The document discusses key performance indicators such as operating margin, return on capital employed, and gearing. It defines operating margin as operating profit divided by revenue. Return on capital employed is defined as operating profit divided by capital employed, where capital employed equals debt plus equity. Gearing is the amount of debt financing a company uses, and is measured as debt divided by debt plus equity. Higher gearing increases risk but lowers the cost of capital due to tax deductibility of interest payments. Free cash flow is defined as cash from operations minus interest, tax, depreciation, and represents cash available to reinvest in the business or return to shareholders.
Here's a link to the full resolution PDF http://static.klipfolio.com/ebook/intro-to-kpis-slides.pdf
In today’s ultra competitive business ecosystem, only the strong survive. In order to keep your team on top of their game, you need to cultivate a data-driven culture by sharing the right performance indicators and business metrics with your team.
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center.
Introduction to Key Performance Indicators and Metrics as applied to Business Analysis profession. It is well known strategy within many top enterprises today "That which you measure and track you influence" and "You cannot improve that which you do not measure".
Here's a link to the full resolution PDF http://static.klipfolio.com/ebook/intro-to-kpis-slides.pdf
In today’s ultra competitive business ecosystem, only the strong survive. In order to keep your team on top of their game, you need to cultivate a data-driven culture by sharing the right performance indicators and business metrics with your team.
A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center.
Introduction to Key Performance Indicators and Metrics as applied to Business Analysis profession. It is well known strategy within many top enterprises today "That which you measure and track you influence" and "You cannot improve that which you do not measure".
To get the best results from implementing RESULTS.com, we recommend that you start by getting clear on the key numbers that will drive your success.
Research shows that (unfortunately) 92% of companies do a poor job of measuring Key Performance Indicators (KPI's). If that sounds like you, we can definitely help!
What are the key numbers that will drive and predict the success of your current business model? Your teams? Your key people?
Choosing the right KPI's (and making them visible) tells your people what they need to pay attention to. In other words, KPI's drive the right behaviors.
This workshop will help you choose the key numbers that will help you identify problems early, and solve them fast. If you get these numbers right, they will drive better financial results!
Definition of the Key Performance Indicators + infographics, explaining types of KPIs and data visualization.
Originally posted here with the article: https://www.kpi.com/blog/2016/02/03/intro-to-key-performance-indicators-infographic/
Why should we talk about KPO and not KPI and make the K usefulRichard Fontaine
Description of what is the difference between Strategic objectives, KPI, performance objectives.
Integrate in one presentation all the concepts on KPI: SMART indicators, leading vs lagging indicator, balanced scorecard, cascading of the objectives
Key Performance Indicators (KPIs) should be used to understand performance and drive better decision-making. However, most companies struggle to find the vital few KPIs. Here is a list of the 25 top KPIs is use today.
A Step by Step Approach to Actionable Website KPIsUnilytics
Learn How Well Designed KPI’s Immediately Inform How Your Website is Performing. This webinar presents a real world methodology to build relevant KPIs that provide direct feedback on the success of your website and organization.
Developing Metrics and KPI (Key Performance IndicatorsVictor Holman
Get a FREE performance management kit and access to all of Victor's full videos at:
www.lifecycle-performance-pros.com
This presentation covers the basics of developing successful performance metrics, from developing winning KPIs, learning how to develop the right metrics, the rules of developing KPIs and metrics and common performance metrics for managing a successful organization.
OKRs and driver based plans by lamorte - aug 2014 san franciscoBen Lamorte
Presented at Business Forecasting 2014 in San Francisco, August 2014. Includes 5 best practices for making driver-based plans work and focuses on Objectives and Key Results.
Key Performance Indicators: Valuable Tools for Measuring PerformanceVesta Corporation
Key performance indicators, or KPIs, can be a valuable tool to help companies evaluate how they are performing. This presentation examines how KPI rates and indicators are calculated, why they can vary from business to business, and when not to compare KPIs to others in the industry. A handy checklist is included to help companies ensure their KPIs support their business needs, as well as how existing KPIs can be refined and thoughts on developing a forward-looking KPI strategy to evolve as the business does.
