| Dave (Fearless Blue) | Monday, August 8, 2011 - 04:08 pm 
I ask becasue I am making a profit and net cash goes yet finiace index goes down |
| Josias (Little Upsilon) | Monday, August 8, 2011 - 06:39 pm
i saw the formula some where, not sure i can hunt it up, but the basic thing to look at, is not total profit, but profit over cost. some one that makes 400B income a gm, with 250B cost, will have a lower FI than some that makes 200B with 100B cost. even though they are making more.
really, i wouldn't worry about your FI. focus on making money, and your FI will fall into place. |
| Dave (Kebir Blue) | Monday, August 8, 2011 - 06:46 pm
Ok that is ususaly what I do
Thanks |
| Crafty (Fearless Blue) | Monday, August 8, 2011 - 06:50 pm
There are two different formulae used to calculate FI. Once your costs are > 100B then the second applies, which can result in much higher FIs than sub 100B costs. |
| Jo Salkilld (White Giant) | Tuesday, August 9, 2011 - 12:30 am
The following is a copy of an email I received from the GMs a while ago, when I asked exactly the same question:
You asked about one of the most complex indexes indeed.
The most important factors are total income and cost.
The main factor is computed as:
1.3 total income this year + total income last year Divided by (you probably guessed)
1.3 total cost this year + total income last year.
There are some smoothing factors too, preventing sudden changes that occur all the time. The change of year causes a change in the index, because of the changing definition of this year and last year.
so the index is n times the current value plus the new value, divided by n+1.
n I remember as 6 or 7.
There are also some smaller corrections and measures that prevent a division by a very small number and a small factor that makes it more difficult to get into the hundreds, adding a small division factor. all this does not prevent the finance index from becoming very high.
There is no dependency at all on cash or assets as you could buy those for money.
Hugs and respect
Jo |
| CorporatePartner | Tuesday, August 9, 2011 - 01:28 pm
Not sure what the date from that message is, or who sent it, but have seen another reference to Finance Index that was more complex than that and did include several other factors. Perhaps it has been changed over time. |
| Psycho_Honey (Fearless Blue) | Tuesday, August 9, 2011 - 04:58 pm
It is pathetic that this value and an accurate description of the formula used to calculate it, IS NOT included into any new or old documentation. |
| Crafty (Fearless Blue) | Tuesday, August 9, 2011 - 08:32 pm
As far as I can see, Jo's kind post of that info has left more confusion. Too many small factors.
And does [1.3 total cost this year + total income last year] mean
[(1.3 * total cost) + total income] or
[1.3 * (total cost + total income)]?
Can you remember where or find the other post you refer to CP? |
| Jo Salkilld (White Giant) | Wednesday, August 10, 2011 - 01:36 am
I got that info from the GMs just over a year ago. Things might have changed but, at the time, I checked it out and it was accurate.
Hugs and respect
Jo |
