General Topics - Business Accumen
Gross Profit = Revenue-Costs of Goods Sold
Operating Income = Gross Profit - Overhead
Net Income / Profit = Op Income - Taxes
The Big Picture
The big picture of our main job: Contribute to Building a company experiencing long-term, sustainable, profitable growth.
How what we do fits into the overall picture of helping the company make money, achieve its strategic objectives, and be profitable.
Focus on overall business, not the operations of my department of division.
Senior management team wants the entire business to be profitable, not just a single unit.
Cash from Operations
Cash from Investing
Cash from Financing
Is the present value of the future cash streams from investment greater than the cash investment?
- Cash Invested
- Future Cash streams (Amount, Time)
- Discount Rate
Cash Flow Statement: Cash
Income Statement: Profit/Growth /People
Balance Sheet: assets
Refers to a company's ability to stay viable during the ups and downs of the market place.
Debt to Equity Ratio
Refers to a company's ability to efficiently and effectively use its assets to generate profits.
Return on Assets (ROA)
Return on Equity (ROE)
- Sales (Top Line)
- Profit (Bottom Line)
- Shareholder Value