I. Financial Evaluation Indicators
1. Return on All Investments R=(F+Y+D)/I
2. Return on Own Funds Re=(F+D)/Q
3. Profitability of All Investments R/=(F+Y)/I
4. Profitability of Own Funds R/=F /Q Note: F: normal annual sales profit (sales profit = sales revenue - operating costs - depreciation - taxes - interest)
Y: normal annual interest on loans. I: total investment (including infrastructure investment and working capital). D: depreciation expense.
5. Return on investment = (annual net income) / (all investment in the project) Note: all investment in the project = investment in fixed assets + working capital investment.
6, investment profit margin = (total profit before tax)/(total investment).
7, investment tax rate = (total profit before tax + sales tax and surcharge) / (total investment)
8, capital profit rate = (profit after tax) / (capital).
9, gearing ratio = (total liabilities) / (total assets)
10, the current ratio = (total current assets) / (total current liabilities)
11, quick ratio = (total quick assets) / (total current liabilities)
12, borrowing repayment period = the number of years to pay off the debt - 1 + (payable in the year to pay off the debt principal and interest) / (total funds available for debt service in the year)
13, payback period = the year in which the present value of cumulative net cash flow began to appear positive -1 + (the absolute value of the present value of cumulative cash flow in the previous year) / (the present value of net cash flow in the year)
14, equity ratio = (total liabilities) / (shareholders' equity)
15, net tangible assets debt ratio = [[ Total Liabilities/(Shareholders' Equity - Net Intangible Assets)]*100%
16, Multiple of Interest Earned = (EBITDA)/(Interest Expense)
17, Net Sales Margin = (Net Profit)/(Sales Revenue)
18, Net Asset Margin = (Net Profit)/(Average Total Assets)
19, Net Asset Yield = (Net Profit)/(Average Owners' Equity)
20. Gearing Ratio = (Total Liabilities)/(Total Assets)
21. Interest Provision Ratio = (Current Profit Before Tax + Current Interest)/(Current Interest Payable). Note: "Accounting and Control"
22. Interest Provision Ratio = (Profit Before Tax and Interest)/(Current Interest Expense Payable). Note: "Related" Note: Profit before tax and interest = total profit + interest expense included in total costs. Normal business, the interest provision rate should be greater than 2.
23, debt service provision rate = (depreciation + amortization + all interest + profit after tax) / (current debt service) Note: "Accounting and Control".
24. Debt service provision ratio = (funds available for debt service)/(current debt service amount). Note: "Related". Note: Funds available for debt servicing include: depreciation and amortization available for debt servicing, interest expense charged to costs, profit available for debt servicing, and so on. The amount of current debt service payable includes the current loan principal repayable and interest charged to cost. Should be greater than 1.
25, the financial internal rate of return (FIRR)
Financial internal rate of return is to make the project in the entire period of calculation of the present value of the net cash flow in each year is equal to the cumulative zero discount rate, the financial internal rate of return can be calculated according to the cash flow statement of the net cash flow using the interpolation method is obtained: the use of: FIRR = i1 + [i2-i1]* NPV1/[ NPV1+NPV2] .
Note:
(1), NPV2 to use the absolute value.
(2), [i2-i1] should be within 3%, or at least within 5%.
26, net present value rate: is the ratio of the net present value of the project to the present value of all investment in the project: NPVR = (NPV) / (Ip)
27, net annual value NAV = [Σ (CI-CO) t (1 + ic) - t] (A/P, ic, n); or NAV = NPV (A/P, ic, n)
II, mutually exclusive program evaluation:
1, static evaluation method:
(1), incremental return on investment R (2-1)=(C1-C2)/(I2-I1)*100% Note: I2, I1 is the investment amount of A and B programs, respectively, and C1-C2 are the operating costs of A and B programs, respectively. i2>I1 ;C1< p>
(2), Incremental payback period: Pt (2-1) = (I2-I1) / (C1-C2) = (I2-I1) / (A2-A1) Note: incremental payback period is less than the baseline payback period when the investment in large programs for the preferred program, and vice versa investment in small programs for the preferred program.
(3), the annual discounted cost: Zj = (Ij) / (Pc) + Cj Zj = (Ij) * (ic) + Cj Zj __ the jth program's annual discounted cost; Ij __ the jth program's total investment; Pc __ the base payback period; ic __ the base rate of return on investment; Cj __ the jth program's annual operating costs.
