Advice 1: How to calculate discount factor

Discounting is a definition value of future cash flows in real time. The coefficient of discounting shows how much cash we get given the time factor and risks. With it, we convert future value the value at the moment.
How to calculate discount factor
You will need
  • calculator;
  • -knowledge of financial management
Instruction
1
The coefficient of discounting is directly connected with the factors of time and income. It is an indicator reflecting the ratio of future income to their current present value. This ratio helps to determine what should be the percentage increase of income to get the desired result in the future. Allows to predict the dynamics of cash flows.
2
This economic indicator is used in all financial sectors. It is used to determine the economic efficiency of the project or activity specific to your organization. Calculation of cost of capital and cost in business plans is also not complete without this factor. It compares alternative options, determine which is the least costly part of the supply and use of funds.
3
The formula of calculation is as follows: kd=1/(1+d)^nd = rate of discount or discount rate;n = time or number of periods during which you plan to receive the income.
4
Rate discounting is the main constituent element of factor of discounting. It represents the cost of capital. Expected return an investor is willing to invest in this project. Rate discount variable quantity, it is impacted by numerous factors. In each considered case they are different.
5
When calculating the rate can be used the following options: the rate of inflation, the profitability of the alternative project, the cost of credit, the refinancing rate is the weighted average cost of capital, the desired profitability of the project, peer assessment, interest on deposits etc. discount rate is chosen by the person who performs the calculations to determine present value.
6
The coefficient of discount is always less than 1. It determines a quantitative value of one currency unit in the future, subject to the conditions of the calculation.
Note
It is important to determine the discount rate, so that subsequent calculations were the most accurate.

Advice 2 : How to calculate the percentage of the plan

Effective functioning of the enterprise in a market economy can only be achieved in the case of continuously monitoring the volume and quality of products. Analysis of execution of production and sales you need to spend each month, quarter, semester and year.
How to calculate the percentage of the plan
You will need
  • - production plan or business plan.
Instruction
1
Set forecast targets for the production and sale of products. The targets on the main range of products you need to take the data identified in the strategic business plan or the production plan of the enterprise. The production plan is usually developed at the beginning of the reporting period and approved by the Director. The production plan should include not only projections for the period, but also the need for financial resources for the achievement of the targets.
2
Determine the total actual volume of output read out in the implementation plan of the reporting period. To do this, consider the data on gross output of the enterprise, that is all produced and sold finished goods, including WIP, and completed projects of the company. To obtain reliable estimates of the execution of the production plan needs to analyze the percentage of execution plan for the main products and of unfinished production.
3
Calculate the percentage of implementation of the plan for the main range of products and of unfinished production. Index execution plan in this case is calculated as the ratio of the total actual production volume related to the implementation of the plan, the total planned output identified in the business plan or the production plan of the enterprise. Level execution plan expressed in percentageAh.
4
Analyze the resulting data for the percentageat the execution plan and compare it with the data for the last reporting period. The result of this analysis can determine the level of increase in the level of implementation of the plan in this reporting period compared to last. If the growth rate is negative, it is necessary to identify the causes that negatively affected the implementation of the plan, and to develop specific measures to improve enterprise performance.

Advice 3 : How to determine the rate of the transport tax

In the case of a sale or purchase of a vehicle, the question arises about the correct calculation of the rate of the transport tax, determined in accordance with paragraph 3 of article 362 of the tax code listed in column 9 of section 2 of the tax Declaration on transport tax.
How to determine the rate of the transport tax
Instruction
1
Remember that according to Chapter 28 of the RF tax code taxpayers-organizations at the end of each reporting period (quarter) are required to calculate the amount of the advance payment of the transport tax and to provide to the tax on tax calculation on advance payments of this tax. Form of tax calculation and advice on completion of use approved by the Ministry of Finance of the Russian Federation.
2
In section 2 the calculation of the column 11 will reflect the amount of the advance payment calculated during the reporting period. To calculate calculate 25% of the tax base, tax rates and the ratio of column 9 to p. 14. This ratio is calculate by dividing the number of full months during which the vehicle was registered to the taxpayer, by the number of full months in the reporting period.
3
The value of the coefficient, specify as a decimal accurate to the second decimal (up to hundredths). The month of registration and the month of de-registration take the car for a whole month. If the car was registered and removed from the register in the same calendar month, enter 1 month.
4
For example, if the car sold in August, the rate of the transport tax for the III quarter calculate in the following way. The number of months during which the car was registered, take 2 (July and August). The number of months in the reporting period (the third quarter) is 3. Dividing 2 by 3, we get a value of 0.67. This factor, and specify in the Declaration.
5
In the case of the purchase of the machine the ratio of the transport tax expect the same. Thus, for each vehicle keep a separate calculation factor. The amount of the advance payment for the quarter calculate by multiplying the resulting ratio to the power of the engine and on the tax rate for each horsepower of capacity.

