福特的财务培训资料

FINANCEDEFINITIONS&GLOSSARYOFTERMSREVENUEVARIABLEMARKETINGNETREVENUECONTRIBUTIONCOSTCONTRIBUTIONMARGINPERIODCOSTSOTHERINCOME/(EXPENSE)COMPENSATIONFACTORSPARTS&ACCESSORIESPROFITSTOTALAUTOMOTIVEPROFITFINANCINGTOTALCORPORATEPROFITFINANCEDEFINITIONS&METRICSAREBASEDONTHEINCOMESTATEMENTMATERIALWARRANTYOUTBOUNDFREIGHTPROCESSINGCOSTSLABOR&OVERHEADINBOUNDFREIGHTSPENDINGRELATEDOBSOLESCENCEOTHERPERIODCOSTSENGINEERINGFIXEDMARKETINGADMINISTRATIVESELLINGMEASUREOFPRE-TAXPROFITEARNEDAFTERVARIABLEMARKETING&CONTRIBUTIONCOSTSARETAKENINTOACCOUNTMEASURESWHETHERANADDITIONALSALEOFAVEHICLECONTRIBUTESPROFITTOTHECOMPANY.ONAFINANCIALBASIS,ITDOESNOTMAKESENSETOPRODUCEANITEMTHATCANNOTCOVERITSCONTRIBUTION(I.E.,OUT-OF-POCKET)COSTS.USEDTOCALCULATEVOLUMEVARIANCE&INCREMENTALPROFITFORAVEHICLENETREVENUELESSCONTRIBUTIONCOSTSSUCHASMATERIAL,WARRANTY&OUTBOUNDFREIGHTCONTRIBUTIONMARGINDEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLENETREVENUE$3.0500$6,000CONTRIBUTIONCOSTS(1.0)500(2,000)CONTRIBUTIONMARGIN$2.0500$4,000GROSSPROFIT(BILS.)VOLUME(000)UNITPROFITMEASUREOFTHEOVERALLPROFITABILITYOFAPRODUCT,MARKET,OPERATION,ORBUSINESSAREABEINGEVALUATED,AFTERALLCOSTSARETAKENINTOACCOUNT.ALSOCALLEDACCOUNTEDPROFITREFLECTSTHE“BOTTOMLINE”CONTRIBUTIONORPERFORMANCEOFAPRODUCTORBUSINESS,AFTERABSORBINGITSPERIODCOSTSNETREVENUELESSCONTRIBUTION&PERIODCOSTS.ALTERNATIVELY,CONTRIBUTIONMARGINLESSPERIODCOSTSPROFITSBEFORETAXES(PBT)DEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLECONTRIBUTIONMARGIN$2.0500$4,000PERIODCOSTS(1.4)500(2,800)PBT$0.6500$1,200GROSSPROFIT(BILS.)VOLUME(000)UNITPROFITMEASUREOFPROFITSAFTERTAX,INCLUDINGMINORITYINTERESTSEXERNALVIEWOFTHECOMPANYUSEDTOMEASUREOVERALLCOMPANYPROFITABILITYPROFITSBEFORETAXES(PBT)LESSTAXES&MINORITYINTERESTOFCONSOLIDATEDSUBSIDIARIESDEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLENETINCOMEPBT$500TAXES(175)PAT$325MINORITYINTEREST50NETINCOME$275NETREVENUEISCOMPANYREVENUELESSVARIABLEMARKETINGCOSTS.NETREVENUEGROWTHMEASURESPERIOD-TO-PERIODGROWTHMEASURESTHERATEOFSALESGROWTH,INCLUDINGEFFECTOFVOLUMESTHEDIFFERENCEBETWEENPRESENTPERIODNETREVENUE&PRIORPERIODNETREVENUEDIVIDEDBYPRIORPERIODNETREVENUENETREVENUEGROWTHDEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLEPRESENTPERIODNETREVENUE–PRIORPERIODNETREVENUEPRIORPERIODNETREVENUE$750-$725$725==3.4%FINANCIALMEASUREMENTOFPROFITRELATIVETOREVENUEENABLESCOMPARISONSACROSSINDUSTRIES&BETWEENCOMPANIESOFDIFFERENTSIZES.WIDELYUSEDRATIOTHATDETECTSOPERATIONALEFFICIENCYTHEDIFFERENCEOFAUTOMOTIVEPROFITS&TAXESDIVIDEDBYNETREVENUEDEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLEAFTER-TAXRETURNONSALES(ROS)AUTO.PBT–TAXESNETREVENUE$950-$333$18,125=3.4%MEASUREOFTHECHANGEINTOTALPROFITRESULTINGFROMAPROPOSEDCOURSEOFACTIONCOMPAREDWITHTHE“NEXT-BEST”ALTERNATIVE.ALSOCALLED“DECISIONPROFIT”.THETERMDECREMENTALITYISUSEDFORPROJECTSWHERESALESARENOTPROJECTEDTOINCREASE,BUTWOULDDECREASEWITHOUTTHEACTION(I.E.,AVOIDEDLOSTPROFIT)EVALUATESTHEFINANCIALATTRACTIVENESSOFAPARTICULARDECISION.SINCEINCREMENTALPROFITSARECOMPAREDWITHTHE“NEXTBEST”ALTERNATIVE,APROFITINDICATESAMOREFAVORABLECONTRIBUTIONTOTHECOMPANYTHANANYOTHERACTIONCONTRIBUTIONMARGINGENERATEDINCLUDESAPROGRAM’SINCREMENTALSALESLESSLOSTCONTRIBUTIONMARGINFROMSUBSTITUTIONSALESFROMOTHERCOMPANYVEHICLES,ADJUSTEDFORCHANGESINPERIODCOSTS.USUALLYSHOWNONACYCLE-AVERAGEBASISINCREMENTALPROFITDEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLEEXPEDITION100,000$7,000$700EXPLORER(20,000)6,000(120)INCR.PERIODCOSTS-(200)TOTAL80,000$380INCR./(SUB)SALESPROFITEFFECT(MILS.)PERUNITTHELEVELOFSALESATWHICHCONTRIBUTIONMARGINEQUALSPERIODCOSTS.USUALLYEXPRESSEDINTERMSOFUNITVOLUMEORASAPERCENTAGEOFWHOLESALEVOLUMEORCAPACITYQUANTIFIESTHECOMPANY’SFLEXIBILITYTOREMAINPROFITABLEGIVENCHANGESINSALESVOLUME.SIMILARLY,PROVIDESPROSPECTIVEONTHECOMPANY’SFINANCIALOPERATINGSTRUCTUREEQUALSTOTALPERIODCOSTSDIVIDEDBYCONTRIBUTIONMARGINPERUNITBREAKEVENDEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLETOTALPERIODCOSTS=$20BILLIONUNITCONTRIBUTIONMARGIN=$4,000BREAKEVENVOLUME=5.0MILLIONUNITSTHERATETHATAPROJECT’SINITIAL&SUBSEQUENTCASHINVESTMENTSARERECOVEREDBYITSCASHFLOWS.ALSOREFERREDTOASTHEINTERNALRATEOFRETURNINFINANCIALLITERATUREDETERMINESIFAPROJECTMEETSFINANCIALREQUIREMENTS–THECOMPANY’S“COSTOFCAPITAL”,ADJUSTEDFORRISKFACTORS.ALSOPROVIDESAMEASURETORANKTHEATTRACTIVENESSOFDIFFERENTPROJECTSUSINGASSUMPTIONSCONSISTENTWITHTHOSEUSEDTOCALCULATEINCREMENTALPROFIT,THETARRISTHEDISCOUNTRATETHATEQUATESTHECASHFLOWSOFAPROJECTTOTHEINITIALCASHINVESTMENTTIMEADJUSTEDRATEOFRETURN(TARR)DEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLECASHINVESTMENTCASHFLOWS$0=$(150)MILS.+R=TARR$30MILS.+$50MILS.+…(1+R)(1+R)²AMETRICUSEDTOEVALUATERISK,ITISTHETIMEITTAKESFORANINVESTMENTTORECOVERTHEREQUIREDCASHOUTLAY(EXPRESSEDINNUMBEROFYEARS&MONTHSFROMJOB#1)QUANTIFIESTHETIMEPERIODTHEINVESTMENTISEXPOSEDTOCHANGINGCONDITIONSBEFORETHEINVESTMENTHASBEENRECOVERED.THELONGERTHEPAYBACKPERIOD,BOTHINABSOLUTETERMS&RELATIVETOTHECYCLELENGTHOFTHEPROJECT,THEGREATERTHERISKBYYEAR(&MONTH),THECASHFLOWS(USEDFORTHETARRCALCULATION)ARETOTALEDUNTILTHEYEQUALZEROPAYBACKPERIODDEFINITIONRATIONALE/THEORYCALCULATIONEXAMPLEYEAR1$(150)$(150)YEAR230(120)YEAR350(70)YEAR4700PAY