Often managers are asked to have an NPV (or DCF) calculation done on projects they are proposing. This NPV calculation will typically be performed by the Finance team. But what are they actually doing? If I asked you to give me £100 now and I told you that I would give you back £100 in… Read more »
Posts Categorized: Financial Awareness
The EBITDA multiple & Business Valuations
Many organisations promote EBITDA as a key way of valuing a business. The idea is that EBITDA (that’s Earnings Before Interest, Tax, Depreciation & Amortisation) measures the amount of cash that a business has generated during the year. While this is not quite accurate, it is a rough guide to the level of cash generated… Read more »
EBITDA
A widely used and often misunderstood way of tracking a business’ performance is to look at its EBITDA. What is this? The acronym stands for Earnings Before Depreciation, Interest, Tax & Amortisation. But what is it actually telling us? Earnings is another word for ‘Profit’. So EBITDA is basically your profit for the period before… Read more »
New Finance for the Non Finance Manager on-line learning programmes
Have a look at our ‘On-line learning’ tab and check out our new Finance for the Non Finance Manager on line learning programmes. There’s loads of video content (over an hour on each programme) plus PowerPoint slide shows to download, Quizzes to test your understanding plus a Finance for the Non Finance Manager Case Study… Read more »
New on line Finance for the Non Finance Manager videos
Have a look at our new Finance for the non Finance Manager videos. There’s a series for UK managers, one for international managers and one specifically aimed at managers in the NHS. You’ll find them on our Business Videos page
Service Line Reporting in the NHS
NHS organisations are moving towards a system of financial reporting known as ‘Service Line Reporting’ (SLR) Service Line Reporting is the same idea that’s used in the private sector for tracking the profitability of individual products and services. In the same way that a telecoms company knows the different costs and profits of its Pay… Read more »
We all depreciate
You may have an idea what the word ‘depreciate’ means. It’s used to describe the fall in value of something and it’s that fall in value that we focus on when we use the word. So, for example, if you buy a car you may talk about how much it has ‘depreciated’ over the past 6… Read more »