(4), the integrated total cost: Sj = Ij + (Pc) * Sj . Where Sj__th jth program of the integrated total cost.
Third, the calculation of equipment leasing:
1, the net cash flow of equipment leasing = sales revenues - operating costs - lease expenses - tax rate * (sales revenues - operating costs - lease expenses)
2, the calculation of equipment leasing rentals are mainly add-on rate method and annuity method.
(1), additional rate method R = P * (1 + Ni) / N + P * r where: P - the price of the leased asset; N - the number of repayment period, can be calculated by month, quarter, half a year, year; i - and the number of repayment period of the same discount rate; r __ additional rate.
(2), annuity method: end payment: R = P (A/P, I, N); beginning payment: R = P (F/P, I, N-1) (A/F, I, N)
Four, breakeven analysis:
B = P * Q - CV * Q - CF - t * Q where B - profit; P - selling price per unit of product; Q - sales volume or production volume; t - sales tax per unit of product and value-added tax per unit of product; CV - variable cost per unit of product; CF -fixed costs
(1), the break-even point expressed in terms of production volume BEP (Q) = (total annual fixed costs) / (selling price per unit of product - variable costs per unit of product - sales per unit of product) Taxes and surcharges - VAT per unit of product)
(2), production capacity utilization expressed break-even point BEP (%) = (break-even point sales volume) / (normal year sales volume) * 100%
(3), production capacity utilization expressed break-even point BEP (%) = (annual total fixed costs) / (annual sales revenue) -Annual variable costs -Annual sales taxes and surcharges -Annual value-added tax)
(4), the break-even point expressed in terms of sales sales sales BEP (S) = (unit product sales price * annual total fixed costs) / (unit product sales price -) Variable cost per unit of product - sales tax and surcharge per unit of product - value-added tax per unit of product)
(5), the break-even point expressed in terms of unit sales price BEP (P) = (annual fixed total cost) / (design capacity) + unit Product variable cost + unit of product sales tax and surcharge + unit of product value-added tax
V. Fixed asset depreciation estimate:
① Average life method.
Annual depreciation rate = [1 - estimated net salvage rate] 100% / depreciable life; annual depreciation = fixed assets original value × annual depreciation rate
② workload method.
Depreciation per unit of mileage = original value x (1 - estimated net salvage rate) / total miles exercised annual depreciation = depreciation per unit of mileage x annual miles traveled depreciation per work hour = original value x (1 - estimated net salvage rate) / total work hours annual depreciation = depreciation per work hour x annual work hours
(iii) Double Declining Balance Method.
Annual depreciation rate = [2 / depreciable life] 100%, the annual depreciation amount = net fixed assets × annual depreciation rate of double declining balance method, should be two years before the expiration of the depreciable life of the net fixed assets net of the net salvage value of the net amortization.
④The sum-of-the-years method.
The use of the sum-of-the-years method is a method of calculating depreciation based on the original value of the fixed assets minus the net salvage value, in accordance with a decreasing fraction (i.e., the annual depreciation rate, also known as the depreciation declining factor) from year to year. The annual depreciation rate is a changing fraction; the numerator is the number of years that can be used at the beginning of each year, and the denominator is the sum of the depreciable lives of the fixed assets added year by year (i.e., the factorial of the depreciable lives).
The formula is: annual depreciation rate = {[depreciable life - used life] / depreciable life × (depreciable life + 1) / 2} × a 100 % annual depreciation = (original value of fixed assets - estimated net residual value) × annual depreciation rate.
Engineering Cost Case Study - Key Points of Knowledge
Chapter 1 Financial Evaluation of Construction Projects
1. Basic concepts of financial evaluation of construction projects.
2. Preparation of basic statements in the financial evaluation of construction projects.
3, the classification of the index system of financial evaluation of construction projects.
4, the main content of the financial evaluation of construction projects (including: estimation of the total investment in construction projects; construction project financial net present value, payback period and internal rate of return and other indicators of profitability analysis; construction project borrowing repayment period, balance sheet ratio, and other indicators of solvency analysis; the construction project's ability to resist the risks of the uncertainty of the analysis, etc.).
Chapter II Construction Engineering Design, Construction Program Technical and Economic Analysis
1, design program evaluation indicators and evaluation methods.
