The document discusses balance sheets, which provide a snapshot of a company's financial position at a point in time. A balance sheet shows a company's assets, liabilities, and equity. Assets are things owned that have value, liabilities are debts owed, and equity is the remaining value if assets were sold to pay liabilities. Balance sheets help analyze a company's financial strength and health by examining metrics like cash position, debt-to-equity ratio, and return on assets. They are important for banks, investors, and analysts evaluating risk.
Financial statement analysis involves various techniques to evaluate a company's financial health and performance, including ratio analysis. Ratio analysis calculates statistical relationships between financial data points to gain insights. Key ratios discussed in the document include liquidity ratios like the current ratio and quick ratio, leverage ratios like the debt-to-equity ratio, activity ratios like inventory turnover ratio, and profitability ratios. Calculating and analyzing ratios helps understand a company's liquidity, creditworthiness, operational efficiency, and profit generating ability.
The document provides an agenda for an introductory seminar on understanding financial statements. It will cover balance sheets, income statements, and statements of cash flows. Attendees will learn to analyze these statements to understand a company's financial position and performance, and how the numbers tell the story of the industry and business operations. The seminar will help attendees compare companies and evaluate their historical and future financial prospects.
Fin 370 genius perfect education fin370genius.comstudent2345
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www.fin370genius.com
4-5 Multiyear Future Value How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8 percent per year?
Financial Statements
Today, I will be describing a balance sheet, income statement, retained earnings statement, and statement of cash flows and how a company uses these financial statements as a tool to make future decisions for the company.
This document provides an overview of basic accounting concepts and financial statements, including:
1) It introduces balance sheets, income statements, and key accounting concepts like assets, liabilities, equity, revenues, and expenses.
2) It explains the components and purpose of balance sheets and income statements, such as listing assets from most to least liquid and funding sources from shortest to longest term.
3) It discusses how accounting ensures the balance sheet balances and financial statements meet uniform standards for analysis over time and between firms.
This document discusses financial ratio analysis and provides an overview of different types of financial ratios used to evaluate a company's performance and financial condition. It begins by defining financial ratio analysis and outlining its uses. It then discusses different classifications of ratios, including liquidity ratios, profitability ratios, activity ratios, financial leverage ratios, and shareholder ratios. The document uses Microsoft Corporation's 2004 financial statements to demonstrate examples of liquidity ratios, including the current ratio, quick ratio, and net working capital to sales ratio. It provides guidelines on interpreting these ratios while noting there is no single definition of a "good" or "bad" ratio.
This document discusses financial ratio analysis and provides an overview of different types of financial ratios used to evaluate a company's performance and financial condition. It begins by defining financial ratio analysis and outlining its uses. It then discusses different classifications of ratios, including liquidity ratios, profitability ratios, activity ratios, financial leverage ratios, and shareholder ratios. The document uses Microsoft Corporation's 2004 financial statements to demonstrate examples of liquidity ratios, including the current ratio, quick ratio, and net working capital to sales ratio. It provides guidelines on interpreting these ratios while noting there is no single definition of a "good" or "bad" ratio.
Paper discussion series - discussion on roicFuturum2
This document discusses the differences between ROCE (return on capital employed) and ROIC (return on invested capital). ROCE uses book values from the balance sheet in the calculation, while ROIC uses market values. Comparing ROCE to WACC (weighted average cost of capital), which is a market-derived rate, does not provide an apples-to-apples comparison. Using ROIC instead allows for a proper comparison by putting both figures on the same valuation basis using market values rather than book values. There is no consensus on a single definition of ROIC or ROCE as various sources provide different formulations, but the key point is the numerator should have a logical relationship to the denominator.
Financial statement analysis involves various techniques to evaluate a company's financial health and performance, including ratio analysis. Ratio analysis calculates statistical relationships between financial data points to gain insights. Key ratios discussed in the document include liquidity ratios like the current ratio and quick ratio, leverage ratios like the debt-to-equity ratio, activity ratios like inventory turnover ratio, and profitability ratios. Calculating and analyzing ratios helps understand a company's liquidity, creditworthiness, operational efficiency, and profit generating ability.
