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Summary Unit 5- Financial Performance

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Lesson + Book notes Includes: -Financial Objectives -Budgeting -Cash Flow -Break-Even Analysis -Profitability -Sources of Finance -GPM, OPM, PFYM FORMULAS If there's something wrong with the document, contact me on Instagram : @arina_shumova_

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Financial Objectives

IncreaseRevenue increaseoutput reduceprice

decrease Costs increaseproductivity

Increase
profit reducecosts
ImproveCashFlow increasepay
ables reducereceivables

Capital expenditure spendingonlargebusinessassets

Return on Investment

Capital structure ratioofequityanddebtthatformbusinesscapital

Debt as a t of longterm funding gearing

PROFIT us CASH FLOW

differencebetweentotalrevenues and differencebetween cash inflows mainlyrevenue
totalcostsover a period and coshoutflows vests

the biggestdifference
is thetiming
Returnon investment t capitalthat getbackfrom aninvestment
of you
Gearing thepercentageof abusinesscapitalmadeupfromdebt
peoplewhoowethebusinessmoney
Receivables debtors


Payables creditors peoplewhoareowedmoney bythebusiness

Budget anagreedfinancial planforthefutureconcerning therevenues costsandtheprofitof
a business overa periodoftime usuallyoneyear

varianceanalysis differencebetween abudgetandanactualexpenditure
favourable whencostsarelowerthanexpected orrevenue is higherthan expected
couldbecausedby
strongermarketdemand to ahighersales
competitorweaknessleading
increaseinsellingprices
betterefficiency productivity


adverse whencostsare higher orrevenuelowerthanexpected

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Uploaded on
January 13, 2024
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2023/2024
Type
Summary
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