The Financia software allows the typical calculations required
for the implementation and monitoring of the company's performance
in terms of Value Creation. Financia uses accounting and off balance
sheet data in order to give a new perspective to the accounts
of a company or of a group.
MAIN CALCULATIONS OF FINANCIA
A - CALCULATION OF INVESTED CAPITAL FROM THE ASSET SIDE
B - CALCULATION OF INVESTED CAPITAL FROM THE LIABILITY SIDE
C - CALCULATION OF MARKET VALUE ADDED
D - CALCULATION OF COST OF CAPITAL
E - CALCULATION OF ECONOMIC PROFIT
1) R & D
2) Exceptional Results
3) Adjustments to Equity
4) Adjustments to depreciation
5) Accruals Net and Variation
6) Total Provisions and Variation
7) Off Balance Sheet Iteme
8) Operating cash
9) Non Operating Assets
10) Deferred Taxes
11) Cost of Capital
12) Non Operating items on the P/L
13) Goodwill amortization adjustment
Graphs directly calculated by the software allow a direct assessment
of the results.
The first graph, which shows the evolution of Invested Capital
in book value, illustrates the responsibilities taken on by the
managers towards investors.
The second graph, which shows the evolution of Return on Invested
Capital, illustrates the results of the management in absolute
The third graph, which shows the evolution of Economic Profit,
indicates whether these results are profitable or not, whether
there has been Value Creation or not in terms of monetary flows.
The fourth graph, which shows the evolution of Market Value Added,
shows the markets judgement on the upcoming results, whether there
is Value Creation or not in terms of monetary stocks. In as much
as this year's Economic Profit is representative of future Economic
Profits as estimated by the markets, this Market Value Added is
well correlated to Economic Profit and these two graphs should
evolve in parallel.
Download the Excel®
spreadsheet allowing the data entry of all the accounting
elements required for the calculation of Value Creation. Once
completed, this spreadsheet will allow us to run the Financia
EVAFINE allows you to acquire this software (as a complement to
an assignment) or can make the calculation itself. For
this please contact us.