12.75
3.86
3.62
2.46
2.44
2.25
2.22
2.17
1.59
1.59
1.55
1.41
1.39
1.36
1.33
1.32
1.29
1.27
1.23
1.22
1.22
1.22
1.19
1.18
1.15
1.15
1.15
1.09
1.06
1.05
1.05
1.04
1.01
0.98
0.97
0.95
0.94
0.93
0.92
0.87
0.81
0.67
0.55
0.44
0.41
1
2
3
4
5
6
7
8
11
12
13
14
15
16
17
18
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
43
44
45
46
48
49
51
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
84.91
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
28.30
26.42
24.53
22.64
18.87
16.98
15.09
13.21
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Oceana
Asia
Asia
the Middle East
Europe
Asia
North America
North America
Asia
Asia
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Oceana
Asia
Europe
Latin America
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Africa
Europe
the Middle East
Latin America
Europe
Asia
the Middle East
Europe
Europe
Latin America
Latin America
_________________________________________________________________________________________________________
96
Quick Ratio
Countries in Europe
Value
Rank
Percentile
3.70
2.44
2.19
1.54
1.39
1.36
1.36
1.33
1.32
1.30
1.30
1.29
1.29
1.27
1.27
1.27
1.27
1.24
1.23
1.19
1.17
1.17
1.15
1.15
1.09
1.06
1.06
1.05
1.04
1.03
1.02
1.01
0.98
0.95
0.94
0.92
0.91
0.89
0.89
0.89
0.82
0.79
0.77
0.67
0.60
0.57
0.56
0.55
0.49
0.47
0.47
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Faroe Islands
Ireland
Iceland
Monaco
Greece
Estonia
Germany
Switzerland
Norway
Belarus
Slovakia
France
Malta
Russia
Lithuania
Isle of Man
Andorra
Liechtenstein
Czech Republic
Sweden
Latvia
Croatia
Finland
Luxembourg
Spain
Vatican City
the United Kingdom
Italy
Netherlands
Albania
Slovenia
Denmark
Portugal
Belgium
Cyprus
Austria
San Marino
Jersey
Guernsey
Romania
Macedonia
Serbia & Montenegro
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

97
Current Ratio
Countries
Value
Rank
Percentile
Australia
Hong Kong
Malaysia
Israel
Ireland
Indonesia
USA
Canada
Peru
New Zealand
Germany
Japan
Singapore
Denmark
Switzerland
Philippines
Thailand
Sweden
France
Finland
Norway
South Korea
Greece
Luxembourg
Netherlands
Russia
the United Kingdom
Italy
South Africa
India
Czech Republic
Portugal
China
Pakistan
Argentina
Spain
Austria
Belgium
Taiwan
Turkey
Mexico
Hungary
Poland
Brazil
Chile
13.84
4.39
4.29
3.49
3.46
3.24
3.18
3.02
2.88
2.39
2.34
2.22
2.15
2.07
2.04
2.04
1.98
1.97
1.93
1.92
1.91
1.91
1.84
1.77
1.74
1.72
1.70
1.69
1.67
1.67
1.64
1.59
1.58
1.57
1.53
1.43
1.40
1.36
1.28
1.11
1.11
1.10
0.90
0.89
0.85
1
2
3
4
5
6
7
9
10
11
12
14
15
16
17
18
19
20
21
22
23
24
25
26
28
30
31
32
33
34
36
37
38
39
41
43
44
45
46
47
48
49
51
52
53
98.11
96.23
94.34
92.45
90.57
88.68
86.79
83.02
81.13
79.25
77.36
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
47.17
43.40
41.51
39.62
37.74
35.85
32.08
30.19
28.30
26.42
22.64
18.87
16.98
15.09
13.21
11.32
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Oceana
Asia
Asia
the Middle East
Europe
Asia
North America
North America
Latin America
Oceana
Europe
Asia
Asia
Europe
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Asia
Europe
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Asia
the Middle East
Latin America
Europe
Europe
Latin America
Latin America
_________________________________________________________________________________________________________
98
Current Ratio
Countries in Europe
Value
Rank
Percentile
4.21
3.46
3.22
2.52
2.48
2.34
2.08
2.07
2.04
1.97
1.93
1.92
1.91
1.91
1.84
1.84
1.77
1.76
1.75
1.74
1.72
1.72
1.71
1.71
1.70
1.69
1.69
1.64
1.59
1.56
1.56
1.52
1.43
1.40
1.38
1.36
1.35
1.35
1.34
1.10
1.06
0.99
0.97
0.94
0.94
0.93
0.91
0.90
0.81
0.78
0.78
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Faroe Islands
Ireland
Iceland
Albania
Andorra
Germany
Monaco
Denmark
Switzerland
Sweden
France
Finland
Norway
Liechtenstein
Greece
Estonia
Luxembourg
Belarus
Slovakia
Netherlands
Russia
Lithuania
Vatican City
Malta
the United Kingdom
Italy
Isle of Man
Czech Republic
Portugal
Latvia
Croatia
Cyprus
Spain
Austria
San Marino
Belgium
Jersey
Guernsey
Slovenia
Hungary
Romania
Ukraine
Macedonia
Gibraltar
Georgia
Serbia & Montenegro
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

99

Countries
Value
Rank
Percentile
Turkey
Mexico
Malaysia
China
Italy
Greece
Japan
India
Spain
Israel
Ireland
Czech Republic
France
Argentina
Portugal
Peru
Austria
South Korea
Singapore
Netherlands
Switzerland
Norway
Russia
Germany
Taiwan
Denmark
Sweden
Hungary
Hong Kong
the United Kingdom
Brazil
Thailand
Canada
Finland
Luxembourg
Chile
Philippines
USA
Belgium
Poland
Australia
Indonesia
New Zealand
South Africa
Pakistan
357.98
357.00
174.24
140.37
139.34
133.01
132.06
129.31
123.36
121.19
120.18
118.41
111.00
110.30
97.52
95.11
93.62
93.59
92.69
92.30
87.80
87.10
84.34
84.28
83.15
82.99
82.85
81.65
80.25
79.96
79.39
79.18
79.10
78.40
75.93
75.53
71.26
70.09
70.01
66.78
65.78
53.09
52.84
50.69
48.79
1
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
44
47
48
49
51
98.11
96.23
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
16.98
11.32
9.43
7.55
3.77
Region
_________________________________________________________________________________________________________
the Middle East

Latin America
Asia
Asia
Europe
Europe
Asia
Asia
Europe
the Middle East
Europe
Europe
Europe
Latin America
Europe
Latin America
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Asia
Europe
Latin America
Asia
North America
Europe
Europe
Latin America
Asia
North America
Europe
Europe
Oceana
Asia
Oceana
Africa
the Middle East
_________________________________________________________________________________________________________
100

Countries in Europe
Value
Rank
Percentile
Romania
Macedonia
Serbia & Montenegro
Vatican City
Italy
Greece
Spain
Malta
Isle of Man
Ireland
Czech Republic
Slovenia
Latvia
Croatia
France
Portugal
Austria
Cyprus
San Marino
Netherlands
Guernsey
Jersey
Estonia
Monaco
Switzerland
Norway
Belarus
Slovakia
Russia
Germany
Lithuania
Albania
Denmark
Sweden
Liechtenstein
Hungary
the United Kingdom
Finland
Faroe Islands
Luxembourg
Ukraine
Iceland
Belgium
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Andorra
340.13
312.13
303.36
292.63
140.47
139.34
133.01
123.36
123.28
121.66
120.18
118.41
115.80
112.40
112.35
111.00
97.52
93.62
93.35
92.73
92.30
90.41
90.41
90.22
89.88
87.80
87.10
86.11
85.91
84.34
84.28
84.14
83.02
82.99
82.85
81.93
81.65
79.96
78.40
76.95
75.93
73.43
70.80
70.01
69.81
68.74
66.78
60.04
57.78
57.67
54.72
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

101

Countries
Value
Rank
Percentile
Italy
China
Peru
Israel
Ireland
Thailand
Denmark
Netherlands
Australia
Germany
Japan
Hong Kong
Sweden
France
Brazil
USA
Malaysia
the United Kingdom
Chile
Turkey
Mexico
Finland
Switzerland
Norway
Austria
South Korea
South Africa
Luxembourg
Singapore
Russia
Hungary
Spain
New Zealand
Indonesia
Portugal
India
Pakistan
Canada
Poland
Greece
Czech Republic
Argentina
Taiwan
Belgium
Philippines
200.12
198.98
166.34
146.42
145.21
133.49
114.02
110.88
110.72
109.81
107.97
96.49
95.10
94.96
93.99
93.46
91.97
90.97
89.43
89.04
88.80
85.48
83.67
80.42
79.31
78.82
76.82
72.36
71.18
71.03
70.60
69.83
68.57
68.04
67.74
66.69
66.27
60.38
57.74
55.27
49.21
45.84
45.15
40.74
32.19
1
2
3
4
5
6
7
9
10
11
12
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
33
34
35
37
38
39
40
41
42
44
45
46
47
49
50
51
52
98.11
96.23
94.34
92.45
90.57
88.68
86.79
83.02
81.13
79.25
77.36
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
45.28
43.40
41.51
37.74
35.85
33.96
30.19
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
11.32
7.55
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Europe
Asia
Latin America
the Middle East
Europe
Asia
Europe
Europe
Oceana
Europe
Asia
Asia
Europe
Europe
Latin America
North America
Asia
Europe
Latin America
the Middle East
Latin America
Europe
Europe
Europe
Europe
Asia
Africa
Europe
Asia
Europe
Europe
Europe
Oceana
Asia
Europe
Asia
the Middle East
North America
Europe
Europe
Europe
Latin America
Asia
Europe
Asia
_________________________________________________________________________________________________________
102

Countries in Europe
Value
Rank
Percentile
Vatican City
Italy
Ireland
Albania
Denmark
Netherlands
Germany
Sweden
France
Iceland
Faroe Islands
the United Kingdom
Finland
Romania
Switzerland
Norway
Austria
San Marino
Liechtenstein
Guernsey
Jersey
Estonia
Macedonia
Serbia & Montenegro
Belarus
Luxembourg
Slovakia
Russia
Andorra
Lithuania
Hungary
Spain
Monaco
Portugal
Slovenia
Cyprus
Ukraine
Gibraltar
Georgia
Poland
Greece
Moldova
Malta
Isle of Man
Kazakhstan
Bulgaria
Czech Republic
Latvia
Croatia
Belgium
201.74
200.12
145.21
145.20
114.02
110.88
109.81
95.10
94.96
94.42
92.53
90.97
85.48
84.60
83.67
80.42
79.31
78.56
78.08
77.64
76.60
76.60
75.99
75.45
72.79
72.52
72.36
72.36
71.03
71.01
70.86
70.60
69.83
69.02
67.74
65.56
64.84
63.49
60.37
59.44
57.74
55.27
51.92
51.23
50.55
49.96
49.87
49.21
46.71
46.69
40.74
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________

3.6
3.6.1
103
PRODUCTIVITY IN UNITED KINGDOM: ASSET-LABOR RATIOS

Overview
In this chapter, we consider numerous asset-labor ratios for steam, gas and hydraulic turbines and turbine generator
set units in The United Kingdom benchmarked against global averages. Productivity and utilization ratios are
presented for companies oprating in The United Kingdom and the average global benchmarks for steam, gas and
hydraulic turbines and turbine generator set units. For ratios where there are large deviations between The United
Kingdom and the benchmarks, graphics are provided (sometimes referred to as a gap analysis). Then the
distribution of ratios is presented in the form of ranks and percentiles. Certain asset-labor ratios are highlighted
across countries in the comparison group.
In the case of asset-labor ratios, this report maintains comparability over time and across countries by using a
common currency (the US dollar) and relates each measure to a per employee basis. Ratios are projected using
raw financial statistics and, as ratios, are therefore comparable. Given a countrys human resource ratios, the
resulting figures are benchmarked across regional and global averages.
We then report the larger asset-labor ratio gaps for steam, gas and hydraulic turbines and turbine generator set units
that The United Kingdom has vis--vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is
simply a substantial difference that might merit further attention or signal a firms relative incentive to invest locally.
All figures are projections, so due caution is required.
3.6.2
104
Asset to Labor: Outlook
The following tables and graphs are prepared using the methodology described at the beginning of this section. All
units are in thousands of US dollars per employee. All figures are current-year projections for steam, gas and
hydraulic turbines and turbine generator set units in United Kingdom based on latest financial results available.
Labor-asset Ratios ($k/employee)
United Kingdom
Europe World Avg.
_________________________________________________________________________________________________________

Cash
Receivables (Net)
Total Inventories
Raw Materials
Work in Process
Finished Goods
Prepaid Expenses
Other Investments
Land
Buildings
Accumulated Depreciation - PP&E Under Capitalized Leases
Other Assets
Deferred Charges
Total Assets
20.61
10.75
9.05
31.27
20.54
6.40
4.88
9.37
-0.09
1.28
2.75
75.30
0.59
1.49
0.21
26.10
49.93
1.84
16.78
34.35
1.23
8.06
12.56
3.88
24.26
2.63
21.64
0.48
2.68
8.69
1.13
10.86
1.34
0.20
8.76
114.26
19.81
15.66
10.70
80.12
37.20
9.64
13.45
17.85
2.00
1.60
2.58
140.04
2.40
4.27
55.91
45.86
99.44
9.87
26.90
60.84
16.11
1.71
13.15
3.96
45.30
7.93
27.12
10.65
1.01
6.96
0.88
11.38
2.24
0.91
8.54
244.38
21.26
10.74
10.51
46.74
23.18
6.13
5.45
9.24
0.71
2.15
1.74
93.95
1.10
3.90
26.34
31.94
58.92
4.15
13.01
34.23
2.79
0.98
7.05
1.36
27.74
3.77
15.72
0.75
0.58
2.50
0.26
6.15
0.85
0.96
3.80
162.19
_________________________________________________________________________________________________________
3.6.3
105
Asset to Labor: International Gaps
labor-asset gaps between firms operating in United Kingdom and the world average. A gap cannot necessarily be
Gap: Receivables (Net) ($k/employee)

100
80.12
80
60
40
46.74
31.27
20
0
-15.47
-20
United Kingdom
Europe
World Average
Gap
Gap: Current Assets - Total ($k/employee)

140.04
150
100
93.95
75.3
50
0
-18.65
-50
United Kingdom
Europe
World Average
Gap
Gap: Other Investments ($k/employee)

55.91
60
40
20
0
26.34
0.21
-20
-26.13
-40
United Kingdom
Europe
World Average
Gap
106
Gap: Property Plant and Equipment - Net ($k/employee)

45.86
50
40
31.94
26.1
30
20
10
0
-5.84
-10
United Kingdom
Europe
World Average
Gap
Gap: Property Plant and Equipment - Gross ($k/employee)

99.44
100
80
60
58.92
49.93
40
20
0
-8.99
-20
United Kingdom
Europe
World Average
Gap
Gap: Transportation Equipment ($k/employee)

10
8
8.06
7.08
6
4
1.71
0.98
0
United Kingdom
Europe
World Average
Gap
Gap: Other Property Plant & Equipment ($k/employee)

15
12.56
13.15
10
7.05
5.51
5
0
United Kingdom
Europe
World Average
Gap
107
Gap: Accumulated Depreciation -Machinery & Equipment ($k/employee)

27.12
30
25
21.64
20
15.72
15
10
5.92
5
0
United Kingdom
Europe
World Average
Gap
Gap: Accumulated Depreciation - Other Prop & Equip ($k/employee)

10
8.69
6.96
6.19
6
4
2.5
2
0
United Kingdom
Europe
World Average
Gap
Gap: Intangible Other Assets ($k/employee)

10
8.76
8.54
8
6
4.96
3.8
4
2
0
United Kingdom
Europe
World Average
Gap
Gap: Total Assets ($k/employee)

244.38
250
200
150
162.19
114.26
100
50
0
-50
United Kingdom
Europe
World Average
-47.93
Gap
3.6.4
108
We now consider the distribution of asset-labor ratios using ranks and percentiles across . What percent of countries
have a productivity indicator lower or higher than United Kingdom (what is the indicator's rank or percentile)? The
table below answers this question with respect to asset-labor structure. The ranks and percentiles indicate, from
highest to lowest, where a value falls within the distribution of all countries considered in the global benchmark (the
number of countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure
does not necessarily indicate good or bad performance or productivity. After the summary table below, a few key
asset-labor ratios are highlighted in additional tables.
Asset Structure ($k/employee)
United Kingdom
Rank of Total
Percentile
23 of 53
23 of 46
19 of 42
31 of 53
34 of 53
27 of 46
27 of 46
29 of 46
37 of 44
16 of 32
18 of 47
34 of 53
20 of 40
27 of 43
33 of 39
33 of 53
33 of 49
23 of 37
22 of 44
25 of 46
12 of 17
1 of 38
15 of 45
7 of 21
31 of 49
26 of 39
20 of 43
11 of 15
4 of 35
12 of 42
4 of 17
23 of 53
9 of 36
24 of 35
17 of 43
34 of 53
56.60
50.00
54.76
41.51
35.85
41.30
41.30
36.96
15.91
50.00
61.70
35.85
50.00
37.21
15.38
37.74
32.65
37.84
50.00
45.65
29.41
97.37
66.67
66.67
36.73
33.33
53.49
26.67
88.57
71.43
76.47
56.60
75.00
31.43
60.47
35.85
_________________________________________________________________________________________________________

Cash
Receivables (Net)
Total Inventories
Raw Materials
Work in Process
Finished Goods
Prepaid Expenses
Other Investments
Land
Buildings
Accumulated Depreciation - P P & E Under Capitalized Leases
Other Assets
Deferred Charges
Total Assets
20.61
10.75
9.05
31.27
20.54
6.40
4.88
9.37
-0.09
1.28
2.75
75.30
0.59
1.49
0.21
26.10
49.93
1.84
16.78
34.35
1.23
8.06
12.56
3.88
24.26
2.63
21.64
0.48
2.68
8.69
1.13
10.86
1.34
0.20
8.76
114.26
_________________________________________________________________________________________________________
109

Countries
Value ($K/employee)
Rank
Percentile
75.14
70.27
66.82
65.96
59.44
53.76
51.33
50.91
45.09
41.62
31.76
30.89
25.36
25.22
23.91
23.54
23.26
22.10
21.82
21.32
21.29
20.61
19.83
18.87
15.55
14.68
13.42
12.33
10.82
10.73
8.87
8.08
7.34
6.19
6.17
5.53
3.39
3.31
2.47
2.46
2.01
1.75
1.06
0.46
0.44
1
2
3
4
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
29
30
31
32
34
35
37
38
39
41
42
43
46
47
48
49
51
52
53
98.11
96.23
94.34
92.45
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
45.28
43.40
41.51
39.62
35.85
33.96
30.19
28.30
26.42
22.64
20.75
18.87
13.21
11.32
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Taiwan
Australia
USA
South Korea
Russia
Japan
Israel
Ireland
Norway
China
Canada
Hong Kong
Singapore
France
Greece
Italy
Germany
Finland
Switzerland
South Africa
Czech Republic
the United Kingdom
Argentina
Luxembourg
Spain
Belgium
Malaysia
Sweden
Indonesia
Austria
Pakistan
Denmark
Netherlands
Turkey
Mexico
India
Peru
Thailand
New Zealand
Hungary
Poland
Philippines
Portugal
Brazil
Chile
Asia
Oceana
North America
Asia
Europe
Asia
the Middle East
Europe
Europe
Asia
North America
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Europe
Europe
Latin America
Europe
Europe
Europe
Asia
Europe
Asia
Europe
the Middle East
Europe
Europe
the Middle East
Latin America
Asia
Latin America
Asia
Oceana
Europe
Europe
Asia
Europe
Latin America
Latin America
_________________________________________________________________________________________________________
110

