Tip 1: How to calculate the discount factor

Instruction

Coefficient discounting directly related to time and income factors. It is an indicator that reflects the ratio of future income to their current present value. This ratio helps to determine what percentage of income increase should be in order to get the desired result in the future. Allows you to predict the dynamics of cash flows.

This economic indicator is used in all financial areas. It is used to determine the economic efficiency of a project or activity of a particular organization. The calculation of the cost of capital investments and the costs of business plans is also not complete without this coefficient. With the help of it, alternative options are compared, which one is less expensive in terms of resources and the use of funds.

Bid discounting is the main component of the coefficient discounting. It represents the cost of capital raised. The expected return at which the investor is willing to invest in this project. Bid discounting variable and is influenced by many factors. In each case considered separately, they are different.

When calculating the rate, the following options can be used: the inflation rate, the profitability of an alternative project, the cost of the loan, the refinancing rate, the weighted average cost of capital, the desired profitability of the project, expert assessment, interest on deposits, etc. The discount rate is chosen directly by the person who makes calculations for determining the discounted value.

Coefficient discounting always less than 1. It determines the quantitative value of one monetary unit in the future, subject to the calculation conditions.

Calculate percent fulfillment plan for the main range of products, as well as for work in progress. Index fulfillment plan in this case, it is calculated as the ratio of the total actual volume of output included in the performance plan, for the total planned output, indicated in the business plan or production plan of the enterprise. Level fulfillment plan expressed in percent Oh.

Analyze the received data for percent at fulfillment plan and compare it with the data for the previous reporting period. As a result of such an analysis, it is possible to determine the level of increase in the level fulfillment plan in this reporting period compared to the previous one. If the growth rate is negative, then it is necessary to identify the reasons that negatively affected the performance plan, as well as to develop specific measures to improve the work of the enterprise.

Sources:

plan performance indicators

If you are in a serious business, you probably have to develop and implement projects related, for example, to the construction of various structures. Of course, one cannot do without the development of a project during the construction of a hotel complex, a trade enterprise, a parking lot for cars and other industrial facilities. How to calculate the cost of such a project?

You will need

Estimated calculator

Instruction

Use one of the popular programs to calculate the project, for example, " Estimated Calculator"( http://midoma.ru/calc/final/index.htm). This program is designed to assist in the calculation of the cost of design. The calculator is based on existing regulatory documents, and the calculation is based on the "Collection of basic prices for design work for construction in Moscow." The collection defines the conditions for the formation of prices for design work on the basis of natural indicators, such as sq.m., cubic meters, ha, and so on.

Before using the program, read the manual for its use. Please note that the program is intended to assist in design cost calculations, but cannot provide an absolute guarantee of the applicability of the calculation results to your specific conditions. The main advantage of the program is that it gives direction for its own design calculations and orients in order of prices for carrying out certain types of work within the framework of the project.

Open the calculator from the link above (no need to download the program and install it on your computer). When you first start the program, you will see two buttons on the screen: "Create an estimate" and "Help". Click on the "Create Quote" button.

Make sure the search box for the price you want opens. To search, use the filter by the name of the design object, for example, select "Hotels" or "Industrial facilities".

In the price editor window that appears when you select a design object, enter the price parameters and design sections. In the right part of the window, remove unnecessary sections of the project or add the necessary ones. Keep in mind that the total partition ratio can be edited, but cannot exceed 100% in total.

After selecting sections and editing the price, click "Save to estimate". In the table that opens after that, add an additional price, if necessary, or delete the existing one.

Prepare an estimate for project work. To do this, click on the "Export" button or select the "Operations with an estimate" item on the "Export" menu tab. Now fill in the data necessary for the preparation of the estimate, including the name of the design object, the Customer, the Contractor, and so on). Select the export method, i.e. file format (pdf file or html file). Save the results obtained during the calculations to disk or print.

Tip 7: How to determine the transport tax coefficient

In the case of the sale or purchase of a car, the question arises of the correct calculation of the transport tax coefficient, determined in accordance with paragraph 3 of Article 362 of the tax code and indicated in column 9 of section 2 of the transport tax tax return.

Instruction

Remember that according to Chapter 28 of the Tax Code of the Russian Federation, taxpaying organizations after each reporting period (quarter) are required to calculate the amount of the advance payment for transport tax and submit to the tax authority a tax calculation for advance payments of this tax. Use the tax calculation form and recommendations for filling it out approved by order of the Ministry of Finance of the Russian Federation.

In section 2 of the calculation in column 11, reflect the amount of the calculated advance payment for the reporting period. To calculate, calculate 25% of the product of the tax base, tax rate and coefficient from column 9, clause 14. Calculate this coefficient by dividing the number of full months during which the car was registered to the taxpayer by the number of full months in the reporting period.

