diff --git a/mba-main.org b/mba-main.org index 52f04fc..d686c2e 100644 --- a/mba-main.org +++ b/mba-main.org @@ -53,3 +53,7 @@ #+attr_html: :class contents-overview - [[./mba/ch49.org][Chapter 49. How to Build Financial Statements for Private Companies the Easy Way]] - [[./mba/ch50.org][Chapter 50. How to value Private Companies + Growth Methods]] + +** Section 10 - Due Diligence and Data Sources +#+attr_html: :class contents-overview +- [[./mba/ch55.org][Chapter 55. Where to get Information for your Financial Model]] diff --git a/mba/ch50.org b/mba/ch50.org index 27ce15a..719f5bd 100644 --- a/mba/ch50.org +++ b/mba/ch50.org @@ -270,3 +270,41 @@ assuming the IPO takes place in 2020 our valuation will be *** retained earnings - part of equity - how much profit derived over the years + +** playing with equations + +*** go through the following equations +1. \[\text{ROE (return on equity)} = \frac{\text{net income}}{\text{equity}} \] +2. + \[\text{ROE (return on equity)} = \frac{\text{net income}}{\text{equity}} \times 1 \times 1 \] +3. + \[\text{ROE (return on equity)} = \frac{\text{net income}}{\text{equity}} \times \frac{\text{sales}}{\text{sales}} \times \frac{\text{assets}}{\text{assets}} \] + +4. + \[\text{ROE (return on equity)} = \frac{\text{net income}}{\text{sales}} \times \frac{\text{sales}}{\text{assets}} \times \frac{\text{assets}}{\text{equity}} \] + +*** Lets break down this equation and define its parts +**** first define ROE as Growth +\[\text{Growth (ROE ie. return on equity)} = \frac{\text{net income}}{\text{sales}} \times \frac{\text{sales}}{\text{assets}} \times \frac{\text{assets}}{\text{equity}} \] + +**** now define the other parts of this equation + 1. Net Profit Margin is Net Income over Sales + \[ + \text{Net Profit Margin} = \frac{\text{net income}}{\text{sales}} + \] + 2. Asset Turnover is Sales over Assets + \[ + \text{Asset Turnover} = \frac{\text{sales}}{\text{assets}} + \] + 3. Equity Multiplier is Asset over Equity + \[ + \text{Equity Multiplier} = \frac{\text{assets}}{\text{equity}} + \] +*** redefine the equation + + \[\text{Growth} = \text{Net Profit Margin} \times \text{Asset Turnover} \times \text{Equity Multiplier} \] + +by increaseing one of the three parts of the equation you can increase growth +1. Net Profit Margin +2. Asset Turnover +3. Equity Multiplier diff --git a/mba/ch55.org b/mba/ch55.org new file mode 100644 index 0000000..b6bd153 --- /dev/null +++ b/mba/ch55.org @@ -0,0 +1,8 @@ +#+title: Section 10 | Lesson 55 - Where to get Information for your Financial Models +#+HTML_HEAD: + +* Links +- [[./../mba-main.org][TOC | Business]] +- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4314666#overview][S10:L55. Where to get Information for your Financial Models]] + +* Notes