NFCC is a financial indicator of the contractor's ability to take a contract. The higher NFCC is, the better. The NFCC should at least be equal to the Approved Budget for the Contract (ABC).
The computation for the Net Financial Contracting Capacity (NFCC) should be included in the eligibility documents following the formula and format below:
NFCC = ((current assets minus current liabilities) multiplied by (K)) minus the value of all outstanding works or ongoing projects including contracts to be started.
Note: K is 10 for a contract duration of one year or less, 15for a contract duration of more than one year up to two years, and 20 for a contract duration of more than two years.
*Current assets and current liabilities should be picked up from the corresponding entry in the latest audited financial statement.
*The NFCC should at least be equal to the Approved Budget for the Contract (ABC).
Example : Current Assets -- P 5.2M
Current Liabilities - P 4.1M
Value of all Outstanding Works/Projects -- P 1.1M
NFCC = (5.2M -- 4.1M) * 10 -- 1.1M
NFCC = 9.9M
To determine the net loss of a business or financial statement, subtract the total expenses from the total revenue. If the result is negative, it indicates a net loss.
The difference between net credit and net debit in financial transactions is that net credit means the total amount of money received or credited to an account, while net debit means the total amount of money paid out or debited from an account.
Lenders use gross income instead of net income when determining loan eligibility because gross income provides a more accurate picture of a borrower's overall financial capacity and ability to repay the loan. Net income can be influenced by various deductions and expenses, which may not accurately reflect a borrower's true financial situation. By using gross income, lenders can assess a borrower's income before deductions and get a clearer understanding of their financial stability.
To determine someone's net worth, you subtract their liabilities (debts and financial obligations) from their assets (what they own, such as savings, investments, and property). The resulting number is their net worth, which represents their overall financial value.
Financial resources are loans, mortgages etc. Which are provided on returning capacity.
Gross financial contracting capacity is determined by assessing the total amount of financial resources an entity can secure for contracts, which includes evaluating its creditworthiness, cash flow, and existing financial obligations. This involves analyzing financial statements, credit ratings, and market conditions to estimate the maximum financing available. Additionally, understanding the entity's risk profile and the specific terms of contracts can help gauge its capacity to take on new financial commitments. Ultimately, it combines quantitative analysis with qualitative insights about the entity's operational context.
Capacity Building Network - Cap-Net - was created in 2003.
gross capacity minus capacity deductions
i found on the net that it was nonfinancial
To determine the net loss of a business or financial statement, subtract the total expenses from the total revenue. If the result is negative, it indicates a net loss.
Contracting and Finance
The difference between net credit and net debit in financial transactions is that net credit means the total amount of money received or credited to an account, while net debit means the total amount of money paid out or debited from an account.
Net worth is the amount by which assets exceed liabilities. In other words, your net worth is the difference between what you own and what you owe. Calculating your net worth can be a useful tool to gauge your financial health and your financial progress over time.
Lenders use gross income instead of net income when determining loan eligibility because gross income provides a more accurate picture of a borrower's overall financial capacity and ability to repay the loan. Net income can be influenced by various deductions and expenses, which may not accurately reflect a borrower's true financial situation. By using gross income, lenders can assess a borrower's income before deductions and get a clearer understanding of their financial stability.
To determine someone's net worth, you subtract their liabilities (debts and financial obligations) from their assets (what they own, such as savings, investments, and property). The resulting number is their net worth, which represents their overall financial value.
The opposite of net profit margin is the net loss margin, which indicates a company's financial performance when expenses exceed revenues, resulting in a loss. While net profit margin measures profitability as a percentage of revenue, the net loss margin highlights the extent of financial shortfall in relation to total sales. A negative net loss margin signifies financial distress and inefficiency in managing costs relative to income.
2 million