The document provides an agenda for an introductory seminar on understanding financial statements. It will cover balance sheets, income statements, and statements of cash flows. Attendees will learn to analyze these statements to understand a company's financial position and performance, and how the numbers tell the story of the industry and business operations. The seminar will help attendees compare companies and evaluate their historical and future financial prospects.
Fin 370 genius perfect education fin370genius.comstudent2345
FOR MORE CLASSES VISIT
www.fin370genius.com
4-5 Multiyear Future Value How much would be in your savings account in 11 years after depositing $150 today if the bank pays 8 percent per year?
Financial Statements
Today, I will be describing a balance sheet, income statement, retained earnings statement, and statement of cash flows and how a company uses these financial statements as a tool to make future decisions for the company.
This document provides an overview of basic accounting concepts and financial statements, including:
1) It introduces balance sheets, income statements, and key accounting concepts like assets, liabilities, equity, revenues, and expenses.
2) It explains the components and purpose of balance sheets and income statements, such as listing assets from most to least liquid and funding sources from shortest to longest term.
3) It discusses how accounting ensures the balance sheet balances and financial statements meet uniform standards for analysis over time and between firms.
This document discusses financial ratio analysis and provides an overview of different types of financial ratios used to evaluate a company's performance and financial condition. It begins by defining financial ratio analysis and outlining its uses. It then discusses different classifications of ratios, including liquidity ratios, profitability ratios, activity ratios, financial leverage ratios, and shareholder ratios. The document uses Microsoft Corporation's 2004 financial statements to demonstrate examples of liquidity ratios, including the current ratio, quick ratio, and net working capital to sales ratio. It provides guidelines on interpreting these ratios while noting there is no single definition of a "good" or "bad" ratio.
This document discusses financial ratio analysis and provides an overview of different types of financial ratios used to evaluate a company's performance and financial condition. It begins by defining financial ratio analysis and outlining its uses. It then discusses different classifications of ratios, including liquidity ratios, profitability ratios, activity ratios, financial leverage ratios, and shareholder ratios. The document uses Microsoft Corporation's 2004 financial statements to demonstrate examples of liquidity ratios, including the current ratio, quick ratio, and net working capital to sales ratio. It provides guidelines on interpreting these ratios while noting there is no single definition of a "good" or "bad" ratio.
Paper discussion series - discussion on roicFuturum2
This document discusses the differences between ROCE (return on capital employed) and ROIC (return on invested capital). ROCE uses book values from the balance sheet in the calculation, while ROIC uses market values. Comparing ROCE to WACC (weighted average cost of capital), which is a market-derived rate, does not provide an apples-to-apples comparison. Using ROIC instead allows for a proper comparison by putting both figures on the same valuation basis using market values rather than book values. There is no consensus on a single definition of ROIC or ROCE as various sources provide different formulations, but the key point is the numerator should have a logical relationship to the denominator.
Financial statement analysis involves calculating and interpreting ratios to evaluate a company's financial performance and health. Ratios are categorized into liquidity, asset management, debt management, and profitability ratios. Trend analysis and benchmarking against industry peers are also important. While ratio analysis has limitations, it can provide useful insights when used carefully alongside qualitative factors.
FOR MORE CLASSES VISIT
www.acc290genius.com
ACC 290 Finals Question 1 Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $245,000 from customers. Question 2 Which of the following describes the classification and normal balance of the Unearned Rent Revenue account? Question 3 Posting Question 4 The following is selected information from L Corporation for the fiscal year ending October 31, 2014.
