superkit-mcp-server 1.1.4 → 1.2.0

package/skills/tech/financial-modeling/skills/3-statements/references/formulas.md

@@ -1,292 +1,292 @@
-# Formula Reference
-
-**IMPORTANT:** Use the formulas outlined in this reference document unless otherwise specified by the user.
-
----
-
-## Core Linkages
-
-```
-Balance Sheet:        Assets = Liabilities + Equity
-Net Income:           IS Net Income → CF Operations (starting point)
-Cash Flow:            ΔCash = CFO + CFI + CFF
-Cash Tie-Out:         Ending Cash (CF) = Cash (BS Asset)
-Cash Monthly/Annual:  Closing Cash (Monthly) = Closing Cash (Annual)
-Retained Earnings:    Prior RE + Net Income - Dividends = Ending RE
-Equity Raise:         ΔCommon Stock/APIC (BS) = Equity Issuance (CFF)
-Year 0 Equity:        Equity Raised (Year 0) = Beginning Equity (Year 1)
-```
-
-## Gross Profit Calculation
-
-**IMPORTANT:** Gross Profit must be calculated from Net Revenue, not Gross Revenue.
-
-```
-Net Revenue - Cost of Revenue = Gross Profit
-```
-
-| Term | Definition |
-|------|------------|
-| Gross Revenue | Total revenue before any deductions |
-| Net Revenue | Gross Revenue - Returns - Allowances - Discounts |
-| Cost of Revenue | Direct costs attributable to production of goods/services sold |
-| Gross Profit | Net Revenue - Cost of Revenue |
-
-**Note:** Always use Net Revenue (also called "Net Sales" or simply "Revenue" on most financial statements) as the starting point for profitability calculations. Gross Revenue overstates the true top-line performance.
-
-## Margin Formulas
-
-```
-Gross Margin %      = Gross Profit / Net Revenue
-EBITDA              = EBIT + D&A  (or = Gross Profit - OpEx)
-EBITDA Margin %     = EBITDA / Net Revenue
-EBIT Margin %       = EBIT / Net Revenue
-Net Income Margin % = Net Income / Net Revenue
-```
-
-## Credit Metric Formulas
-
-```
-Total Debt            = Current Portion of Debt + Long-Term Debt
-Net Debt              = Total Debt - Cash
-Total Debt / EBITDA   = Total Debt / EBITDA (from IS)
-Net Debt / EBITDA     = Net Debt / EBITDA (from IS)
-Interest Coverage     = EBITDA / Interest Expense (from IS)
-Net Int Exp % Debt    = Net Interest Expense / Long-Term Debt
-Debt / Total Cap      = Total Debt / (Total Debt + Total Equity)
-Debt / Equity         = Total Debt / Total Equity
-Current Ratio         = Total Current Assets / Total Current Liabilities
-Quick Ratio           = (Total Current Assets - Inventory) / Total Current Liabilities
-```
-
-## Forecast Formulas (% of Net Revenue Method)
-
-```
-Cost of Revenue (Forecast) = Net Revenue × Cost of Revenue % Assumption
-S&M (Forecast)             = Net Revenue × S&M % Assumption
-G&A (Forecast)             = Net Revenue × G&A % Assumption
-R&D (Forecast)             = Net Revenue × R&D % Assumption
-SBC (Forecast)             = Net Revenue × SBC % Assumption
-```
-
-## Working Capital Formulas
-
-```
-Accounts Receivable
-  Prior AR
-  + Revenue (from IS)
-  - Cash Collections (plug)
-  = Ending AR
-  DSO = (AR / Revenue) × 365
-
-Inventory
-  Prior Inventory
-  + Purchases (plug)
-  - COGS (from IS)
-  = Ending Inventory
-  DIO = (Inventory / COGS) × 365
-
-Accounts Payable
