debtreporppt29(全英文)-经营管理(编辑修改稿)

debtreporppt29(全英文)-经营管理(编辑修改稿)内容摘要：

27 54 87 111 157 I n t e re st 27 29 27 28 28 29 13 (2 ) 27 59 83 128 D e p re ci a t i o n 11 15 15 15 15 15 Pro f i t / (l o ss) b e f o re t a x 2 (1 7 ) 12 44 68 113 N e t ca sh f l o w (3 ) (5 ) 28 45 66 Sensitivity 2 Eliminate sales of negative Gross Margin products from 2020 (10 products) Financial projections cont.  Analysis of Sensitivity 2:  there are 10 products in the model produced and sold with a negative gross margin (refer spreadsheet “Cost of sales” for details)。  if production and sales of these products stops from Y2020:  profit will increase by approximately Rmb 46 million up to Y2020  cash flow will increase by approximately Rmb 46 million up to Y2020  Many other sensitivities can and should be run by management to consider the impact of different business initiatives. 14 Financial projections cont.  Uses of the financial model:  as a planning tool: general budgets and targets。 determining such things as ability to repay debts.  as management tool: to run sensitivities to “test” different business initiatives。 to highlight areas of the business to improve or concentrate on: • close attention should be given to paring “actual” results (on a monthly basis for Y2020) to assumptions in the model。 • if differences occur (and they will) analyse why these occurred。 • consider if changes to the business need to be made, or changes to assumptions in the model. 15 Accounts receivable  The opening balance of accounts receivable in the model is approximately Rmb 152 million。  Collections of this amount from Y2020 5 total Rmb 34 million。  Does this mean Rmb 118 million is unlikely ever to be collected? This amount should either have a provision against it in the accounts or be written off!  Accounts receivable assumptions in the “Base case” model include:  over 90% of new sales made will result in revenues being collected。  average collection period is between 30 60 days。  “losses” from sales made with no collections are between Rmb 20 35 million per year.  Are these assumptions reasonable do they reflect the business now?  Given that only Rmb 34 million of the opening balance is projected to be collected, and it is likely most of this amount is recent sales (Nov / Dec Y2020), it implies that the collection period for new sales is reasonable. 16 Accounts receivable cont.. 17 R mb 39。 0 0 0T o ta l 2020 2020 2020 2020 2020Ba se mo d e l 85 (3 ) (2 0 ) 17 36 55 A . R e d u ce A / R d a ys 145 26 (2 3 ) 28 46 68 B. I n cr e a se A / R d a ys (1 ) (3 3 ) (2 7 ) 3 20 36 C . I n cr e a se b a d d e b t s (1 0 7 ) (1 8 ) (4 4 ) (1 7 ) (1 5 ) (1 3 ) The cash flow if this business is very sensitive to changes in accounts receivable terms. This is demonstrated in the following table showing cash flow under different sensitivities: •Base case sales collected between 30 45 days, over 90% collected。 •Sensitivity A all A/R collected within 30 days (Rmb 60m improvement)。 •Sensitivity B all A/R collected in 45 90 days (Rmb 84m reduction)。 •Sensitivity C only 90% of A/R collected (Rmb 192 m reduction). Accounts receivable cont.  The size of the improvement or deterioration in cash flow by small changes to assumptions indicates how critical accounts receivable management is to this business。  Investment of money and resources now can be justified to control this issue:  Has this already been done?  Have historical problems already been fixed? 18 Enterprise / Debt restr。