EBITDA and Other Scary Words (Series: MBA Boot Camp)Financial Poise
This webinar explores the ins and outs of financial language and how you can navigate the seeming labyrinth of a language that can sound foreign and in some ways counterintuitive. This webinar teaches the correct use of EBIT, EBITDA and EBITDAR while also dealing with concepts like Cap Rate vs. Capital Cost. This webinar also sheds light on issues with ROI and Payback among other valuation tools and explains what a Cash Conversion Cycle looks like for your business.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/ebitda-and-other-scary-words-2021/
The document discusses return on investment (ROI) and some of the limitations in using accounting measures of ROI to evaluate future investments. It notes that book value of invested capital and operating income may not accurately reflect the actual capital invested or earnings due to accounting decisions. Additionally, actual returns on existing investments may differ from marginal returns expected on new investments. The document recommends analysts consider trends in historical ROI as well as industry averages, and focus on expected future cash flows rather than current performance when conducting valuations.
The document discusses comparing Return on Assets (ROA) to a company's cost of capital. It argues that ROA is based on accounting values like book value, while cost of capital uses market values, so they are difficult to directly compare. It also notes that differences in accounting treatments between companies make comparing ROA across companies problematic. The document states that ROA is more useful for internal analysis to identify areas of a business that could be improved.
Fin 571 genius perfect education fin571genius.comstudent123455
FOR MORE CLASSES VISIT
www.fin571genius.com
1.A proxy fight occurs when: the board of directors disagree on the members of the management team. 2. A stakeholder is any person or entity: 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? threat of a proxy fight pay raises based on length of service implementation of a stock option plan 4.Financial managers primarily create firm value by: maximizing current sales. investing in assets that generate cash in excess of their cost. 5.
The document discusses the importance of maximizing value for shareholders as the primary financial objective of firms. It explains that managers should focus on strategies that create real economic value over the long run through investing capital at rates of return above the cost of capital. While short-term earnings are tempting for managers, the document emphasizes that capital markets reward companies dedicated to long-term value creation, which also benefits other stakeholders through stronger economies and employment growth. Both the Internet and leveraged buyout bubbles are used as examples of what can happen when value creation principles are ignored.
This document summarizes the results of a survey of 80 corporate treasurers and senior financial managers about priorities and techniques for managing working capital. The key findings were:
1) The top three priorities over the next year were more effective cash management, releasing working capital, and improving risk management.
2) 60% of respondents saw potential for releasing trapped working capital in their industries in the next five years.
3) Close to 80% said their industries needed alternative financing as bank credit tightened.
4) Over 85% saw potential to release liquidity from accounts receivable.
5) Supply chain finance was becoming increasingly popular, with 40% of respondents already offering it to suppliers.
Book pdf- Working capital management ( cost of capital and working capital)Tanjin Tamanna urmi
This document discusses working capital management at Best Buy. It begins by noting that Best Buy has performed well over the past decade due to sound financial practices, including effective working capital management. Working capital management involves optimizing levels of cash, receivables, inventory, and financing these assets as cheaply as possible. For Best Buy, inventory levels are most important to maintain sales, as it stocks stores to meet customer demand. Best Buy uses real-time sales data and automatic reordering to keep shelves full while minimizing excess inventory. After reading this chapter, the reader will understand how to manage working capital to maximize profits and stock prices.
Acct 504 mart perfect education acct504mart.comstudent2345
FOR MORE CLASSES VISIT
www.acct504mart.com
Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc
Financial Statements
Today, I will be describing a balance sheet, income statement, retained earnings statement, and statement of cash flows and how a company uses these financial statements as a tool to make future decisions for the company.