Advice 4 : How to calculate a discount rate

Discounting is a method of determining the future value of the cash flows, i.e. a reduction of amount of future revenues to the present time. In order to properly assess their value, it is necessary to know the predicted values of revenue, expenses, investments, capital structure and rate of discounting, i.e. the rate of return on invested capital.
How to calculate a discount rate
Instruction
1
Most often, the rate of discounting is determined as the weighted average cost of capital. Using this method you will get the most objective result. For the calculation of the discount use the following formula:WACC = Re(E/V) + Rd(D/V)(1-Tc), гдеRe – rate of return on equity (cost of equity), %;E is the market value of equity;D – market value of debt capital;V – the total value of borrowed capital and shares of the company (equity);Rd – rate of return of borrowed capital (cost of capital);Tc is the tax rate on profits.
2
The rate of discounting of equity capital you can calculate as follows:Re = Rf + b(Rm-Rf), гдеRf – nominal risk-free rate of return;Rm – the average rate of return on the stock market;(Rm-Rf) – market risk premium;b is a coefficient showing the change in the share price of the company in comparison with changes in stock prices in this segment of the market. In countries with a developed stock market the ratio is calculated by the specialized research agencies.
3
However, note that this approach allows to calculate rate of discount is not for all businesses. It does not apply to companies that are not open joint-stock companies, i.e. do not trade shares in the market. In addition, it can not use firms that have no data to calculate its b–factor. In these cases, enterprises should apply another method of calculating the rate of discounting.
4
Cumulative evaluation method the risk premium is based on two assumptions. First, if the investment was risk-free, investors would require a risk-free return on their capital. Second, the higher the capital owner assesses project risk, the higher the demands it makes on the profitability. On this basis, the rate of discounting is determined as follows:R = Rf + R1 +..+Rn, гдеRf – nominal risk-free rate of return;R1..Rn is the risk premium on the various factors.The presence of each factor and their value is set by experts. This method is more subjective, since the value of the risk premium depends on the personal opinion of the expert.

Advice 5 : How to calculate the flexibility ratio

On financial stability, we can conclude, knowing about the extent of its dependence on borrowed funds, the ability to maneuver their own capital. This information is important for the owners of the company, its investors, and counterparties (buyers of finished products and raw material suppliers).
How to calculate the flexibility ratio
Instruction
1
In the analysis of financial stability, you can calculate the coefficient of maneuverability on equity. He characterizes the share of sources of own funds located in a mobile form. The flexibility ratio shows what portion of working capital engaged in circulation, and what is capitalized. Thus working capital in a mobile form, the company is free to maneuver.
2
To calculate the flexibility ratio use the following formula:
Km = SOS/SK, where
SOS working capital;
SK – equity.
In other words, the flexibility ratio is the ratio of own circulating capital of the enterprise to private sources of funding. The recommended value for this indicator is 0.5 or higher. Its value depends on the type of activity of the enterprise. In asset-intensive industries to its normal level, usually below, than material-intensive.
3
The amount of equity capital you can see in the third section of the liabilities side of the balance sheet. With regard to the level of working capital, it is a calculated value. You can find one of clubusacasino:
1) SOS = SK ISLANDS, where
SK – equity enterprises;
VA – non-current assets.
2) COC = OA – KO, where
OA – floating assets;
CO – current liabilities of the company.
The indicator defines the share of capital which goes to funding its current operations (the formation of current assets).
4
You have to consider that the dynamics of the flexibility ratio needs to increase. However, its rapid growth is testimony to the normal development of the enterprise. This is due to the fact that the increase in this ratio is possible with the growth of its own working capital or by reducing their own sources of the enterprise. So, the sharp increase of this indicator will automatically trigger a decrease in others, for example, the coefficient of autonomy, indicating an increasing dependence of the enterprise from creditors.

