Milica Đurić Kostić on LinkedIn: #finance #ceo #cheatsheet #salescoaching #enterpreneur | 181 comments (2024)

𝗛𝗢𝗪 𝗧𝗢 𝗔𝗡𝗔𝗟𝗬𝗭𝗘 𝗖𝗔𝗦𝗛 𝗙𝗟𝗢𝗪 𝗦𝗧𝗔𝗧𝗘𝗠𝗘𝗡𝗧 🔍 Here is a one-page simplified approach to streamline complex cash flow analysis:🌐 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 (𝗢𝗖𝗙) 𝗘𝘃𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻Assess OCF against net income. A higher OCF compared to net income is favorable. Compare with industry competitors for a holistic view.📈 𝗡𝗲𝘁 𝗜𝗻𝗰𝗼𝗺𝗲Evaluate if net income accurately reflects cash generation. Calculate the ratio of net income to free cash flow for a comprehensive assessment.💼 𝗡𝗼𝗻-𝗖𝗮𝘀𝗵 𝗖𝗼𝘀𝘁𝘀Examine the size and trend of non-cash items. Calculate the ratio of non-cash costs to revenues, switching from cash to non-cash metrics like share-based compensation.📉 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 𝗶𝗻 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗔𝘀𝘀𝗲𝘁𝘀Watch for significant increases in inventory or accounts receivable, indicating potential overstocking, collection issues, or sales slowdown.💳 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 𝗶𝗻 𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀Decreases in current liabilities may impact cash. A substantial drop in accounts payable could suggest unfavorable payment terms with suppliers.💰 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄Calculate free cash flow by summing investing and operating cash flows. This represents available cash after managing operating expenses and investments.📊 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗘𝘅𝗽𝗲𝗻𝗱𝗶𝘁𝘂𝗿𝗲𝘀Evaluate the company's return on assets to gauge the efficiency of capital allocation and consider the useful life of assets.🔄 𝗡𝗼𝗻-𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗔𝘀𝘀𝗲𝘁 𝗗𝗶𝘀𝗽𝗼𝘀𝗮𝗹𝘀Consider the gains or losses from disposed assets, providing insights into past investment decisions and asset management.🏦 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄Financial Leverage effects: If the ROA is higher than the interest rate, it earns more on each dollar of assets than it costs to borrow, which is a leverage effect.📈 𝗟𝗼𝗮𝗻𝘀Assess whether the company is taking on new debt for growth or refinancing existing debt. Calculate the loans-to-revenue ratio for a comprehensive overview._________________________________📌 Elevate your skills in cash flow management with my 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗟𝗲𝗮𝗿𝗻𝗶𝗻𝗴 𝗣𝗮𝗰𝗸𝗮𝗴𝗲: 👉https://lnkd.in/dTWfJV6Z#CashFlowManagement #FinancialForesight #FinanceSkills 💼📈

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Explore these essential 𝗞𝗲𝘆 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀 lists with me: 𝗣𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗞𝗣𝗜𝘀→ EBITDA Margin→ Gross Profit Margin→ Net Profit Margin→ Return on Equity→ Return on Capital Employed→ Return on Assets→ Revenue per Employee→ EBITDA per Employee→ Net Profit per Employee𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 𝗞𝗣𝗜𝘀→ Days Sales Outstanding→ Days Inventory Outstanding→ Days Payable Outstanding→ CCC Days (Cash Conversion Cycle)→ Assets Turnover→ Fixed Assets Turnover→ EBITDA to Interest Coverage→ Total Cost per Employee→ Overhead Costs per Employee𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗞𝗣𝗜𝘀→ Net Working Capital→ Current Assets – Current Liabilities→ Current Ratio→ Quick Ratio→ Cash Ratio→ Working Capital Turnover𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗞𝗣𝗜𝘀→ Equity Ratio→ Debt Ratio→ Interest Expense in Loans→ Total COGS in Revenue→ Variable COGS in Revenue→ Fixed COGS in Revenue𝗖𝗮𝘀𝗵 𝗞𝗣𝗜𝘀→ Operating Cash Flow→ Free Cash Flow→ Cash Conversion Cycle→ Free Cash Flow Rate→ Free Cash Flow Realization→ Cash Ratio𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿/𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 𝗞𝗣𝗜𝘀→ Price-to-Earnings (P/E) Ratio→ Price-to-Sales (P/S) Ratio→ Price-to-Book (P/B) Ratio→ Enterprise Value-to-EBITDA (EV/EBITDA) Ratio→ Price-to-Cash Flow (P/CF) Ratio→ Dividend Yield𝗪𝗮𝗻𝘁 𝘁𝗵𝗶𝘀 𝗽𝗼𝘀𝘁𝗲𝗿 𝗶𝗻 𝗵𝗶𝗴𝗵 𝗿𝗲𝘀𝗼𝗹𝘂𝘁𝗶𝗼𝗻? 𝗝𝘂𝘀𝘁 𝗹𝗲𝗮𝘃𝗲 a 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝗞𝗣𝗜 𝗼𝗿 𝘀𝗶𝗺𝗽𝗹𝘆 𝗗𝗠 𝗺𝗲.______________________________________________📌 These KPIs serve as the backbone of the 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴 𝗖𝗼𝘂𝗿𝘀𝗲:👉https://lnkd.in/dyJTBJgt🌐Join our network and elevate your finance career:https://lnkd.in/dbWnBk-i#Handbook #KPIs #PerformanceMeasurement 📊🚀

