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Teaching Elephants to Dance: Financial Metrics for Non-Financial Executives Dan Ruchman May 18, 2009
What is Business? ,[object Object],[object Object],[object Object],[object Object],[object Object]
What makes for Success? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Success – the Intangibles ,[object Object],[object Object],[object Object],[object Object],[object Object]
What We’ll Talk About ,[object Object],[object Object],[object Object],[object Object],[object Object]
Accounting -- & Balance ,[object Object]
[object Object],[object Object],[object Object]
Who are You? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Who are THEY? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Non-accountants
BABEL? ,[object Object]
Language of the Universe ,[object Object],[object Object]
Language of Business ,[object Object],[object Object]
Language of Finance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
P&L –  or Income Statement, or Stmt of Operations, or Statement of Earnings ,[object Object],[object Object],[object Object],[object Object],[object Object]
Basic P&L $4,000  Profit After Tax 1,000  Taxes 5,000  Profit Before Tax (PBT) 10,000  Operating Expenses 15,000  Gross Profit 10,000  Cost of Goods Sold (COGS) $25,000  Revenue (Sales) 2008 ($ in 000s)
P&L:  A lot of terms in a short amount of time ,[object Object],[object Object],[object Object],[object Object],[object Object]
More P&L - Costs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
More P&L – Expenses ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
P&L – Terms & Ratios ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A word on EBIT… ,[object Object]
Another Word on EBITDA ,[object Object]
A Final Word on EBITDA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EBITDA ,[object Object],[object Object]
Key P&L Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object]
Risk versus Reward ,[object Object]
More on Risk & Reward ,[object Object],[object Object],[object Object]
Return: A Holy Grail
Balance Sheet ,[object Object],[object Object],[object Object],[object Object]
Basic Balance Sheet 22,000  Total Liabilities and Equity 5,000  Equity 17,000  Total Liabilities 12,000  Long-term Debt 5,000  Current Liabilities Liabilities 22,000  Total Assets 12,000  Fixed Assets, less Depreciation 10,000  Current Assets Assets ($ in 000s) 2008
Balance Sheet - Terms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Balance Sheet – The Other Side ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Balance Sheet:  Equity ,[object Object],[object Object],[object Object],[object Object]
Balance Sheet: Key Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cash Flow ,[object Object],[object Object],[object Object]
Cash Flow – Key Terms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cash Flow – Key Issues ,[object Object],[object Object],[object Object],[object Object]
Other Key Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Concepts ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Thinking – Inside, Outside, Through the Box
A Story ,[object Object]
Questions to be Answered ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Galileo… Updated for Business ,[object Object],[object Object],[object Object]
Why You’re Here ,[object Object],[object Object]
Teaching Elephants to Dance ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Accounting Day Teaching Elephants2 Dance Dan Ruchman

  • 1. Teaching Elephants to Dance: Financial Metrics for Non-Financial Executives Dan Ruchman May 18, 2009
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  • 16. Basic P&L $4,000 Profit After Tax 1,000 Taxes 5,000 Profit Before Tax (PBT) 10,000 Operating Expenses 15,000 Gross Profit 10,000 Cost of Goods Sold (COGS) $25,000 Revenue (Sales) 2008 ($ in 000s)
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  • 28. Return: A Holy Grail
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  • 30. Basic Balance Sheet 22,000 Total Liabilities and Equity 5,000 Equity 17,000 Total Liabilities 12,000 Long-term Debt 5,000 Current Liabilities Liabilities 22,000 Total Assets 12,000 Fixed Assets, less Depreciation 10,000 Current Assets Assets ($ in 000s) 2008
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  • 40. Thinking – Inside, Outside, Through the Box
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