Visit www.trustvesta.com to view the integrated fraud and guaranteed payments solutions available to your organization.
To get the best results from implementing RESULTS.com, we recommend that you start by getting clear on the key numbers that will drive your success.
Research shows that (unfortunately) 92% of companies do a poor job of measuring Key Performance Indicators (KPI's). If that sounds like you, we can definitely help!
What are the key numbers that will drive and predict the success of your current business model? Your teams? Your key people?
Choosing the right KPI's (and making them visible) tells your people what they need to pay attention to. In other words, KPI's drive the right behaviors.
This workshop will help you choose the key numbers that will help you identify problems early, and solve them fast. If you get these numbers right, they will drive better financial results!
Definition of the Key Performance Indicators + infographics, explaining types of KPIs and data visualization.
Originally posted here with the article: https://www.kpi.com/blog/2016/02/03/intro-to-key-performance-indicators-infographic/
Why should we talk about KPO and not KPI and make the K usefulRichard Fontaine
Description of what is the difference between Strategic objectives, KPI, performance objectives.
Integrate in one presentation all the concepts on KPI: SMART indicators, leading vs lagging indicator, balanced scorecard, cascading of the objectives
Key Performance Indicators (KPIs) should be used to understand performance and drive better decision-making. However, most companies struggle to find the vital few KPIs. Here is a list of the 25 top KPIs is use today.
A Step by Step Approach to Actionable Website KPIsUnilytics
Learn How Well Designed KPI’s Immediately Inform How Your Website is Performing. This webinar presents a real world methodology to build relevant KPIs that provide direct feedback on the success of your website and organization.
Developing Metrics and KPI (Key Performance IndicatorsVictor Holman
Get a FREE performance management kit and access to all of Victor's full videos at:
www.lifecycle-performance-pros.com
This presentation covers the basics of developing successful performance metrics, from developing winning KPIs, learning how to develop the right metrics, the rules of developing KPIs and metrics and common performance metrics for managing a successful organization.
OKRs and driver based plans by lamorte - aug 2014 san franciscoBen Lamorte
Presented at Business Forecasting 2014 in San Francisco, August 2014. Includes 5 best practices for making driver-based plans work and focuses on Objectives and Key Results.
Key Performance Indicators: Valuable Tools for Measuring PerformanceVesta Corporation
Key performance indicators, or KPIs, can be a valuable tool to help companies evaluate how they are performing. This presentation examines how KPI rates and indicators are calculated, why they can vary from business to business, and when not to compare KPIs to others in the industry. A handy checklist is included to help companies ensure their KPIs support their business needs, as well as how existing KPIs can be refined and thoughts on developing a forward-looking KPI strategy to evolve as the business does.
Visit www.trustvesta.com to view the integrated fraud and guaranteed payments solutions available to your organization.
KRA KPI ( Key results area and Key performance indicators)Sagar Paul
The presentation is a creative representation which simplifies the concept of KPI & KRA and its importance in an organisation
Note: View the slide only in SLIDESHOW MODE!
Wayne Lippman presents Accounting BasicsWayne Lippman
Wayne Lippman presents Accounting Basics. This basic overview of the accounting process from Wayne Lippman CPA covers the basic principals of accounting. It includes discussions of accounting ethics, accounting process, roles, Generally Accepted Accounting Practices (GAAP).
Financial Statement Analysis: Learn The Best Tricks And Tips!Andrew Li
Learn how to read financial statements and SEC filings like an investing pro!
Also, check out the last 2 pages for an amazing and exclusive discount offer for my Udemy course on financial statement analysis!
Enterprising Non-Profits hosts learning events for social enterprises (i.e., businesses owned by non-profit organizations).
This PowerPoint presentation is of the slides used at an event on March 16, 2011, on Financial Tools presented by Rebecca Pearson (Vancity Capital) and Emily Beam (Street Youth Job Action).
