Performance evaluation, Financial Management

Assignment Help:

Performance evaluation

One can determine this by comparing the cash flow from assets and cost of capital.

1. Cash flow from assets

Cash flow from assets is calculated as Operating Cash flow - Net Capital Spending - Change in NWC.

        1. Operating Cash flow

            Operating Cash flow = Earnings before interest and taxes + depreciation - taxes

        2. Net capital spending 

            Net capital spending is money spent of fixed assets less money received from the sale of fixed assets.
           Net capital spending = Ending net fixed assets - Beginning net fixed assets + Depreciation

        3. Change in Net working capital

           Net working capital is difference between current assets and current liabilities. Change in net working capital is the difference            between net working capital between two years. 


Related Discussions:- Performance evaluation

Payback period, Payback Period It is an amount of time, mainly measured...

Payback Period It is an amount of time, mainly measured in years; it takes previously the undiscounted cash inflows from a project equal the cash outflow. It indicates the leng

Audit systems, Enron did not manages its trade account receivable in signif...

Enron did not manages its trade account receivable in significant manner that made huge financial loss for the organizations. Hence, the management faced biggest fraud due to the f

UMMB, what is the benefits of UMMB

what is the benefits of UMMB

Monitoring and controlling budgets, Monitoring and Controlling Budgets: ...

Monitoring and Controlling Budgets: The preparation of budgets is only part of the budget cycle.  Once set, an organisation should actively monitor actual revenue and expenditu

Determine finance growth and evolution, a) Debentures are a source of exter...

a) Debentures are a source of external long term (loan) finance for which interest is paid to the debenture holder. Debenture holders do not usually have voting or ownership rights

measuring yield spreads, A yield spread between any two bond issues ...

A yield spread between any two bond issues can be easily computed when the maturity date for both these issues is same. The yield spread between these two bond

Assessing creditworthiness of an issuer of bond, Following are the areas an...

Following are the areas an analyst should consider while assessing the creditworthiness of an issuer. 1. Security Limitations: The bond indenture shoul

Revenues, Revenues Revenues are the gross income received before any de...

Revenues Revenues are the gross income received before any deductions for discounts, expenses, returns, and so on. It is also called sales in most organization. A much less c

Define ‘trust''. explain in detail the various types of trust, Question 1 ...

Question 1 Define 'Trust'. Explain in detail the various types of Trust Question 2 Discuss the concept of Tax Planning. Identify difference between Tax Planning and Tax Ev

Interest rate risk, Bonds are usually recognized by yields, which cha...

Bonds are usually recognized by yields, which change from time to time owing to many market forces. There exists an inverse relationship between the bond price and the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd