Publications

Blog categories

Jan 7, 2016 |
Publications,  |
admin

The purpose of this article is to identify a model of cash flow statement that can be conveniently used for a correct financial analysis, based on the calculation of NOPAT (Net Operating Profit After Taxes). 

For an audit of the company’s performance from a financial point of view, it is essential to provide for the construction of the financial statement which is an account that highlights the causes of change, positive or negative, of cash occurred in a given year, as set forth by IAS 1.

Read More+
Jan 15, 2016 |
Publications,  |
admin

Definition and assumptions

Discounting of cash-flows is a financial process that computes the value today of a stream that you will generate in the future. At constant value, a cash-flow projected into the future is worth less than a cash-flow today for two reasons:

1. we prefer to consume today rather than tomorrow. In order to ensure that a certain individual does not consume a certain good today, we have to grant him that in the future he will have the possibility of consuming larger, the real rate of return;

2. in calculating cash-flows that we expect will be generated in the future, we must take into account some degree of risk or uncertainty which consequently reduces the value in proportion to time estimates.

Read More+
Jan 25, 2016 |
Publications,  |
admin

Financing - decisions and operational policies by which companies raise the necessary resources to support and develop the business, can seriously jeopardize the very survival of the company. Keep tabs on the amount of debt, especially in relation to the ability to bear the cost and to raise in the course of time the resources to repay lenders, is a top priority for any finance manager.

Read More+
Feb 6, 2016 |
Publications,  |
admin

EBIT is an indicator of a company's profitability, calculated as revenue minus expenses, excluding interest and tax. 
EBIT measures the profit a company generates from its operations, for that reason is also called "Operating profit". By excluding tax and interest (expenses and income), we focus solely on the company's ability to generate earnings from operations, ignoring variables such as tax expenses and financial assets.

Read More+
Feb 20, 2016 |
Financial Ratios,  |
admin

The concept of financial leverage 

ROE = ROI + (ROI - Cost of Debt) x (Debt/Equity)
where: Cost of Debt = Financial charges/Debt capital   

Read More+
Mar 4, 2016 |
Financial Ratios,  |
admin

formula2

* (Total Assets-Current Liabilities);

Read More+
Mar 25, 2016 |
Financial Ratios,  |
admin
Apr 2, 2016 |
Financial Ratios,  |
admin
Apr 29, 2016 |
Financial Ratios,  |
admin

For assessing the profitability of a financial plan, the most used quantities are the NPV and the IRR. The Net Present Value (NPV) is defined as the present value of the sum of the discounted cash-flows throughout the duration of the financial plan. This indicator represents the wealth created through the project, updated to the date of reference.

Read More+
May 5, 2016 |
Financial Ratios,  |
admin
May 9, 2016 |
Financial Ratios,  |
admin
May 19, 2016 |
Financial Ratios,  |
admin
Jun 10, 2016 |
Financial Ratios,  |
admin
Jun 26, 2016 |
Financial Ratios,  |
admin
Jul 2, 2016 |
Financial Ratios,  |
admin

Earnings Before Interest and Tax is calculated as revenue minus expenses, excluding tax and interest. It is a measure of a company's earnings from its ordinary, continuing operations. Earnings from non-recurring, one-off operations or activities and financial result are not included. EBIT is the same as operating profit and trading profit. 

Read More+
Jul 14, 2016 |
Financial Ratios,  |
admin
Jul 29, 2016 |
Financial Ratios,  |
admin
Aug 6, 2016 |
Financial Ratios,  |
admin
Aug 18, 2016 |
Financial Ratios,  |
admin
Sep 6, 2016 |
Financial Ratios,  |
admin
Sep 25, 2016 |
Financial Ratios,  |
admin
Oct 2, 2016 |
Financial Ratios,  |
admin
Oct 13, 2016 |
Financial Ratios,  |
admin
Nov 11, 2016 |
Financial Ratios,  |
admin
Dec 17, 2016 |
Bibliography,  |
admin

Barry Elliot and Jamie Elliot – Financial Accounting and Reporting, Pearson, 2015

Brealey A., Myers S. C. – Corporate Finance, McGraw-Hill, 2015

Ciaran Walsh – Management Ratios, FT Publishing, 2015

Damodaran A. – Corporate Finance, Stern School of Business New York, 2015

Damodaran A. – Estimating Equity Risk Premiums, Stern School of Business New York, 1999

Damodaran A. – Estimating Risk Free Rates, Stern School of Business New York, 1999

Damodaran A. – Estimating Risk Parameters, Stern School of Business New York, 1999

Derry Cotter – Advanced Financial Reporting, Financial Times, 2016

Fridson M.S. – Financial Statement analysis: a practitoner’s guide, John Wiley & Sons Inc, 2002

Graham and Zehle – Business Planning, The Economist, 2009

Graham B., Dodd D.L., – Security analysis, McGraw-Hill, 2004

Michael Samonas – Financial Forecasting, Analysis and Modelling, Wiley, 2015

Ng Eng Juan – Singapore Financial Reporting Standard, Wolters Kluwer, 2015

Palepu K.G., Healy P.M. Bernard V.L. – Business analysis and valutation using financial statements, South Western College Publishing, 2003

Patrick Ng – Hong Kong Master GAAP Guide, Wolters Kluwer, 2015

Penman S.H. – Financial Statement analysis and security valutation, McGraw-Hill, 2004

PWC – IFRS and US GAAP: similarities and differences - PWC edition, 2016

PWC – Illustrative IFRS consolidated financial statement, PWC edition, 2016

PWC – Manual of accounting IFRS 2017, PWC edition, 2017

Ross, Westerfield, Jordan – Fundamentals of Corporate Finance, Asia Global Edition, 2016