Economic Profit
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Publicado: 16 de noviembre de 2012
Economic Profit
The MONEY that really Matters!!!
Do you know what is the most important metric to measure business performance?
ECONOMIC PROFIT
Any Doubt?....
Let’s take a look at theDashboard!
Country/MOC Dashboard YTD
Cate gory
Weight Measurement 20 Contribution Sales (USD) Base business Plan Actual % Attmt 1-5 rating LC Growth % Base business Plan Actual % Attmt 1-5rating LC Growth times IPI Base business IPI LCG Times 1-5 rating Working Capital Economic Profit (USD) Base business Plan Actual % Attmt 1-5 rating 100 Overall financial performance 1-5 rating 38,65834,359 88.9% 1 15.5% 2.6% 17.0% 1 2.0% 2.6% 1
Sales and Growth
15
15
1
6,350 5,820 91.7% 2 1.5
EP
50
How is it calculated?
COI Tax rate COI after tax 100 38% 62
AR balance Invbalance AP balance NWC Capital charge % Capital charge US$ Economic Profit
10 12 -3 19 10% 1.9 60.1
This is what Really matters!
How YOU can influence EP?
6,000 5,000 4,000
Increase sales3,000 2,000 1,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep
2006 2005
How YOU can influence EP?
US$ Millions LYTD Direct Compensation Benefit Expense Total Direct % Change % to COR Sales Maintand Repairs Freight and Drayage Advert Merch Exp External Services C45 Travel Relocation Utility Expense IT Costs C65 Other Dept Exp Supplies Total Indirect w/o A&P 4,224,256 1,938,621 6,162,87724.3% 218,810 280,381 586,595 279,159 539,389 131,345 16,855 174,191 41,532 2,268,259 1,681,664 September % 69% 31% 100% TYTD 4,502,855 1,483,398 5,986,253 -2.9% 22.2% 214,558 401,132 719,931 310,636431,358 143,301 6,582 122,433 27,092 2,377,023 1,657,092 % 75% 25% 100%
Reduce expenses
10% 12% 26% 12% 24% 6% 1% 8% 2% 100%
9% 17% 30% 13% 18% 6% 0% 5% 1% 100%
How YOU can influence EP?7.00 6.00 5.00
Manage NWC
4.00 3.00 2.00 1.00 0.00 Q1-04Q2-04Q3-04Q4-04Q1-05Q2-05Q3-05Q4-05Q1-06Q2-06Q3-06 Sept
As you see…
• We are setting the trend in NWC but we still have room for...
The MONEY that really Matters!!!
Do you know what is the most important metric to measure business performance?
ECONOMIC PROFIT
Any Doubt?....
Let’s take a look at theDashboard!
Country/MOC Dashboard YTD
Cate gory
Weight Measurement 20 Contribution Sales (USD) Base business Plan Actual % Attmt 1-5 rating LC Growth % Base business Plan Actual % Attmt 1-5rating LC Growth times IPI Base business IPI LCG Times 1-5 rating Working Capital Economic Profit (USD) Base business Plan Actual % Attmt 1-5 rating 100 Overall financial performance 1-5 rating 38,65834,359 88.9% 1 15.5% 2.6% 17.0% 1 2.0% 2.6% 1
Sales and Growth
15
15
1
6,350 5,820 91.7% 2 1.5
EP
50
How is it calculated?
COI Tax rate COI after tax 100 38% 62
AR balance Invbalance AP balance NWC Capital charge % Capital charge US$ Economic Profit
10 12 -3 19 10% 1.9 60.1
This is what Really matters!
How YOU can influence EP?
6,000 5,000 4,000
Increase sales3,000 2,000 1,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep
2006 2005
How YOU can influence EP?
US$ Millions LYTD Direct Compensation Benefit Expense Total Direct % Change % to COR Sales Maintand Repairs Freight and Drayage Advert Merch Exp External Services C45 Travel Relocation Utility Expense IT Costs C65 Other Dept Exp Supplies Total Indirect w/o A&P 4,224,256 1,938,621 6,162,87724.3% 218,810 280,381 586,595 279,159 539,389 131,345 16,855 174,191 41,532 2,268,259 1,681,664 September % 69% 31% 100% TYTD 4,502,855 1,483,398 5,986,253 -2.9% 22.2% 214,558 401,132 719,931 310,636431,358 143,301 6,582 122,433 27,092 2,377,023 1,657,092 % 75% 25% 100%
Reduce expenses
10% 12% 26% 12% 24% 6% 1% 8% 2% 100%
9% 17% 30% 13% 18% 6% 0% 5% 1% 100%
How YOU can influence EP?7.00 6.00 5.00
Manage NWC
4.00 3.00 2.00 1.00 0.00 Q1-04Q2-04Q3-04Q4-04Q1-05Q2-05Q3-05Q4-05Q1-06Q2-06Q3-06 Sept
As you see…
• We are setting the trend in NWC but we still have room for...
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