basics in finance
DESCRIPTION
Ashraf S. Youssef, Ph. D. Senior Member ASQ, Quality Assurance ManagerTRANSCRIPT
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Ashraf S. Youssef, Ph. D.,Senior Member, ASQ
Quality Assurance Manager
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1 DVC Direct Variable Cost1. DVC Direct Variable CostCosts that are directly charged to the goods and services sold. They are composed by: Material Cost, Direct labor and Direct Expenses., p
2. MBC Manufacturing Based CostIt includes all costs related to the production but can not be directly traceable to a specific product/project, i.e., Plant management cost, maintenance cost,…
3 SFC Structure Fixed Cost3. SFC Structure Fixed CostNecessary fixed cost to run a company. They can be further split into 2 categories; CBC: Commercial Based costs; All costs related to sales, ; ,marketing, and commercial engineering which objective is to develop sales and promote; and ABC: Administrative Based Costs; Costs related to the company administration and generalthe company administration and general management (HR, Admin, Finance, IT, QA, and GM)
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1. Current Assets Could be Liquid immediately Cash in BanksAccounts ReceivablesInventory
-Stock-WIP-Finished GoodsFinished Goods-Goods in Transit (GIT)
Prepaid Expenses-Insurance
R-Rent2. Fixed Assets Building
MachinesFurnitureFurnitureITLoss DepreciationNet ValueNet ValueTotal Assets Current + Fixed
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3. Liabilities Short TermAccounts payables to vendorsAccounts payables to vendorsBanks & DraftsLiabilities to inter Company
Long TermLong TermEnd of ServiceLoans C l4. Partners Equity CapitalProfitDividendsTotal Liabilities Liabilities + PartnersTotal Liabilities Liabilities + Partners
EquityBalance 0
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1 Sales1. Sales
2. Cost Cost of Sales-Direct Cost (Material, MBC)
Gross profit
SFC (Admin, HR, Finance, QA)Depreciations ValuepOperational Profit
EBIT
InterestTaxes
Net Profit
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1. Current Ratio Current Assets / Current Liabilities
2. Current QuickRation
(Current Assets – Inventory)/current LiabilitiesRation3. Net profit Return - Based on Sales Profit/Sales
4. Return on Equity Profit/Equity
5. Return on Assets Profit/Assets
6. DSO: Days Sales outstanding (Net Rec. Averagey g ( g/Monthly Average sales) * 360
7. DIN Days in Inventory ((Inventory + WIP + GIT)/Monthly Avg.COGS) * 360
8. COGS Cost of Goods Sold DVC +MBC
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9. DVC Margin Sales - DVC
10. GM Gross Margin Sales – COGS
11. EBIT Earning Before Interests & Taxis
GM - SFC
12. Backlog Booking YTD-Invoicing YTD12. Backlog Booking YTD Invoicing YTD
13. OWC Operation working Capital
Inventories + WIP + Receivables -PayablesPayables