Advice 6 : How to calculate the depreciation factor

Enterprises carrying out commercial activity, constantly acquire fixed assets of different term usage. These include buildings and structures, machines, mechanisms and so on. But any equipment is subject to the moral and material obsolescence. To properly define it, enter the factor of wear and tear.
How to calculate the depreciation factor
You will need
  • Data on original cost of fixed assets, the rate of depreciation.
Instruction
1
First, you need to figure out what was the original cost of the purchased object of fixed assets. These data can be emphasized from primary documents. This invoice, receipts, invoices, and so on.
2
Next, you need to deal with the depreciation rate. This notion implies a pre-determined percentage that is deducted from the initial value of the object to recover its wear. For example, the cost of the car amounts to 800,000 rubles, and its useful life of 10 years. Let his price is 100%, then the depreciation rate in percentage would be 100%/10 years = 10% (in absolute terms 80000 rubles).
3
Now, having dealt with the necessary data, it is possible to calculate the coefficient of wear, which is defined as the ratio of the amount of depreciation for the period to the original cost of the asset. For clarity, you can continue to consider the example with the car. Let's say that he operated for 6 years. Means the amount of the depreciation during this period will be 6*80000 = 480000 RUB. the Coefficient of wear is:480000/800000 = 0.6
Note
The above method of calculating the depreciation amounts is called linear. It implies a linear-cost facility for the period of its use.

There is another permitted tax accounting method called nonlinear. Applying it, the company withdraws depreciation rate not with the original cost and the residual. For example, a machine cost 60,000 rubles, the monthly depreciation rate is 5%. Then cancellation will occur:
1 month: 60000 - 5% = 57000 rubles;
2 month: 57000 - 5% = 54150 RUB;
3 month: 54150 - 5% = 51442.5 RUB
etc.

Each Russian company itself is free to choose which method for the calculation of depreciation to apply.

Advice 7 : How to calculate the coefficient of autonomy

The coefficient of autonomy used in the analysis of financial stability. It shows the share of own funds in total assets of the enterprise. This indicator characterizes the degree of financial independence of the enterprise from external creditors.
How to calculate the coefficient of autonomy
You will need
  • -the balance sheet of the enterprise;
  • calculator.
Instruction
1
For more accurate calculations it is necessary first to compile the aggregated balance sheet on the basis of the balance sheet. This transformation inside the balance does not violate the structure of assets and liabilities, it allows you to merge articles on economic content. The coefficient of autonomy can be calculated and without the preparation of pre-form sheet. In this case we can take the data directly from the form No. 1, it is desirable to increase the article "Capital and reserves" in the amount of "prepaid Expenses".
2
Using this data, calculate the coefficient of autonomy by dividing the value of own funds to total assets of the enterprise.
3
Own funds represent a set of financial resources of the enterprise, educated at the expense of the founders and of the financial performance of the organization. In the balance sheet they are reflected in the section "Capital and Reserves", line 490. To find the value of own funds according to the following formula: assets = Liabilities - Borrowed capital. Of financing are long-term and short-term obligations.
4
Total assets represent all assets of the company, including tangible and intangible assets. Constitute a summary of the balance sheet and reflected in the line 700.
5
The coefficient of autonomy is measured in fractions. Normative critical value of 0.5-0.7. It is advisable to assess the value of this ratio in dynamics. The growth factor in the dynamics indicates the stability of activity of the enterprise, increasing its independence relative to external creditors. The highest value of this index is for investors and creditors. The higher the value, the lower the risk of loss of their investments.
Note
In the preparation of the aggregated balance you need to be careful, total assets always equal total liabilities.

Advice 8 : How to determine the rate of discount

The norm of discount is a level of profitability that wish to have the investor in investment funds. It can help to determine how much you must pay today to obtain the necessary amount in the future.
How to determine the rate of discount
You will need
  • calculator;
  • - knowledge of financial analysis.
Instruction
1
The norm of discount is used in the evaluation of the effectiveness of investments. Key decisions when choosing an investment project depends directly on the selected values.
2
For the different calculation steps can be selected different values of the bet cast. This is acceptable in cases of the changing dynamics of risk, amount of debt capital structure.
3
The impact of a large number of factors makes it difficult to offer a universal selection method indicator. In any case, it needs to reflect the return on capital employed, adjusted for inflation, and alternative available to the investor the risk-free areas of investment.
4
From a technical point of view, the discount rate can be defined as the interest rate, the basis for determining the market value of the business. The calculation depends on which type of cash flow is used to estimate as a base.
5
The calculation can be used: the rate of inflation, weighted average cost of capital, valuations, refinancing rate, the profitability of the alternative project, the rate of Bank interest on loans or deposits.
6
Often capital raising is carried out through several sources. In this case, use the average weighted cost of capital. It is calculated as follows: WACC=∑_(i=1)^n▒〖Di×Ei〗n = number of types of capital;E = rate of discount of the i – th capital;Di = proportion of the i-th capital in total capital.
7
It is very important to most accurately determine the rate of discount for this direction of investment. This directly affects the amount of income that will result from the investments.
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