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I have a 𝗣𝗼𝗹𝗹 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻 for you and would love to hear your thoughts. 📊 𝗖𝗮𝘀𝘁 𝘆𝗼𝘂𝗿 𝘃𝗼𝘁𝗲 𝗮𝗻𝗱 𝘀𝗵𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀! Every perspective matters in shaping effective learning experiences. Feel free to drop comments with your thoughts on what works best for you or any specific preferences! 💭#FinanceEducation #ContinuousLearning #FinanceSkills #LinkedInPoll

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𝗛𝗼𝘄 𝘁𝗼 𝗲𝗻𝘀𝘂𝗿𝗲 𝗮𝗰𝗰𝘂𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗥𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴? 📈In the world of finance, accurate reporting is the foundation of informed decision-making.Let's dive into 16 key points to ensure the integrity of your financial reporting:1. 📚 Establish clear and consistent accounting policies to provide a reliable framework for financial reporting.2. 📆 Ensure transactions are recorded promptly to prevent oversight and maintain up-to-date financial records.3. 🔍 Regularly reconcile accounts to identify and rectify any discrepancies, ensuring accuracy across the board.4. 💡 Implement strong internal controls to safeguard against errors, fraud, and misstatements.5. 🛑 Divide financial responsibilities among team members to prevent any single point of failure or potential manipulation.6. 📈 Base financial reports on realistic forecasts, aligning projections with market conditions and company performance.7. 🔄 Adhere to Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) for consistency and compliance.8. 🛡️ Keep detailed audit trails to trace financial transactions back to their source, enhancing transparency and accountability.9. 🌐 Understand and address the implications of reporting in multiple jurisdictions, considering diverse accounting standards.10. 👥 Invest in ongoing training for finance teams to keep them updated on accounting standards and reporting requirements.11. 🤝 Foster open communication with stakeholders, keeping them informed about financial performance and changes in reporting.12. 🔗 Utilize integrated financial systems to streamline data flow, reducing the risk of errors associated with manual data entry.13. 🔐 Implement robust data security measures to protect financial information from unauthorized access or cyber threats.14. 🚧 Develop contingency plans to ensure financial reporting can continue smoothly during unexpected disruptions or disasters.15. 🔄 Periodically review and update financial reporting processes to adapt to evolving business landscapes and regulatory changes.16. 🤖 Leverage automation and advanced financial tools to enhance accuracy and efficiency in reporting processes.Accurate financial reporting isn't just a goal, it's a commitment to transparency, accountability, and sound decision-making. What additional tips would you add to this list? 💬🔒 #FinancialReporting #AccountingBestPractices #FinanceExcellence

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𝗖𝗮𝘀𝗵 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀 📈💡Scenario analysis isn't just a tool; it's essential for financial foresight.By altering 𝗗𝗣𝗢, 𝗗𝗦𝗢, & 𝗗𝗜𝗢, we see varying cash flow impacts—highlighting its significance.The true power? Turning these insights into actions and understanding our cash cycle better.Prioritize liquidity. Analyze, adapt, and thrive.𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝗮𝗻𝗮𝗹𝘆𝘀𝗶𝘀 𝗶𝗻 𝗰𝗮𝘀𝗵 𝗳𝗹𝗼𝘄 𝗶𝘀 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗯𝗲𝗰𝗮𝘂𝘀𝗲:→ Identifies potential pitfalls or downturns.→ Enables informed and proactive decisions.→ Guides efficient use of capital and resources.→ Provides transparency to investors and creditors.→ Allows for quick adjustments in business strategies.→ Helps in preparing for best and worst-case scenarios.→ Prepares the company for unforeseen market changes.→ Assists in setting benchmarks and evaluating outcomes._________________________________📌This analysis is part of the Corporate Finance Modeling Course. 👉 https://lnkd.in/d55Fu6Mq#Cash #ScenarioAnalysis #FinancialInsights