-  Prior AP
-  + Purchases (from Inventory calc)
-  - Cash Payments (plug)
-  = Ending AP
-  DPO = (AP / COGS) × 365
-
-Net Working Capital = AR + Inventory - AP
-ΔWC = Current NWC - Prior NWC
-```
-
-## D&A Schedule Formulas
-
-```
-Beginning PP&E (Gross)
-+ CapEx
-= Ending PP&E (Gross)
-
-Beginning Accumulated Depreciation
-+ Depreciation Expense
-= Ending Accumulated Depreciation
-
-PP&E (Net) = Gross PP&E - Accumulated Depreciation
-```
-
-## Debt Schedule Formulas
-
-```
-Beginning Debt Balance
-+ New Borrowings
-- Repayments
-= Ending Debt Balance
-
-Interest Expense = Avg Debt Balance × Interest Rate
-  (Use beginning balance to avoid circularity, or iterate if circular refs enabled)
-```
-
-## Retained Earnings Formula
-
-```
-Beginning Retained Earnings
-+ Net Income (from IS)
-+ Stock-Based Compensation (SBC) (from IS)
-- Dividends
-= Ending Retained Earnings
-```
-
-## NOL (Net Operating Loss) Schedule Formulas
-
-```
-NOL CARRYFORWARD SCHEDULE
-
-Beginning NOL Balance (Year 1 / Formation = 0)
-+ NOL Generated (if EBT < 0, then ABS(EBT), else 0)
-- NOL Utilized (limited by taxable income and utilization cap)
-= Ending NOL Balance
-
-STARTING BALANCE RULE
-
-For a new business or first modeled period:
-  Beginning NOL Balance = 0
-  NOL can only increase through realized losses (EBT < 0)
-  NOL cannot be created from thin air or assumed
-
-NOL UTILIZATION CALCULATION
-
-Pre-Tax Income (EBT)
-  If EBT > 0:
-    NOL Available = Beginning NOL Balance
-    Utilization Limit = EBT × 80%  (post-2017 federal limit)
-    NOL Utilized = MIN(NOL Available, Utilization Limit)
-    Taxable Income = EBT - NOL Utilized
-  If EBT ≤ 0:
-    NOL Utilized = 0
-    Taxable Income = 0
-    NOL Generated = ABS(EBT)
-
-TAX CALCULATION WITH NOL
-
-Taxes Payable = MAX(0, Taxable Income × Tax Rate)
-  (Taxes cannot be negative; losses create NOL asset instead)
-
-DEFERRED TAX ASSET (DTA) FOR NOL
-
-DTA - NOL Carryforward = Ending NOL Balance × Tax Rate
-ΔDTA = Current DTA - Prior DTA
-  (Increase in DTA = non-cash benefit on CF)
-  (Decrease in DTA = non-cash expense on CF)
-```
-
-## Balance Sheet Structure
-
-```
-ASSETS
-  Cash (from CF ending cash)
-  Accounts Receivable (from WC)
-  Inventory (from WC)
-  Total Current Assets
-  
-  PP&E, Net (from DA)
-  Deferred Tax Asset - NOL (from NOL schedule)
-  Total Non-Current Assets
-  Total Assets
-
-LIABILITIES
-  Accounts Payable (from WC)
-  Current Portion of Debt (from Debt)
-  Total Current Liabilities
-  
-  Long-Term Debt (from Debt)
-  Total Liabilities
-
-EQUITY
-  Common Stock
-  Retained Earnings (from RE schedule)
-  Total Equity
-
-CHECK: Assets - Liabilities - Equity = 0
-```
-
-## Cash Flow Statement Structure
-
-```
-CASH FROM OPERATIONS (CFO)
-  Net Income (LINK: IS)
-  + D&A (LINK: DA schedule)
-  + Stock-Based Compensation (SBC) (LINK: IS or Assumptions)
-  - ΔDTA (Deferred Tax Asset) (LINK: NOL schedule; increase in DTA = use of cash)
-  - ΔAR (LINK: WC)
-  - ΔInventory (LINK: WC)
-  + ΔAP (LINK: WC)
-  = CFO
-
-CASH FROM INVESTING (CFI)
-  - CapEx (LINK: DA schedule)
-  = CFI
-
-CASH FROM FINANCING (CFF)
-  + Debt Issuance (LINK: Debt)
-  - Debt Repayment (LINK: Debt)
