HIGGM

This is a tool for manufacturing and asset-intensive enterprises to conduct economic profit assessment, inventory impairment testing, and judgment on subsequent expenditures on fixed assets.

Main functions:

1. Economic Value Added (EVA): Input after-tax net operating profit, total capital, and weighted average cost of capital; automatically calculate EVA; break down the difference between ROIC and WACC and the scale of invested capital; display the "profit → cost of capital → EVA" derivation chain in a waterfall chart; support period comparison, interest rate spread dashboard, and capital cost/profit sensitivity analysis.

2. Inventory Impairment: Input book cost, estimated selling price, estimated selling expenses, and related taxes for each item of finished goods, semi-finished goods, and raw materials; automatically calculate net realizable value and determine the inventory write-down provision to be made; summarize the total impairment amount for the entire company and generate detailed reports and category structures.

3. Subsequent Expenditures on Fixed Assets: Input expenditure amount, maintenance type (routine maintenance/partial renovation/overall upgrade), remaining useful life, and whether it is for extending life, increasing capacity, or improving quality; provide suggestions for expense or capitalization based on capitalization conditions and explain the reasons for the judgment.

4. Profit Adjustment Forecast: Incorporate the impact of inventory impairment and subsequent expenditures on current profit and loss and invested capital into adjusted operating profit and EVA; compare the profit timing differences along paths such as "following recommendations / full expense / capitalization upon meeting conditions".

Disclaimer: Our app is not an accounting firm, asset appraisal agency, or regulatory authority. Economic profit, impairment provisions, and capitalization decisions provide simplified estimates only. Always seek advice from qualified professionals before making financial reporting, audit conclusions, or investment decisions.