For information on Enterprising Non-Profits, check out www.enterprisingprofits.ca
A look at some of unit 5. The time value of money, net present value, internal rates of return. Also geared beta's and a look at the OU's version of corporation tax.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
3. www.aqhuman.com
Key performance indicators:
operating margin
Operating margin = operating profit %
revenue
Aqhuman financial training & coaching
It is a measure of
“value added”: the
party that does
most should earn
most
Building up brand
strength often
enhances operating
margin (hence the
large ad. spend on
branded goods)
4. www.aqhuman.com
Key performance indicators:
return on capital employed
To understand roce we first need to look at a 3rd version of
the balance sheet. First the asset=liability version:
Aqhuman financial training & coaching
Assets
Property, plant and
equipment
Cash at bank
Receivables (“debtors”)
Inventories (“stocks”)
Liabilities:
Trade payables (Creditors)
Short term debt
Long term debt
Shareholders’ Equity
5. www.aqhuman.com
Key performance indicators:
return on capital employed
We keep the funding on one side and move the operational
stuff to the other:
Aqhuman financial training & coaching
Assets
Property, plant and
equipment
Cash at bank
Receivables (“debtors”)
Inventories (“stocks”)
Liabilities:
Trade payables (Creditors)
Short term debt
Long term debt
Shareholders’ Equity
-Trade payables
Capital employed
Capital employed
6. www.aqhuman.com
Key performance indicators:
return on capital employed
We keep the funding on one side and move the operational
stuff to the other:
Aqhuman financial training & coaching
Assets
Property, plant and
equipment
Cash at bank
Receivables (“debtors”)
Inventories (“stocks”)
Liabilities:
Trade payables (Creditors)
Short term debt
Long term debt
Shareholders’ Equity
-Trade payables
Capital employed
Capital employed
Now the left hand
side is our
operational
assets (“above
the line”) and the
right just the
funding
7. www.aqhuman.com
Key performance indicators:
return on capital employed
A tidied up version: The total of both sides is called the
capital employed
Aqhuman financial training & coaching
Property, plant and
equipment
Cash at bank
Receivables
Inventories
- Payables
Debt
Shareholders’ Equity
This side comes at a
cost; the weighted
average cost of capital
(“wacc”)
8. www.aqhuman.com
Key performance indicators:
return on capital employed
A tidied up version: The total of both sides is called the
capital employed
Aqhuman financial training & coaching
Property, plant and
equipment
Cash at bank
Receivables
Inventories
- Payables
Debt
Shareholders’ Equity
Leaving this side to pay for that
wacc. So the yield of the
operating side has to cover the
wacc. “Above the line”
produces OPERATING PROFIT
9. www.aqhuman.com
Key performance indicators:
return on capital employed
A tidied up version: The total of both sides is called the
capital employed
Aqhuman financial training & coaching
Property, plant and
equipment
Cash at bank
Receivables
Inventories
- Payables
Debt
Shareholders’ Equity
So the yield of the
operational side is
operating
profit/capital
employed
10. www.aqhuman.com
Key performance indicators:
return on capital employed
Aqhuman financial training & coaching
Property, plant and
equipment
Cash at bank
Receivables
Inventories
- payables
Debt
Shareholders’ Equity
Every pound
taken into the
company as
funding; either as
debt or equity...
Costs
WACC
per £
11. www.aqhuman.com
Key performance indicators:
return on capital employed
Aqhuman financial training & coaching
Property, plant and
equipment
Cash at bank
Receivables
Inventories
- payables
Debt
Shareholders’ Equity
Remember this is
a balance sheet
so...