Countries in Europe
Value ($K/employee)
Rank
Percentile
67.50
63.59
60.69
60.55
59.44
59.30
50.91
45.09
29.62
25.22
24.59
23.91
23.73
23.54
23.26
22.16
22.10
21.87
21.82
21.29
20.61
20.37
20.21
20.20
18.87
15.55
14.68
14.60
12.33
10.73
10.63
10.36
10.36
8.08
7.34
5.88
5.39
5.24
5.06
2.96
2.56
2.46
2.21
2.10
2.07
2.01
1.81
1.74
1.73
1.06
1.01
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Iceland
Estonia
Belarus
Slovakia
Russia
Lithuania
Ireland
Norway
Faroe Islands
France
Monaco
Greece
Vatican City
Italy
Germany
Malta
Finland
Isle of Man
Switzerland
Czech Republic
the United Kingdom
Liechtenstein
Latvia
Croatia
Luxembourg
Spain
Belgium
Slovenia
Sweden
Austria
San Marino
Guernsey
Jersey
Denmark
Netherlands
Romania
Macedonia
Serbia & Montenegro
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Portugal
Cyprus
_________________________________________________________________________________________________________

111
Receivables (Net)
Countries
Value ($K/employee)
Rank
Percentile
468.24
466.96
178.16
125.28
102.56
99.19
92.42
90.46
77.51
69.00
64.27
63.99
61.36
59.42
57.06
53.96
53.58
53.51
49.54
45.46
44.90
41.38
41.25
40.51
39.32
39.14
38.94
31.36
31.27
30.96
28.85
27.96
26.99
26.67
23.89
23.42
21.95
17.22
15.96
15.18
10.40
8.53
8.50
7.31
5.60
1
2
4
5
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
50
98.11
96.23
92.45
90.57
88.68
86.79
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
5.66
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
Portugal
South Korea
Italy
Russia
Japan
Greece
Czech Republic
Argentina
France
Norway
Germany
Netherlands
Israel
Spain
Ireland
Denmark
Switzerland
Austria
USA
Sweden
Malaysia
Luxembourg
Finland
Belgium
South Africa
the United Kingdom
Singapore
Hong Kong
Canada
Peru
China
Pakistan
India
New Zealand
Australia
Brazil
Chile
Hungary
Thailand
Poland
Indonesia
Philippines
the Middle East

Latin America
Asia
Europe
Asia
Europe
Europe
Asia
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
the Middle East
Europe
Europe
Europe
Europe
Europe
North America
Europe
Asia
Europe
Europe
Europe
Africa
Europe
Asia
Asia
North America
Latin America
Asia
the Middle East
Asia
Oceana
Oceana
Latin America
Latin America
Europe
Asia
Europe
Asia
Asia
_________________________________________________________________________________________________________
112
Receivables (Net)
Countries in Europe
Value ($K/employee)
Rank
Percentile
444.89
408.27
396.79
382.76
125.28
119.92
99.99
99.19
98.87
94.37
94.15
92.42
92.21
77.51
71.83
70.89
69.00
65.49
65.46
63.99
61.36
59.42
57.06
53.58
53.51
50.30
49.54
45.46
44.90
44.47
43.36
43.36
42.42
41.80
41.25
39.32
39.14
38.94
31.27
30.02
27.66
23.56
22.73
10.40
9.35
8.89
8.75
8.50
7.65
7.36
7.35
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Portugal
Cyprus
Vatican City
Italy
Estonia
Belarus
Slovakia
Russia
Lithuania
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
France
Norway
Germany
Netherlands
Spain
Ireland
Slovenia
Denmark
Switzerland
Austria
San Marino
Guernsey
Jersey
Liechtenstein
Iceland
Sweden
Luxembourg
Finland
Belgium
the United Kingdom
Monaco
Faroe Islands
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

113
Total Inventories
Countries
Value ($K/employee)
Rank
Percentile
89.29
89.04
80.46
78.14
77.12
69.50
63.82
53.05
49.54
45.66
41.73
41.73
39.46
39.14
38.80
38.38
36.62
34.00
31.28
30.97
30.78
30.56
27.27
27.05
26.11
25.85
23.91
23.43
23.25
22.96
21.66
20.54
20.40
19.71
18.28
15.90
15.35
15.13
10.77
8.33
8.03
7.95
6.81
6.20
2.28
1
2
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
39
40
41
42
43
44
45
46
49
52
98.11
96.23
92.45
90.57
88.68
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
7.55
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Italy
Portugal
South Korea
Russia
Taiwan
Denmark
Japan
France
Netherlands
Germany
Israel
Ireland
Norway
South Africa
Peru
Finland
Switzerland
Pakistan
Sweden
USA
Austria
Luxembourg
Greece
Australia
Belgium
China
Czech Republic
New Zealand
Argentina
the United Kingdom
Singapore
Canada
Spain
Brazil
Hong Kong
Chile
Malaysia
Hungary
Thailand
India
Poland
Indonesia
Philippines
the Middle East

Latin America
Europe
Europe
Asia
Europe
Asia
Europe
Asia
Europe
Europe
Europe
the Middle East
Europe
Europe
Africa
Latin America
Europe
Europe
the Middle East
Europe
North America
Europe
Europe
Europe
Oceana
Europe
Asia
Europe
Oceana
Latin America
Europe
Asia
North America
Europe
Latin America
Asia
Latin America
Asia
Europe
Asia
Asia
Europe
Asia
Asia
_________________________________________________________________________________________________________
114
Total Inventories
Countries in Europe
Value ($K/employee)
Rank
Percentile
84.84
81.11
80.46
78.14
77.85
75.66
74.80
74.35
72.99
70.96
70.80
69.50
69.33
53.05
45.66
41.73
41.73
39.14
38.80
34.00
31.96
31.28
30.88
30.78
29.19
27.27
27.05
27.01
26.33
26.33
26.11
24.20
23.91
23.88
23.78
23.25
22.07
22.06
20.54
19.78
18.28
17.16
14.72
8.33
7.49
7.12
7.01
6.81
6.12
5.89
5.88
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Vatican City
Italy
Portugal
Macedonia
Cyprus
Estonia
Serbia & Montenegro
Belarus
Slovakia
Russia
Lithuania
Denmark
France
Netherlands
Germany
Ireland
Norway
Finland
Albania
Switzerland
Iceland
Sweden
Liechtenstein
Austria
Luxembourg
San Marino
Jersey
Guernsey
Greece
Malta
Belgium
Isle of Man
Andorra
Czech Republic
Latvia
Croatia
the United Kingdom
Monaco
Spain
Slovenia
Faroe Islands
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

115

Countries
Value ($K/employee)
Rank
Percentile
563.71
562.18
355.71
251.30
226.46
207.87
204.76
203.78
149.02
147.79
147.63
147.02
137.06
136.69
131.62
121.69
116.22
113.35
109.84
107.82
103.26
98.25
95.65
91.09
89.30
87.67
86.83
84.74
84.64
77.72
77.53
75.30
75.23
67.61
64.85
63.92
47.75
37.98
33.59
31.96
25.65
21.87
21.18
17.33
9.67
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
40
41
42
43
44
46
47
50
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
22.64
20.75
18.87
16.98
13.21
11.32
5.66
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Italy
Portugal
Japan
Israel
Ireland
USA
Norway
France
Greece
Germany
Czech Republic
Denmark
Argentina
Australia
Netherlands
Switzerland
Finland
China
South Africa
Luxembourg
Spain
Sweden
Austria
Canada
Singapore
Belgium
the United Kingdom
Hong Kong
Peru
Malaysia
Pakistan
New Zealand
India
Brazil
Chile
Indonesia
Thailand
Hungary
Poland
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Asia
the Middle East
Europe
North America
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
Oceana
Europe
Europe
Europe
Asia
Africa
Europe
Europe
Europe
Europe
North America
Asia
Europe
Europe
Asia
Latin America
Asia
the Middle East
Oceana
Asia
Latin America
Latin America
Asia
Asia
Europe
Europe
Asia
_________________________________________________________________________________________________________
116

Countries in Europe
Value ($K/employee)
Rank
Percentile
535.60
491.52
477.70
460.80
242.26
231.22
230.69
226.46
225.93
209.55
207.87
204.76
196.00
149.14
147.79
147.02
137.06
136.69
131.62
126.69
125.02
121.69
116.22
115.50
115.45
107.82
103.26
98.25
96.36
89.30
87.67
86.83
84.74
83.94
82.31
81.84
81.84
77.53
75.37
75.30
72.14
59.02
49.45
21.18
19.05
18.11
17.83
17.33
15.58
14.99
14.96
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Portugal
Cyprus
Iceland
Ireland
Norway
France
Greece
Germany
Malta
Isle of Man
Czech Republic
Denmark
Latvia
Croatia
Netherlands
Switzerland
Finland
Liechtenstein
Luxembourg
Spain
Sweden
Austria
San Marino
Slovenia
Guernsey
Jersey
Belgium
Monaco
the United Kingdom
Faroe Islands
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

117

Countries
Value ($K/employee)
Rank
Percentile
149.59
128.39
115.70
81.21
70.98
70.79
66.34
59.06
55.39
55.01
54.74
47.34
44.97
43.98
41.51
40.65
40.57
38.07
37.53
35.70
35.49
34.02
33.99
33.16
33.00
31.76
29.73
27.12
26.54
26.10
25.25
24.71
22.51
20.39
18.60
16.22
14.54
14.19
13.41
13.30
11.91
10.38
9.13
6.58
6.27
1
2
4
5
6
7
8
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
27
28
29
30
31
32
33
34
35
36
37
38
40
42
43
44
46
47
48
50
51
52
98.11
96.23
92.45
90.57
88.68
86.79
84.91
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
20.75
18.87
16.98
13.21
11.32
9.43
5.66
3.77
1.89
Region
_________________________________________________________________________________________________________
Taiwan
South Korea
Russia
Japan
Turkey
Mexico
Greece
Czech Republic
Portugal
Argentina
Switzerland
Luxembourg
China
Germany
Australia
Malaysia
Netherlands
Austria
USA
Canada
Finland
Denmark
Sweden
Hungary
Norway
Italy
Singapore
Poland
Brazil
the United Kingdom
Chile
New Zealand
Peru
Thailand
France
Spain
Hong Kong
Indonesia
Israel
Ireland
Belgium
India
Pakistan
Philippines
South Africa
Asia
Asia
Europe
Asia
the Middle East
Latin America
Europe
Europe
Europe
Latin America
Europe
Europe
Asia
Europe
Oceana
Asia
Europe
Europe
North America
North America
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
Latin America
Europe
Latin America
Oceana
Latin America
Asia
Europe
Europe
Asia
Asia
the Middle East
Europe
Europe
Asia
the Middle East
Asia
Africa
_________________________________________________________________________________________________________
118

Countries in Europe
Value ($K/employee)
Rank
Percentile
123.77
118.13
117.86
115.70
115.43
67.44
66.34
61.89
61.48
60.68
60.15
59.06
58.02
56.06
56.03
55.39
54.74
53.02
51.08
47.34
43.98
40.57
38.07
37.92
37.71
36.76
36.76
35.49
34.02
33.99
33.16
33.00
32.02
31.76
29.82
28.83
28.36
27.92
27.12
26.10
25.59
24.39
23.47
23.42
19.65
18.60
16.22
15.23
13.94
13.30
11.91
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Estonia
Belarus
Slovakia
Russia
Lithuania
Romania
Greece
Malta
Isle of Man
Macedonia
Czech Republic
Serbia & Montenegro
Latvia
Croatia
Portugal
Switzerland
Cyprus
Liechtenstein
Luxembourg
Germany
Netherlands
Austria
Iceland
San Marino
Jersey
Guernsey
Finland
Denmark
Sweden
Hungary
Norway
Vatican City
Italy
Ukraine
Monaco
Gibraltar
Georgia
Poland
the United Kingdom
Andorra
Moldova
Kazakhstan
Bulgaria
Albania
France
Spain
Slovenia
Faroe Islands
Ireland
Belgium
_________________________________________________________________________________________________________

119

Countries
Value ($K/employee)
Rank
Percentile
119.75
119.42
105.74
76.76
76.62
64.68
58.28
55.99
48.42
47.70
45.96
45.38
40.98
39.83
38.47
36.98
36.85
35.70
33.64
33.43
32.33
31.23
30.95
27.55
26.53
26.31
25.66
24.26
23.17
23.14
21.37
19.10
18.02
16.43
14.99
14.39
14.29
13.90
9.30
7.72
6.63
1
2
4
5
6
7
9
10
11
12
13
14
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
46
47
48
97.96
95.92
91.84
89.80
87.76
85.71
81.63
79.59
77.55
75.51
73.47
71.43
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
6.12
4.08
2.04
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Japan
Germany
Belgium
South Korea
Russia
Switzerland
Luxembourg
Brazil
Austria
Chile
USA
Peru
Australia
Norway
Finland
Sweden
France
Netherlands
Italy
Denmark
Greece
Czech Republic
Israel
Ireland
Argentina
the United Kingdom
New Zealand
China
Canada
Spain
Malaysia
Taiwan
Singapore
India
Indonesia
Thailand
Hong Kong
Philippines
South Africa
the Middle East

Latin America
Asia
Europe
Europe
Asia
Europe
Europe
Europe
Latin America
Europe
Latin America
North America
Latin America
Oceana
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
the Middle East
Europe
Latin America
Europe
Oceana
Asia
North America
Europe
Asia
Asia
Asia
Asia
Asia
Asia
Asia
Asia
Africa
_________________________________________________________________________________________________________
120

Countries in Europe
Value ($K/employee)
Rank
Percentile
113.78
104.41
101.47
97.89
76.76
76.62
62.35
59.51
59.37
58.28
58.15
55.99
52.25
48.42
45.96
45.52
44.38
44.38
41.40
36.98
36.85
35.70
34.77
33.64
33.43
32.59
32.33
31.23
30.95
28.68
28.30
27.55
26.31
26.15
26.14
24.26
23.99
19.10
17.93
14.54
8.91
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
97.56
95.12
92.68
90.24
87.80
85.37
82.93
80.49
78.05
75.61
73.17
70.73
68.29
65.85
63.41
60.98
58.54
56.10
53.66
51.22
48.78
46.34
43.90
41.46
39.02
36.59
34.15
31.71
29.27
26.83
24.39
21.95
19.51
17.07
14.63
12.20
9.76
7.32
4.88
2.44
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Germany
Belgium
Estonia
Belarus
Slovakia
Russia
Lithuania
Switzerland
Liechtenstein
Luxembourg
Austria
San Marino
Jersey
Guernsey
Iceland
Norway
Finland
Sweden
Albania
France
Netherlands
Vatican City
Italy
Denmark
Greece
Malta
Isle of Man
Czech Republic
Ireland
Latvia
Croatia
the United Kingdom
Andorra
Spain
Slovenia
Monaco
Faroe Islands
_________________________________________________________________________________________________________
121

Countries
Value ($K/employee)
Rank
Percentile
48.49
29.65
29.55
19.59
18.57
18.47
16.88
15.30
15.07
14.60
14.10
13.21
12.49
10.50
8.82
8.76
7.26
6.46
6.02
5.84
5.81
5.80
5.76
5.22
4.27
3.87
3.86
3.77
3.23
2.97
2.83
2.35
0.68
0.57
0.46
0.18
0.15
0.12
1
2
3
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
26
27
28
29
30
32
33
34
35
36
37
38
39
40
41
97.67
95.35
93.02
88.37
86.05
83.72
81.40
79.07
76.74
74.42
72.09
69.77
67.44
65.12
62.79
60.47
58.14
55.81
53.49
51.16
48.84
46.51
44.19
39.53
37.21
34.88
32.56
30.23
25.58
23.26
20.93
18.60
16.28
13.95
11.63
9.30
6.98
4.65
Region
_________________________________________________________________________________________________________
Belgium
USA
Norway
France
Italy
Canada
Switzerland
Malaysia
Sweden
Luxembourg
Austria
Germany
Finland
Australia
Denmark
the United Kingdom
Greece
Czech Republic
Argentina
New Zealand
Israel
South Korea
Ireland
Russia
Singapore
Turkey
Mexico
Hong Kong
Netherlands
Japan
Spain
China
Peru
South Africa
India
Hungary
Poland
Thailand
Europe
North America
Europe
Europe
Europe
North America
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Oceana
Europe
Europe
Europe
Europe
Latin America
Oceana
the Middle East
Asia
Europe
Europe
Asia
the Middle East
Latin America
Asia
Europe
Asia
Europe
Asia
Latin America
Africa
Asia
Europe
Europe
Asia
_________________________________________________________________________________________________________
122

