Free cash flow (and revenue and profit) in the business plan

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  • Опубликовано: 10 фев 2025

Комментарии • 14

  • @IPONerd
    @IPONerd 5 лет назад +1

    Great video, great channel! New fan here :)

  • @AnilkumarGulia
    @AnilkumarGulia Год назад +1

    it's an eye opener for me but i did not get the whole story. There are many people who consider EPS and pe. not much in free cash flow.
    can you elaborate valuation and forcasting.

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  Год назад

      Nice to hear that! Yes, I can surely elaborate. :-) See links below.
      Free cash flow explained ruclips.net/video/gl3OLtEX2PM/видео.html
      Free cash flow case study Netflix ruclips.net/video/ikizI8dX1SA/видео.html
      Analyzing EPS ruclips.net/video/TRY_mjggMQY/видео.html - it is as much about the denominator (number of shares) as it is about the numerator (net income) of the equation!!!
      Price earnings ratio (including its disadvantages) ruclips.net/video/vQZAnxqYIlo/видео.html

  • @sinkliner3836
    @sinkliner3836 3 года назад +2

    My man is Dutch

  • @apikchasanyasi
    @apikchasanyasi 4 года назад +2

    Which considerations would you keep in mind when drafting a financial plan for an industrial concern? Explain the limitations of financial planning? plz help me with this question plz

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  4 года назад +1

      Hello Apeksha! In terms of the "line items" (financial metrics/terms) to include in a financial plan, see the business plan financials video. For an industrial concern, CapEx planning is very important ruclips.net/video/na4jbAh_vkQ/видео.html In my view, financial planning is limited as it mostly assumes stability, and does not incorporate "unknown unknowns". It is easy to plan for known items, you can build some buffer for "known unknowns", but "unknown unknowns" are impossible to plan for. Imagine building a financial plan in December 2019 to cover 2020 - 2025, and then the current economic turbulence pretty much throws all your planning into the dustbin. It's a VUCA world! ruclips.net/video/KleIttf1xA4/видео.html

    • @apikchasanyasi
      @apikchasanyasi 4 года назад +1

      thank you bt m bcom 1st year so its for my assignment

  • @asad-mp7lr
    @asad-mp7lr 11 месяцев назад

    Why Working capital = AR + I - AP ????
    WC = Current asset - Current Liability
    But there're so many elements of CA and CL
    CA: Cash and Cash Equivalents, Inventory, AR, Prepaid Expenses,...
    CL: Account Payable (AP), Unearned Revenue, Wages Payable,....

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  11 месяцев назад

      Working capital tends to get defined in textbooks as the current assets on a company’s balance sheet minus its current liabilities. There is a much more practical definition, used in everyday business life, that focuses on those items that are (in real life) often the largest in amount: accounts receivable, plus inventory, minus accounts payable. See: ruclips.net/video/c5iigcEppZw/видео.html&pp=gAQBiAQB
      In a cash flow statement, you aim to explain how a company got from its opening cash balance to its ending cash balance, so including cash and cash equivalents into working capital would making the reasoning circular.

    • @asad-mp7lr
      @asad-mp7lr 11 месяцев назад

      @@TheFinanceStoryteller much appriciate for your reply. I've watched your video "working capital management", I love it. BTW, May I ask do you have any courses to get passive income if I have an amount of money in real life? Thank you!!

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  11 месяцев назад

      Happy to help! I have made two videos with my ideas on passive income ruclips.net/video/sUOIlve7TYE/видео.html&pp=gAQBiAQB and my video on dividend investing might also be useful for you: ruclips.net/video/hIvL3XxBljk/видео.html&pp=gAQBiAQB

  • @ShopperPlug
    @ShopperPlug 3 года назад +1

    0:32 - Oh lord lmfao... why does "Nick" look's like someone depicted by an artist from the local Police's crime suspect division?

    • @TheFinanceStoryteller
      @TheFinanceStoryteller  3 года назад +1

      Be nice.... Nick hasn't had a lot of sleep recently, he is working day and night to get his business plan done. 😉