-  + Equity Issuance (LINK: BS Common Stock/APIC)
-  - Dividends (LINK: RE schedule)
-  = CFF
-
-Net Change in Cash = CFO + CFI + CFF
-Beginning Cash
-+ Net Change in Cash
-= Ending Cash (LINK TO: BS Cash)
-```
-
-## Income Statement Structure
-
-```
-Net Revenue
-  Growth %
-(-) Cost of Revenue
-  % of Net Revenue
-────────────────
-Gross Profit (= Net Revenue - Cost of Revenue)
-  Gross Margin %
-
-(-) S&M
-  % of Net Revenue
-(-) G&A
-  % of Net Revenue
-(-) R&D
-  % of Net Revenue
-(-) D&A
-(-) SBC
-  % of Net Revenue
-────────────────
-EBIT
-  EBIT Margin %
-
-EBITDA
-  EBITDA Margin %
-
-(-) Interest Expense
-────────────────
-EBT (Pre-Tax Income)
-(-) NOL Utilization (from NOL schedule, reduces taxable income)
-────────────────
-Taxable Income
-(-) Taxes (Taxable Income × Tax Rate)
-────────────────
-Net Income
-  Net Income Margin %
-```
-
-## Check Formulas
-
-```
-BS Balance Check:       = Assets - Liabilities - Equity  (must = 0)
-Cash Tie-Out:           = BS Cash - CF Ending Cash       (must = 0)
-RE Roll-Forward:        = Prior RE + NI + SBC - Div - BS RE  (must = 0)
-DTA Tie-Out:            = NOL Schedule DTA - BS DTA      (must = 0)
-Equity Raise Tie-Out:   = ΔCommon Stock/APIC (BS) - Equity Issuance (CFF)  (must = 0)
-Year 0 Equity Tie-Out:  = Equity Raised (Year 0) - Beginning Equity (Year 1)  (must = 0)
-Cash Monthly vs Annual: = Closing Cash (Monthly) - Closing Cash (Annual)  (must = 0)
-NOL Utilization Cap:    = NOL Utilized ≤ EBT × 80%       (must be TRUE for post-2017)
-NOL Non-Negative:       = Ending NOL Balance ≥ 0         (must be TRUE)
-NOL Starting Balance:   = Beginning NOL (Year 1) = 0     (must be TRUE for new business)
-NOL Accumulation:       = NOL increases only when EBT < 0 (losses generate NOL)
-```
+# Formula Reference
+
+**IMPORTANT:** Use the formulas outlined in this reference document unless otherwise specified by the user.
+
+---
+
+## Core Linkages
+
+```
+Balance Sheet:        Assets = Liabilities + Equity
+Net Income:           IS Net Income → CF Operations (starting point)
+Cash Flow:            ΔCash = CFO + CFI + CFF
+Cash Tie-Out:         Ending Cash (CF) = Cash (BS Asset)
+Cash Monthly/Annual:  Closing Cash (Monthly) = Closing Cash (Annual)
+Retained Earnings:    Prior RE + Net Income - Dividends = Ending RE
+Equity Raise:         ΔCommon Stock/APIC (BS) = Equity Issuance (CFF)
+Year 0 Equity:        Equity Raised (Year 0) = Beginning Equity (Year 1)
+```
+
+## Gross Profit Calculation
+
+**IMPORTANT:** Gross Profit must be calculated from Net Revenue, not Gross Revenue.
+
+```
+Net Revenue - Cost of Revenue = Gross Profit
+```
+
+| Term | Definition |
+|------|------------|
+| Gross Revenue | Total revenue before any deductions |
+| Net Revenue | Gross Revenue - Returns - Allowances - Discounts |
+| Cost of Revenue | Direct costs attributable to production of goods/services sold |
+| Gross Profit | Net Revenue - Cost of Revenue |
+
+**Note:** Always use Net Revenue (also called "Net Sales" or simply "Revenue" on most financial statements) as the starting point for profitability calculations. Gross Revenue overstates the true top-line performance.