Specify the value of the coefficient as a decimal fraction with an accuracy of the second decimal place (up to hundredths). Accept the month of registration and the month of deregistration of the car for the whole month. If the car was registered and deregistered in the same calendar month, enter 1 full month.

For example, if a car was sold in August, then calculate the transport tax coefficient for the III quarter as follows. The number of months during which the car was registered, take 2 (July and August). The number of months in the reporting period (in the third quarter) is 3. Dividing 2 by 3, you get 0.67. This coefficient and indicate in the declaration.

In the case of purchasing a car, calculate the transport tax coefficient in the same way. In this case, for each vehicle, conduct a separate calculation of the coefficient. Calculate the amount of the advance payment for the quarter by multiplying the coefficient received by the engine power and by the tax rate for each horsepower of power.

Sources:

p 3 st 362 nc rf

Profitability or profitability is a relative indicator of economic efficiency, which shows the degree of expediency of using monetary, material, labor, natural resources. This indicator, as a rule, is calculated when analyzing the financial condition of the enterprise and directly affects the investment attractiveness.

Instruction

Calculate the profitability ratio as the ratio of the company's profit to its assets, available resources. You can also express the indicator in terms of profit from certain products per unit of funds invested in obtaining it, or in the profit that any received monetary unit brings with it. For convenience and clarity, use a percentage expression.

Determine the return on sales. This indicator expresses the quality and correctness of the company's or enterprise's pricing policy, and also shows the company's ability to control its own costs.
Calculate the profitability of sales by dividing the company's net income by revenue. The rate of return, which shows the proportion of profits in each monetary unit earned, is usually calculated as the ratio of net income after tax for a certain period of time to the volume of sales denominated in money for the same period of time.

Different approaches to competition and product lines produced or sold create large discrepancies in the profitability of sales of different companies. It should be noted that even if the figures for revenue, costs and profit before taxes are the same for two companies, the profitability of sales can vary greatly due to the influence of the number of interest payments on the amount of net income.

When analyzing activities, you need to be able to calculate other indicators of the profitability of the enterprise. For example, calculate the return on assets as the ratio of operating income to the average size of total assets over a certain period. The result of the calculations shows the ability of the company's assets to make a profit.

The return on equity is the ratio of net profit from investments to the average amount of one's capital over a certain period.

Return on invested capital - the ratio of net operating income to the average for a certain period of own and borrowed capital.

Profitability of products is the ratio of net profit from products to its full cost.

Profitability of fixed assets - the ratio of net profit to the number of fixed assets.

Related videos

Discounting is a method of determining the future value of cash flows, i.e. bringing the amount of future income to the present moment in time. In order to correctly assess their value, it is necessary to know the forecast values of revenue, expenses, investments, capital structure and bet discounting, i.e. rate of return on invested capital.

Instruction

Most often rate discounting is defined as the weighted average cost of capital. When using this method, you will get the most objective result. To calculate the rate discounting use the following formula: WACC = Re(E/V) + Rd(D/V)(1-Tc), where Re is the rate of return on equity (cost of equity), %; E is the market value of equity; D is the market value of borrowed capital; V is the total cost of borrowed capital and shares of the company (equity capital); Rd is the rate of return on borrowed capital (the cost of borrowed capital); Tc is the income tax rate.

rate discounting equity you can calculate as follows: Re = Rf + b(Rm-Rf), where Rf is the nominal risk-free rate of return; Rm is the average rate of return in the stock market; (Rm-Rf) is the market risk premium; b is the coefficient, showing the change in the price of a firm's share compared to changes in the price of shares in a given market segment. In countries with a developed stock market, this ratio is calculated by specialized analytical agencies.

However, please note that this approach allows you to calculate bet discounting not all businesses. It does not apply to companies that are not open joint stock companies, i.e. do not trade shares on the market. In addition, firms that do not have data to calculate their b-factor cannot use it. In these cases, enterprises should apply a different method of calculating the rate discounting.

The cumulative method for estimating the risk premium is based on two assumptions. First, if investments were risk-free, then investors would demand a risk-free return on their capital. Secondly, the higher the owner of the capital evaluates the risk of the project, the higher the requirements for profitability. Based on this, the rate discounting is determined as follows: R = Rf + R1 +..+Rn, where Rf is the nominal risk-free rate of return; R1..Rn are risk premiums for various factors. The presence of each factor and their value is found by expert means. This method is more subjective, since the value of the risk premium depends on the personal opinion of the expert.

