EMAT - Financials
P&L Items
Key items
- Sales: company revenues
- Gross Profit = Sales - Cost of Goods Sold
- EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization
- EBIT: Earnings Before Interest & Taxes
- PBT: Profit Before Tax
- PAT: Profit After Tax
NB:
- EBIT, PBT and PAT are given before Amortization of Goodwill (when the information is available)
- EBITDA, EBIT, PBT and PAT items are given before exceptionals
Epsilon Growth Indicator (EGI)
- Estimated expected sales growth rate
- Standard expected growth range : +/- [~0%], [2-5%], [5-10%], [10-20%], [20-50%] [>50%]
- If we have no data on expected / target sales, the EGI is based on past sales growth (CAGR), supposed representative of future growth
NB:
- When exported on excel, the EGI is given by a number from 1 to 11 that reprents the expected growth range, from [<-50%] to [>50%] - For ex. 6 = [~0%]
- This format (number rather than range) enables correlation work of multiples with growth
P&L item: Gross Profit
Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.
Gross profit = sales - cost of goods sold (COGS)
> See def. on Investopedia: www.investopedia.com/terms/g/grossprofit.asp
Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. It includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.
See def. on Investopedia: www.investopedia.com/terms/c/cogs.asp
Balance Sheet Items
- Net Assets are given at fair value when the information is disclosed (IFRS)
- Financial debt: all interest-bearing debt (short & long term) + pensions liabilities
- Cash: non operational cash (ie. that can be distributed); by default: cash amount in the company accounts
- Net Financial Debt = Financial Debt - Cash