Some Important metrics/key figures to ask or know : Electricity production External electricity sales volume External gas sales volume External revenue EBITDA Operating result Income before tax Net income/shareholders’ share in income Recurrent net income Return on capital employed (ROCE) Weighted average cost of capital (WACC) before tax Value added Capital employed Cash flows from […]

Birds eye-view of the Balance Sheet and Income statement. Please remember its very high level comparison.   Balance Sheet and Income Statement Comparison Manufacturing Financial Services Assets Cash Cash Accounts Rec Investments Inventory Loans Fixed Assets Bldg’s Liabilities Accounts Payables Deposits Long Term Debt Savings Equity Other Borrowings Capital  Inc/Exp Sales Total Int. Income COGS Total. […]

You are hired as a Management Consultant from McKinsey with some recognition among prestigious accounting and costing circles. Here is the run down of the case….. Union County serves a populace of around 40,000 citizens, and carries out certain welfare services for its citizens such as a recreation facility complete with gymnasium, a library, children’s […]

Continuing from previous Treasury Article ……. 1.4   Cash flows from Operating, Investing and Financial Activities Traditional methods of cash flow analysis with emphasis on net earnings and net assets have little meaning to global banks except for identifying some macro trends within their businesses. These banks evaluate funding and liquidity positions and policies quite differently […]

The central management of funding, liquidity, capital and foreign exchange exposures in a global operations bank come under the preview of its Treasury.  These activities are overseen by a Capital Allocation and Risk Management Committee  or a similar group which generally includes the Chief Executive, Chief Financial Officer, Chief Risk Officer and the Treasurer. Monitoring […]