How to sell financial analysis.docVIP

 PAGE \* MERGEFORMAT 6 How to sell financial analysis Financial analysis is mainly a systematic analysis and evaluation of the financial situation of the company’s past and predict the company’s future financial situation to help the operators to engage in decision-making, analysis concerning the company’s profit situation, the use of funds, risk status, etc. This paper will present the amount of the company benefits, financial ratios and credit sales cost analysis of three aspects of financial analysis. First, the amount of cost-benefit analysis Variable costs: refers to the increase or decrease with the volume of business and change costs. For customers, is the cost of sales (purchase costs * number of external sales), marketing costs, transportation costs, provision for staff in terms of sales commission, etc. In general, foreign sales of larger, higher variable costs. Fixed costs: The company must be spending on, and the relative stability of each month, with business volume changes are not related expenditures, including various types of rent, staff a fixed salary, basic salary, capital and interest. Once the opening of the company business, regardless of whether there is external sales, fixed costs will occur. Marginal contribution (side benefit) = sales amount - the total variable costs. Contribution margin = 0, indicating the company’s sales last only changes in costs, not profit; Marginal Contribution amp;quot;0, indicating the company’s sales in addition to compensate for changes in costs, but also recover part of the fixed costs, without increasing the investment in fixed costs arising from the increase in cases, the company may expand sales, until the recovery of fixed costs and achieve real profitability. However, before the unrecovered fixed costs, the company is still losing money overall. Marginal contribution rate (while the interest rate) = contribution margin ÷ the amount of foreign sales Breakeven Point (break-even point): Sales am