Countries in Europe
Value ($K/employee)
Rank
Percentile
48.49
29.96
29.55
19.59
18.72
18.57
16.88
15.75
15.07
14.60
14.10
13.97
13.62
13.62
13.21
12.49
8.82
8.76
7.26
6.73
6.64
6.46
6.13
6.13
6.05
5.76
5.59
5.33
5.32
5.22
5.21
4.14
3.67
3.61
3.37
3.28
3.23
3.16
2.83
2.65
0.59
0.18
0.16
0.16
0.15
0.15
0.13
0.13
0.13
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Belgium
Iceland
Norway
France
Vatican City
Italy
Switzerland
Liechtenstein
Sweden
Luxembourg
Austria
San Marino
Jersey
Guernsey
Germany
Finland
Denmark
the United Kingdom
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Andorra
Ireland
Estonia
Belarus
Slovakia
Russia
Lithuania
Monaco
Romania
Faroe Islands
Macedonia
Netherlands
Serbia & Montenegro
Spain
Slovenia
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
3.7
3.7.1
PRODUCTIVITY
RATIOS
IN
123
UNITED KINGDOM: LIABILITY-LABOR
Overview
In this chapter we consider the liability-labor ratios of companies operating in The United Kingdom benchmarked
against global averages for steam, gas and hydraulic turbines and turbine generator set units. For ratios where there
are large deviations between The United Kingdom and the benchmarks, graphics are provided (sometimes referred to
as a gap analysis). Then the distribution of productivity ratios is presented in the form of ranks and percentiles.
Certain key liability-labor ratios are highlighted for steam, gas and hydraulic turbines and turbine generator set units
across countries in the comparison group. Definitions of liability statement terms are given in Chapter 3.
In the case of liability-labor ratios, this report maintains comparability over time and across countries by using a
I then report the larger liability-labor ratio gaps for steam, gas and hydraulic turbines and turbine generator set units
that The United Kingdom has vis--vis the worldwide average. Again, a gap need not be a bad sign. Rather, it is
simply a substantial difference that might merit further attention or signal a firms relative incentive to invest locally.
All figures are projections, so due caution is required.
3.7.2
124
Liability to Labor: Outlook
Labor-liability Ratios ($k/employee)
United Kingdom
Europe World Avg.
_________________________________________________________________________________________________________
Accounts Payable
Dividends Payable
Long Term Debt
Deferred Income
Deferred Taxes
Other Liabilities
Total Liabilities
Non-Equity Reserves
Minority Interest
Preferred Stock
Common Equity
Common Stock
Capital Surplus
Retained Earnings
15.07
14.82
2.70
2.57
15.86
48.51
9.59
8.92
0.68
5.05
0.01
1.60
0.44
0.39
1.10
64.07
0.19
0.28
1.15
49.32
7.81
17.58
1.65
2.22
7.27
23.04
-0.65
114.26
27.47
35.70
5.26
7.61
30.01
97.10
27.04
26.83
0.21
9.18
0.62
0.42
2.19
2.16
1.59
131.49
3.11
1.80
0.12
108.59
61.21
35.60
8.11
10.89
13.79
16.85
-0.57
244.38
17.12
22.43
1.96
3.72
19.46
63.27
12.60
12.51
0.09
2.91
0.17
0.15
1.22
1.10
0.97
78.99
0.38
3.67
0.20
79.02
32.29
21.27
3.32
5.85
11.20
9.29
-0.06
162.19
_________________________________________________________________________________________________________
3.7.3
125
Liability and Equity to Labor: International Gaps
labor-liability gaps between firms operating in United Kingdom and the world average. A gap cannot necessarily be
Gap: Short Term Debt & Current Portion of Long Term Debt ($k/employee)
35.7
40
30
20
22.43
14.82
10
0
-7.61
-10
United Kingdom
Europe
World Average
Gap
Gap: Other Current Liabilities ($k/employee)

40
30.01
30
20
19.46
15.86
10
0
-3.6
-10
United Kingdom
Europe
World Average
Gap
Gap: Current Liabilities - Total ($k/employee)

97.1
100
80
60
63.27
48.51
40
20
0
-14.76
-20
United Kingdom
Europe
World Average
Gap
126
Gap: Total Liabilities ($k/employee)

131.49
150
100
78.99
64.07
50
0
-14.92
-50
United Kingdom
Europe
World Average
Gap
Gap: Common Equity ($k/employee)

150
108.59
79.02
100
50
49.32
0
-29.7
-50
United Kingdom
Europe
World Average
Gap
Gap: Common Stock ($k/employee)

80
61.21
60
32.29
40
20
7.81
0
-20
-24.48
-40
United Kingdom
Europe
World Average
Gap
Gap: Capital Surplus ($k/employee)

35.6
40
30
20
21.27
17.58
10
0
-3.69
-10
United Kingdom
Europe
World Average
Gap
127
Gap: Other Appropriated Reserves ($k/employee)

15
10.89
10
5
5.85
2.22
0
-3.63
-5
United Kingdom
Europe
World Average
Gap
Gap: Unappropriated Reserves ($k/employee)

13.79
15
10
11.2
7.27
5
0
-3.93
-5
United Kingdom
Europe
World Average
Gap
Gap: Retained Earnings ($k/employee)

25
23.04
20
16.85
13.75
15
9.29
10
5
0
United Kingdom
Europe
World Average
Gap
Gap: Total Liabilities & Shareholders Equity ($k/employee)

244.38
250
200
150
162.19
114.26
100
50
0
-50
United Kingdom
Europe
World Average
-47.93
Gap
3.7.4
128
We now consider the distribution of liability-labor ratios using ranks and percentiles across . What percent of
countries have a value lower or higher than United Kingdom (what is the indicator's rank or percentile)? The table
below answers this question with respect to liability-labor ratios. The ranks and percentiles indicate, from highest to
lowest, where a value falls within the distribution of all countries considered in the global benchmark (the number of
countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not
necessarily indicate good or bad performance or productivity. After the summary table below, a few key liabilitylabor ratios are highlighted in additional tables.
Liability Structure ($k/employee)
United Kingdom
Rank of Total
Percentile
15.07
14.82
2.70
2.57
15.86
48.51
9.59
8.92
0.68
5.05
0.01
1.60
0.44
0.39
1.10
64.07
0.19
0.28
1.15
49.32
7.81
17.58
1.65
2.22
7.27
23.04
-0.65
114.26
29 of 50
20 of 53
15 of 43
11 of 27
33 of 53
29 of 53
30 of 48
30 of 48
7 of 30
20 of 39
18 of 21
9 of 39
18 of 26
25 of 27
19 of 43
28 of 53
15 of 26
34 of 41
2 of 8
34 of 53
36 of 46
23 of 41
12 of 33
31 of 49
17 of 37
21 of 48
27 of 34
34 of 53
42.00
62.26
65.12
59.26
37.74
45.28
37.50
37.50
76.67
48.72
14.29
76.92
30.77
7.41
55.81
47.17
42.31
17.07
75.00
35.85
21.74
43.90
63.64
36.73
54.05
56.25
20.59
35.85
_________________________________________________________________________________________________________
Accounts Payable
Dividends Payable
Long Term Debt
Deferred Income
Deferred Taxes
Other Liabilities
Total Liabilities
Non-Equity Reserves
Minority Interest
Preferred Stock
Common Equity
Common Stock
Capital Surplus
Retained Earnings
_________________________________________________________________________________________________________
129
Accounts Payable
Countries
Value ($K/employee)
Rank
Percentile
87.40
87.02
86.79
71.13
57.18
52.99
51.53
41.59
32.27
30.19
25.93
25.15
25.00
23.85
22.39
21.64
21.11
20.86
19.28
18.81
18.61
18.34
16.74
16.67
15.82
15.07
13.03
12.19
11.82
11.64
11.56
11.47
11.24
11.22
10.99
8.68
4.89
4.58
4.36
4.00
3.36
1.00
1
2
3
5
6
7
9
10
11
12
13
14
15
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
44
47
50
98.00
96.00
94.00
90.00
88.00
86.00
82.00
80.00
78.00
76.00
74.00
72.00
70.00
66.00
64.00
62.00
60.00
58.00
56.00
54.00
52.00
50.00
48.00
46.00
44.00
42.00
40.00
38.00
36.00
34.00
32.00
30.00
28.00
26.00
24.00
22.00
20.00
18.00
16.00
12.00
6.00
0.00
Region
_________________________________________________________________________________________________________
Taiwan
Turkey
Mexico
Italy
South Korea
Japan
Russia
Belgium
France
Norway
Denmark
Greece
Spain
Netherlands
Czech Republic
Sweden
Singapore
Argentina
Switzerland
Germany
Hong Kong
USA
Canada
Luxembourg
Austria
the United Kingdom
Finland
China
Brazil
New Zealand
Israel
Ireland
Chile
India
Australia
Malaysia
Hungary
Indonesia
Thailand
Poland
Philippines
Peru
Asia
the Middle East
Latin America
Europe
Asia
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Latin America
Europe
Europe
Asia
North America
North America
Europe
Europe
Europe
Europe
Asia
Latin America
Oceana
the Middle East
Europe
Latin America
Asia
Oceana
Asia
Europe
Asia
Asia
Europe
Asia
Latin America
_________________________________________________________________________________________________________
130
Accounts Payable
Countries in Europe
Value ($K/employee)
Rank
Percentile
82.68
75.88
73.74
71.71
71.14
71.13
55.12
52.61
52.49
51.53
51.41
41.59
32.27
30.19
25.93
25.15
25.00
23.85
23.47
23.31
23.00
22.39
21.64
21.25
21.24
20.47
19.28
18.81
18.53
17.99
17.84
16.67
15.82
15.67
15.28
15.28
15.07
13.03
12.05
11.47
4.89
4.40
4.18
4.12
4.00
3.59
3.46
3.45
0.87
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
97.96
95.92
93.88
91.84
89.80
87.76
85.71
83.67
81.63
79.59
77.55
75.51
73.47
71.43
69.39
67.35
65.31
63.27
61.22
59.18
57.14
55.10
53.06
51.02
48.98
46.94
44.90
42.86
40.82
38.78
36.73
34.69
32.65
30.61
28.57
26.53
24.49
22.45
20.41
18.37
16.33
14.29
12.24
10.20
8.16
6.12
4.08
2.04
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Vatican City
Serbia & Montenegro
Italy
Estonia
Belarus
Slovakia
Russia
Lithuania
Belgium
France
Norway
Denmark
Greece
Spain
Netherlands
Slovenia
Malta
Isle of Man
Czech Republic
Sweden
Latvia
Croatia
Monaco
Switzerland
Germany
Iceland
Liechtenstein
Faroe Islands
Luxembourg
Austria
San Marino
Guernsey
Jersey
the United Kingdom
Finland
Andorra
Ireland
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Albania
_________________________________________________________________________________________________________
131

Countries
Value ($K/employee)
Rank
Percentile
506.75
505.36
226.98
166.02
149.61
141.55
129.00
118.68
87.93
82.29
77.84
73.25
72.19
68.24
65.14
63.90
63.87
61.93
61.10
57.37
57.14
55.81
53.70
51.60
50.72
49.41
48.51
42.51
42.16
40.61
38.86
37.71
37.66
35.84
31.31
30.41
29.23
25.11
21.73
19.95
19.24
15.74
12.06
9.20
4.74
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
42
43
44
45
46
49
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
7.55
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Italy
Portugal
Japan
Norway
Greece
France
Czech Republic
Denmark
Argentina
China
Spain
Germany
Netherlands
Austria
Belgium
Switzerland
South Africa
Finland
Sweden
USA
Luxembourg
the United Kingdom
Israel
Ireland
Pakistan
Singapore
Hong Kong
Brazil
Chile
Canada
Malaysia
Peru
Australia
India
New Zealand
Hungary
Poland
Thailand
Indonesia
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Latin America
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Europe
Europe
North America
Europe
Europe
the Middle East
Europe
the Middle East
Asia
Asia
Latin America
Latin America
North America
Asia
Latin America
Oceana
Asia
Oceana
Europe
Europe
Asia
Asia
Asia
_________________________________________________________________________________________________________
132

Countries in Europe
Value ($K/employee)
Rank
Percentile
481.48
441.85
429.42
414.23
160.05
152.76
152.41
149.61
149.26
142.70
141.55
129.00
123.49
87.93
82.29
77.84
76.27
75.26
73.25
72.19
69.53
69.50
63.90
63.87
61.93
61.10
60.52
59.98
59.00
59.00
57.37
57.14
53.70
53.32
51.60
51.24
49.41
48.51
42.16
37.69
36.16
25.52
20.66
19.24
17.31
16.45
16.20
15.74
14.15
13.62
13.59
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Portugal
Cyprus
Norway
Greece
France
Malta
Isle of Man
Czech Republic
Denmark
Latvia
Croatia
Spain
Germany
Netherlands
Austria
San Marino
Slovenia
Jersey
Guernsey
Belgium
Switzerland
Finland
Liechtenstein
Sweden
Iceland
Luxembourg
the United Kingdom
Ireland
Monaco
Faroe Islands
Albania
Andorra
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

133
Long Term Debt

Countries
Value ($K/employee)
Rank
Percentile
131.37
131.02
93.29
51.38
42.58
38.37
32.88
31.75
29.79
27.66
27.47
26.88
26.22
25.89
25.76
25.46
21.50
21.03
18.72
17.44
16.90
16.06
15.56
14.71
14.38
11.39
9.59
8.36
7.00
5.47
5.36
4.50
4.47
4.22
4.19
3.52
3.29
3.26
3.01
2.10
1.07
1
2
4
5
6
8
9
10
11
12
13
14
15
16
17
18
19
20
22
23
24
25
26
27
28
29
30
31
32
34
36
37
38
39
40
41
42
43
44
45
48
97.92
95.83
91.67
89.58
87.50
83.33
81.25
79.17
77.08
75.00
72.92
70.83
68.75
66.67
64.58
62.50
60.42
58.33
54.17
52.08
50.00
47.92
45.83
43.75
41.67
39.58
37.50
35.42
33.33
29.17
25.00
22.92
20.83
18.75
16.67
14.58
12.50
10.42
8.33
6.25
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
Portugal
South Korea
Russia
Belgium
Norway
Switzerland
Netherlands
New Zealand
USA
Japan
Sweden
Luxembourg
Finland
Italy
Greece
Czech Republic
Argentina
Denmark
Austria
France
Germany
Canada
Australia
the United Kingdom
Spain
Thailand
Hungary
South Africa
Singapore
Poland
Israel
Ireland
Malaysia
Hong Kong
China
India
Indonesia
Peru
the Middle East

Latin America
Asia
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Oceana
North America
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
North America
Oceana
Europe
Europe
Asia
Europe
Africa
Asia
Europe
the Middle East
Europe
Asia
Asia
Asia
Asia
Asia
Latin America
_________________________________________________________________________________________________________
134
Long Term Debt

Countries in Europe
Value ($K/employee)
Rank
Percentile
124.82
114.55
111.33
107.39
51.38
49.18
41.05
39.18
39.09
38.37
38.28
32.88
31.75
29.79
28.45
27.80
27.66
27.15
25.89
25.76
25.46
21.67
21.50
21.03
19.49
19.23
18.72
17.77
17.76
16.90
16.06
15.90
15.56
15.51
15.51
14.71
9.59
8.36
7.85
5.47
4.92
4.68
4.60
4.47
4.36
4.19
4.02
3.87
3.86
3.15
0.94
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Portugal
Cyprus
Estonia
Belarus
Slovakia
Russia
Lithuania
Belgium
Norway
Switzerland
Andorra
Liechtenstein
Netherlands
Iceland
Sweden
Luxembourg
Finland
Vatican City
Italy
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Denmark
Austria
San Marino
France
Guernsey
Jersey
Germany
the United Kingdom
Spain
Slovenia
Hungary
Ukraine
Gibraltar
Georgia
Poland
Monaco
Ireland
Moldova
Kazakhstan
Bulgaria
Faroe Islands
Albania
_________________________________________________________________________________________________________

135
Total Liabilities
Countries
Value ($K/employee)
Rank
Percentile
645.86
644.10
320.58
219.98
198.23
181.11
180.80
159.41
123.30
120.24
104.91
102.02
100.53
100.09
99.65
98.31
97.45
93.39
90.99
87.00
86.46
86.18
83.27
72.79
68.71
64.07
60.67
53.22
52.78
49.13
47.95
44.43
41.53
41.27
39.67
37.74
37.64
36.21
31.56
25.72
24.71
20.21
19.36
11.90
4.74
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
49
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
16.98
15.09
13.21
7.55
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Italy
Portugal
Japan
Germany
Norway
Greece
France
Denmark
Austria
Switzerland
Belgium
Netherlands
Czech Republic
Sweden
Argentina
USA
Luxembourg
Finland
Spain
China
the United Kingdom
South Africa
Israel
Ireland
Canada
New Zealand
Singapore
Hong Kong
Pakistan
Brazil
Chile
Australia
Malaysia
Peru
India
Hungary
Poland
Thailand
Indonesia
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
North America
Europe
Europe
Europe
Asia
Europe
Africa
the Middle East
Europe
North America
Oceana
Asia
Asia
the Middle East
Latin America
Latin America
Oceana
Asia
Latin America
Asia
Europe
Europe
Asia
Asia
Asia
_________________________________________________________________________________________________________
136
Total Liabilities
Countries in Europe
Value ($K/employee)
Rank
Percentile
613.66
563.15
547.31
527.95
212.07
202.40
201.94
198.23
197.77
182.57
181.11
180.80
173.07
123.30
120.24
104.91
102.02
100.53
100.09
99.65
99.14
98.31
97.45
97.23
96.66
96.66
95.95
93.39
92.98
90.99
88.65
88.61
87.35
86.18
83.27
72.79
68.33
64.07
52.78
49.66
43.08
39.82
27.55
24.71
22.22
21.13
20.80
20.21
18.17
17.49
17.46
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Vatican City
Italy
Portugal
Cyprus
Germany
Norway
Greece
France
Denmark
Austria
Switzerland
San Marino
Belgium
Netherlands
Malta
Jersey
Guernsey
Isle of Man
Czech Republic
Liechtenstein
Sweden
Latvia
Croatia
Iceland
Luxembourg
Finland
Spain
Slovenia
the United Kingdom
Ireland
Andorra
Monaco
Faroe Islands
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

137
Common Equity
Countries
Value ($K/employee)
Rank
Percentile
594.71
593.09
283.20
188.26
169.65
158.60
138.81
128.58
127.52
124.76
95.17
94.48
88.58
86.69
86.29
85.33
84.11
82.29
79.71
78.35
77.17
71.16
69.51
68.57
67.27
66.78
63.47
60.03
59.93
52.54
51.16
49.32
46.42
42.59
36.53
34.91
33.55
31.09
29.82
27.55
25.21
24.39
21.42
20.38
11.54
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
38
39
40
41
42
44
45
46
48
50
52
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
28.30
26.42
24.53
22.64
20.75
16.98
15.09
13.21
9.43
5.66
1.89
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Japan
USA
Israel
Ireland
Australia
Norway
Greece
Malaysia
Canada
Italy
Portugal
Czech Republic
Switzerland
China
Argentina
France
Luxembourg
Germany
Singapore
Finland
Hong Kong
Denmark
Netherlands
Peru
Sweden
Belgium
the United Kingdom
Austria
South Africa
Pakistan
New Zealand
Spain
Indonesia
Hungary
India
Thailand
Poland
Brazil
Chile
Philippines
the Middle East

Latin America
Asia
Asia
Europe
Asia
North America
the Middle East
Europe
Oceana
Europe
Europe
Asia
North America
Europe
Europe
Europe
Europe
Asia
Latin America
Europe
Europe
Europe
Asia
Europe
Asia
Europe
Europe
Latin America
Europe
Europe
Europe
Europe
Africa
the Middle East
Oceana
Europe
Asia
Europe
Asia
Asia
Europe
Latin America
Latin America
Asia
_________________________________________________________________________________________________________
138
Common Equity
Countries in Europe
Value ($K/employee)
Rank
Percentile
565.06
518.55
503.97
486.14
181.49
173.22
172.82
169.65
169.25
140.23
127.52
95.17
94.48
87.57
86.99
86.41
86.29
85.33
84.11
82.29
81.68
79.83
79.80
77.17
76.78
71.16
69.51
67.27
66.50
64.03
63.47
60.03
52.54
52.31
51.16
49.32
46.42
45.98
44.83
44.83
36.16
33.55
31.50
29.82
26.81
25.49
25.10
24.39
21.92
21.10
21.06
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Iceland
Ireland
Norway
Greece
Malta
Vatican City
Isle of Man
Italy
Portugal
Czech Republic
Switzerland
Cyprus
Latvia
Croatia
France
Liechtenstein
Luxembourg
Germany
Finland
Monaco
Faroe Islands
Denmark
Netherlands
Sweden
Albania
Belgium
the United Kingdom
Austria
San Marino
Jersey
Guernsey
Andorra
Spain
Slovenia
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

