Escolar Documentos
Profissional Documentos
Cultura Documentos
Ayman El-Najjar
Outline
• Introduction; the art of Finance and why it matters
• Income Statement; the many peculiarities of IS
• Balance Sheet; it reveals the most
• Cash Statement; cash is king
• Ratios; what the numbers are really telling
• Return on Investment; how to calculate ROI
• Working Capital Management; applied financial
intelligence
• Hate Math!
• Finance and accounting department
• Your boss
• No Time!
• Treasurer:
building and maintaining banking relationship,
managing cash flow, forecasting, equity and
capital-structure decisions, investors relations
Current Assets
= ________________
Current Liabilities
Average Inventory
= ____________________
COGS/360days
360
= _______________
DII
Ending A/R
= ________________
Revenue / 360 days
Ending A/P
= ___________________
COGS / 360 days
Revenue
= __________________
PPE
= _______________
Revenue
Total Assets
• Payback Method:
Pros:
It takes into account the time value of money
It considers business cost of capital or other hurdle rate
It provides answer in today’s dollars
• NPV method
• A: NPV= -$469
• B: NPV= +$303
• C: NPV=+$552
• IRR method
• A: IRR= 0 %
• B: IRR= 20%
• C: IRR= 15%
DSO = 54 days,
DII= 74 days,
DPO= 55 days
Sales per day = $ 241,360
How much working Capital this business
would require to finance its operations?
= 17,619,280