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𝗪𝗔𝗖𝗖 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗼𝗻𝗲𝗻𝘁𝘀 🧮Weighted Average Cost of Capital serves as a compass in the financial landscape, guiding companies toward optimal capital structures. It is a pivotal metric in determining the required rate of return. It encapsulates the returns expected by both bondholders and shareholders, providing the company with the capital it needs.🔍 𝗘𝘅𝗽𝗹𝗼𝗿𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗼𝗻𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝗔𝗱𝗷𝘂𝘀𝘁𝗺𝗲𝗻𝘁 𝗙𝗮𝗰𝘁𝗼𝗿𝘀+Risk-Free Rate+Equity Premium RatexAdjusted for Leveraged Industry Beta+Size Risk Premium+Country Risk Premium+Specific Risk Premium💹 𝗖𝗼𝘀𝘁 𝗼𝗳 𝗘𝗾𝘂𝗶𝘁𝘆+Cost of Debt Before Tax-Tax Effects+Cost of Debt After Tax🔄 𝗖𝗮𝗹𝗰𝘂𝗹𝗮𝘁𝗶𝗻𝗴 𝘁𝗵𝗲 𝗪𝗲𝗶𝗴𝗵𝘁𝗲𝗱 𝗔𝘃𝗲𝗿𝗮𝗴𝗲Understanding how each component contributes to the weighted average is crucial for an accurate assessment of WACC.______________________________________📌 WAAC is included in the Business Valuations section of the 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗠𝗮𝘀𝘁𝗲𝗿𝗰𝗹𝗮𝘀𝘀.👉 https://lnkd.in/dQudUZKM✔ 𝟱𝗵+ of Video Materials (35 Lessons in 5 Modules)✔ 𝟱𝟬+ Finance Modeling sheets in Excel✔ 𝟯𝟯𝟬+ Pages of Instructions in PDF✔ 𝟯𝟬+ Bonus Materials✔ 𝟭𝟬+ Languages subtitle#finance #accounting #WACC #capitalcost #investing #analysis

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🚀 𝟱 𝗽𝗶𝗹𝗹𝗮𝗿𝘀 𝗳𝗼𝗿 𝗴𝗿𝗼𝘄𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗰𝗮𝗿𝗲𝗲𝗿 📈Improve your career potential in finance with these key pillars.𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗦𝘁𝗮𝘁𝗲𝗺𝗲𝗻𝘁𝘀 𝗔𝗻𝗮𝗹𝘆𝘀𝘁Decode the language of business and master regulations for precise financial insights. 𝗣𝗹𝗮𝗻𝗻𝗶𝗻𝗴 𝗮𝗻𝗱 𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 𝗘𝘅𝗽𝗲𝗿𝘁Craft financial models to predict and influence organizational performance. 𝗖𝗮𝘀𝗵 𝗙𝗹𝗼𝘄 𝗠𝗮𝗻𝗮𝗴𝗲𝗿Optimize and track your organization's financial lifeblood with dynamic cash flow models. 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻𝘀 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘀𝘁Assess company worth like a pro, mastering DCF models and market trend analysis. 𝗠&𝗔 𝗠𝗮𝗲𝘀𝘁𝗿𝗼Navigate the complex world of mergers and acquisitions, from modeling to strategic fit assessment. 𝘊𝘩𝘦𝘤𝘬 𝘵𝘩𝘦 𝘱𝘰𝘴𝘵𝘦𝘳 𝘣𝘦𝘭𝘰𝘸 𝘵𝘰 𝘴𝘦𝘦 𝘵𝘩𝘦 𝘧𝘶𝘭𝘭 𝘴𝘱𝘦𝘤𝘵𝘳𝘶𝘮 𝘰𝘧 𝘴𝘬𝘪𝘭𝘭𝘴 𝘢𝘯𝘥 𝘮𝘦𝘵𝘩𝘰𝘥𝘴 𝘵𝘰 𝘨𝘳𝘰𝘸 𝘺𝘰𝘶𝘳 𝘧𝘪𝘯𝘢𝘯𝘤𝘦 𝘤𝘢𝘳𝘦𝘦𝘳!_________________________________📌 If you are ready for the first steps to grow your career based on these 5 pillars, start with these 5 modules given with 35 lessons and 50+ modeling spreadsheets:👉 https://lnkd.in/dy78qaFT🌹𝗨𝘀𝗲 𝗼𝘂𝗿 𝗩𝗮𝗹𝗲𝗻𝘁𝗶𝗻𝗲'𝘀 𝗗𝗮𝘆 𝗢𝗳𝗳𝗲𝗿 - 𝟱𝟬% 𝗼𝗳𝗳!!! 𝗨𝗻𝘁𝗶𝗹 𝗠𝗼𝗻𝗱𝗮𝘆, 𝗙𝗲𝗯 𝟭𝟵.#careerdevelopment #finance #FinanceCareer