2, construction program evaluation indicators and evaluation methods
3, comprehensive evaluation method in the design, construction program evaluation.
4, the application of value engineering method in design and construction program evaluation.
5. Calculation of time parameters of engineering network schedule, adjustment and optimization of schedule.
Chapter III Measurement and Pricing of Construction Works
1, construction and installation project quotas and the "National Unified Construction Project Budget Quantity Calculation Rules", "National Unified Installation Project Budget Quantity Calculation Rules", and the "Specification for Quantity Calculation of Construction Projects".
2. The method of determining the consumption indexes of labor, materials and machinery for construction and installation works.
3. Composition, determination, conversion and supplementary methods of unit price of budget estimate.
4, the determination and application of engineering cost index.
5. Methods of preparing investment estimates for construction projects.
6. Methods of preparing design estimates.
7. Methods of preparing construction drawing budget for unit projects.
8, the main methods of construction budget review.
Chapter IV Construction Bidding
1, construction bidding procedures.
2, the method of preparing the tender and related issues.
3, the choice and use of quotation techniques (mainly multi-program offer method, increase the proposed program method, sudden price reduction method, unbalanced offer method).
4. Basic concepts of decision tree methods and their use in bidding decisions.
5. Specific methods of evaluating and finalizing bids (e.g., two-stage bid evaluation method, percentage scoring method) and the issues to be noted.
Chapter V Construction Contract Management and Claims
1. Types and options of construction contracts.
2. Composition and main terms of construction contract documents.
3. Determination of the price of engineering changes.
4. Handling of construction contract disputes.
5, the content and classification of engineering claims.
6, the conditions and evidence for the establishment of engineering claims.
7, engineering claims program.
8, the content and format of engineering claims documents.
9, the calculation and audit of engineering claims.
Sixth chapter of the project price settlement and final accounts
1, the current construction and installation project price settlement method.
2. Advance payment and calculation.
3, the completion of the project settlement review.
4, equipment, work tools and materials price payment and settlement.
5. Methods of adjusting construction prices.
6, completion of the final account.
7. Composition of new assets and determination of their value.
8, capital utilization plan and investment deviation analysis.
How should I prepare for the Registered Cost Engineer exam?
I took the National Licensing Examination for Registered Cost Engineers last year and passed it successfully. I didn't buy any reference books before the exam, and I didn't take part in the pre-test training. Mainly in accordance with the requirements of the "National Cost Engineer Licensing Examination Syllabus", the licensing examination training materials repeatedly read, deepen understanding, and basically mastered the content of the book, to pass. Now talk about their own feelings and experience to participate in this examination, with everyone **** encouragement.
One, develop a plan, conscientiously implement, to ensure that the progress is completed.
Participating in the Registered Cost Engineer Examination is to take advantage of most of the books after work to learn, to be completed in less than four months of time, four courses of study tasks, indeed, some tension. Neither because of the short time and heavy task and nervous, at a loss, and can not get the book on the shelf, do not listen to, by luck or cheating fluke pass. Should make a plan, seriously implement, step by step to complete the study.
1, develop a plan
The national licensing examination for cost engineers have 〈Knowledge related to project cost management」, 〈Construction cost determination and control」, 〈Construction engineering technology and measurement (civil or installation) 】, 〈Case study of engineering cost」 four training materials. The textbooks are tightly focused on the requirements of the licensing examination syllabus, in-depth exposition to explain the knowledge structure is reasonable and rich in content. In the study should be at least two times, the first time the content of the chapters have a preliminary understanding of the content, whether the "syllabus" requires familiarity, mastery of the content, or understanding of the content, should be read, to produce a general impression. Do not understand the place do not grasp, to avoid a problem stuck, to solve the delay, affecting the progress of the mouth of the second time is to focus on grasping the main issues discussed in each chapter to understand the intrinsic connection between the knowledge points and the difference between the pick clear pick accurate, to prevent conceptual confusion, Zhang Guan Li Dai.
2, time schedule
To adhere to the l-2 hours a day, preferably in the early morning, so that the mind is awake, deep understanding, to prevent the work of the day after the physical and mental fatigue, reading is not effective. The task of daily study is a section or two, do not be greedy, so that will be due to the exhaustion of the loss of the next study interest and motivation, and do not arbitrarily arrange, there is time to see, no free time even if, so that the completion of the study task, futile. To develop a plan for their own work, and seriously put into practice.