+
+## Margin Formulas
+
+```
+Gross Margin %      = Gross Profit / Net Revenue
+EBITDA              = EBIT + D&A  (or = Gross Profit - OpEx)
+EBITDA Margin %     = EBITDA / Net Revenue
+EBIT Margin %       = EBIT / Net Revenue
+Net Income Margin % = Net Income / Net Revenue
+```
+
+## Credit Metric Formulas
+
+```
+Total Debt            = Current Portion of Debt + Long-Term Debt
+Net Debt              = Total Debt - Cash
+Total Debt / EBITDA   = Total Debt / EBITDA (from IS)
+Net Debt / EBITDA     = Net Debt / EBITDA (from IS)
+Interest Coverage     = EBITDA / Interest Expense (from IS)
+Net Int Exp % Debt    = Net Interest Expense / Long-Term Debt
+Debt / Total Cap      = Total Debt / (Total Debt + Total Equity)
+Debt / Equity         = Total Debt / Total Equity
+Current Ratio         = Total Current Assets / Total Current Liabilities
+Quick Ratio           = (Total Current Assets - Inventory) / Total Current Liabilities
+```
+
+## Forecast Formulas (% of Net Revenue Method)
+
+```
+Cost of Revenue (Forecast) = Net Revenue × Cost of Revenue % Assumption
+S&M (Forecast)             = Net Revenue × S&M % Assumption
+G&A (Forecast)             = Net Revenue × G&A % Assumption
+R&D (Forecast)             = Net Revenue × R&D % Assumption
+SBC (Forecast)             = Net Revenue × SBC % Assumption
+```
+
+## Working Capital Formulas
+
+```
+Accounts Receivable
+  Prior AR
+  + Revenue (from IS)
+  - Cash Collections (plug)
+  = Ending AR
+  DSO = (AR / Revenue) × 365
+
+Inventory
+  Prior Inventory
+  + Purchases (plug)
+  - COGS (from IS)
+  = Ending Inventory
+  DIO = (Inventory / COGS) × 365
+
+Accounts Payable
+  Prior AP
+  + Purchases (from Inventory calc)
+  - Cash Payments (plug)
+  = Ending AP
+  DPO = (AP / COGS) × 365
+
+Net Working Capital = AR + Inventory - AP
+ΔWC = Current NWC - Prior NWC
+```
+
+## D&A Schedule Formulas
+
+```
+Beginning PP&E (Gross)
++ CapEx
+= Ending PP&E (Gross)
+
+Beginning Accumulated Depreciation
++ Depreciation Expense
+= Ending Accumulated Depreciation
+
+PP&E (Net) = Gross PP&E - Accumulated Depreciation
+```
+
+## Debt Schedule Formulas
+
+```
+Beginning Debt Balance
++ New Borrowings
+- Repayments
+= Ending Debt Balance
+
+Interest Expense = Avg Debt Balance × Interest Rate
+  (Use beginning balance to avoid circularity, or iterate if circular refs enabled)
+```
+
+## Retained Earnings Formula
+
+```
+Beginning Retained Earnings
++ Net Income (from IS)
++ Stock-Based Compensation (SBC) (from IS)
+- Dividends
+= Ending Retained Earnings
+```
+
+## NOL (Net Operating Loss) Schedule Formulas
+
+```
+NOL CARRYFORWARD SCHEDULE
+
+Beginning NOL Balance (Year 1 / Formation = 0)
++ NOL Generated (if EBT < 0, then ABS(EBT), else 0)
+- NOL Utilized (limited by taxable income and utilization cap)
+= Ending NOL Balance
+
+STARTING BALANCE RULE
+
+For a new business or first modeled period:
+  Beginning NOL Balance = 0
+  NOL can only increase through realized losses (EBT < 0)
+  NOL cannot be created from thin air or assumed
+
+NOL UTILIZATION CALCULATION
+
+Pre-Tax Income (EBT)
+  If EBT > 0:
+    NOL Available = Beginning NOL Balance
+    Utilization Limit = EBT × 80%  (post-2017 federal limit)
+    NOL Utilized = MIN(NOL Available, Utilization Limit)
+    Taxable Income = EBT - NOL Utilized
+  If EBT ≤ 0:
