Specific given financials Flashcards
Project EBITDA
the project Earnings Before Interest, Tax, Depreciation and Amortisations (“EBITDA”) are the result of subtracting the operating costs of the project from the revenues generated.
Net Cash Flow
the net cash flow is the cash generated by the project available to shareholders on a yearly basis. It is the result of subtracting the Capital Expenditures (“CAPEX”) from the cash generated by the operations of the project and then adding or subtracting the cash flow from financing. When the project receives a loan or an investment from the shareholders, the cash flow from financing is positive. When the project needs to pay down debt, principal or interest, the cash flow from financing is negative.
Income statement
An income statement is one of the three major financial statements, along with the balance sheet and the cash flow statement that report a company’s financial performance over a specific accounting period. The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period. An income statement provides valuable insights into a company’s operations, the efficiency of its management, underperforming sectors, and its performance relative to industry peers.
Balance sheet
The balance sheet is a key financial statement that provides a snapshot of a company’s finances. A balance sheet shows what a company owns in the form of assets and what it owes in the form of liabilities. A balance sheet also shows the amount of money invested by shareholders listed under shareholders’ equity.
Cash flow statement
The cash flow statement shows the cash inflows and outflows for a company during a period.
The balance sheet, together with the income statement and cash flow statement, make up the cornerstone of any company’s financial statements.
Operating cash cost
Operating costs are associated with the maintenance and administration of a business on a day-to-day basis. Operating costs include direct costs of goods sold (COGS) and other operating expenses—often called selling, general, and administrative (SG&A)—which include rent, payroll, and other overhead costs, as well as raw materials and maintenance expenses.
CAPEX
Funds used by a company to acquire, upgrade and maintain physical assets, such as property, plants, buildings, technology or equipment. CapEx is often used to undertake new projects or investments by a company.
EBITDA Margin
The EBITDA margin is a measure of a company’s operating profit, shown as a percentage of its revenue. EBITDA stands for the Earnings Before Interest, Taxes, Depreciation and Amortization that a company makes.
Cash flow from investing activities
Cash flow from investing activities is a section of the cash flow statement that shows the cash generated or spent relating to investment activities. Investing activities include purchases of physical assets, investments in securities, or the sale of securities or assets.
Cash flow from operating activities
Cash flow from operating activities (CFO) indicates the amount of money a company brings in from its ongoing, regular business activities, such as manufacturing and selling goods or providing a service to customers. It is the first section depicted on a company’s cash flow statement
Cash flow from financing activities
Cash Flow from Financing Activities is the net amount of funding a company generates in a given time period. Finance activities include the issuance and repayment of equity, payment of dividends, issuance and repayment of debt, and capital lease obligations.
