bookmate game
en
Vibrant Publishers

Financial Management Essentials You Always Wanted To Know

Kitap eklendiğinde bana bildir
Bu kitabı okumak için Bookmate’e EPUB ya da FB2 dosyası yükleyin. Bir kitabı nasıl yüklerim?
  • Александр Чикиткинalıntı yaptı5 yıl önce
    FCF = EBIT x (1 – T) + Depreciation – Capital expenditure – Change in net operating working capital
  • Александр Чикиткинalıntı yaptı5 yıl önce
    When making capital budgeting decisions companies use free cash flow to check whether the investment is worth making. Free cash flow is the cash that remains for distribution to all investors, stockholders and debtors, after the company has made all investments in fixed assets, and in additional working capital needed to run its operations.
  • Александр Чикиткинalıntı yaptı5 yıl önce
    Investment decisions involving fixed assets are called Capital Budgeting.
  • Александр Чикиткинalıntı yaptı5 yıl önce
    company borrows money from stockholders and invests that in Assets that help the company generate sales which finally generate profit. This gives us the below three entities:
    Borrowing from Stockholders to invest in Assets
    Assets-to-Equity ratio = Total Assets/Stockholders’ Equity
    Assets help generate Sales
    Asset Turnover ratio = Sales/Total Assets
    Sales generate Profit
    Return on Sales = Net Income/Sales
    If we combine all the three entities above, we get ROE as below:
    ROE = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Stockholders’ Equity)
    The above expanded ROE equation helps us understand where the company needs to improve if its ROE is low.
  • Александр Чикиткинalıntı yaptı5 yıl önce
    ompany borrows money from stockholders and invests that in Assets that help the company generate sales which finally generate profit. This gives us the below three entities:
    Borrowing from Stockholders to invest in Assets
    Assets-to-Equity ratio = Total Assets/Stockholders’ Equity
    Assets help generate Sales
    Asset Turnover ratio = Sales/Total Assets
    Sales generate Profit
    Return on Sales = Net Income/Sales
    If we combine all the three entities above, we get ROE as below:
    ROE = (Net Income/Sales) x (Sales/Total Assets) x (Total Assets/Stockholders’ Equity)
    The above expanded ROE equation helps us understand where the company needs to improve if its ROE is low.
  • Александр Чикиткинalıntı yaptı5 yıl önce
    Return on Equity is given as:
    ROE = Net Income/Stockholders’ Equity
  • Александр Чикиткинalıntı yaptı5 yıl önce
    Cash Times Interest Earned ratio = Cash earned before Interest and Tax/Interest expense where, Cash earned before Interest and Tax = Cash from Operating Activities + Interest expense + Income tax expense
  • Александр Чикиткинalıntı yaptı5 yıl önce
    Cash Times Interest Earned ratio = Cash earned before Interest and Tax/Interest expense
  • Александр Чикиткинalıntı yaptı5 yıl önce
    would be greater than 1 for a “cash cow” that is able to pay for its capital expansion using cash generated from operations alone. It does not need any further financing in form of debt or equity
  • Александр Чикиткинalıntı yaptı5 yıl önce
    Cash Flow Adequacy ratio = Cash from Operating Activities/Cash used in Investing Activities
fb2epub
Dosyalarınızı sürükleyin ve bırakın (bir kerede en fazla 5 tane)