Balance Sheet
Equity-Investment Analyst who have been working in the financial markets for over 35 years. A University of Pennsylvania Wharton School of Business Graduate, an Investment and Financial leader on Capital Hill in Washington, DC and 20 years of financial modeling and analysis consulting experience. I am a teacher, a mentor and accomplished businessman eager to share my experience, and helpful advice
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
This document initiates coverage on discount brokers Schwab, E*Trade, and TD Ameritrade with favorable outlooks. The analyst forecasts 21.5% average earnings growth over three years given secular trends driving assets to discount brokers and forecast interest rate increases benefiting money market funds. Discount brokers are well-positioned to grow as investors take control of their finances through do-it-yourself investing enabled by technology. Younger investors and expected advisor departures from wirehouses could also fuel asset growth. Increased popularity of ETFs may lead to asset and revenue growth opportunities for discount brokers through custodial services and revenue sharing. Higher interest rates will significantly boost discount broker earnings.
Warren Buffett rarely invests in tech stocks because he often does not understand them, which is outside his area of expertise. Unless an investor understands a company's business model and the drivers of future growth, they risk being blindsided. Fundamental analysis attempts to determine a company's value by focusing on internal factors like finances, management, and products, as well as external factors such as the economy and interest rates, to evaluate growth potential and investment risk. Performing various financial ratio calculations and comparing them over time and between competitors can provide important insights for fundamental investors.
The document discusses whether companies' cash flows can continue to support high levels of share repurchases. It notes that share buybacks by S&P 500 companies have increased significantly in recent years and are expected to rise further in 2015. However, the document argues that cash flows at some companies may come under pressure due to rising costs from restructuring programs and pension obligations. It examines four companies - Cisco, General Mills, Coca-Cola, and Philip Morris - that have high buyback levels but may face tightening cash flows due to factors like declining margins, negative sales growth, and increasing debt. The document questions whether such companies can sustain high repurchases and whether buybacks represent the best use of corporate cash.
Working Capital Management: Meaning of Working Capital, its components & types, Operating Cycle, Factors affecting working capital, Estimation of working capital requirement. (Total Cost Method & Cash Cost Method)
Discounted cash flow techniques are used to evaluate investment projects by estimating relevant cash flows over time and discounting them to calculate net present value (NPV). NPV is the primary criterion for accepting or rejecting projects and considers the timing of all cash flows. When capital is limited, mutually exclusive projects must be ranked according to NPV to allocate funds to the most valuable opportunities. Accurately determining relevant cash flows requires understanding how items like depreciation, working capital, taxes, and capacity utilization affect cash flows over time.
This document summarizes key points from a chapter that discusses whether stock market valuations are truly driven by fundamentals like return on capital and growth. It finds that:
1) In the long-run, stock prices are driven by factors like return on invested capital and growth. However, short-term price movements can deviate from fundamentals.
2) The stock market generally focuses on long-term economic fundamentals rather than short-term fluctuations. It rewards investments in areas like R&D.
3) Accounting differences do not affect market valuation as much as underlying economic realities. The market sees through to fundamentals.
4) Significant deviations from intrinsic value are relatively rare and short-
Charles Schwab is rated Outperform with a target price of $38 per share, representing 27.6% implied upside. It has the strongest franchise among peers and is best positioned to capitalize on secular tailwinds and benefit from higher interest rates. Consensus price target is $32, while RBC's price target and valuation see more upside for Charles Schwab given its business model and ability to leverage industry trends.
Mel feller looks at creating a more profitable businessMel Feller
Mel Feller Looks at Creating a More Profitable Business
Making a profit is the most important - some might say the only - objective of a business. Profit measures success. It can be defined simply: Revenues - Expenses = Profit. Therefore, to increase profits you must raise revenues, lower expenses, or both. To make improvements you must know what is really going on financially at all times. You have to watch every financial event without any kind of optimistic filter.
This article is a series of questions with comments to help you analyze your profits, their sufficiency and trend, the contribution of each of your product lines or services to them, and to help you determine if you have the kind of record system you need. The questions and comments are not meant to be definitive presentations on the subjects.