139
Retained Earnings
Countries
Value ($K/employee)
Rank
Percentile
86.03
85.32
81.05
61.59
50.09
43.32
37.45
36.18
32.75
31.66
30.41
28.36
27.94
27.55
25.26
25.18
24.59
23.99
23.78
23.04
19.79
18.17
16.10
13.72
11.38
11.28
10.98
10.73
10.18
9.12
8.59
6.57
6.18
4.67
0.61
-1.93
-2.07
-2.33
-30.51
-30.60
1
2
3
4
5
6
7
8
9
10
11
12
13
14
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
34
36
39
41
43
44
45
47
48
97.92
95.83
93.75
91.67
89.58
87.50
85.42
83.33
81.25
79.17
77.08
75.00
72.92
70.83
66.67
64.58
62.50
60.42
58.33
56.25
54.17
52.08
50.00
47.92
45.83
43.75
41.67
39.58
37.50
35.42
33.33
29.17
25.00
18.75
14.58
10.42
8.33
6.25
2.08
0.00
Region
_________________________________________________________________________________________________________
Israel
Ireland
Japan
USA
Switzerland
Luxembourg
Australia
Finland
Taiwan
South Africa
Norway
Netherlands
South Korea
Hong Kong
Malaysia
Russia
Austria
Canada
Singapore
the United Kingdom
Denmark
Germany
Italy
France
Spain
Brazil
New Zealand
Chile
Portugal
Sweden
Indonesia
China
Thailand
Philippines
Peru
Argentina
Czech Republic
Greece
Mexico
Turkey
the Middle East

Europe
Asia
North America
Europe
Europe
Oceana
Europe
Asia
Africa
Europe
Europe
Asia
Asia
Asia
Europe
Europe
North America
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Latin America
Oceana
Latin America
Europe
Europe
Asia
Asia
Asia
Asia
Latin America
Latin America
Europe
Europe
Latin America
the Middle East
_________________________________________________________________________________________________________
140
Retained Earnings
Countries in Europe
Value ($K/employee)
Rank
Percentile
85.32
62.22
50.09
46.74
43.32
36.18
30.41
28.36
26.93
26.42
25.71
25.65
25.18
25.12
24.59
24.36
23.75
23.75
23.06
23.04
19.79
18.17
16.23
16.10
13.72
11.38
11.37
10.68
10.18
9.75
9.12
0.54
-1.97
-1.97
-2.07
-2.13
-2.16
-2.33
-25.01
-25.93
-26.68
-29.07
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
97.62
95.24
92.86
90.48
88.10
85.71
83.33
80.95
78.57
76.19
73.81
71.43
69.05
66.67
64.29
61.90
59.52
57.14
54.76
52.38
50.00
47.62
45.24
42.86
40.48
38.10
35.71
33.33
30.95
28.57
26.19
23.81
21.43
19.05
16.67
14.29
11.90
9.52
7.14
4.76
2.38
0.00
_________________________________________________________________________________________________________
Ireland
Iceland
Switzerland
Liechtenstein
Luxembourg
Finland
Norway
Netherlands
Estonia
Faroe Islands
Belarus
Slovakia
Russia
Lithuania
Austria
San Marino
Guernsey
Jersey
Monaco
the United Kingdom
Denmark
Germany
Vatican City
Italy
France
Spain
Andorra
Slovenia
Portugal
Cyprus
Sweden
Albania
Croatia
Latvia
Czech Republic
Isle of Man
Malta
Greece
Serbia & Montenegro
Macedonia
Romania
_________________________________________________________________________________________________________
3.8
3.8.1
PRODUCTIVITY
RATIOS
IN
141
UNITED KINGDOM: INCOME-LABOR
Overview
In this chapter we consider the income-labor ratios for steam, gas and hydraulic turbines and turbine generator set
units in The United Kingdom benchmarked against global averages. For ratios where there are large deviations
between the average firm operating in The United Kingdom and the benchmarks, graphics are provided (sometimes
referred to as a gap analysis). Then the distribution of ratios is presented in the form of ranks and percentiles.
Certain key income-labor ratios are highlighted across countries in the comparison group.
In the case of income-labor ratios, this report maintains comparability over time and across countries by using a
We then report the larger income-labor ratio gaps for steam, gas and hydraulic turbines and turbine generator set
units that The United Kingdom has vis--vis the worldwide average. Again, a gap need not be a bad sign. Rather, it
is simply a substantial difference that might merit further attention or signal a firms relative incentive to invest
locally. All figures are projections, so due caution is required.
3.8.2
142
Income to Labor: Outlook
Labor-income Ratios ($k/employee)
United Kingdom
Europe World Avg.
_________________________________________________________________________________________________________

Gross Income
Operating Income
Pretax Income
Income Taxes
Minority Interest
Equity in Earnings
139.62
97.70
4.20
37.73
33.19
128.49
1.91
9.52
0.31
0.88
1.21
-0.09
0.79
9.79
1.85
0.00
8.98
2.90
1.77
0.85
0.08
0.03
0.04
0.05
6.12
0.13
6.25
0.12
5.99
198.08
151.12
8.63
39.60
27.93
203.23
4.60
13.28
1.58
1.23
11.66
0.07
1.20
23.43
16.42
0.00
7.04
3.00
2.98
0.50
-0.10
0.00
0.38
0.01
4.00
0.02
4.02
0.01
3.99
128.08
93.24
5.06
25.62
15.38
106.07
1.37
9.69
0.26
0.64
5.54
-0.20
1.13
15.79
9.49
0.02
6.36
1.98
1.74
0.12
-0.10
-0.01
0.74
0.23
3.98
0.16
4.14
0.01
3.98
_________________________________________________________________________________________________________
3.8.3
143
Income to Labor: Gaps
labor-income gaps between firms operating in United Kingdom and the world average. A gap cannot necessarily be
Gap: Net Sales or Revenues ($k/employee)

198.08
200
150
139.62
128.08
100
50
11.54
0
United Kingdom
Europe
World Average
Gap
Gap: Cost of Goods Sold (Excluding Depreciation) ($k/employee)

200
151.12
150
97.7
100
93.24
50
4.46
0
United Kingdom
Europe
World Average
Gap
Gap: Gross Income ($k/employee)

40
37.73
39.6
30
25.62
20
12.11
10
0
United Kingdom
Europe
World Average
Gap
144
Gap: Selling, General & Administrative Expenses ($k/employee)

40
33.19
27.93
30
15.38
20
17.81
10
0
United Kingdom
Europe
World Average
Gap
Gap: Other Operating Expenses ($k/employee)

250
203.23
200
150
128.49
106.07
100
22.42
50
0
United Kingdom
Europe
World Average
Gap
Gap: Non-Operating Interest Income ($k/employee)

15
11.66
10
5.54
5
1.21
0
-4.33
-5
United Kingdom
Europe
World Average
Gap
Gap: Earnings Before Interest and Taxes (EBIT) ($k/employee)

25
20
15
10
5
0
-5
-10
23.43
15.79
9.79
-6
United Kingdom
Europe
World Average
Gap
145
Gap: Interest Expense on Debt ($k/employee)

20
16.42
15
9.49
10
5
1.85
0
-5
-7.64
-10
United Kingdom
Europe
World Average
Gap
Gap: Pretax Income ($k/employee)

10
8.98
7.04
6.36
6
4
2.62
2
0
United Kingdom
Europe
World Average
Gap
Gap: Net Income Before Extra Items/Prefer Dividends ($k/employee)

8
6
6.12
4
3.98
2.14
2
0
United Kingdom
Europe
World Average
Gap
Gap: Net Income Before Preferred Dividends ($k/employee)

8
6.25
6
4.02
4.14
2.11
2
0
United Kingdom
Europe
World Average
Gap
3.8.4
146
We now consider the distribution of income-labor ratios using ranks and percentiles across . What percent of
countries have a value lower or higher than United Kingdom (what is the ratio's rank or percentile)? The table below
answers this question with respect to income-labor ratios. The ranks and percentiles indicate, from highest to lowest,
where a value falls within the distribution of all countries considered in the global benchmark (the number of
countries in the benchmark per line item may vary, as indicated in the Rank). Again, a high or low figure does not
necessarily indicate good or bad performance or productivity. After the summary table below, a few key incomelabor ratios are highlighted in additional tables.
Income Structure ($k/employee)
United Kingdom
Rank of Total
Percentile
139.62
97.70
4.20
37.73
33.19
128.49
1.91
9.52
0.31
0.88
1.21
-0.09
0.79
9.79
1.85
0.00
8.98
2.90
1.77
0.85
0.08
0.03
0.04
0.05
6.12
0.13
6.25
0.12
5.99
33 of 53
34 of 52
36 of 53
22 of 52
15 of 46
29 of 46
17 of 40
25 of 53
17 of 31
20 of 29
21 of 41
26 of 27
26 of 53
28 of 53
32 of 53
4 of 5
24 of 53
22 of 47
19 of 35
8 of 21
10 of 30
6 of 18
29 of 40
10 of 22
25 of 53
5 of 14
24 of 53
1 of 7
25 of 53
37.74
34.62
32.08
57.69
67.39
36.96
57.50
52.83
45.16
31.03
48.78
3.70
50.94
47.17
39.62
20.00
54.72
53.19
45.71
61.90
66.67
66.67
27.50
54.55
52.83
64.29
54.72
85.71
52.83
_________________________________________________________________________________________________________

Gross Income
Operating Income
Pretax Income
Income Taxes
Minority Interest
Equity in Earnings
_________________________________________________________________________________________________________
147

Countries
Value ($K/employee)
Rank
Percentile
853.22
388.78
306.09
298.54
297.72
275.82
226.16
205.13
195.15
192.75
183.90
181.64
173.87
166.87
154.77
148.01
147.81
144.11
142.21
138.02
130.19
125.85
122.99
121.96
117.95
113.63
108.57
106.86
101.13
100.45
99.62
97.70
90.30
90.09
85.39
58.03
47.81
45.74
45.49
44.83
39.22
37.34
33.69
32.08
1
2
3
4
5
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
39
40
41
42
43
45
46
47
49
98.08
96.15
94.23
92.31
90.38
84.62
82.69
80.77
78.85
76.92
75.00
73.08
71.15
69.23
67.31
65.38
63.46
61.54
59.62
57.69
55.77
53.85
51.92
50.00
48.08
46.15
44.23
42.31
40.38
38.46
36.54
34.62
32.69
30.77
28.85
25.00
23.08
21.15
19.23
17.31
13.46
11.54
9.62
5.77
Region
_________________________________________________________________________________________________________
Taiwan
Portugal
South Korea
Turkey
Mexico
Russia
South Africa
Belgium
Japan
Norway
Australia
Italy
France
Denmark
Singapore
Germany
Sweden
Finland
Switzerland
USA
Austria
Peru
Luxembourg
Greece
Netherlands
New Zealand
Czech Republic
Spain
Argentina
Israel
Ireland
the United Kingdom
Canada
Hong Kong
China
Malaysia
Brazil
India
Chile
Indonesia
Hungary
Thailand
Philippines
Poland
Asia
Europe
Asia
the Middle East
Latin America
Europe
Africa
Europe
Asia
Europe
Oceana
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
North America
Europe
Latin America
Europe
Europe
Europe
Oceana
Europe
Europe
Latin America
the Middle East
Europe
Europe
North America
Asia
Asia
Asia
Latin America
Asia
Latin America
Asia
Europe
Asia
Asia
Europe
_________________________________________________________________________________________________________
148

Countries in Europe
Value ($K/employee)
Rank
Percentile
388.78
372.15
295.08
283.65
281.63
280.98
275.82
275.18
260.30
252.98
244.04
205.13
192.75
183.11
181.64
173.87
166.87
150.08
148.01
147.81
144.11
142.21
139.43
132.71
130.19
128.96
125.73
125.73
122.99
121.96
117.95
117.67
113.03
111.55
109.86
108.57
106.86
103.05
103.01
100.32
99.62
97.70
86.39
39.22
35.27
33.53
33.02
32.08
28.84
27.75
27.70
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Portugal
Cyprus
Estonia
Romania
Belarus
Slovakia
Russia
Lithuania
Macedonia
Serbia & Montenegro
Belgium
Norway
Vatican City
Italy
France
Denmark
Monaco
Germany
Sweden
Finland
Switzerland
Iceland
Liechtenstein
Austria
San Marino
Guernsey
Jersey
Luxembourg
Greece
Netherlands
Andorra
Malta
Isle of Man
Albania
Czech Republic
Spain
Latvia
Croatia
Slovenia
Ireland
the United Kingdom
Faroe Islands
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________

149

Countries
Value ($K/employee)
Rank
Percentile
85.31
85.08
80.20
60.93
55.92
50.19
46.12
43.04
42.68
37.87
35.50
34.27
33.88
33.19
32.31
30.88
30.70
26.55
26.43
26.40
26.26
20.61
20.42
19.08
17.66
17.22
16.99
15.82
15.22
12.28
10.88
9.72
5.47
5.21
5.17
4.25
4.23
3.31
0.34
1
2
3
5
6
7
8
9
10
11
12
13
14
15
16
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
41
45
97.83
95.65
93.48
89.13
86.96
84.78
82.61
80.43
78.26
76.09
73.91
71.74
69.57
67.39
65.22
60.87
58.70
56.52
54.35
52.17
50.00
47.83
45.65
43.48
41.30
39.13
36.96
34.78
32.61
30.43
28.26
26.09
23.91
21.74
19.57
17.39
15.22
10.87
2.17
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
Netherlands
USA
Japan
Italy
Israel
Ireland
Norway
Sweden
South Korea
Finland
the United Kingdom
Germany
Russia
Switzerland
Luxembourg
South Africa
France
Australia
Denmark
Canada
Greece
Austria
Hong Kong
Czech Republic
Argentina
China
Peru
Malaysia
Singapore
Brazil
Chile
Hungary
Thailand
Poland
Indonesia
Philippines
the Middle East

Latin America
Asia
Europe
North America
Asia
Europe
the Middle East
Europe
Europe
Europe
Asia
Europe
Europe
Europe
Europe
Europe
Europe
Africa
Europe
Oceana
Europe
North America
Europe
Europe
Asia
Europe
Latin America
Asia
Latin America
Asia
Asia
Latin America
Latin America
Europe
Asia
Europe
Asia
Asia
_________________________________________________________________________________________________________
150

Countries in Europe
Value ($K/employee)
Rank
Percentile
81.05
74.38
72.29
69.73
60.93
56.49
46.50
46.12
42.68
37.87
35.50
33.88
33.19
33.03
32.31
31.53
31.46
30.88
30.81
30.70
28.65
26.55
26.40
20.61
19.08
17.68
17.66
17.49
17.45
17.05
17.05
16.99
16.51
16.12
16.12
10.72
9.42
5.17
4.65
4.42
4.35
4.23
3.80
3.66
3.65
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
97.78
95.56
93.33
91.11
88.89
86.67
84.44
82.22
80.00
77.78
75.56
73.33
71.11
68.89
66.67
64.44
62.22
60.00
57.78
55.56
53.33
51.11
48.89
46.67
44.44
42.22
40.00
37.78
35.56
33.33
31.11
28.89
26.67
24.44
22.22
20.00
17.78
15.56
13.33
11.11
8.89
6.67
4.44
2.22
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Netherlands
Iceland
Vatican City
Italy
Ireland
Norway
Sweden
Finland
the United Kingdom
Estonia
Germany
Belarus
Slovakia
Russia
Lithuania
Switzerland
Liechtenstein
Luxembourg
France
Denmark
Greece
Malta
Austria
San Marino
Isle of Man
Guernsey
Jersey
Czech Republic
Faroe Islands
Latvia
Croatia
Albania
Monaco
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
_________________________________________________________________________________________________________
151

Countries
Value ($K/employee)
Rank
Percentile
35.83
17.39
17.04
14.94
10.25
8.95
8.86
8.31
7.98
7.94
6.86
6.11
3.80
3.77
2.50
2.21
1.91
1.77
1.64
0.82
0.73
0.66
0.42
0.37
0.36
0.35
0.29
0.16
0.12
0.12
0.11
0.11
0.10
0.09
-0.02
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
23
24
25
26
27
29
31
32
33
34
35
36
37
40
97.50
95.00
92.50
90.00
87.50
85.00
82.50
80.00
77.50
75.00
72.50
70.00
67.50
65.00
62.50
60.00
57.50
55.00
52.50
50.00
47.50
42.50
40.00
37.50
35.00
32.50
27.50
22.50
20.00
17.50
15.00
12.50
10.00
7.50
0.00
Region
_________________________________________________________________________________________________________
Australia
Germany
Finland
Austria
Switzerland
Norway
Luxembourg
Netherlands
France
Italy
Taiwan
Belgium
Israel
Ireland
Malaysia
India
the United Kingdom
Sweden
Singapore
Hong Kong
South Korea
Russia
China
USA
Spain
Indonesia
Japan
Denmark
Brazil
Chile
Greece
Canada
Czech Republic
Argentina
Thailand
Oceana
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Europe
Asia
Europe
the Middle East
Europe
Asia
Asia
Europe
Europe
Asia
Asia
Asia
Europe
Asia
North America
Europe
Asia
Asia
Europe
Latin America
Latin America
Europe
North America
Europe
Latin America
Asia
_________________________________________________________________________________________________________
152

Countries in Europe
Value ($K/employee)
Rank
Percentile
17.39
17.04
14.94
14.80
14.43
14.43
10.25
9.56
8.95
8.86
8.31
8.01
7.98
7.94
6.11
3.77
1.91
1.77
1.59
0.78
0.71
0.68
0.67
0.66
0.66
0.38
0.36
0.34
0.16
0.11
0.11
0.10
0.10
0.10
0.10
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
97.14
94.29
91.43
88.57
85.71
82.86
80.00
77.14
74.29
71.43
68.57
65.71
62.86
60.00
57.14
54.29
51.43
48.57
45.71
42.86
40.00
37.14
34.29
31.43
28.57
25.71
22.86
20.00
17.14
14.29
11.43
8.57
5.71
2.86
0.00
_________________________________________________________________________________________________________
Germany
Finland
Austria
San Marino
Jersey
Guernsey
Switzerland
Liechtenstein
Norway
Luxembourg
Netherlands
Vatican City
France
Italy
Belgium
Ireland
the United Kingdom
Sweden
Monaco
Faroe Islands
Estonia
Belarus
Slovakia
Russia
Lithuania
Iceland
Spain
Slovenia
Denmark
Greece
Malta
Isle of Man
Czech Republic
Latvia
Croatia
_________________________________________________________________________________________________________
153
Operating Income
Countries
Value ($K/employee)
Rank
Percentile
52.50
52.36
28.13
25.37
25.35
22.09
18.71
17.95
17.23
16.36
15.88
14.98
13.40
12.72
11.93
11.74
11.12
11.08
10.83
10.17
10.16
9.79
9.52
8.80
8.67
8.61
8.13
7.79
7.71
7.41
7.34
6.99
6.76
6.41
6.24
5.37
3.63
2.69
1.05
0.86
0.56
0.54
-2.21
-3.72
-3.75
1
2
4
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
40
42
46
47
48
49
51
52
53
98.11
96.23
92.45
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
20.75
13.21
11.32
9.43
7.55
3.77
1.89
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
South Korea
Taiwan
Russia
Netherlands
South Africa
USA
Spain
Portugal
Norway
Italy
Greece
France
Czech Republic
Pakistan
Argentina
Belgium
Canada
Japan
Singapore
New Zealand
the United Kingdom
Hong Kong
China
Finland
Sweden
Malaysia
Brazil
Switzerland
Chile
Germany
Austria
Luxembourg
Denmark
India
Indonesia
Thailand
Hungary
Poland
Philippines
Australia
Peru
Ireland
Israel
the Middle East

