| Abstrakt: |
This article focuses on the methodology used in ranking the 100 hot growth small companies in the U.S. for 1996, with financial information on each company. To win a position in the table, a company must excel in three ways. The selection process begins by ranking companies according to their three-year results in sales growth, earnings growth and return on invested capital. The ranks in the table are calculated from these numbers. A company's composite rank is the sum of 0.5 times its rank in return on total capital, plus 0.25 times each of its growth ranks. Sales and earnings are the latest available through the most recent 12 months. Earnings include net income from continuing operations, before gains or losses from extraordinary items. Increases in sales and profits are calculated using the least-squares method. Return on capital is earnings plus minority interests and tax-adjusted interest expense expressed as a percent of total debt and equity. Some of the companies included in the list are: Remedy, Eltron International, Logic Works and Apac Teleservices. |
