→ Dropthrough → Start Learning / Download MP3 Flashcards

Question		Answer
Dropthrough start learning		This is the increase in EBITDA divided by the increase in revenue
Your EBITDA increased by 10M and Revenue increased by 20M. What it the dropthrough start learning		10/20 = 0.5 = 50%
Services vs Pass-Through start learning		Services - people related business, pass-through=cash costs rebid to the client at cost
Is EBITDA comming from sevices or pass through? start learning		Services
What are the two ways to calculate Dropthrough? start learning		Including Pass-Through or excluding them
Why Pass-Through is not good for EBITDA? start learning		Typically Pass-Through is low margin so dilutes EBITDA %
Inorganic Growth start learning		Is the total growth including acquisitions
Organic growth start learning		Is the underlying growth excluding acquisitions
How is incremental revenue from the acquisition reported? start learning		During the first 12 months, incremental revenue to the same pre-acquisition period of the acquisition is treated as organic
What do you need to have for recognizing revenue or for invoicing start learning		Contract with the client. Evidence of arrangement.
DSO acronym start learning		Days Sales Outstanding
What DSO is? start learning		Measure of how efficient we are between doing the work for the client and collecting the money.
IQVIA standard for number of days between invoice and collecting money start learning		30 days
Standard Payment Days for Vendors start learning		90 days
Cash receit vs cash payement in days start learning		Receipt = 30 days, Payment = 90 days
For services standard invoicing is at least [blank] on signature start learning		50%
Can invoice be accepted before services are received? start learning		No. First service then invoice acceptance
To whom 90 days payment terms apply? start learning		All suppliers with an annual value more than $10000 USD
Fee Revenue start learning		revenue for providing a good or service or data
Pass-through Revenue start learning		cash costs incurred by IQVIA and re-charged to the client
Barter revenue start learning		revenue generated by transferring equal value services with a client (e.g. exchange of data)
Software/ Licence Revenue start learning		revenue associated with the provision of software/licences
Booking start learning		When two parties sign an agreement
How is Revenue reported start learning		Usually when delivery is made. For larger projects proportional to the work we have done.
When is Revenue reported start learning		In the period in which they are earned
EAC start learning		Estimate at completion - if we have done 50% of the work, we can recognize 50% of the contracted revenue

Dropthrough

You must sign in to write a comment

More