Latin America
Asia
Asia
Europe
Europe
Africa
North America
Europe
Europe
Europe
Europe
Europe
Europe
Europe
the Middle East
Latin America
Europe
North America
Asia
Asia
Oceana
Europe
Asia
Asia
Europe
Europe
Asia
Latin America
Europe
Latin America
Europe
Europe
Europe
Europe
Asia
Asia
Asia
Europe
Europe
Asia
Oceana
Latin America
Europe
the Middle East
_________________________________________________________________________________________________________
154
Operating Income
Countries in Europe
Value ($K/employee)
Rank
Percentile
49.88
45.78
44.49
42.92
27.12
25.88
25.82
25.35
25.29
22.09
18.13
17.23
16.36
16.18
15.88
15.66
15.10
14.98
13.40
12.72
12.42
12.26
11.93
11.33
11.32
11.08
10.14
9.86
9.52
8.61
8.44
8.13
7.41
6.99
6.91
6.76
6.69
6.53
6.53
6.41
6.24
1.05
0.95
0.90
0.89
0.86
0.77
0.75
0.74
-1.93
-3.72
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Netherlands
Iceland
Spain
Portugal
Slovenia
Norway
Cyprus
Vatican City
Italy
Greece
France
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Belgium
Andorra
Monaco
the United Kingdom
Finland
Faroe Islands
Sweden
Switzerland
Germany
Liechtenstein
Austria
San Marino
Jersey
Guernsey
Luxembourg
Denmark
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Albania
Ireland
_________________________________________________________________________________________________________

155

Countries
Value ($K/employee)
Rank
Percentile
169.22
168.76
44.85
29.31
26.41
22.51
21.53
20.45
20.42
20.00
19.28
18.96
18.18
17.73
17.18
16.94
16.87
15.00
13.89
12.62
11.63
11.41
11.29
10.92
10.22
9.79
9.78
9.76
9.74
9.68
9.46
9.18
8.30
8.18
7.52
6.98
6.55
3.48
3.28
2.97
1.49
1.22
0.76
-2.68
-2.70
1
2
4
5
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
36
37
38
39
40
41
42
43
48
49
50
52
53
98.11
96.23
92.45
90.57
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
45.28
43.40
41.51
39.62
37.74
35.85
32.08
30.19
28.30
26.42
24.53
22.64
20.75
18.87
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Turkey
Mexico
Taiwan
South Korea
Russia
Netherlands
Portugal
Norway
Greece
USA
Italy
South Africa
Czech Republic
Brazil
Spain
Argentina
Chile
France
Germany
Finland
New Zealand
Pakistan
Canada
Australia
Singapore
the United Kingdom
Austria
Sweden
Hong Kong
China
Switzerland
Malaysia
Belgium
Luxembourg
Japan
India
Denmark
Thailand
Peru
Indonesia
Hungary
Poland
Philippines
Ireland
Israel
the Middle East

Latin America
Asia
Asia
Europe
Europe
Europe
Europe
Europe
North America
Europe
Africa
Europe
Latin America
Europe
Latin America
Latin America
Europe
Europe
Europe
Oceana
the Middle East
North America
Oceana
Asia
Europe
Europe
Europe
Asia
Asia
Europe
Asia
Europe
Europe
Asia
Asia
Europe
Asia
Latin America
Asia
Europe
Europe
Asia
Europe
the Middle East
_________________________________________________________________________________________________________
156

Countries in Europe
Value ($K/employee)
Rank
Percentile
160.78
147.55
143.40
138.33
28.26
26.97
26.91
26.41
26.35
22.51
21.53
20.61
20.45
20.42
20.20
19.44
19.28
18.93
18.68
18.18
17.26
17.25
17.18
16.13
15.00
13.89
12.62
12.04
9.91
9.79
9.78
9.76
9.68
9.46
9.44
9.44
9.34
8.82
8.30
8.18
6.55
2.86
1.49
1.34
1.27
1.25
1.22
1.10
1.05
1.05
-2.68
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Romania
Macedonia
Serbia & Montenegro
Estonia
Belarus
Slovakia
Russia
Lithuania
Netherlands
Portugal
Cyprus
Norway
Greece
Iceland
Vatican City
Italy
Malta
Isle of Man
Czech Republic
Latvia
Croatia
Spain
Slovenia
France
Germany
Finland
Andorra
Monaco
the United Kingdom
Austria
Sweden
San Marino
Switzerland
Jersey
Guernsey
Faroe Islands
Liechtenstein
Belgium
Luxembourg
Denmark
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
_________________________________________________________________________________________________________

157
Pretax Income
Countries
Value ($K/employee)
Rank
Percentile
34.08
20.39
18.65
18.38
18.09
17.50
16.49
16.47
16.31
14.94
14.68
14.61
13.67
12.10
11.65
10.11
10.09
9.70
9.60
9.54
9.32
9.29
8.98
8.57
8.40
8.23
8.23
7.64
7.12
6.72
6.35
6.26
6.16
6.04
3.35
3.00
2.39
1.24
0.68
0.64
0.52
-3.20
-3.23
-30.51
-30.60
1
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
30
31
32
33
34
35
36
37
38
40
44
45
46
48
49
50
52
53
98.11
96.23
92.45
90.57
88.68
86.79
84.91
83.02
81.13
79.25
77.36
75.47
73.58
71.70
69.81
67.92
66.04
64.15
62.26
60.38
58.49
56.60
54.72
52.83
50.94
49.06
47.17
43.40
41.51
39.62
37.74
35.85
33.96
32.08
30.19
28.30
24.53
16.98
15.09
13.21
9.43
7.55
5.66
1.89
0.00
Region
_________________________________________________________________________________________________________
Taiwan
South Korea
Netherlands
Russia
USA
Norway
Greece
South Africa
Spain
Portugal
Czech Republic
Italy
Argentina
France
Germany
Canada
Brazil
Finland
Chile
Singapore
Pakistan
New Zealand
the United Kingdom
Australia
Hong Kong
Malaysia
China
Austria
Switzerland
Sweden
Belgium
India
Luxembourg
Japan
Denmark
Thailand
Indonesia
Peru
Philippines
Hungary
Poland
Ireland
Israel
Mexico
Turkey
Asia
Asia
Europe
Europe
North America
Europe
Europe
Africa
Europe
Europe
Europe
Europe
Latin America
Europe
Europe
North America
Latin America
Europe
Latin America
Asia
the Middle East
Oceana
Europe
Oceana
Asia
Asia
Asia
Europe
Europe
Europe
Europe
Asia
Europe
Asia
Europe
Asia
Asia
Latin America
Asia
Europe
Europe
Europe
the Middle East
Latin America
the Middle East
_________________________________________________________________________________________________________
158
Pretax Income
Countries in Europe
Value ($K/employee)
Rank
Percentile
19.66
18.76
18.72
18.65
18.38
18.33
18.28
17.50
16.49
16.31
15.31
15.28
15.08
14.94
14.73
14.68
14.61
14.30
13.93
13.93
12.10
11.65
9.70
9.62
9.25
8.98
8.06
7.64
7.57
7.38
7.38
7.12
6.72
6.64
6.35
6.16
3.35
1.08
0.64
0.58
0.55
0.54
0.52
0.47
0.45
0.45
-3.20
-25.01
-25.93
-26.68
-29.07
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
98.04
96.08
94.12
92.16
90.20
88.24
86.27
84.31
82.35
80.39
78.43
76.47
74.51
72.55
70.59
68.63
66.67
64.71
62.75
60.78
58.82
56.86
54.90
52.94
50.98
49.02
47.06
45.10
43.14
41.18
39.22
37.25
35.29
33.33
31.37
29.41
27.45
25.49
23.53
21.57
19.61
17.65
15.69
13.73
11.76
9.80
7.84
5.88
3.92
1.96
0.00
_________________________________________________________________________________________________________
Estonia
Belarus
Slovakia
Netherlands
Russia
Lithuania
Iceland
Norway
Greece
Spain
Slovenia
Malta
Isle of Man
Portugal
Vatican City
Czech Republic
Italy
Cyprus
Latvia
Croatia
France
Germany
Finland
Andorra
Monaco
the United Kingdom
Faroe Islands
Austria
San Marino
Guernsey
Jersey
Switzerland
Sweden
Liechtenstein
Belgium
Luxembourg
Denmark
Albania
Hungary
Ukraine
Gibraltar
Georgia
Poland
Moldova
Kazakhstan
Bulgaria
Ireland
Serbia & Montenegro
Macedonia
Romania
_________________________________________________________________________________________________________

159
Income Taxes
Countries
Value ($K/employee)
Rank
Percentile
6.83
6.74
6.08
6.07
5.66
5.66
5.64
5.58
5.27
5.19
5.12
5.09
4.75
4.48
4.17
3.36
3.31
3.28
3.21
2.90
2.69
2.67
2.54
2.52
2.41
2.23
2.12
1.90
1.83
1.70
1.61
1.59
1.29
0.95
0.71
0.59
0.58
0.22
0.01
0.00
1
2
3
4
5
6
7
8
9
10
12
13
14
15
16
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
39
40
42
45
46
97.87
95.74
93.62
91.49
89.36
87.23
85.11
82.98
80.85
78.72
74.47
72.34
70.21
68.09
65.96
61.70
59.57
57.45
55.32
53.19
51.06
48.94
46.81
44.68
42.55
40.43
38.30
36.17
34.04
31.91
29.79
27.66
25.53
23.40
21.28
17.02
14.89
10.64
4.26
2.13
Region
_________________________________________________________________________________________________________
Greece
Australia
Czech Republic
Norway
Argentina
Italy
South Korea
South Africa
Netherlands
Spain
Belgium
Russia
Portugal
USA
France
Taiwan
Finland
Japan
Germany
the United Kingdom
Sweden
Brazil
Chile
Austria
Canada
Malaysia
Switzerland
India
Luxembourg
Denmark
China
New Zealand
Singapore
Hong Kong
Indonesia
Israel
Ireland
Thailand
Peru
Philippines
Europe
Oceana
Europe
Europe
Latin America
Europe
Asia
Africa
Europe
Europe
Europe
Europe
Europe
North America
Europe
Asia
Europe
Asia
Europe
Europe
Europe
Latin America
Latin America
Europe
North America
Asia
Europe
Asia
Europe
Europe
Asia
Oceana
Asia
Asia
Asia
the Middle East
Europe
Asia
Latin America
Asia
_________________________________________________________________________________________________________
160
Income Taxes
Countries in Europe
Value ($K/employee)
Rank
Percentile
6.83
6.33
6.24
6.08
6.07
5.77
5.76
5.70
5.66
5.44
5.27
5.19
5.19
5.18
5.12
5.09
5.07
4.87
4.75
4.55
4.53
4.17
3.31
3.21
2.90
2.69
2.52
2.49
2.43
2.43
2.12
1.98
1.83
1.70
1.65
1.25
0.92
0.58
0.01
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
97.44
94.87
92.31
89.74
87.18
84.62
82.05
79.49
76.92
74.36
71.79
69.23
66.67
64.10
61.54
58.97
56.41
53.85
51.28
48.72
46.15
43.59
41.03
38.46
35.90
33.33
30.77
28.21
25.64
23.08
20.51
17.95
15.38
12.82
10.26
7.69
5.13
2.56
0.00
_________________________________________________________________________________________________________
Greece
Malta
Isle of Man
Czech Republic
Norway
Latvia
Croatia
Vatican City
Italy
Estonia
Netherlands
Belarus
Spain
Slovakia
Belgium
Russia
Lithuania
Slovenia
Portugal
Cyprus
Iceland
France
Finland
Germany
the United Kingdom
Sweden
Austria
San Marino
Guernsey
Jersey
Switzerland
Liechtenstein
Luxembourg
Denmark
Andorra
Monaco
Faroe Islands
Ireland
Albania
_________________________________________________________________________________________________________
161
4
4.1
MACRO-ACCESSIBILITY IN UNITED KINGDOM

