Business Management - Basics, Indicators and Planning Systems
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Table of Contents of this PDF with 80 pages
- The Core of Business Management
2. Important pairs of terms: income and expenses, etc.
- Business annual financial statements - derived from the annual financial statements in accordance to fiscal and commersial laws
3.1 Profit and Loss Statement (P&L)
3.1.1 Profit
3.1.2 Ordinary profit
3.1.3 EBIT and EBITDA
3.2 Balance sheet
3.2.1 Assets within the company
3.2.2 Borrowed capital, debts
3.2.3 Equity
3.2.4 Depts not covered by assets
3.2.5 Extraordinary items on the liabilities side
3.3 Indispensable supplements for analysis
3.3.1 Capacities and production processes
3.3.2 List of individual loans and short-term liabilities
3.4 Additional reports from the accounting office
- Profitability, liquidity and stability – the first step of assessement
4.1 Profitability
4.1.1 Share of fixed costs in total contribution margin %
4.1.2 Profit rate %
4.1.3 Profitability of all factors combined
Relative factor remuneration %
Net profitability %
4.1.4 Profitability of individual factors labor, land and capital
Earnings from labor per hour
Ground rent per hectar
Total return on capital %
4.2 Liquidity – including deposits and withdrawals
4.2.1 About the term ‘cash flow’ – a preliminary check
4.2.2 Gross cash surplus
4.2.3 The two methods for deriving cash flows
4.2.4 The three most important cash flows for entrepreneurs
Cash flow 1 = operational cash flow
Cash flow 2 = cash flow for repayments and self-financing of investments
Cash flow 3 = cash flow for self-financing of investments
4.2.5 Adjusted deposits and adjusted withdrawals
4.2.6 Repayments according to business management principles
4.2.7 Benchmarks for cash flows
Depreciation (= replacement investments),
Long-term and mid-term benchmarks
Replacement investment coverage rate %
4.2.8 Debt service limits and their utilisation %
4.2.9 Advantages of cash flow for self-financing of investments
4.3 Stability
4.3.1 Adjusted change in equity
4.3.2 Equity ratio %
4.3.3 Debt coverage %
4.3.4 Degree of obsolescence %
4.4 Income statement and cash flow statement according to IFRS 18
- Costs-benefits-calculation – the second step of assessement
5.1 Controlling in business management
5.2 Partial costs
5.2.1 Benefits, variable costs and contribution margins
5.2.2 Total contribution margin
5.2.3 Fixed costs and overhead costs
5.2.4 Ancillary benefits
5.2.5 Share of fixed costs on total contribution margin %
5.3 Full costs
5.3.1 Full cost breakdown according to German Agricultural Society (DLG)
5.3.2 Contribution margin calculation embedded in full costs scheme
5.4 Unit costs
5.5 Costs calculation with company allocation sheet
5.5.1 From P&L scheme to contribution margin scheme
5.5.2 Full costs calculation based on company allocation sheet
5.6 Costs calculation without company allocation sheet
5.6.1 From contribution margin scheme to P&L scheme
5.6.2 Full costs calculation based on contribution margins
5.7 Embedding of special analysis – the example of viticulture
- Consolidated financial statements of several sub-operations
- Intra-year liquidity planning
- Mid-term operational planning
8.1 Sensitivity
8.2 Pay-off-period
8.3 Planning with contribution margin versus without contribution margin
8.4 Static versus dynamic planning
8.5 Alternative target operations
8.6 Year-after-year planning
8.7 Actual year – which one?
Current actual
Calculated actual
Optimized actual
Accounting actual
8.8 Forecast of short-term liabilities
8.9 Actual/plan versus plan/actual
- Double-entry bookkeeping
9.1 Double-entry bookkeeping with plus and minus
9.2 Double-entry bookkeeping with debit and credit