View the powerpoint

474 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

View the powerpoint

  1. 1. Business Reference Beth Kaylor -- Faculty Development -- October 31, 2008
  2. 2. Public, private or non-profit <ul><li>Private is less than 300 shareholders </li></ul><ul><li>The majority of companies are private – about 98% </li></ul><ul><li>To quotes Forbes : “Private means private!” </li></ul><ul><li>No reporting requirements </li></ul><ul><li>Little information is available </li></ul><ul><li>If a public company chooses to “go private” the old filings will remain available through the SEC </li></ul>
  3. 3. What can you find for private? <ul><li>Hoover's Handbook of Private Companies </li></ul><ul><ul><li>Reference HG4057 .A286213 </li></ul></ul><ul><li>Databases </li></ul><ul><ul><li>BSP </li></ul></ul><ul><ul><li>ABI </li></ul></ul><ul><ul><li>Mergent </li></ul></ul><ul><li>Local business journals </li></ul><ul><li>Secretary of State (required filing) </li></ul>
  4. 4. Non-profit organizations <ul><li>More of an industry than a category of “company.” </li></ul><ul><li>Very little information available about the financial operations </li></ul><ul><li>Don’t have required government filings </li></ul><ul><ul><li>Chairman of the Board letter </li></ul></ul><ul><ul><li>Description of the charity, causes, actions, accomplishments, etc. of the organization </li></ul></ul><ul><ul><li>Directors and Officers </li></ul></ul><ul><ul><li>Financial statement </li></ul></ul><ul><ul><ul><li>CPA Opinion letter, Income statement, Balance sheet, footnotes </li></ul></ul></ul>
  5. 5. Databases? <ul><li>Databases </li></ul>
  6. 6. SIC and NAICS <ul><li>SIC </li></ul><ul><ul><li>Standard Industrial Classification </li></ul></ul><ul><ul><li>Last updated in 1987 </li></ul></ul><ul><ul><li>New technologies do not fit </li></ul></ul><ul><li>NAICS </li></ul><ul><ul><li>North American Industrial Classification </li></ul></ul><ul><ul><li>Same number across countries – last four change </li></ul></ul>
  7. 7. SIC and NAICS <ul><li>Hierarchy </li></ul><ul><li>Where to find them </li></ul><ul><li>Easy? Mergent or BSP </li></ul><ul><li>Census Bureau webpage C </li></ul><ul><li>Manual -Ready Ref  HF1042 .N67  2007 </li></ul><ul><li>Conversion – Census Bureau C </li></ul><ul><ul><li>No search for SIC and NAICS 2007 – have to use 2002 </li></ul></ul><ul><ul><li>Ohio Labor Market Crosswalk O </li></ul></ul>
  8. 8. Resources for Financial Ratios <ul><li>3 main sources for industry ratios </li></ul><ul><li>Shelved together in Reference </li></ul><ul><li>Each gets their information from different sources </li></ul><ul><li>Numbers will be different but can be used together to get a complete picture of the industry </li></ul><ul><li>Grouped by product code </li></ul>
  9. 9. RMA Annual Statement Studies <ul><li>Reference HF5681.B2 R6  </li></ul><ul><li>Contains composite financial data on manufacturing, wholesaling, retailing, service, and contracting lines of business. </li></ul><ul><li>comparative data </li></ul><ul><li>Comes directly from the financial statements of small and medium-size business customers of RMA’s member institutions </li></ul>
  10. 10. Industry Norms and Key Business Ratios <ul><li>Reference HF5681.R25 I53 </li></ul><ul><li>Dun and Bradstreet </li></ul><ul><li>Line of Credit business reporting </li></ul><ul><li>  Helps one understand the true performance of a company, by benchmarking it against its industry peers </li></ul><ul><li>14 key business ratios cover all critical areas of business performance—solvency, efficiency and profitability </li></ul>
  11. 11. Almanac of Business and Industrial Financial Ratios <ul><li>Reference HF5681.R25 T68  </li></ul><ul><li>Provides financial ratios for companies in various asset ranges by SIC code </li></ul><ul><li>Data reported are based on aggregate numbers from IRS records. </li></ul>