EXECUTIVE SUMMARY
The United Kingdom (UK), the worlds fourth largest economy, is a trading nation with a generally open market and
a level playing field. The UK attracts U.S. exporters and investors as a place in which to do business because of the
common language, a similar legal framework and business practices, and relatively low rates of taxation and
inflation. Once here, it is easy for American firms to use the UK as a gateway to the rest of the EU. There are very
few sectors in which foreign ownership is limited, and there is no restriction on the repatriation of capital and profit,
although there are strict rules on transfer pricing. Within the EU, the British Government supports the rights of any
company registered in the UK, irrespective of the nationality of its ultimate parent.
The UK is very receptive to U.S. goods and services. With its $1.6 trillion GDP, the UK remains the United States
largest European market and fourth largest market worldwide, after Canada, Mexico and Japan. Major exports from
the U.S. to the UK include aircraft and aircraft parts, aircraft engines, IT equipment and parts, telecommunications
equipment, electronic components, medical equipment, pharmaceuticals, gold and other precious metals, paintings
and art, and laboratory equipment. The U.S. and the UK are also the largest foreign investors in each others
countries.
The UK governments economic policies generally seek to sustain job creation. Specific measures have included tax
reform; privatization of state-owned industries and utilities; deregulation of financial services, telecommunications
and transportation; and labor law reforms. The government is, however, concerned about overall UK productivity
which lags behind the U.S.; that said, the two most productive automotive plants in Europe are located there. The UK
has now signed up to the EU Social Chapter. As a result, the UK has adopted a number of new labor laws, including
the working time directive, although derogating from certain parts of this.
The UK government is committed to making the UK a hub for e-business, and recent surveys have confirmed
London as the e-capital of Europe. The UKs telecommunications services industry has been deregulated, and as a
result competition in internet service provision and voice telephony is intense. Internet penetration, both in the home
and in businesses, is higher than in most other EU countries, and mobile phone penetration is well above 50%. There
has been no rush to embrace third-generation (3G) mobile technology, offered by just one company, Hutchison
Telecom. Broadband, however, both wired and wireless, has had immediate acceptance, although the roll-out has
been slowed by BTs continued domination of the local loop.
4.2
ECONOMIC FUNDAMENTALS AND DYNAMICS
The UK is the fourth largest world economy. The emphasis on privatization and taxation that characterized the
economy of the 1970s and early 1980s has become more moderate in scope over the past 10 years.
4.2.1
Principal Growth Sectors
With regard to factors that provide opportunities for foreign businesses, public-sector procurement policies seek best
value and best practice regardless of the bidders national origin, and outsourcing of public services is encouraged at
central and local government levels. National legislation on the UKs infrastructure and the environment, health care
reform, and private-public partnerships are continuing to create business opportunities for foreign investors. U.S.
exporters, investors, and management companies participate in public and private sector ventures and partnerships
Macro-Accessibility
162
with virtual equality to British firms. These U.S. entities also have established a route via the UK to the European
single market.
Although the UKs telecommunications sector is among the most liberal in Europe, the rollout of high-speed Internet
services has not been as fast as it could have been. British Telecom is still the dominant phone company in the
country, and its control of the phone exchanges has allowed it to hinder competitors access to the last copper mile.
Fully installed cable and cellular networks show limited additional opportunities for U.S. equipment manufacturers.
Overall, there has been a 19.9% drop in U.S. agricultural exports - agricultural, forestry and seafood - to the UK
since 1998 (www.fas.usda.gov). The UK, however, continues to be a major market for U.S. agricultural products.
The UK Ministry of Defense (MoD) admits U.S. companies as potential suppliers in most procurement competitions,
whether as prime contractors, as joint venture partners, or as major sub-contractors and suppliers to the UK prime
contractors.
4.2.2
Government Intervention Risks
The UK has an essentially free and market-driven economy, with independent regulatory bodies providing additional
direction in those sectors where private individuals are the principal users of the product or service. Regulated
industries include the privatized utilities: telecommunications, electricity, water, and gas supply. Control of the
railway infrastructure has been assigned to the Strategic Rail Authority. The Financial Services Authority regulates
financial services, while the Office of Fair Trading regulates consumer credit. Further liberalization of the financial
services, energy, and telecommunications sectors is an economic goal of the Labour government.
4.2.3
Infrastructure
Private sector production, transportation, warehousing, communications, and distribution facilities in the UK are
adequate, although some of the physical assets employed show the need for repair and replacement. Much of the
responsibility for public sector infrastructure in the UK has been transferred to the private sector, and to independent
executive agencies that are accountable to government departments.
To supplement government investment, the Public-Private Partnership (PPP) initiative enables Private Finance
Initiative (PFI) schemes that create viable business entities from public assets at minimal cost to the government. PFI
schemes transfer ownership of public assets to the private sector, as well as transferring financial risk and reward i.e. the private company has no recourse to the government if the business fails.
4.3
4.3.1
POLITICAL RISKS
Political Relationship with the United States
The exceptionally close and productive Anglo-American special relationship is anchored by long-standing and
vibrant political and security contacts, common values, close trade and investment links, and a shared cultural
heritage. At the government level, the strength of the relationship ensures continued cooperation on a very broad
range of foreign policy and security issues. The UK is one of the strongest international supporters of the war against
terrorism, and UK troops participated side-by-side with U.S. troops in Operation Iraqi Freedom.
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Politics and the Business Environment
There are no major British political issues that affect the business climate as a whole in the UK. The status of the
peace process in Northern Ireland does impact business sentiment there, however. The Labour Government has said
that it favors joining the European Single Currency and will hold a national referendum on accepting the Euro as a
common currency, if certain economic conditions are met. Recently the Chancellor of the Exchequer, Gordon
Brown, announced that the UK was not ready for a referendum at this time, although he has since published HMGs
third National Changeover Plan, which details the timetable from any referendum through to withdrawing sterling
currency. The Conservatives, by contrast, generally oppose joining the Single Currency. Wide differences of opinion
on joining the Euro prevail within the parties and the public at large.
An important EU issue is the prospect of harmonizing direct taxation policies among member states, as in the recent
case of savings withholding tax. Labour and Conservatives alike oppose this, as both political parties are committed
to defending individual EU member states tax powers.
4.3.3
The Political System
The UK has a centralized parliamentary governmental system, though the Labour Government supported referenda
that led to the creation of a devolved Scottish Parliament and Welsh Assembly. The government has devolved
significant powers to the Scottish Parliament, including responsibility for agriculture, economic development,
education, health, law and order, local government, social work, and transport. Fewer powers have been devolved to
the Welsh Assembly.
The UK national government, consisting of 15 cabinet-level departments, and numerous smaller entities, is staffed by
career civil servants. The three to eight senior policy positions in each department (Secretary of State, Minister of
State, and junior ministers) are drawn from the ranks of the ruling party, generally from the House of Commons and
the House of Lords.
Parliaments are elected for a five-year maximum term, although the government of the day can call an election at any
time, or be forced to call one by losing a vote of confidence in the House of Commons.
The Labour Government has distanced itself from its socialist origins, and widened its popular appeal by moving
steadily toward the political center. It accepts the irreversible nature of industrial privatization and, while some
Members of Parliament are sponsored by labor unions, the Labour Party is less reliant than in the past on union
funding.
4.4
4.4.1
MARKETING STRATEGIES
Creating a Sales Office
Establishing a place of business or a branch office in the UK is a straightforward and inexpensive procedure,
involving the notification of the parent companys registration details and the physical location of the UK place of
business to the Department of Trade and Industrys Registrar of Companies. The local branch of a foreign company
can trade for up to one month before it is registered, using the permitted grace period.
A company may be registered by its UK-resident directors or secretary, although using a local accountant or law firm
for filing purposes may make the task even easier. Pre-registered companies can be purchased from company
formation agents, allowing new-to-market companies to start trading with limited liability immediately. A company
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incorporated with limited liability must file annual returns, and incurs a local profit-related tax liability. The branch
office has no separate corporate identity from its parent and no separate accountability for taxation purposes. In all
cases, expert assistance should be obtained to mitigate risk and to avoid potentially expensive mistakes.
4.4.2
Creating a Joint Venture
Joint ventures may be formed as limited liability companies or as equal or unequal partnerships. Consortia of
companies formed to bid or manage specific projects usually use a British-registered limited liability company as the
vehicle, to more easily rent or purchase local premises and assets, and to hire and manage a local workforce and
support staff. No ownership or control restrictions apply to joint ventures in the United Kingdom.
4.4.3
Agents and Distributors
National laws governing the relationships between agent and principal, and distributor and supplier are broadly
harmonized throughout the EU. EU Directives establish the rights and obligations of the parties to an agreement, the
agents entitlement to commission payments, and the conclusion and termination clauses of agency contracts. In the
case of EU agents and their non-EU principals, the law favors the agent to such an extent that most of those agency
arrangements have been terminated in favor of reseller and distributorship arrangements.
4.4.4
Hiring Local Counsel
The U.S. Commercial Service is ideally placed to advise on marketing strategies, and on methods of identifying
effective sales and marketing partners for products and services of any description that are exported from the United
States.
Although there are few instances that specifically require the use of a local lawyer, local contracts and agreements
should be vetted by a competent law firm conversant with UK and EU Law, as such contracts are generally different
from U.S. ones. U.S. contracts should not be used as they are mostly unenforceable in UK law. Many U.S. law firms
have either established their own UK offices or have links with local practices, and are often the most convenient and
practical sources of legal advice for American companies. The Commercial Service in London can provide lists of
local law firms, including those with U.S. links.
4.4.5
Checking Bona Fides
Banks, accounting firms, credit agencies and risk management companies provide a full range of reporting services
that U.S. companies can use as part of their due diligence before signing a local partner. Service providers include
the UK subsidiaries of the American-owned Dun & Bradstreet, Equifax, and Infocheck. The U.S. Commercial
Service has discontinued the preparation of International Company Profile (ICP) background checks in the UK, as
private-sector alternatives are available.
4.4.6
Distribution and Sales Channels
Dedicated sales and distribution channels have evolved for most imported products and services, ranging from
wholly-owned subsidiaries of foreign manufacturers to independent trading companies that buy and sell on their own
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account. Between these two extremes are independent resellers, sales agents, and stocking distributors that have
contractual relationships with their suppliers. The selection of an appropriate marketing organization depends largely
on the nature of the goods and services involved. One recent channel marketing development, responding to the
expanding requirements of international e-commerce, is the growth of local fulfillment and delivery/returns services.
4.4.7
Franchising and Direct Marketing
Franchising accounts for approximately one third of UK retail sales in fast food and beverage services, hotels, car
rental agencies, printing and copying, and auto services. North American-origin franchise systems operate in the UK,
with more than 4,200 franchised units employing 35,000 staff, generating a turnover of $1.5 billion. Although
franchising is a thriving sector, the biggest barrier to growth is a lack of suitable single unit franchisees.
The Office of Fair Trading (OFT) is the regulatory body that provides consumer protection in franchise operations.
The OFT seeks to ensure that the franchise promotes a genuine product or service, and is not a pyramid-type sales
scheme. Since the major UK banks recognize the value of successful franchise operations, they can evaluate the
business prospects and local credit needs of franchise schemes, and can often provide advice and investor leads to
U.S. franchise operators considering UK market entry. The market can be slow to adopt new ideas, and finding a
suitable master franchisee can be a long process.
Affordable transatlantic telecommunications and the use of electronic payment methods for international transactions
have made direct marketing from the United States more popular. Public confidence in the accuracy of remote
billing, data security, and delivery is increasing at a time when the Internet is an increasingly accepted marketing
tool. These factors combine to make direct marketing of many types of goods and services worth considering. U.S.
Web-based marketers should be aware of the EU Value Added Tax Directive that requires service providers to
collect Value Added Tax (VAT) on sales of services to consumers over the Internet.
The EU Distance Selling Directive (97/7/EC) applies to most direct marketing activities. The legislation requires that
consumers be given clear and comprehensive information about the vendor and the goods or services offered. The
directive also gives the consumer the right of withdrawal within seven days without penalty, and requires the vendor
to refund any monies due within thirty days of the cancellation of an order.
The Advertising Standards Authority (ASA) has established a code of practice for direct mail advertising and for list
and database management, and the Direct Marketing Association has done the same in respect of direct selling. The
industry code of practice for direct marketing can be obtained from the Direct Marketing Association, and the code
of practice for advertising can be obtained from the ASA.
4.4.8
Selling Strategies
EU law implemented by national legislation governs exclusivity in agency and supply agreements, purchasing
contracts, and contract terms. U.S. manufacturers and exporters are generally able to appoint exclusive
representatives and to determine the methods used to promote the sale of their products. Such exclusive territories are
usually national in size.
Sales practices that give regulatory concern are those that could give an unfair advantage to the supplier at the
expense of competitors or end users. Recent legislation exempts some vertical agreements between manufacturers
and their resellers, but requires the disclosure of certain types of inter-company commercial arrangements, and also
gives powers of investigation and enforcement to the regulatory authorities.
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166
Pricing and Licensing Issues
Import prices should be based on the landed cost, including value added tax (VAT), which is payable on entry into
the EU. The basic formula is cost, insurance, freight and duty, plus VAT at 17.5% levied on the aggregate value.
End-user pricing should include local storage, delivery, sales and support costs, with the local profit element. The
formerly practiced Resale Price Maintenance, where manufacturers set a mandatory retail price and prevented
retail discounting is now illegal. Traditional pricing methods have led to the acceptance of higher prices and profit
margins than is customary in the U.S., because the UK market for any product is generally smaller than that of the
U.S. The cost of sales in the UK is recovered from the smaller sales volume, and the local vendor generally bears the
expense of promotion and support.
4.4.10
Advertising and Trade Promotion
While trade promotion practices in the UK are similar to those of the U.S., printed materials prepared for use in the
U.S. market may need to be modified for use in the UK to account for local legal, cultural, and other differences. In
addition to advice that the Commercial Service offers, local advertising agencies and marketing consultants can
provide appropriate professional guidance. Also, the Advertising Standards Authority oversees the practices of the
advertising industry and enforces the provisions of the British Code of Advertising Practice (CAP). Advertisers
should become familiar with CAP recommendations.
The leading British daily newspapers are:
The Times (www.the-times.co.uk)
The Daily Telegraph (www.telegraph.co.uk)
The Guardian (www.guardian.co.uk)
The Independent (www.independent.co.uk)
The Financial Times (www.ft.com)
Daily Mail (www.dailymail.co.uk)
Daily Express (www.expressnewspapers.co.uk)
Sun (www.the-sun.co.uk)
Mirror (www.mirror.co.uk)
Sunday newspapers:
Sunday Times (www.sunday-times.co.uk)
Sunday Telegraph (www.telegraph.co.uk)
Observer (www.observer.co.uk)
The London Gazette, Edinburgh Gazette and Belfast Gazette (www.gazettes-online.co.uk) are the official journals
of the UK, but these are less widely used for formal notices than the Official Journal of the European Community
(OJEC).
Popular business journals:
The Economist (www.economist.com)
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Investors Chronicle (www.investorschronicle.co.uk)
In addition, global publications such as Business Week and Industry Week are widely read.
Supplying
There are independent after-sales, warranty and product servicing organizations in the UK. Most specialize in a
single business sector, but a few major firms operate nationwide, providing a comprehensive maintenance and
facilities management service. The leaders in this sector are Serco, Jarvis, AMEC and Planned Maintenance Ltd. The
smaller service companies that provide local coverage can be identified from business directories, the Internet, and
from listings held by local trade associations.
4.4.11
Government Procurement
Most UK government departments are subject to the EU Procurement Directive and the Remedies Directive, and to
the WTO Government Procurement Code which gives qualified foreign bidders from signatory countries equal
access to each other countrys public sector contracts. Urgency or national security considerations can be used to
justify procurements outside WTO rules. Intended procurements above the EU public procurement thresholds are
published in the Official Journal of the European Community Supplement (OJECS), and in specialized industryspecific publications. Smaller procurements do not need to be published. Information on specific tenders may be
found at www.ted.eur-op.eu.int.
The Ministry of Defence (MoD) publishes information on its future projects and procurements in a biweekly
Contracts Bulletin, which is available to U.S. subscribers. Nonetheless, most U.S. defense companies require more
lead-time than the bulletin provides, and need detailed guidance on the procedures and bid evaluation criteria used in
this sector. To remedy this, the Embassys Office of Defense Cooperation (ODC) has prepared a handbook of unique
insights and case studies in UK defense marketing for U.S. companies. The handbook is routinely updated to
incorporate changes in UK defense procurement policy, procedures and organization.
The handbook is a briefing tool that supplements the practical advice that can be obtained directly from the ODC in
London. This advice includes insight, guidance, status and advocacy in support of U.S. defense contractors
competing for sales and cooperative development programs for military equipment and services, including missiles
and defense systems, munitions, sensors, ships, planes and helicopters.
Larger defense contracts awarded to non-EU contractors require the negotiation of industrial participation (IP) i.e.,
offset arrangements. The IP arrangements are separate from the procurement contracts, but administered by the
MoDs Defence Export Services Organization (DESO).
4.5
IMPORT AND EXPORT REGULATION RISKS
4.5.1
Membership in Free Trade Arrangements
The UK participates in the free trade arrangements of the European Union (EU) and European Free Trade
Association (EFTA).
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Tariff and Non-Tariff Barriers
The UK has no significant trade or investment barriers, and no restrictions on the transfer of capital or repatriation of
profits. The very few barriers that exist are almost all attributable to UK implementation of EU Directives and
regulations, and do not reflect UK Government intentions.
Customs duty is assessed on the fair market value of imported goods at the time they are landed in the UK. The
commercial invoice value is usually accepted as the normal price, but if a preferential arrangement has been
established between the overseas supplier and the importer, or an unrealistic value has been declared, HM Customs
reserves the right to assess a fair market value for duty purposes. The duty is payable at the time the goods are
imported, but established importers can defer payment for up to 30 days. In addition to customs duties on imported
goods, an excise tax is levied on in-country sales of alcohol, tobacco, and road vehicles, and on sales of oil and
petroleum products.
The applicable import duty and excise tax rates can be obtained from U.S. Department of Commerce Export
Assistance Centers, and copies of the tariff can be purchased from HM Stationery Office
4.5.3
Prohibited Imports and USG-Imposed Export Controls
Prohibited imports include AM citizens band radios, switchblade knives, devices that project toxic, noxious or
harmful substances (e.g., tear gas), counterfeit coins and currency, certain types of pornography and hormone-treated
beef.
The UK participates in the Wassenaar Arrangement for the control of dual-use exports, the Australia Group (AG) for
the control of chemical and biological weapons, and the Nuclear Suppliers Group (NSG) for nuclear-related goods,
preventing the export of restricted goods and technology to countries of proliferation concern. The UK also supports
United Nations sanctions restricting exports to certain other destinations. Although sensitive to the extraterritorial
application of U.S. law in export controls, the UK authorities cooperate with the U.S. in preventing the re-export of
sensitive goods and technology of U.S.-origin to unauthorized destinations, when the enforcement action is based on
multilateral controls.
4.5.4
Import Taxes and License Requirements
A limited range of goods requires import licenses, which are issued by the UK Department of Trade and Industrys
Import Licensing Branch. These include firearms and explosives, nuclear materials, controlled drugs and certain
items of military equipment.
4.5.5
Customs Regulations and Contact Information
The documents required for shipments include the commercial invoice, bill of lading or airway bill, packing list,
insurance documents, and, when required, special certificates of origin, sanitation, ownership, etc.
A copy of the commercial invoice should accompany the shipment to avoid delays in customs clearance. No special
form of invoice is required, but all of the details needed to establish the true value of the goods should be given. At
least two additional copies of the invoice should be sent to the consignees to facilitate customs clearance. Consular
documents are not required for shipments to the UK.
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Temporary Goods Entry Requirements
Raw materials, temporarily imported for incorporation into products for export, may be admitted without payment of
duties and taxes. The importer must provide a bank or insurance company guarantee or indemnity for the applicable
duties and taxes. Goods intended for unaltered re-export may also be imported free of duty for a period of up to six
months by prior arrangement with HM Customs & Excise. Duty-free entry is also permitted by prior arrangement for
leased or loaned machinery, plant, and equipment, and goods imported solely for processing, repair, technical
examination and testing.
Professional and demonstration equipment may be temporarily imported into the UK free of duty and tax under the
Customs Convention on the Temporary Importation of Professional Equipment. For this, a carnet should be obtained
from the U.S. Council of the International Chamber of Commerce.
4.5.7
Labeling Issues
Origin, weight and dimension, chemical composition and appropriate hazard warnings are required for consumer
protection purposes on any product offered for retail sale. If the product cannot be labeled or marked, the data may
be included on any packaging or accompanying printed material or product literature. Although metric units of
weight and dimension are required, the continued use of labels with both metric and standard units is permitted
through a derogation from EU directives. This continued freedom is supported by importers, and also by British
exporters of products destined for the U.S. market. European and British clothing and shoe sizes are differently
marked, and special provision may have to be made for retail labeling of apparel.
The entity responsible for placing products conforming to EU standards on the market must also affix a CE-mark. To
support the CE-marking, a technical file must be maintained, with test data and methodology showing how the
standards conformity was checked. For standard products, a single file is generally sufficient, but for purpose-built
units, a technical file may need to be prepared for each unit imported. The file must be held available for inspection
for a ten-year period. Self-certification is permitted for most product categories, and only a limited range of goods
require third-party test and certification by a notified body.
4.5.8
Warranty and Non-Warranty Repairs
Duty-free entry is permitted for goods imported solely for processing, repair, technical examination and testing and
for the repair parts needed to restore them to their original condition. Upgrade kits and parts of a higher specification
do not qualify for duty-free entry.
4.5.9
Free Trade Zones and Warehouses
The Free Trade Zones of the UK are the cargo ports and freight transshipment points of Birmingham, Humberside,
Liverpool, Prestwick, Sheerness, Southampton and Tilbury. These seven zones are used only for cargo storage and
consolidation, and not for value-added processing of the goods concerned.
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170
INVESTMENT CLIMATE
Openness to Foreign Investment
The UK is home to more big-name corporations than any other European country. As Europes top location for
inward investment, the UK receives 19% of all investment in the EU. Currently, the UK gets about 32% of U.S.
investment in Europe. London remains the Best City for Investment.
With a few exceptions, the UK does not discriminate between nationals and foreign individuals in the formation and
operation of private companies. U.S. companies establishing British subsidiaries generally encounter no special
nationality requirements on directors or shareholders, although at least one director of any company registered in the
UK must be ordinarily resident in the UK. Once established in the UK, foreign-owned companies are treated no
differently from UK companies. Within the European Union (EU), HMG (the British Government) is a strong
defender of the rights of any British registered company, irrespective of its nationality of ownership.
Market entry for U.S. firms is greatly facilitated by a common language, legal heritage and similar business
institutions and practices. Long-term political, economic and regulatory stability, coupled with relatively low rates of
taxation and inflation make the UK particularly attractive to foreign investors. The Blair government inherited a
legacy of economic reforms, including privatization, deregulation, and support for competition. These initiatives
have been continued, with very few instances of government intervention.
Local and foreign-owned companies are taxed alike. Inward investors may have access to certain regional grants and
incentives that are designed to attract industry to areas of high unemployment, but no tax concessions are granted.
The UK taxes corporations at rates between 10% and 30%. The rate applicable to a particular company in a particular
year will depend primarily on the level of profit made, but revenue can also be a contributing factor.
In April 2002, a social tax increase was levied on corporations (and employees) in the form of a 1 percentage point
increase in the 11.8% employers national insurance contribution, taking it to 12.8% in the 2003/2004 tax year. This
tax costs companies more than $6 billion annually. This tax increase is designed to fund higher spending on National
Health Service improvements and reforms.
Tax deductions are allowed for expenditure and depreciation of assets used for trade purposes. These include:
machinery, plant, industrial buildings and assets used for research and development.
The UK has a simple system of personal income tax, and one of the lowest top marginal rates of any EU country
(40%).
The UK imposes few impediments to foreign ownership. The UK subscribes to the OECD Committee on Investment
and Multinational Enterprises (CIME) National Treatment Instrument and the OECD Code on Capital Movements
and Invisible Transactions (CMIT).
The UK is highly receptive to U.S. investment. The U.S. and the UK are the largest foreign investors in each others
countries. Direct stock investment by U.S. companies in the UK has grown modestly.
U.S. companies have found that establishing a base in the UK is an effective means of accessing the European Single
Market, and the abolition of most intra-European trade barriers enables UK-based firms to operate with relative
freedom throughout the EU. According to InvestUK (part of the British Governments investment promotion agency,
British Trade International), all of the one hundred largest U.S. companies have established operations in the UK.
The UK hosts more than half of the corporate headquarters of American-owned companies in Europe.
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Conversion and Transfer Policies
The British pound is a free-floating currency with no restrictions on its transfer or conversion. There are no exchange
controls restricting the transfer of funds associated with an investment into or out of the UK. All exchange controls
were repealed in 1987.
Government policies are intended to facilitate the free flow of capital and to support the flow of resources in the
product and services markets. The City of London houses one of the largest and most comprehensive financial
centers in the world.
Foreign investors are able to obtain credit in the local market at normal market terms, and a wide range of credit
instruments is available. The principles involved in legal, regulatory and accounting systems are transparent, and
they are consistent with international standards. In all cases, regulations have been published and are applied on a
non-discriminatory basis.
4.6.3
Expropriation and Compensation
Expropriation of corporate assets or nationalization of an industry requires a special Act of Parliament. Should
nationalization of any private-sector entity occur, HMG would follow customary international law, providing
prompt, adequate, and effective compensation.
4.6.4
Dispute Settlement
Disputes over property, contracts, and share holdings are resolved through litigation in the High Court. The Stock
Exchange Panel on Takeovers and Mergers mediates takeover bid disputes, and there is a further right of appeal to
the Stock Exchange Appeals Committee.
As a member of the International Center for Settlement of Investment Disputes, the UK accepts binding international
arbitration between foreign investors and the state. As a signatory to the 1958 New York Convention on the
Recognition and Enforcement of Foreign Arbitral Awards, the UK permits local enforcement on arbitration
judgments decided in other signatory countries.
4.6.5
Political Violence
Domestic politic al violence associated with the Northern Ireland Troubles has decreased dramatically in the past
several years as the main paramilitary groups have maintained a cease-fire and the 1998 Good Friday Agreement
created the potential for parties to resolve political disputes through peaceful means. Sectarian violence continues to
occur sporadically in parts of Northern Ireland. Some small dissident paramilitary groups remain opposed to the
Agreement and within the last three years have committed acts of terrorism in Northern Ireland and in London.
During the summer of 2001 there were riots in the north of England, in the towns of Oldham and Bradford,
connected to racial tensions. Racially motivated crimes have also been on the rise since September 11th. There has
been no indication, however, that foreign investments have been harmed or threatened. Animal rights, trade, and
environmental activists have caused some disruption but little actual damage at UK laboratory facilities and
construction sites. Pharmaceuticals and cosmetics test labs using animals have been their principal targets.
Opponents of agricultural biotechnology have occasionally carried out the destruction of property, including
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agricultural field tests. Airport expansion, bypass roads, offshore structures and petrochemical facilities also attract
the attention of environmental pressure groups that undertake protests.
4.6.6
Performance Requirements and Incentives
Business contracts are legally enforceable in the UK. There is generally no need for performance bonds or guarantees
in British commerce, nor is any technology transfer, joint venture or local management participation or control
requirement imposed on suppliers. Government and industry encourage prompt payment, but there is no tradition of
providing an additional discount to encourage early settlement of accounts.
The UK offers a wide range of incentives for companies of any nationality locating in depressed regions of the
country, as long as the investment generates employment. Regional Selective Assistance (RSA) is available from the
central government for qualifying projects in parts of the UK needing investment to revitalize their economies.
Grants are the main type of assistance, and the level of grant is based on capital expenditure costs and expectations of
job creation. In addition to RSA, assistance can be obtained through the EU Regional Development Fund. Assistance
from this fund is offered to companies that locate in an area designated under Objective 1 (regions whose
development is lagging behind), Objective 2 (regions undergoing economic and social conversion), or Objective 3
(education, training, and employment.) The highest level of assistance is available for companies that locate in
Objective 1 areas. In the UK these areas include parts of Cornwall, Merseyside, South Yorkshire, and West Wales
and the Valleys. Local authorities in England and Wales also have power under the Local Government and Housing
Act of 1989 to promote the economic development of their areas through a variety of assistance schemes, including
the provision of grants, loan capital, property or other financial benefit. Separate legislation, granting similar powers
to local authorities, applies to Scotland and Northern Ireland. Where available, both domestic and overseas investors
may also be eligible for loans from the European Investment Bank.
4.6.7
Right to Private Ownership and Establishment
The Companies Act of 1985, administered by the Department of Trade and Industry (DTI), governs ownership and
operation of private companies. The government has powers under the Mergers and Industry Act of 1986 to prohibit
the takeover of important manufacturing undertakings by non-residents, and to prevent undue concentration of
market share. Protected sectors include air and maritime transport, fishing, and defense. The DTI uses a transparent
code of practice in evaluating bids and mergers for possible referral to the Competition Commission. On March 1,
2000, the Competition Act of 1998 entered into force, strengthening competition law and enhancing the enforcement
powers of the Office of Fair Trading. Prohibitions under the act relate to competition restricting agreements and
abusive behavior by entities in dominant market positions.
There are only a few exceptions to national treatment. For example, foreign (non-EU or non-EFTA) ownership of
UK airlines is limited by law to 49%. Registration of shipping vessels is limited to UK citizens or nationals of
EU/EFTA member states resident in the UK. HMG holds one special controlling interest share in BAE Systems,
Rolls Royce, VSEL, Stena Sealink, Cable and Wireless, Devonport Royal Dockyard Ltd., and Rosyth Royal
Dockyard Ltd. For some of these companies, restrictions of foreign ownership of ordinary shares apply. Citizenship
requirements for certain senior executive and non-executive posts also apply for these enterprises. Foreign
investment in financial services that are not covered by EU Directives on banking, investment, services, and
insurance may be subject to a bilateral agreement.
Under the Private Finance Initiative (PFI), British and foreign-owned companies may bid for long-term franchises to
build, run and improve existing public-sector services in areas including: education, health care, road traffic
management, passenger rail, production of coins and currency, port operations, air and water monitoring and
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cleanup, land use planning, and building control. The governments goal is to provide cost-effective and higher
quality services in partnership with private sector investment capital providers.
4.6.8
Protection of Property Rights
The UK legal system provides a high-level of intellectual property rights (IPR) protection. Enforcement mechanisms
are comparable to those available in the United States. The UK is a member of the World Intellectual Property
Organization (WIPO). The UK is also a member of the major international intellectual property protection
agreements: the Bern Convention for the Protection of Literary and Artistic Works, the Paris Convention for the
Protection of Industrial Property, the Universal Copyright Convention, the Geneva Phonograms Convention, and the
Patent Cooperation Treaty.
Patents
Under the Patents Act of 1997, a patent application requires that an invention must be new, involve an innovative
step, and be capable of industrial application. A patent cannot be granted for any invention used for any offensive,
immoral or antisocial purpose, for any variety of animal or plant, or for a biological process used in its production.
Copyright
The Copyright, Designs and Patents Act of 1988 grants the originator the exclusive right to assign those rights or to
exploit them through copying, dissemination, publication or sale. Computer programs and semiconductor internal
circuit designs are included as works that are protected by this Act. Under the terms of an EU Directive, which took
effect in January 1998, databases are also protected in each EU-member country by the national legislation that
implements the Directive.
Trademarks
The Trademarks Act of 1938 prohibits the use of a mark identical to, or nearly resembling a trademark registered by
another person or legal entity. A trademark may be removed from the register if a period of five years has elapsed,
during which time there has been no bona fide use of the trademark in relation to the goods by any proprietor. A
trademark may be registered within more than one class, the registrations being associated or linked. The same
trademark may not be registered by more than one company, irrespective of the number of classes in which it is
registered.
Trade Secrets/Confidential Test Data