Coefficient capitalization is one of the calculated values of financial leverage. Such an untranslatable English word is a group of quantities characterizing the ratio between a company's borrowed funds and its own capital.

Instruction

Coefficient capitalization allows you to determine how large the dependence of the company's activities on borrowed funds. The higher this indicator, the greater the entrepreneurial risk of the organization. The term "company capitalization" in this case should not be confused with market capitalization, these are different concepts. The capitalization of the company is the total amount of capital investments in the produced object, consisting of own and borrowed funds.

Mathematically coefficient capitalization is equal to the ratio of the value of long-term liabilities to the total value of long-term liabilities (borrowed funds) and own funds: KK = DO / (DO + SS).

Coefficient capitalization shows how big the impact of borrowed funds on net income. Accordingly, the greater the share of borrowed funds, the less the company will receive profit, since part of it will go to repay loans and pay interest.

A company, the majority of whose liabilities are borrowed funds, is called financially dependent, the coefficient capitalization such a company would be high. A company that finances its activities with its own funds is financially independent, the coefficient capitalization her low.

Financial leverage is one of the three directions of the system of calculated values, the slightest fluctuations of which lead to significant changes in the main indicators. Leverage in literal translation from English means "lever". In this case, the influence of the capital structure on the amount of net profit received is analyzed.

There are no standard values for the coefficient capitalization, since its value depends on the industry in which the enterprise operates, on the technologies used. This ratio is important for investors considering this company as an investment of their funds. Of course, they are attracted by companies with a large predominance of equity capital, i.e. more financially independent. However, the leverage should not be too low, as this will reduce the share of their own profits that they will receive in the form of interest.

The financial stability of the enterprise can be concluded, knowing the degree of its dependence on borrowed funds, the ability to maneuver its own capital. This information is important for the owners of the company, its investors, as well as contractors (buyers of finished products and suppliers of raw materials).

Instruction

When analyzing financial stability, you can calculate the equity maneuverability ratio. It characterizes the share of sources of own funds of the enterprise, which are in a mobile form. The coefficient of maneuverability shows what part of own working capital is occupied in turnover, and what part is capitalized. At the same time, the company can freely maneuver with working capital, which is in a mobile form.

Use the following formula to calculate the maneuverability factor:
Km \u003d SOS / SK, where
SOS - own working capital;
SC - equity.
In other words, the flexibility ratio is the ratio of the company's own working capital to its own sources of financing its activities. The recommended value for this indicator is 0.5 and above. Its value depends on the type of activity of the enterprise. In capital-intensive industries, its normal level is usually lower than in material-intensive ones.

You can see the amount of equity capital in section III of the liabilities side of the balance sheet. As for the volume of own working capital, this is a calculated value. You can find it in one of the following ways:
1) SOS = SK - VA, where
SC - equity capital of the enterprise;
VA - non-current assets.
2) SOS = OA - KO, where
ОА - current assets;
KO - short-term liabilities of the enterprise.
This indicator characterizes the share of own capital, which is directed to finance its current activities (formation of current assets).

You must take into account that in the dynamics the coefficient of maneuverability should increase. However, its sharp growth is not evidence of the normal development of the enterprise. This is due to the fact that an increase in this ratio is possible with an increase in own working capital or with a decrease in the company's own sources. This means that a sharp increase in this indicator will automatically cause a decrease in others, for example, the autonomy coefficient, which indicates an increase in the company's dependence on creditors.

Enterprises, carrying out commercial activities, constantly acquire fixed assets of different periods of use. These include buildings and structures, machines, mechanisms, etc. But any equipment is subject to moral and material obsolescence. To correctly determine it, a wear factor is introduced.

You will need

Data on the initial cost of fixed assets, the rate of depreciation.

Instruction

Next, you need to deal with the depreciation rate. This concept refers to a predetermined percentage that is deducted from the original cost of the object in order to reimburse it wear. For example, the cost of a car is 800,000 rubles, and its useful life is 10 years. Let its price be 100%, then the depreciation rate as a percentage will be 100% / 10 years = 10% (in absolute terms, 80,000 rubles).

Now, having dealt with the necessary data, we can calculate coefficient wear, which is defined as the ratio of the amount of depreciation for the period of its use to the initial cost of the fixed asset. For clarity, we can continue to consider the example with a car. Let's say that it has been in operation for 6 years. This means that the amount of depreciation charges for this period will be 6 * 80,000 = 480,000 rubles. Coefficient wear will be: 480000/800000 = 0.6

note

The above method of calculating the amount of depreciation is called linear. It implies a uniform write-off of the value of the object for the period of its use.

