Start, run or save a business today !

vi. Profit before Taxes and Nonrecurring Items

Profit before Taxes and Nonrecurring Items (PBTNI) is derived from EBIT by subtracting Financial expenses (in other words, interest on debt and losses on certain types of securities) and adding back Financial income. One can also write that PBTNI = EBIT + Net financial income. This ratio therefore represents the amount of wealth generated by the company after debtors have been paid, and before nonrecurring items. This wealth will thus aggregate partly to the state (through taxes) and to the firm’s shareholders.

The Online Course

Finding business ideas General Concepts
Resources
Strategy Analysis Porters analysis
   -The industry and its different players
   -Barriers to entry and new entrants
   -Substitution products
   -Suppliers
   -Customers
   -Complementary products

SWOT Analysis
   -Strengths
   -Weaknesses
   -Opportunities
   -Threats
The role played by strategy analysis in the construction of your business plan
Practical Accounting The balance sheet
The income statement
The cash flows statement
Financial Analysis Wealth creation
   -Commercial profit
   -Production
   -Gross Profit
   -EBITDA
   -EBIT
   -Profit before taxes and nonrecurring items
   -Net nonrecurring income
   -Net Income
   -A note on operational leverage and breakeven point

Investments
   -Analyzing capital expenditures
   -Analyzing the working capital of a company

Financing
   -Debt ratios (Current ratio, quick ratio and cash ratios)
   -Liquidity ratios and solvency

Profitability
   -Return on equity (ROE)
   -Cost of equity
   -Return on Capital Employed (ROCE)
   -Weighted Average Cost of Capital (WACC)
   -Leverage effect and relation between ROE and ROCE
   -Investment decisions: Present Value and Net Present Value
Devising and revising a business plan
Fundamental marketing concepts Introduction
A few technical concepts
   -The potential rate
   -The conversion rate
   -Average lifetime value of customers
   -Analytic example
Business Valuation: when to invest or divest your money The DCF method
The peers multiples method
-The EBITDA multiple
-The P/E ratio
A few words in conclusion