Commercially sensitive information is not itself specifically subject to legal protection, but the misappropriation of
such information from business premises may be subject to criminal law. Action under employment law may also be
taken against an employee who, by disclosing information, breaches a contract with his or her employer. In addition,
confidential test data, submitted in conjunction with a registered application for pharmaceuticals or veterinary
products, enjoys ten years of exclusive protection from the date of authorization, provided the product is marketed in
the UK.
Common law prevails in the UK as the basis for commercial transactions, and the International Commercial Terms
(INCOTERMS) of the International Chambers of Commerce are accepted definitions of trading terms. Accounting
standards and audit provisions used in the UK are the SSAP Standards of the Accounting Standards Board
(www.asb.org.uk). U.S. exporters and investors will find little or no difference between the United States and the
UK in the conduct of business.
Macro-Accessibility
4.6.9
174
Regulatory System
The governments declared intent is to introduce more business competition and to reduce the administrative burden
on companies by reducing unnecessary red tape. Statutory authority over prices and competition in various industries
is given to independent regulators. These include the Office of Telecommunications (OFTEL), the Office of Water
Regulation (OFWAT), the Office of Gas and Electricity Markets (OFGEM), the Office of Fair Trading (OFT), the
Strategic Rail Authority (SRA), and the Financial Services Authority (FSA).
The Prevention of Corruption Act makes bribery of domestic or foreign public officials a criminal offense. The
maximum penalty under this act is imprisonment for up to seven years, and/or a fine not exceeding BPS 5,000.
Corrupt payments are not deductible for UK tax purposes. Although there have been isolated instances of bribery and
corruption in the UK, U.S. investors have not identified corruption of public officials as a factor in doing business in
the UK.
The UK included new legislation in the Anti-Terrorism Act to bolster the strength of the anti-corruption legislation.
This new legislation cites corruption as one of the conditions that causes terrorism, and takes a hard line on it. Part 12
of the Act makes clear that bribery applies to acts involving foreign officials. It expressly extends government
jurisdiction to cover bribes by UK nationals and by UK incorporated bodies overseas.
4.6.10
Bilateral Investment Agreements
The U.S. and the UK have no formal bilateral investment treaty relationship, though a Bilateral Tax Treaty
specifically protects U.S. and UK investors from double taxation. The UK has its own bilateral tax treaties with
almost 90 (mostly developing) countries, and a network of double taxation agreements.
4.6.11
OPIC and Other Investment Insurance Programs
Because OPIC supports investments in emerging market economies and developing countries, its programs do not
apply to the UK. Export/Import Bank financing is available to support major investment projects in the UK,
particularly oil and gas exploration machinery and wide-bodied civil aircraft. An MOU signed by ExIm Bank and its
UK equivalent, the ECGD, enables bilateral U.S./UK consortia, intending to invest in third countries, to seek
investment funding support from the country of the larger partner. This removes the need for each of the two parties
to seek financing from their respective credit guarantee organizations.
4.6.12
Labor
Nearly a third of the British workforce is unionized, a low proportion by historic UK standards, but still quite high to
an employer used to a much lower American percentage. Unionization of the workforce in the UK is prohibited only
in the armed forces, public-sector security services and police forces. Manufacturing, transport, and distributive
trades are highly unionized, but once-common militant unionism is now rare, although on the increase. In the face of
a globalized economy, most British unions have come to appreciate that their members will only have jobs (and
unions have members) to the extent that their employers are competitive. Privatization (and subsequent
fragmentation) of heretofore -nationalized industries has accelerated such thinking.
The Trades Union Congress (TUC), the British AFL-CIO equivalent, launched a major partnership initiative in
January 2000 to encourage union-management cooperation. Most of the TUCs private-sector affiliates are on board,
and these are the unions most likely to be encountered by an American investor.
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175
The Labour Governments Employment Relations Act of July 1999 rolled back most of the anti-union legislation
enacted by previous Conservative Governments (1979-97), but it retained many key labor-market reforms enacted by
former Prime Minister Thatcher; the union closed shop and secondary picketing remain outlawed. The most
significant change wrought by the 1999 legislation is that it is now very much easier for a TUC affiliate to organize a
non-union workplace. Furthermore, union recognition (where achieved) now carries a binding statutory obligation as
distinct from its previous voluntary status.
Some of the most far-reaching employment legislation affecting the UK labor market now originates in Brussels (i.e.,
from the European Union). Typically, resultant regulations affect working patterns, wage structures, and employee
protection rights. For example, the European Working Time Directive, applicable since October 1998, creates an
entitlement to minimum daily and weekly rest periods, an average work-week limit of 48 hours, and restrictions on
night work. It also entitles workers who meet the qualifying criteria to a minimum of four weeks annual paid holiday.
Holiday pay is also due for part-time and seasonal workers.
The universal application of labor regulations across respective EU borders undermines British competitiveness to
the extent that the UK has made its historically more flexible labor market a major selling point to inward investors.
Women now form 49.7% of the workforce, increasingly in managerial positions. Children under the age of 16 may
work in an industrial enterprise only as part of an educational course. Local education authorities can limit
employment of children under 16 years old if working will interfere with a childs education, which is mandatory
until age 16.
A persistent characteristic of the UK workforce is its relative lack of mobility, geographically and between trades.
Successive governments have introduced retraining schemes and grants with some success in creating a workforce
more adapted to the changing pattern of demand.
The most serious issue facing British employers, as polled two years ago, is a growing skills gap as the requirements
of a high-skill, high-tech economy outstrip the educational systems ability to deliver work-ready graduates.
4.6.13
Foreign Trade Zones and Free Ports
The cargo ports and freight transshipment points at Birmingham, Humberside, Liverpool, Prestwick, Sheerness,
Southampton, and Tilbury that are used for cargo storage and consolidation are designated as Free Trade Zones. No
activities that add value to the commodities are permitted within the Free Trade Areas, which are reserved for bonded
storage, cargo consolidation and reconfiguration. The Free Trade Zones offer little benefit to U.S. exporters or
investors.
4.6.14
Major Foreign Investors
There are approximately 22,000 foreign-owned companies in the UK, including at least 5,900 U.S. firms, 2,100 from
Germany and 1,800 from France. Also, more than 1,000 Japanese-owned companies (including more than 160 R&D
and nearly 300 manufacturing firms) are located in the UK.
Macro-Accessibility
4.7
4.7.1
176
TRADE AND PROJECT FINANCING

The Banking System
There are many British and foreign-owned banks and financial institutions offering competitive trade and project
financing, and capital equipment lease finance. There are more U.S.-owned banks operating branches and
subsidiaries in London than there are on Wall Street. In addition, many of the smaller U.S. banks have correspondent
relationships with one or more of the major British banks, and those UK correspondents can provide a complete
range of financial services for exporters and investors.
4.7.2
Foreign Exchange Control Risks
There are no exchange controls restricting the transfer of funds into or out of the UK.
4.7.3
General Availability of Financing
With such a well-developed banking sector, general finance is readily available. Payment for exports to the UK can
be on open account, payment in advance, letter of credit, documentary drafts, or consignment sale. Letter of credit
payment is normal until a trading pattern has been established. British buyers will typically ask for 60, 90 or 180
days credit, depending on the industry sector in which they trade.
London is a major source of international project finance, and U.S. investors should be able to locate suitable
banking and financial advisors that will assist in putting together suitable financing packages. The venture capital
industry in the UK is particularly well developed.
OPIC financing is not appropriate to the developed UK economy, but Export/Import Bank financing is available to
support major capital equipment sales to the UK, particularly for oil and gas exploration machinery and wide-bodied
civil aircraft. An MOU signed by ExIm Bank and its UK equivalent, ECGD, enables bilateral U.S./UK consortia,
seeking to export to third countries, to seek trade finance guarantees from the country of the larger partner. This
removes the need for each of the two parties to seek credit guarantees from their respective credit guarantee
organizations.
4.8
4.8.1
TRAVEL ISSUES
Local Business Practices
The British class structure based on property and land ownership has been eroded by taxation, education, and social
developments over the last few decades. Liberalization of business and industry has rewarded enterprise, and a new
generation of professionals schooled in management, marketing and finance techniques has increasingly taken
charge.
Ethnic minorities constitute about 8% of the population, and are active throughout the British economy.
Some fundamental cultural differences between the U.S. and the UK remain. Variations in pace and style may be
most noticeable, and sustained personal contact with potential business partners is expected. Prompt
Macro-Accessibility
177
acknowledgment of correspondence, adherence to appointment schedules, and a greater formality in the conduct of
business is the norm.
British executives communicate more by letter and fax than by telephone, although the Internet is widely used, and email is becoming more common. The British are less likely to seek legal advice and guidance than their U.S.
counterparts, although a litigation culture is developing along the lines of the U.S. model - i.e. no win, no fee cases
are permitted.
4.8.2
Travel Advisory and Visas
Every U.S. citizen entering the UK must have a valid American passport. For non-tourist stays of more than three
months, U.S. citizens require visas or entry permits. Visitors intending to remain in the UK should check in advance
with the British Embassy or the nearest British Consulate. The Web site of the British Embassy in the United States
is http://www.britainusa.com.
Americans intending to seek employment in the UK should consult the British Embassy or a British Consulate in the
U.S. to inquire about work permits. The Employment Service, an executive agency of the Department of Education
and Employment, controls the employment of aliens in the UK. U.S. citizens wishing to obtain or extend a work
permit should contact the Employment Service by phone on 011 44 1937 840224.
Directors and employees of existing British subsidiaries of U.S. firms have encountered little difficulty in obtaining
permission to enter and remain in the UK. Sending the technical personnel required to install and operate a plant or
business generally poses no problem, though it is necessary to establish that British employees with the necessary
qualifications are not available. The Government has issued new regulations easing the entry of experts in emerging
technologies from overseas.
HMG has adopted the EU regulations governing the admission of non-EU business visitors and economic migrants
to the UK, which limit the ability of some foreign nationals, including American citizens, to reside in the UK. The
categories of persons adversely affected, to a lesser or greater extent, by the new immigration rules are self-employed
persons, retired persons of independent means, business investors, and short-term business visitors. Entry may be
denied to those who intend to perform productive services unless a work permit has been issued in advance to their
employer. The determination of who may be admitted as a consultant is decided on a case-by-case basis at ports of
entry.
The American Citizen Services (ACS) section at the American Embassy in London provides many services for U.S.
citizens and business travelers, including passport issuance, absentee voter registration and notarial services. The
Special Citizen Services (SCS) Unit supplies travel advisory information on visa requirements, health, safety, and
security concerns in countries around the world. For information on these and other issues, Americans should consult
the Embassy Web site at: www.usembassy.org.uk.
American Citizens seeking services should enter via the Upper Grosvenor Street security gate of the Embassy
building located on Grosvenor Square, London W1A 1AE and proceed to the Upper Brook Street entrance. The
Passport Unit is open 8.30 to 11.00am Monday through Friday mornings, and 2.00 to 4.00pm Monday and Friday
afternoons. The Embassy is closed for all American and British holidays. More information on consular programs
and travel advice may be obtained from the U.S. Department of State Web site at http://travel.state.gov.
Macro-Accessibility
4.8.3
178
Infrastructure for Conducting Business
Safety and Security