  12. 12. Other Ratio Sources <ul><li>Mergent </li></ul><ul><li>Business Source Premier </li></ul><ul><li>Lexis-Nexis Academic </li></ul>
  13. 13. Ratios? What do they mean? <ul><li>Liquidity ratios </li></ul><ul><ul><li>Most commonly used </li></ul></ul><ul><ul><li>Show the ability of the organization to quickly generate cash </li></ul></ul><ul><li>Current Ratio – current assets/current liabilities </li></ul><ul><li>Quick Ratio – same as above but subtracts inventory from current assets </li></ul><ul><li>How well can an organization meet its short-term obigations </li></ul>
  14. 14. Ratios? What do they mean? <ul><li>Efficiency Ratios </li></ul><ul><li>determine how efficiently a business uses its assets, and where there's room for improvement </li></ul><ul><li>Inventory turnover, asset turnover etc… </li></ul>
  15. 15. Ratios? What do they mean? <ul><li>Profitability Ratios </li></ul><ul><li>assess the profitability of a business and changes in its profit performance </li></ul><ul><li>These ratios are probably the most important indicators of a business's financial success. </li></ul><ul><ul><li>Gross profit margin </li></ul></ul><ul><ul><li>Net profit margin </li></ul></ul><ul><ul><li>ROA – return on assets </li></ul></ul><ul><ul><li>ROE – return on equity </li></ul></ul>
  16. 16. Ratios? What do they mean? <ul><li>Solvency Ratios </li></ul><ul><li>designed to help one measure the degree of financial risk that a business faces </li></ul><ul><li>&quot;Financial risk,&quot; in this context, means the extent to which the organization has debt obligations that must be met, regardless of cash flow. </li></ul><ul><li>assess the level of debt and decide whether this level is appropriate for the company </li></ul><ul><ul><li>Debt to Equity </li></ul></ul><ul><ul><li>Debt to Assets </li></ul></ul><ul><ul><li>Coverage of Fixed Costs </li></ul></ul><ul><ul><li>Interest Coverage </li></ul></ul>
  17. 17. Company Analysis <ul><li>Public or private? </li></ul><ul><li>Start with Mergent and then BSP </li></ul><ul><li>Corporate affiliations </li></ul><ul><li>Value Line </li></ul><ul><li>Lexis-Nexis </li></ul><ul><li>Send them to me </li></ul>
  18. 18. Industry Survey <ul><li>Standard and Poor’s NetAdvantage </li></ul><ul><ul><li>Or print Industry Surveys </li></ul></ul><ul><ul><li>Reference HC106.6 .S74   </li></ul></ul><ul><li>IBIS World </li></ul><ul><li>Business Source Premier </li></ul><ul><li>ABI </li></ul><ul><li>Statistical Universe </li></ul><ul><li>Send them to me </li></ul>
  19. 19. Business Plans <ul><li>What is a business plan? </li></ul><ul><li>Why write one? </li></ul><ul><li>Many resources in Reference and General Collection </li></ul><ul><li>SBA Small Business Planner - SBA </li></ul><ul><li>My Own Business M </li></ul><ul><li>SCORE S </li></ul>
  20. 20. Corporate Affiliations <ul><li>Lexis-Nexis Corporate Affiliations </li></ul><ul><ul><li>Who owns whom </li></ul></ul><ul><ul><li>HG4057 .A219  </li></ul></ul><ul><ul><li>2006 v.1-8; Current 1 year in Ready Reference, previous 1 year in Reference, and earlier volumes in the General Collection </li></ul></ul><ul><ul><li>Most recent is 2008 </li></ul></ul>
  21. 21. SBBI Databook <ul><li>Stock Bonds Bills and Inflation Yearbook </li></ul><ul><ul><li>REF HG 4501 .S7949 2007 </li></ul></ul><ul><ul><li>History of the returns on the capital markets in the US 1926-2006 </li></ul></ul><ul><ul><li>Includes </li></ul></ul><ul><ul><ul><li>Large and small company stocks </li></ul></ul></ul><ul><ul><ul><li>Long term corporate and government bonds </li></ul></ul></ul><ul><ul><ul><li>Intermediate term government bonds </li></ul></ul></ul><ul><ul><ul><li>US T-bills </li></ul></ul></ul><ul><ul><ul><li>Consumer Price Index </li></ul></ul></ul>
  22. 22. Questions?

×