Second, find out the key points, solve the difficulties, a deep understanding of the knowledge learned.
The four subjects of the cost engineer licensing examination, each subject has its own key points, difficult points, learning, against the syllabus of the examination, "mastery of the requirements to solve practical problems, familiar with the requirements of the knowledge of the cost of the project with a deep understanding of the requirements of the cost of the project with a wide range of knowledge" requirements, identify the key points, solve the difficult points, and then the cost of the project with a wide range of knowledge. The requirements, to find out the key points, solve the difficult points, the knowledge learned into a coherent.
1, "engineering cost management related knowledge" and "engineering cost determination and control" emphasize the use of the former is the basis of the latter. Related Knowledge" of the difficulty in the "engineering economy and engineering finance". Participate in the cost examiner is mostly engineering budgeting staff, engineering economics and finance is not well understood, and engineering economics is the study of investment program evaluation and selection methods, is the macro decision-making on engineering investment. Should focus on mastering the theory of the time value of money, investment program evaluation and selection, the theory and method of uncertainty analysis, value engineering four content. The theory of the time value of money is the present value (P), final value (F), annuity (A) between the mutual conversion, with "the final value must be greater than the present value, the final value, the present value of the general is a multiple of the annuity" to understand, generally not wrong. Whether for the state, collective or individual, project investment is a big deal, should consider a variety of options for comparison, to minimize the input to obtain the maximum return, which is the evaluation of investment options. Investment program evaluation, the first need to establish a set of evaluation indicators, and to determine a set of scientific evaluation of the feasibility of the program with or without standards, evaluation indicators and standards, but the net present value is the key to profitability is the ultimate goal of project investment. Is not the choice of investment program on everything is fine? Not exactly. Investment program is determined under many assumptions, in the process of construction, a variety of factors (such as market price fluctuations) on the realization of the project will have an impact on the project, and even make a profit of the project ultimately lose money, which is to carry out the uncertainty type of analysis, estimation of the variable factors on the actual value of the project and the expected value of the deviation caused by the analysis of the risk of investment, so that the investors have a good understanding of the heart. Value engineering is not investment decision-making, investment decision-making is to study the effect of investment before investment, emphasizing the feasibility of value engineering is to study how to obtain the necessary functions with the least amount of manpower, material resources and time of the technical and economic analysis methods, emphasizing the functional analysis of the production of the product and functional improvement. The above four difficult points, grasp the role and relationship between them, it is interested in learning to master.
2, "the determination and control of engineering cost" is the main course of the cost engineers exam, the textbook mainly taught the composition of engineering cost has a pricing basis, construction project decision-making, design, bidding, construction of all phases of the determination and control of engineering cost and other content. Investment composition including fixed asset investment and investment in current assets two parts, fixed asset investment (project cost) by equipment and labor, equipment setup costs, construction and installation costs, construction costs, reserve costs, interest on loans during the construction period, fixed asset investment direction adjustment tax. To master the composition and calculation of each cost, understand the relevant policies and regulations. Cost basis that is the quota, is a unit of engineering construction products on the amount of labor, materials, machinery, capital consumption. It is "quantity" "price" multiplied by the unit price of sub-parts of the project, to master the construction and installation of artificial, mechanical units, materials, the determination of quota consumption, the composition of the unit price of materials and machinery and the method of compilation, familiar with the cost of the preparation of the principle and method of the quota. Determination of project cost is a coarse to fine, from shallow to deep, from approximate to accurate pricing process, in the preparation of project proposals and feasibility studies for the stage of investment estimates; preliminary design stage is the cost of the proposed budget; construction drawings for the design stage of the budget cost; project bidding stage, through the signing of the contract, the formation of the contract price; the construction stage of the actual occurrence of the volume of work increase or decrease in the price difference between the equipment and materials, etc. to make adjustments Calculate the settlement price; finalize the actual project cost by preparing the final account. Cost engineers should be able to make a reasonable determination of the cost of each stage of the project, familiar with the content of the estimates, budget estimates, settlements, final accounts, and master the method of its preparation and review. The control of project cost is in the various stages of the construction process, the use of certain methods and measures to control the cost of the project within a reasonable range and approved cost limits, as a cost engineer should be the decision-making design stage as the focus of the control, play the function of investment control, the ability to influence the investment decision-making, design and contracting, construction, learn to use the organization, technology and economic methods to control the cost of the project. Project cost.