+    NOL Utilized = 0
+    Taxable Income = 0
+    NOL Generated = ABS(EBT)
+
+TAX CALCULATION WITH NOL
+
+Taxes Payable = MAX(0, Taxable Income × Tax Rate)
+  (Taxes cannot be negative; losses create NOL asset instead)
+
+DEFERRED TAX ASSET (DTA) FOR NOL
+
+DTA - NOL Carryforward = Ending NOL Balance × Tax Rate
+ΔDTA = Current DTA - Prior DTA
+  (Increase in DTA = non-cash benefit on CF)
+  (Decrease in DTA = non-cash expense on CF)
+```
+
+## Balance Sheet Structure
+
+```
+ASSETS
+  Cash (from CF ending cash)
+  Accounts Receivable (from WC)
+  Inventory (from WC)
+  Total Current Assets
+  
+  PP&E, Net (from DA)
+  Deferred Tax Asset - NOL (from NOL schedule)
+  Total Non-Current Assets
+  Total Assets
+
+LIABILITIES
+  Accounts Payable (from WC)
+  Current Portion of Debt (from Debt)
+  Total Current Liabilities
+  
+  Long-Term Debt (from Debt)
+  Total Liabilities
+
+EQUITY
+  Common Stock
+  Retained Earnings (from RE schedule)
+  Total Equity
+
+CHECK: Assets - Liabilities - Equity = 0
+```
+
+## Cash Flow Statement Structure
+
+```
+CASH FROM OPERATIONS (CFO)
+  Net Income (LINK: IS)
+  + D&A (LINK: DA schedule)
+  + Stock-Based Compensation (SBC) (LINK: IS or Assumptions)
+  - ΔDTA (Deferred Tax Asset) (LINK: NOL schedule; increase in DTA = use of cash)
+  - ΔAR (LINK: WC)
+  - ΔInventory (LINK: WC)
+  + ΔAP (LINK: WC)
+  = CFO
+
+CASH FROM INVESTING (CFI)
+  - CapEx (LINK: DA schedule)
+  = CFI
+
+CASH FROM FINANCING (CFF)
+  + Debt Issuance (LINK: Debt)
+  - Debt Repayment (LINK: Debt)
+  + Equity Issuance (LINK: BS Common Stock/APIC)
+  - Dividends (LINK: RE schedule)
+  = CFF
+
+Net Change in Cash = CFO + CFI + CFF
+Beginning Cash
++ Net Change in Cash
+= Ending Cash (LINK TO: BS Cash)
+```
+
+## Income Statement Structure
+
+```
+Net Revenue
+  Growth %
+(-) Cost of Revenue
+  % of Net Revenue
+────────────────
+Gross Profit (= Net Revenue - Cost of Revenue)
+  Gross Margin %
+
+(-) S&M
+  % of Net Revenue
+(-) G&A
+  % of Net Revenue
+(-) R&D
+  % of Net Revenue
+(-) D&A
+(-) SBC
+  % of Net Revenue
+────────────────
+EBIT
+  EBIT Margin %
+
+EBITDA
+  EBITDA Margin %
+
+(-) Interest Expense
+────────────────
+EBT (Pre-Tax Income)
+(-) NOL Utilization (from NOL schedule, reduces taxable income)
+────────────────
+Taxable Income
+(-) Taxes (Taxable Income × Tax Rate)
+────────────────
+Net Income
+  Net Income Margin %
+```
+
+## Check Formulas
+
+```
+BS Balance Check:       = Assets - Liabilities - Equity  (must = 0)
+Cash Tie-Out:           = BS Cash - CF Ending Cash       (must = 0)
+RE Roll-Forward:        = Prior RE + NI + SBC - Div - BS RE  (must = 0)
+DTA Tie-Out:            = NOL Schedule DTA - BS DTA      (must = 0)
+Equity Raise Tie-Out:   = ΔCommon Stock/APIC (BS) - Equity Issuance (CFF)  (must = 0)
+Year 0 Equity Tie-Out:  = Equity Raised (Year 0) - Beginning Equity (Year 1)  (must = 0)
+Cash Monthly vs Annual: = Closing Cash (Monthly) - Closing Cash (Annual)  (must = 0)
+NOL Utilization Cap:    = NOL Utilized ≤ EBT × 80%       (must be TRUE for post-2017)
+NOL Non-Negative:       = Ending NOL Balance ≥ 0         (must be TRUE)
+NOL Starting Balance:   = Beginning NOL (Year 1) = 0     (must be TRUE for new business)
+NOL Accumulation:       = NOL increases only when EBT < 0 (losses generate NOL)
+```