Mid term (ch. 1 - 5) Flashcards
Calculate the gross margin
Gross margin = sales of goods for resale - purchase cost of goods for resale
Calculate total production
Production sold + changes in inventory of finished products and WIP + capitalized production
Calculate value added
Gross margin + total production - external services
External services:
- cost of RM
- non-inventory supply costs
- outsourcing costs
Calculate EBITDA
Value added + operating subsidies - non-income tax - personnel costs
Calculate EBIT
EBITDA + other operating income - other operating expenses - DA + DA reversal
Calculate financial income
Financial revenue - financial expenses
Calculate cost of debt
Interests/financial debts
Calculate profit before tax and non-recurring items
EBIT + financial income +/- shares of income in common
Calculate exceptional income
Exceptional revenues - exceptional expenses
Calculate net income
Profit before tax and non-recurring items + exceptional result - participation and profit sharing - corporate income tax
Draw intermediate balance tree
Gross margin + total production
Value added
EBITDA
EBIT
(Financial income) profit before tax and non-recurring items
(Exceptional result) net income
Calculate Capacity of self-financing (CSF)
Net income + DA - DA reversal + exceptional capital expenses - exceptional capital income
Calculate Working Capital Requirement (WCR)
Inventories + short-term receivable - short-term payable
Calculate durations of receivables/payables
Receivables = (receivables/sales incl. tax)*360
Payables = (payables/purchases incl. tax)*360
Calculate net cash
Cash and cash equivalents - bank overdrafts
Give the liquidity equation
WC - WCR
Calculate ROE and RNOA
ROE = = IOE/E
RNOA = IOA/NOA
Calculate interest rate
(Interest*(1-tax rate))/financial debts
Calculate NOPAT
(NOI-I)*T
Give the return analysis equations (ROE and RNOA)
ROE = k = IOA/sales * sales/NOA * (1+FD)/E
Profitability * turnover * gearing(leverage)
k = e+(e-I)*(FD/E)
RNOA = e = IOA/sales * sales/NOA
Calculate present value
Capital/(1+r)^n
Calculate value of a loan
E = sigma a/(1+r)^t
Calculate constant annuity payment
a = E * r/1-(1+r)^-n
Calculate perpetuity
E = a*1-(1+r)^-n/r
Calculate simple interest
PRT
Calculate compound interest
P*(1+r)^n
Calculate annual percentage interest rate
i = r/12
Calculate effective annual interest rate
i = (1+r)^1/12-1
Calculate yield-to-maturity
YTM = sigma coupon/1(+r)^t + F (reimbursement premium)/(1+r)^t
Calculate cash flow (indirect method)
- Take net income
- Add back non-cash expenses (e.g. DA)
- Adjust gains/losses on sales in assets (add back losses/subtract gains)
- Account for changes in non-cash current assets
- Account for changes in all current assets and liabilities (except for notes payable and dividends payable)
Restatement of operating subsidies/grants
Has to be added to net sales, so it is accounted for in Value Added, it is a part of how much the company generates
Restatement of taxes
Operating costs from third parties - add to external services (meaning they are calculated as a part of VA).
Restatement of leaseing
Two components:
1/4 a financial expense (fee - amortization)
3/4 amortization
Restatment cost of labor factors
Cost of temporary employees + staff lend to company removed from external services
Profit sharing and incentives added to EBITDA
Restatement of other operating costs
Royalties on patents + losses on bad debts are added to external services
Restatement of non-values (fictitious assets)
Elimination - subtract from equity (loan)
Deferred charges
Loan redemption premium
Restatement of lease (balance sheet)
Lease —> investment of long term assets financed by debt from the lessor
Fee to external service
Amortization to DA
Financial expense + remaining of fee
Restatement of cashed out receivable (balance sheet)
+ trade accounts receivable
+ bank overdraft
Both with the amount of the cash out
Reclassification of distribution of income
Loss - deducted from equity
Profit - dividend isolates in debt “dividend payable”