Is represented
by a pound on
the
operational
side
Must yield
ROCE per £
Costs
WACC
per £
12. www.aqhuman.com
Key performance indicators:
return on capital employed
Aqhuman financial training & coaching
Property, plant and
equipment
Cash at bank
Receivables
Inventories
- payables
Debt
Shareholders’ Equity
And that pound
needs to yield at
least the wacc
Must yield
ROCE per £
Costs
WACC
per £
13. www.aqhuman.com
Return on capital employed
To summarise:
Return on capital = operating profit %
employed (roce) capital employed
Where capital employed = debt + equity
Aqhuman financial training & coaching
14. www.aqhuman.com
Gearing
Gearing is a measure of how we finance our business.
There are two standard definitions:
Gearing = Debt % or Debt %
Equity Debt + equity
Aqhuman financial training & coaching
15. www.aqhuman.com
Gearing
Which is more expensive, debt or equity?
For a given company it is equity. Why?
Aqhuman financial training & coaching
Return
RiskEquityDebt
16. www.aqhuman.com
Gearing
Equity is more expensive because shareholders take more of a risk; they
are the last to get a share of the profits each year and they are the last
to get a pay out of assets in the event of a liquidation
Aqhuman financial training & coaching
Return
RiskEquityDebt
17. www.aqhuman.com
Gearing
In other words because equity investors have taken more of a risk they
expect a higher return and so the company must find more profit to
accommodate that expectation
Aqhuman financial training & coaching
Return
RiskEquityDebt
18. www.aqhuman.com
Gearing
So why do companies not have huge gearing ratios if debt is cheaper?
Because life is not that simple!
Aqhuman financial training & coaching
Return
RiskEquityDebt
19. www.aqhuman.com
Gearing
As your gearing increases so does the risk profile of your company
increase; investors are getting nervous that their interest or dividends
are not going to be paid because of the extra loans that need to be
serviced
Aqhuman financial training & coaching
Return
RiskEquityDebt
21. www.aqhuman.com
Gearing
Look what happens to the risk return graph when you increase gearing:
Aqhuman financial training & coaching
Return
RiskEquityDebt #1
One more loan
#2
Each loan is
more
expensive as
the chance of
getting paid is
lowered
22. www.aqhuman.com
Gearing
Look what happens to the risk return graph when you increase gearing:
Aqhuman financial training & coaching
Return
RiskEquityDebt #1
One more loan
#2
Equity gets more
expensive as the
shareholders are now
at the back of a longer
queue
23. www.aqhuman.com
Gearing
But despite the previous analysis, we find that by increasing the
gearing we do lower the cost of capital. Why?
Because the cost of debt, interest, is tax deductible. In other
words the payment is effectively subsidised
by the government.
This subsidy has the effect of lowering WACC
until gearing gets so high as to cancel the
“tax shield” effect.
Aqhuman financial training & coaching
24. www.aqhuman.com
Free cash flow
Let us consider the key elements of the cash flow statement:
First...
Cash from operations
Aqhuman financial training & coaching
This is the “engine room” of the
business. Your customers need to be
paying you more in cash than you
are paying your suppliers – or else
where how is the deficit to be
funded?But we also need
to take account
of those items
that are non-
discretionary
25. www.aqhuman.com
Free cash flow
Cash from operations
Less interest
Less tax
Less depreciation
= Free cash flow
Aqhuman financial training & coaching
But why
depreciation?
26. www.aqhuman.com
Free cash flow
Cash from operations
Less interest
Less tax
Less depreciation
= Free cash flow
Aqhuman financial training & coaching
It gives us an estimate of how much we
need to spend each year just to replace
existing fixed assets (we take the
replacement of old assets as non-
discretionary otherwise our business
becomes non-productive)
27. www.aqhuman.com
Aqhuman Financial Training
Aqhuman’s principal is Kevin Amor, FCA. Kevin qualified as a
chartered accountant with PWC. He spent 12 years working
in commerce at financial controller/director level.
Kevin now has more than 12 years experience in financial
training. He trains managers at all levels and gives 1 to 1
financial coaching to senior executives.
He also teaches corporate finance and
accounting for a number of business
schools’ MBA programmes.
Aqhuman financial training & coaching