The United Kingdom is stable and modern but shares with the rest of the world an increased threat of terrorist
incidents of international origin, as well as violence related to the political situation in Northern Ireland (a part of the
United Kingdom.) Americans are reminded to remain vigilant with regard to their personal security and to exercise
caution. In recent months, seve ral arrests have been made in Great Britain in connection with various possible
terrorist plots. The British Home Secretary has urged its citizens to be alert and vigilant by, for example, keeping an
eye out for suspect packages or people acting suspiciously at subway and train stations and airports and reporting
anything suspicious to the appropriate authorities by contacting the free confidential anti-terrorist telephone hotline
on 0800 789 321. Americans traveling abroad should regularly monitor the Department of States Web site at
http://travel.state.gov where any current Worldwide Cautions or Public Announcements can be found.
From time to time during periods of heightened threat of terrorism, the U.K. government deems it necessary to raise
levels of security activity. Heightened activity may include the use of military personnel in support of the police and
law enforcement officers. The use of troops, who remain at all times under the control of the police, is part of longstanding contingency plans. Military personnel and equipment may be deployed at airports and other transportation
links, or other public locations. For more information about U.K. public safety initiatives, consult the U.K. Civil
Contingencies Secretariat Web site at http://www.ukresilience.gov.uk.
Political demonstrations are well policed and, except at times in Northern Ireland, generally orderly. Although the
political situation in Northern Ireland has dramatically improved since the signing of the Good Friday Agreement in
1998, incidents of terrorist violence have, nevertheless, occurred in the past few years. Early in 2001, two explosive
devices were detonated in London suburbs, injuring eight people and damaging buildings. Within Northern Ireland,
flash-points for sectarian confrontations still exist, but they are generally removed from areas where tourists
congregate. Sporadic incidents of street violence often erupt during the summer marching season (April to August),
with tensions heightened during the month of July, especially around the July 12th public holiday. As a result,
American citizens traveling in Northern Ireland have experienced delays and disruption.
Crime
While the UK benefits from generally low crime rates, the UK has recently experienced an increase in crime,
including crimes involving violence. Incidents of pickpocketing, muggings, street thefts of watches, jewelry and
mobile phones, and theft of unattended bags are increasingly common.
In London, travelers should use only licensed black taxi cabs or car services recommended by their hotel or tour
operator. Unlicensed taxis or private cars posing as taxis may offer low fares, but are often uninsured and may have
unlicensed drivers. In some instances, travelers have been robbed while using these cars.
Due to the circumstances described above, visitors should take steps to ensure the safety of their U.S. passports.
Visitors in England, Scotland and Wales are not expected to produce identity documents for police authorities and
thus may secure their passports in hotel safes or residences. In Northern Ireland, however, passports or other
photographic I.D. should be carried at all times.
The loss or theft of a U.S. passport should be reported immediately to the local police and the nearest U.S. embassy
or consulate. Contact details for the Embassy in London and the Consulates General in Belfast and Edinburgh are
available on the Embassy Web site at: http://usembassy.org.uk.
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179
Medical Facilities and Insurance

While good medical services are widely available, free care under the National Health System is allowed only to UK
residents. Tourists and short-term visitors can expect charges roughly comparable to those assessed in the U.S.
U.S. medical insurance is not always valid outside the United States. U.S. Medicare and Medicaid programs do not
provide payment for medical services outside the United States. Doctors and hospitals often ask non-residents to pay
immediately for medical services, and uninsured travelers who require medical care may face extreme difficulties,
unless they have the means to pay.
Check with your own insurance company to confirm whether your policy applies overseas, including provisions for
medical evacuation, and for adequacy of coverage. Generally, travel insurance cannot be purchased once you have
departed the United States. Serious medical problems requiring hospitalization and/or medical evacuation to the
United States can cost tens of thousands of dollars. Ascertain whether payment will be made to the overseas hospital
or doctor or whether you will be reimbursed later for expenses you incur. Some insurance policies also include
coverage for psychiatric treatment and for disposition of remains in the event of death.
Traffic Safety and Road Conditions

While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the
United States. The information below concerning the UK is provided for general reference only, and may not be
totally accurate in a particular location or circumstance.
The safety of public transportation, urban and rural road conditions and the availability of roadside assistance are all
excellent compared with most foreign countries, although they are not generally up to the standard of some other
European countries.
UK penalties for drunk driving are stiff and often result in prison sentences. Visitors uncomfortable with or
intimidated by the prospect of driving on the left-hand side of the road may wish to avail themselves of extensive
bus, rail and air transport networks, though these can be expensive modes of travel. If you plan to drive while in the
UK, you may wish to obtain a copy of The Highway Code, available in the UK.
Rail transport in the UK is extensive, but poor track conditions have contributed to train derailments resulting in
some fatalities in recent years. Repairs are underway and the overall safety record is otherwise good.
Many U.S. citizens are injured every year in pedestrian accidents in the UK, forgetting that traffic moves in the
opposite direction than in the United States. Care should be taken when crossing streets.
The phone number for police/fire/ambulance emergency services - the equivalent of 911 in the U.S - is 999 in the
UK.
Aviation Safety and Oversight

The U.S. Federal Aviation Administration (FAA) has assessed the Government of the UKs Civil Aviation Authority
as Category One - in compliance with international aviation standards for oversight of the UKs air carrier
operations.
Air travelers to and from the UK should be aware that penalties against alcohol-related and other in-flight crimes
(air rage) are stiff and are being enforced with prison sentences.
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180
Accommodation
The UK is well served with hotels ranging from the very best to more modest establishments. In London, demand for
rooms can be high during peak vacation times.
Food
Food is generally safe to eat in restaurants anywhere in the UK.
4.8.4
Country Data
Population: The UK population is approximately 59 million people.
Population Growth Rate: 0.3%. The population is forecast to reach 63.6 million people in 2021.
Religion: The established religion in the UK is the Church of England (Anglican). Other major religions in the
UK include: Catholicism, Hinduism, Islam, Judaism, Methodism, Presbyterianism, and Sikhism.
Government: The UK is a constitutional monarchy. The Head of State is Queen Elizabeth II. The head of
government is Prime Minister Anthony (Tony) Blair. The monarch is hereditary. The Prime Minister is the
leader of the majority party in the House of Commons (if there is no majority party, a prime minister would have
a majority coalition or at least a coalition that was not rejected by the majority). The legislative branch consists
of two chambers: the elected House of Commons (659 members) and the unelected House of Lords (676
members as of May 2003. The number varies as peers are created). In addition to the UK government in London,
there are an elected Scottish Parliament in Edinburgh, an elected Welsh Assembly in Cardiff, and an elected
Northern Ireland Assembly in Belfast.
Language: The official language is English. A substantial minority in Wales speaks Welsh, and a minority in
Scotland speaks Gaelic. In addition, there are many large communities in the UK whose first language is not
English. Numerous languages are spoken in London, including thirty-three for which there are resident
populations of 10,000 or more.
Work Week: Banking hours are generally 9:30 a.m. to 4.30 p.m., Monday through Friday, except on Thursdays
when banks tend to stay open later. Offices are open from 9 a.m. until 5 p.m., Monday through Friday. Stores are
generally open from 9 a.m. to 5:30 p.m., Monday through Saturday, and Sunday 10 a.m. to 4 p.m. At traditional
vacation times, many British executives are unavailable except by advance appointment. England, Scotland,
Wales, and Northern Ireland are all in the same time zone, five hours ahead of U.S. Eastern Standard Time.
4.9
4.9.1
KEY CONTACTS
U.S. Embassy Trade-Related Contacts
American Embassy
24/31 Grosvenor Square
London, WIA 1AE England
Tel: 011 44 20 7499 9000
Fax: 011 44 20 7491 4022
http://www.usembassy.org.uk
Macro-Accessibility
181
Address for U.S. mail:

American Embassy (London)
PSC 801
Box 33 (Commercial Service)
Box 27 (Economic Section)
Box 48 (Agriculture)
Box 54 (Defense)
FPO AE 09498
U.S. Commercial Service
Tel: 011 44 20 7408 8019
Fax: 011 44 20 7408 8020
E-mail: london.office.box@mail.doc.gov
http://www.usexports.co.uk
Commercial Representative in Northern Ireland
U.S. Consulate General
Queens House
14 Queen Street
Belfast BT1 6EQ
Tel: 011 44 28 9032 8239
Fax: 011 44 28 9024 8482
Economic Section
Tel: 011 44 20 7408 8011
Fax: 011 44 20 7409 1637
Foreign Agricultural Service
Tel: 011 44 20 7894 0464 and 0040
Fax: 011 44 20 7894 0031
E-mail: aglondon@fas.usda.gov
http://www.usembassy.org.uk/fas
Office of Defense Cooperation (ODC)
Tel: 011 44 20 7894 0737
Fax: 011 44 20 7514 4634
http://www.usembassy.org.uk/odc/index.html
The European Bank for Reconstruction & Development
U.S. Commercial Service
Tel: 011 44 20 7588 4027 and 4028
Fax: 011 44 20 7588 4026
4.9.2
Bilateral Business Councils
BritishAmerican Business Inc.

75 Brook Street
London W1Y 2EB, UK
Tel: 011 44 20 7493 0381
Fax: 011 44 20 7493 2394
www.babinc.org
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182
For information about the other British American Business Council chapters in the U.K. and the U.S., please visit
www.babc.org.
4.9.3
UK Trade and Industry Associations
British Chambers of Commerce

1St Floor
65 Petty France
St James Park
London SW1H 9EU
Tel: 011 44 20 7654 5800
Fax: 011 44 20 7654 5819
www.britishchambers.org.uk
International Chamber of Commerce
12 Grosvenor Place
London SW1X 7HH
Tel: 011 44 20 7823 2811
Fax: 011 44 20 7235 5447
www.iccuk.net
Confederation of British Industry (CBI)
Centre Point
103 New Oxford Street
London WC1A 1DU
Tel: 011 44 20 7379 7400
Fax: 011 44 20 7240 1578
www.cbi.org.uk
British Standards Institution
389 Chiswick High Road
London W4 4AL
Tel: 011 44 20 8996 9000
Fax: 011 44 20 8996 7001
www.bsi-global.com
Information on UK standards is available from the American National Standards Institute, Tel: (212) 642 4900, Fax:
(212) 302 1286 and from the National Institute for Standards and Technology (Gaithersburg, MD 20234), Tel: (301)
975 3058.
British Bankers Association
Pinners Hall
105-108 Old Broad Street
London EC2N 1EZ
Tel: 011 44 20 7216 8800
Fax: 011 44 20 7216 8811
www.bba.org.uk
Direct Marketing Association
DMA House
70 Margaret Street
Macro-Accessibility
183
London W1W 8SS

Tel: 011 44 20 7291 3300
Fax: 011 44 20 7323 4165
www.dma.org.uk
Advertising Standards Association
2 Torrington Place
London WC1E 7HW
Tel: 011 44 20 7580 5555
Fax: 011 44 20 7631 3051
www.asa.org.uk
4.9.4
UK Government Offices
UK government Web sites are readily identified and accessed via the official portal: www.ukonline.gov.uk
Trade Partners UK
Department of Trade & Industry
Kingsgate House
66-74 Victoria Street
London SW1E 6SN
Tel: 011 44 20 7215 5000
Fax: 011 44 20 7215 8000
www.tradepartners.gov.uk
Invest.UK
Department of Trade and Industry
London SW1H 0NN
Tel: 011 44 20 7215 2501
Fax: 011 44 20 7215 8451
www.invest.uk.com
Invest.UK USA
Atlanta
Tel: (404) 524 8823
Boston
Tel: (617) 248 9555
Chicago
Tel: (312) 346 1810
Cleveland
Tel: (216) 621 7674
Houston
Tel: (713) 659 6275
Los Angeles
Tel: (310) 477 3322
New York
Tel: (212) 745 0495
Seattle
Tel: (206) 622 9255
Washington D.C. Tel: (202) 462 1340
British Embassy
3100 Massachusetts Avenue
Washington, D.C. 20008
Tel: (202) 462 1340
Fax: (202) 898 4255
Macro-Accessibility
184
1 Victoria Street
London SW1H 0ET
Tel: 011 44 20 7215 5000
Fax: 011 44 20 7222 0613
www.dti.gov.uk
(General Inquiries)
Consumer Affairs Division 1A
London SW1H 0NN
Tel: 011 44 20 7215 0332
Fax: 011 44 20 7215 0315
(Packaging and Labeling Requirements)
HM Board of Customs and Excise
Tel: 011 44 20 7620 1313
Fax: 011 44 20 7865 4944
(Customs and Rules/Regulations for the UK)
HM Stationery Office Bookshop
49 Holborn
London WC1V 6HB
Tel: 011 44 20 7873 0011
(UK equivalent of the U.S. Government Printing Office)
U.S. Representative: Kraus-Thompson Publishers
Tel: (914) 762 2200
Central Statistical Office
Great George Street
London SW1P 3AQ
Tel: 011 44 20 7270 3000
www.ons.gov.uk
(Statistical Information)
Home Office
50 Queen Annes Gate
London SW1H 9AT
Tel: 011 44 20 7273 4000
Fax: 011 44 20 7273 3965
(Work Permits, Consular Matters)
Department of the Environment, Food & Rural Affairs
Nobel House
17 Smith Square
London SW1P 3JR
Tel: 011 44 20 7238 3000
(Environmental Regulations)
Department of Health
Richmond House
79 Whitehall
London SW1A 2NL
Macro-Accessibility
185
Tel: 011 44 20 7210 3000

(Medicines Licensing and Regulation)
Patent and Trademark Office
Concept House
Cardiff Road
Newport NP9 1RH
Tel: 011 44 1645 500505
(UK Patents)
Bank of England
Threadneedle Street
London EC2V 8DQ
Tel: 011 44 20 7601 4444
(Central Bank)
The House of Commons
Houses of Parliament
London SW1A 0AA
Tel: 011 44 20 7219 3000
4.9.5
UK Commercial Banks
Barclays Bank PLC

54 Lombard Street
London EC3P 3AH
Tel: 011 44 20 7626 1567
Fax: 011 44 20 7488 0020
HSBC Bank PLC
10 Lower Thames Street
London EC3R 6AE
Tel: 011 44 20 7260 8789
Fax: 011 44 20 7620 4829
Lloyds TSB Bank PLC
71 Lombard Street
London EC3P 3BS
Tel: 011 44 20 7626 1500
Fax: 011 44 20 7523 3444
National Westminster Bank PLC
41 Lothbury
London EC2P 2BP
Tel: 011 44 20 7726 1000
Fax: 011 44 20 7726 1035
Macro-Accessibility
4.9.6
186
Multilateral Development Banks
European Bank for Reconstruction and Development

One Exchange Square
London EC2A 2JN
Tel: 011 44 20 7338 6000
Fax: 011 44 20 7338 6100
4.9.7
Washington D.C.-Based U.S. Contacts
U.S. Department of Commerce

UK Desk Officer
Office of European Affairs
International Trade Administration
Room 3515
Washington, DC 20230
Tel: 202 482 3748
Fax: 202 482 2897
Trade Information Center
International Trade Administration
U.S. Department of Commerce
Tel: 1-800-USA-TRADE
Fax: 202 482 4473
Email: TIC@ita.doc.gov
www.trade.gov/td/tic
U.S. Department of Agriculture
Foreign Agricultural Service
Information and Assistance
Tel. (202) 720-2791
Export-Import Bank of the U.S.
Washington DC Office
811 Vermont Ave., NW
Tel: 202 565 3946
Fax: 202 565 3380
www.exim.gov
187
5
5.1
DISCLAIMERS, WARRANTEES, AND USER

AGREEMENT PROVISIONS
DISCLAIMERS & SAFE HARBOR
Summary Disclaimer. This publication ("Report") does not constitute legal, valuation, tax, or financial consulting advice.
Nor is it a statement on the performance, management capability or future potential (good or bad) of the company(ies),
industry(ies), product(s), region(s), city(ies) or country(ies) discussed. It is offered as an information service to clients,
associates, and academicians. Those interested in specific guidance for legal, strategic, and/or financial or accounting
matters should seek competent professional assistance from their own advisors.
Information was furnished to Icon Group International, Inc. ("Icon Group"), and its subsidiaries, by its internal researchers
and/or extracted from public filings, or sources available within the public domain, including other information providers
(e.g. EDGAR filings, national organizations and international organizations). Icon Group does not promise or warrant that
we will obtain information from any particular independent source. Published regularly by Icon Group, this and similar
reports provide analysis on cities, countries, industries, and/or foreign and domestic companies which may or may not be
publicly traded. Icon Group reports are used by various companies and persons including consulting firms, investment
officers, pension fund managers, registered representatives, and other financial service professionals. Any commentary,
observations or discussion by Icon Group about a country, city, region, industry or company does not constitute a
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END

Philip M. Parker-Renewable Energy Equipment and Services in United Kingdom - A Strategic Reference, 2007 (2007)

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Philip M. Parker-Renewable Energy Equipment and Services in United Kingdom - A Strategic Reference, 2007 (2007)

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Renewable Energy Equipment

and Services in United

Philip M. Parker, Ph.D.

2007 Icon Group International, Inc.

2007 Icon Group International, Inc.

About Icon Group International, Inc.

2007 Icon Group International, Inc.

INTRODUCTION & METHODOLOGY.............................................................................1

What Does This Report Cover?

How to Strategically Evaluate United Kingdom

Latent Demand and Accessibility in United Kingdom

RENEWABLE ENERGY EQUIPMENT AND SERVICES IN UNITED KINGDOM ...5

Accessibility: Market Entry

Market Issues and Obstacles

3 FINANCIAL INDICATORS: STEAM, GAS AND HYDRAULIC TURBINES AND

2007 Icon Group International, Inc.

Key Percentiles and Rankings .................................................................................................................. 27

MACRO-ACCESSIBILITY IN UNITED KINGDOM....................................................161

2007 Icon Group International, Inc.

2007 Icon Group International, Inc.

UK Trade and Industry Associations ..................................................................................................... 182

DISCLAIMERS, WARRANTEES, AND USER AGREEMENT PROVISIONS .........187

Disclaimers & Safe Harbor

Icon Group International, Inc. User Agreement Provisions

2007 Icon Group International, Inc.

INTRODUCTION & METHODOLOGY

HOW TO STRATEGICALLY EVALUATE UNITED KINGDOM

2007 Icon Group International, Inc.

Introduction & Methodology

Framework for Prioritizing Countries

Accessibility/Supply Averse Firm

2007 Icon Group International, Inc.

Introduction & Methodology

LATENT DEMAND AND ACCESSIBILITY IN UNITED KINGDOM

Openness to Trade in United Kingdom

Openness to Direct Investment in United Kingdom

Local Marketing and Entry Strategy Alternatives

2007 Icon Group International, Inc.

Introduction & Methodology

Local Human Resources

2007 Icon Group International, Inc.

RENEWABLE ENERGY EQUIPMENT AND

LATENT DEMAND AND ACCESSIBILITY: BACKGROUND

LATENT DEMAND: MARKET COMPOSITION

2007 Icon Group International, Inc.

Renewable Energy Equipment and Services

Renewable Energy Demand in the UK, 2005

Source: Digest of UK Energy Statistics 2006, UK Department of Trade and Industry

Forecast Growth in Total UK Energy Production by Type, 2000-2015

Source: The Energy Challenge; UK Department of Trade and Industry

2007 Icon Group International, Inc.

Renewable Energy Equipment and Services

Total Use of Energy from Renewable Sources in the UK, 2001-2005

Note: Totals do not sum due to rounding.

All Sources Of Renewable Energy In The UK, 2005

Source: Digest of Energy Statistics 2006, UK Department of Trade and Industry

2007 Icon Group International, Inc.

Renewable Energy Equipment and Services

Biofuels and Wastes

Wind and Wave Power

UK Wind Farm Projects

Source: British Wind Energy Association 2007

2007 Icon Group International, Inc.