Financial Diagnosis and Financing Plan for a Company

Extract

[...] 2008 2009 2010 CAF 234 000 234 000 234 000 Disposals of fixed assets 22 500 TOTAL RESOURCES 256 500 234 000 234 000 Dividends 39 750 36 000 Acquisition of fixed assets 540 000 Increase in BFRE 450 000 TOTAL EMPLOIS 990 000 39 750 36 000 Variation in working capital (733 500) 194 250 198 000 Working capital at opening (733 500) (539 250) Working capital at closing (733 500) (539 250) (341 250) Calculation of the annuity: * 0.05 / - = 69 292 Period This initial period Interests Capital repaid Annuit 2008 300 000 15 000 54 292 69 292 2009 245 708 12 285 57 007 69 292 2010 188 700 9 435 59 857 69 292 2011 128 843 6 442 62 850 69 292 2012 65 993 3 300 65 993 69 292 2008 2009 2010 CAF 234 000 234 000 234 000 Disposals of fixed assets 22 500 Increase in capital 450 000 Loan 300 000 - Net interest (10 000) (8 190) (6 290) TOTAL RESOURCES 996 500 225 810 227 710 Dividends 39 750 36 000 Acquisition of property, plant and equipment 540 000 Increase in BFRE 450 000 Repayment of the loan 54 292 57 007 59 857 TOTAL EMPLOYEES 1 044 292 96 757 95 857 Variation in working capital (47 792) 129 053 131 853 Working capital at opening (47 792) 81 260 Working capital at closing (47 792) 81 260 213 113 In the end Over the 3 years studied the financing plan is largely balanced. The investment operation therefore proves more interesting than internal financing alone. Borrowing allows a company to benefit from the financial leverage effect. This, provided that the profitability of the investment before financing is higher than the interest rate after tax. [...]

[...] The working capital decreases by between 2006 and 2007, while the BFR increases by 34% in the same period: which leads to a decrease in cash. The company has strongly reduced its bank loans: it has repaid 60% more than the previous year. At the same time, the share capital has been increased by ?300,000, i.e The company has therefore prioritized financing from its own funds this year. It thus confirms its financial autonomy, as the financial autonomy ratio passes from 1 in 2006 to 1.5 in 2007. [...]

[...] Financial Diagnosis and Financing Plan for a Company I. FILE 1 A. First Part Interim Management Balances" The ETE is the balance between the cash flows generated by the collected products and the operating expenses debited. It is the surplus generated by the operating operations. It allows to know the contribution of the operating activity to the formation of the cash during the exercise. Its interest also lies in the fact that it is independent of the investment policy. The ETE differs from the EBE as it excludes stock variations. [...]

[...] This cash flow was used in 2007 to repay long-term financial debts, as well as for the acquisition of fixed assets. This led to a 43% deterioration in cash flow in 2007, but it remains in surplus nonetheless. The financial diagnosis could have addressed the following areas: investment policy, economic profitability or the evolution of the BFR positions. II. File 2 The financing plan allows for an appreciation of the company's financial ability to ensure the compatibility of these financings and the needs of the activity, with the company's financial capacity. [...]

[...] It allows evaluating the financial health of a company, making investment decisions, or finding the explanation for a problem. a. The company has an exclusively production activity, because there is no commercial margin in the SIG. The turnover increased by 11% from 2006 to 2007, which confirms the high growth mentioned in the statement. The added value followed the same trend: +11.5% change, so the company continues to create as much wealth. Same for the EBITDA, which saw an increase of 11.7%. [...]