Today I spent 2 hours studing the capital appropriation request, below are the main financial indicator that executive team or the CFO focus on.
From top view, below items are listed in the final one-page form.
Fixed capital
Working capital
Unpaid tooling
Pre tax expense
Total commitment
Customer Reimbursed amount
Net cash outlay
key financial indicators:
Pre-tax ROS (return on sales)
net income
ROI (return on investment)
DCF-IRR
Cash flow payback years
INCOME STATEMENT
sales
manufacturing cost
gross margin and percentage
incremental machine depreciation
cum depreciation
expense (SG&A expense, R&D expense and other expense)
operation income
interest for cost of capital
profit before tax
tax
net income
ROS (pre-tax)
ROI
CASH FLOW STATEMENT
Net-Income (loss)
Book Depreciation (addback)
Tax effect of tax over Book
Depreciation (addback)
Interest after Tax (addback)
Disposed Equipment
Project Fixed Capital
Change in Working Capital:
Inventory
Receivables
Payables
Write-off W.C.
Residual Value
Annual CASH FLOW - DCF
Cumulative CASH FLOW - DCF
Annual CF - Payback
Cumulative CASH FLOW - Payback
Determination Payback year
Determination Payback year reduction
CASH FLOW PAYBACK - YEARS:
DCF - IRR
PRE-TAX INTEREST CALCULATION
Net Fixed Capital
Net Working Capital
Write-off
Net Assets
Average Net Assets
Interest as defined in Exb. II
WORKING CAPITAL SUMMARY
Fixed Capital
Accumulated Depreciation
Net Fixed Capital
Working Capital
Inventory
Receivables (Question: why calculate Receivables and Payables every year n the working capital summary?)
Payables
Write-off
Total Working Capital
Total Investment
Average Investment