The document contains financial terms and concepts related to sales, budgets, profitability analysis, balance sheets, income statements, and key performance metrics. It discusses calculating product mix variances, sensitivity analysis to determine optimal product pricing and sales, the components of balance sheets and income statements, and defines terms like gross margin, days sales outstanding, EBIT, EBITDA, price to earnings ratio, and dividends. The document provides information on various financial management and accounting concepts for analyzing and reporting on a company's performance.
3. 59
38%
34,7%
When a budget is finalized, it’s “cast in stone” (you can’t change it)
Monthly results competed in 5 working days (compared to budget)
Sensitivity analysis:
Estimation/determining how many products can be sold at a determined price.
Ex:
60 products @ 3000$
costs of table : 1000$
Sales: 60x3000=180.000
Costs of goods: 60x1000=60.000
GM: 60x(3000-1000)=120.000
Voir cours
4. Balance sheet:
(current assets/current liabilities-debs)
Current assets (from the more liquid to the less)
• Cash
• Clients
• Stock/inventories
Fixed assets:
• Office equipment/ furniture
• Motor/vehicles
• Machinery equipment/plant and machinery
• Buildings
Then Sub total Less cumulative depreciation=net fixed assets
Intangible assets
Current liabilities (less than 1 year)
• Short term borrowings
• Suppliers (account payable)
• Advances from suppliers
• Provision (something you need to pay but you don’t know how much,
estimated costs eg. Obsolescent inventory)
• Taxes (VAT) / Corporate income TAX
5. Non current / long-term liabilities
• Long term debt (more than 1 year)
Shareholders equity (Capital, premium)
• Issued share capital
• Share premium
• Reserves (money taken from the profits, they are blocked)
• Retained earnings (profits)
6. DSO: Days sales outstanding ( see how sales are daily managed)
Ex:
Accounts receivable 160
Sales 1000
Inventory 60
Cost of sales 480
Days sales outstanding
(160/1000)*365=58 days
(60/480)*365= 45 days
Incomes statement:
E.B.IT. : Earnings before interest & tax
E.B.I.T.D.A. : Earnings before interest & tax depreciation (normal depreciation) &
amortization (exceptional depreciation “when something goes wrong”)
E.B.T. : Earnings before tax
P.E.R. : Price earnings ration = Price / Annual earnings (per shares)
Growth company:
7. • High sales growth
• High profit growth
• High EPS growth
Dividends : which comp pay divid ? Mature companies : low growth
Utility companies ( electricity / water ) because we all have electronic device ; attract
customer with high dividends Growth companies
If comp stop pay dividend : price of share go down cause the funds will sell your
share
If you have 1000 shares at $10 dividend is $0,20 ; $200 --------20 shares
Transaction costs : when you buy a share you pay 1 or 2% to a broker