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𝗜𝗙𝗥𝗦 🆚 𝗨𝗦 𝗚𝗔𝗔𝗣 Ever wonder why companies seem to speak different financial languages? It all comes down to the accounting standards they use! 𝗪𝗵𝗼 𝗦𝗲𝘁𝘀 𝘁𝗵𝗲 𝗥𝘂𝗹𝗲𝘀?IFRS: The International Accounting Standards Board (IASB) operates globally, creating consistent standards for over 140 countries.US GAAP: The Financial Accounting Standards Board (FASB) oversees US standards, primarily used in the US. Efforts are underway toward convergence, but some differences remain.𝗪𝗵𝗮𝘁 𝗱𝗼𝗲𝘀 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝘆𝗼𝘂?𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀Comparing companies across borders for informed investment decisions.𝗔𝗻𝗮𝗹𝘆𝘀𝘁𝘀Adjusting analysis techniques to account for differing presentation and recognition rules.𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀𝗲𝘀Navigating complexity and potential additional costs when reporting under both standards.𝗖𝗼𝗻𝘃𝗲𝗿𝗴𝗲𝗻𝗰𝗲 𝗘𝗳𝗳𝗼𝗿𝘁𝘀:Ongoing efforts by the IASB and the FASB aim to reduce differences between IFRS and US GAAP, improving global comparability.💭Share your thoughts - have you encountered challenges due to differing accounting standards?________________________________________________________📌Join us here to learn more and discuss this and other topics in finance:👉 https://lnkd.in/dz7XpUz9#IFRS #USGAAP #FinancialReporting #AccountingStandards

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𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗼𝗱𝗲𝗹𝗶𝗻𝗴 is the art of translating assumptions into a structured representation of a company's financial performance. This handbook includes the most important facts. Here's a simplified breakdown:𝗔𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀• Key factors like GDP growth, inflation, and interest rates.• Industry specifics include market growth, share changes, and competition.• Revenue considerations like sales volume, growth rate, and pricing.• Cost factors cover fixed vs. variable costs, escalation rates, and economies of scale.• Capital considerations such as debt-to-equity ratio and dividend payout.• Other variables include Capital Expenditure, Working Capital, and Depreciation.𝗠𝗼𝗱𝗲𝗹 𝗦𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲Clear instructions, validation sheets, historical reports, projections, and analysis.𝗠𝗼𝗱𝗲𝗹 𝗔𝗰𝗰𝘂𝗿𝗮𝗰𝘆 𝗩𝗮𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻Checks ensuring accuracy in total assets, net income, and cash flow.𝗖𝗼𝗻𝘀𝗶𝘀𝘁𝗲𝗻𝗰𝘆 𝗖𝗵𝗲𝗰𝗸𝘀Assessments comparing assumed growth rates with actual projections.𝗗𝗼'𝘀 𝗶𝗻 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴✅Keep it simple.✅Use consistent formatting.✅Document assumptions transparently.✅Implement version control.✅Regularly review and update.𝗗𝗼𝗻'𝘁𝘀 𝗶𝗻 𝗠𝗼𝗱𝗲𝗹𝗶𝗻𝗴❌Avoid hardcoding.❌Don't overcomplicate.❌Never neglect data validation.❌Be cautious with external links.❌Remember the model's limitations.💭𝗪𝗮𝗻𝘁 𝘁𝗵𝗶𝘀 𝗽𝗼𝘀𝘁𝗲𝗿 𝗶𝗻 𝗣𝗗𝗙? 𝗗𝗿𝗼𝗽 "𝗺𝗼𝗱𝗲𝗹𝗶𝗻𝗴" 𝗶𝗻 𝗮 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 𝗼𝗿 𝘀𝗶𝗺𝗽𝗹𝘆 𝗗𝗠 𝗺𝗲 𝗮𝗻𝗱 𝗜 𝘄𝗶𝗹𝗹 𝘀𝗲𝗻𝗱 𝗶𝘁 𝘆𝗼𝘂. __________________________________________________📌If you like to develop your modeling skills and build a model that creates sustainable growth, let's practice together: 👉 https://lnkd.in/dmVZUc3V#Finance #Modeling #FinancialAnalysis #BusinessInsights

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