There is another method allowed in tax accounting, which is called non-linear. Applying it, the company writes off the depreciation rate not from the initial cost, but from the residual. For example, there is a machine tool worth 60,000 rubles, the monthly depreciation rate is 5%. Then the write-off will be as follows:
1 month: 60,000 - 5% = 57,000 rubles;
2 month: 57000 - 5% = 54150 rubles;
3 month: 54150 - 5% = 51442.5 rubles
etc.

Each Russian company is free to choose which depreciation method to use.

Coefficient autonomy used in the analysis of the financial stability of the enterprise. It shows the share of own funds in the total assets of the enterprise. This indicator characterizes the degree of financial independence of the enterprise from external creditors.

the norm is a state in which the company does not experience serious dependence on creditors and can freely and competently manage its own capital.

To analyze financial stability, the coefficients are calculated:
- autonomy;
- the ratio of borrowed and equity capital;
- concentration of own capital;
- concentration of borrowed capital;
- structure of borrowed capital;
- flexibility of own working capital.

To calculate the indicators, you need a balance sheet of the enterprise for at least two years. To evaluate the dynamics of indicators and make a forecast, it is necessary to know the indicators for at least two consecutive periods.

An example of calculating the debt capital concentration ratio

The debt capital concentration ratio is calculated as follows:

Кзк = ЗК/ВБ, where ЗК - borrowed capital, ВБ - balance sheet currency

The balance currency is the total amount of the active or passive part of the balance.

When calculating this indicator, long-term and short-term liabilities of the company are included in borrowed capital. The value of the indicator should not exceed 0.5, that is, the share of borrowed capital in the total mass of funding sources should not exceed 50%.

Banks, providing a loan, necessarily evaluate the share of borrowed funds in order to understand whether the company can pay off its debts.

Usually, the higher the share of borrowed capital, the higher the cost of capital, as banks try to hedge and compensate for possible risk by increasing interest rates.

Assume that two years of company data are known. As of December 31, 2012, the value of borrowed capital is 540 million rubles, and the total amount of the company's capital is 1,256 million rubles. In 2013, the company took out a long-term loan, as of December 31, 2013, the value of borrowed capital is 890 million rubles, and the total value of the company's capital is 1,424 million rubles. Using the debt capital concentration ratio, it is required to determine how the capital structure has changed.

The debt capital concentration ratio at the end of 2012 will be: 540/1256 = 0.43, the value of this indicator in 2013 will be: 890/1424 = 0.63

Analyzing the dynamics of indicators, we can conclude that in 2013 the financial dependence of the enterprise increased; at the end of 2013, borrowed capital accounted for 63% in the structure of the sources of funds of the enterprise.

With the help of discounted cash flow analysis, financial analysts evaluate companies in terms of investment attractiveness. This allows you to get an answer to very specific questions, for example, to determine the amount of injections into the project.

How Cash Flow Discounting Is Used

Cash flow discounting is a valuation technique that allows you to determine the amount of future benefits. This method determines the true value of the company, without regard to the prices and profits of competitive firms. Venture capitalists commission a discounted cash flow analysis to determine future return on investment.

Discounting is often used for real estate analysis as well. Not only cash flows are taken into account, but also other benefits: unrealized loss, tax credits, net proceeds. The purpose of discounting is to evaluate the possible economic benefits and calculate the amount of financial investments in the company.

Stages of applying cash flow discounting

Discounting occurs in six stages. First, accurate forecasts are prepared about the organization's possible future operations. The more accurate they are, the greater the confidence of investors. Further, positive and negative cash flows for each year of the forecast are estimated, and the annual increase in financial resources in the future is calculated. The final value of the company for the last year of forecasts is calculated. The discount factor is determined. This indicator is one of the key elements of cash flow analysis. It reflects the risks involved.

The discount factor is applied to the shortfall and surplus of funds in each year of the forecast and to the final cost of the project. The result is a value that determines the amount of the contribution for each year. If you add these values, you get the current value of the company. The analysis is completed by subtracting existing borrowings from the present value of future cash flows. Thus, an estimate of the current cost of the project is calculated.

Despite the technical complexity of the calculation, cash flow discounting relies on the simple idea that current cash is more valuable than future cash. That is, the return on financial injections will exceed the current value. It makes no sense to invest a hundred dollars in a project only to receive the same amount in the future. Much more attractive is the idea of investing a hundred today in order to get a hundred and twenty tomorrow.

As with all other valuation methods, discounting has its drawbacks. The main one is that, focusing only on future cash flows, it ignores external factors - the ratio of income and share price, etc. In addition, since the method involves accurate forecasting, one must have very good knowledge of the history, market, and nature of the business being valued.

note

It is important to correctly determine the discount rate so that subsequent calculations are as accurate as possible.