3, construction engineering technology and measurement (civil engineering part) "is mainly familiar with industrial and civil buildings, chimneys, water towers and storage silos, roads, bridges and culverts, tunnels, mining engineering classification, composition and structure, understanding of engineering materials, engineering construction of basic knowledge, mastering the rules and methods of measurement of engineering. This rusty point in the roads, bridges, tunnels, mining engineering structure, construction and measurement. Should first understand its structure, the role of each part, composition, use, and then further familiarize with the main construction procedures and methods of various types of projects, on the basis of mastering the rules for calculating the amount of work, engineering measurement.
4, "engineering cost case study" involves a wide range of knowledge, comprehensive and strong, is a summary of the knowledge learned in the first three subjects, it is simulated in the engineering cost management business background material, based on a number of independent or joint joint problems, the examination of the candidates in the following five aspects of the ability to: (1) review (1) the ability to compile and review project investment estimates and project proposals, feasibility study reports, and economic evaluation of engineering projects; (2) the ability to design and construct engineering projects, technical and economic analysis of construction programs, demonstration and optimization; (3) the ability to compile and review project budgets, bidding for project bids, tender offers and bidding analysis and evaluation; (4) the implementation of the construction cost of the entire process of construction projects, control and management, preparation of project closure (project closure). (4) the ability to control and manage the project cost during the whole construction process of the project, prepare the final account of the project, and deal with the disputes and claims of the project cost; (5) the ability to measure, collect, and organize all kinds of data of the project cost and to compile and review the supplemental quotas of the project budget. According to the requirements of the five aspects of the ability of cost engineers, the national cost engineers licensing examination training materials writing committee, organized the preparation of the "engineering cost case study" tutorial materials. For each of these cases, you should first carefully read the question, fully understand the meaning of the question and the assessment of the knowledge points, the comprehensive use of the basic knowledge of the first three subjects and practical work experience, at different levels, step by step to make the answer, and then against the answer, to see their own analysis of those who are right, those who are wrong, and why there is a mistake, because of the previous knowledge with mastery, or the actual work of the practice of the error, the original concepts of their own minds are not right, as soon as possible to correct it! The concept is not right, as soon as possible to correct it, so both for the examination, but also for the work.
Three, pay attention to the method, concentrate on the examination, will have good results.
The method of reading and learning is very important, such as improper method, it will be twice as much as half the effort, the exam is also the key to achieving good results in the field. When we study, we should also pay attention to these points:
1, the book of the example is very important, both to help understand the content of the lecture, but also with the examination of the question type is similar should be treated seriously. For the book contradictory places, a few difficult or obvious errors can be abandoned, these generally will not test. For the content of strong professionalism, do not look deeper, because the cost engineers exam is not a university professional exam, just cost engineers should know the general knowledge. For the completion of the textbook, the policy is to change the content of the textbook to prevail to memorize. For example, December 17, 1999, the Ministry of Finance, the State Administration of Taxation, the State Development Planning Commission has issued a "notice on the suspension of the collection of fixed asset investment tax", but the book also has the relevant content, do not be subjective to change, because the answer to the examination to the textbook prevail, the current training materials and work in close contact with the actual work, it is only trivial knowledge standardization, theorizing, Systematization, learning can not be detached from their own work, should be linked to the actual analysis to master. Close to the nature of their own work, it is relatively easy to understand the content, and their work does not have much to do with the look of some difficulties, these contents should be repeated to see, in order to understand.
2, usually read the book to play circle reading key, pro exam browsing once to deepen the impression, do not bring books, folder single, communication tools into the examination room, to avoid the heart of the weak influence on their own mood to answer the question. After getting the paper, first fill in the name, test number, to prevent the end of the test, nervous and busy and forget. Fill out the questions and concentrate on answering, no matter what happens in the examination room, there are invigilator teachers and examiners to solve the problem, not their own concern. Do not see someone reading, pass the clipboard, inside and outside the examination room collusion cheating and other behaviors and psychological imbalance, affecting the answer questions, because the examination questions are many and large, there is no time to browse through them, get the question paper to answer questions on the line. As long as you master the basic content of the training materials, the field play normal, you can get good results.