Yasser Al Mimar - Etisalat and IT OutsourcingYasser Al Mimar
This document discusses strategic management and IT outsourcing strategies, with a case study on Etisalat. It begins with an introduction on how outsourcing and blue ocean strategies can help companies gain competitive advantages. It then provides an overview of outsourcing and IT outsourcing, including definitions, history and evolution. Challenges of outsourcing like risks to security, quality and flexibility are discussed. The case study focuses on Etisalat and how it uses outsourcing as a strategy to reduce costs and maintain service quality amid competition in the UAE telecom market.
Principles of marketing chapter-8 promotion (pu)Saroj Khanal
Promotion involves raising customer awareness of products and brands to generate sales and loyalty. It uses communication strategies like advertising, public relations, personal selling, and sales promotion to inform, persuade, and remind target audiences. These strategies can be push-based, using sales teams to promote to retailers and customers, or pull-based, building demand through high consumer advertising. The promotional mix aims to influence feelings, beliefs, and behaviors to benefit the organization.
Financial statement analysis involves calculating and interpreting ratios to evaluate a company's financial performance and health. Ratios are categorized into liquidity, asset management, debt management, and profitability ratios. Trend analysis and benchmarking against industry peers are also important. While ratio analysis has limitations, it can provide useful insights when used carefully alongside qualitative factors.
FOR MORE CLASSES VISIT
www.acc290genius.com
ACC 290 Finals Question 1 Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $245,000 from customers. Question 2 Which of the following describes the classification and normal balance of the Unearned Rent Revenue account? Question 3 Posting Question 4 The following is selected information from L Corporation for the fiscal year ending October 31, 2014.
EBITDA and Other Scary Words (Series: MBA Boot Camp)Financial Poise
This webinar explores the ins and outs of financial language and how you can navigate the seeming labyrinth of a language that can sound foreign and in some ways counterintuitive. This webinar teaches the correct use of EBIT, EBITDA and EBITDAR while also dealing with concepts like Cap Rate vs. Capital Cost. This webinar also sheds light on issues with ROI and Payback among other valuation tools and explains what a Cash Conversion Cycle looks like for your business.
To view the accompanying webinar, go to:https://www.financialpoise.com/financial-poise-webinars/ebitda-and-other-scary-words-2021/
The document discusses return on investment (ROI) and some of the limitations in using accounting measures of ROI to evaluate future investments. It notes that book value of invested capital and operating income may not accurately reflect the actual capital invested or earnings due to accounting decisions. Additionally, actual returns on existing investments may differ from marginal returns expected on new investments. The document recommends analysts consider trends in historical ROI as well as industry averages, and focus on expected future cash flows rather than current performance when conducting valuations.
The document discusses comparing Return on Assets (ROA) to a company's cost of capital. It argues that ROA is based on accounting values like book value, while cost of capital uses market values, so they are difficult to directly compare. It also notes that differences in accounting treatments between companies make comparing ROA across companies problematic. The document states that ROA is more useful for internal analysis to identify areas of a business that could be improved.
Fin 571 genius perfect education fin571genius.comstudent123455
FOR MORE CLASSES VISIT
www.fin571genius.com
1.A proxy fight occurs when: the board of directors disagree on the members of the management team. 2. A stakeholder is any person or entity: 3.Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? threat of a proxy fight pay raises based on length of service implementation of a stock option plan 4.Financial managers primarily create firm value by: maximizing current sales. investing in assets that generate cash in excess of their cost. 5.
The document discusses the importance of maximizing value for shareholders as the primary financial objective of firms. It explains that managers should focus on strategies that create real economic value over the long run through investing capital at rates of return above the cost of capital. While short-term earnings are tempting for managers, the document emphasizes that capital markets reward companies dedicated to long-term value creation, which also benefits other stakeholders through stronger economies and employment growth. Both the Internet and leveraged buyout bubbles are used as examples of what can happen when value creation principles are ignored.
This document summarizes the results of a survey of 80 corporate treasurers and senior financial managers about priorities and techniques for managing working capital. The key findings were:
1) The top three priorities over the next year were more effective cash management, releasing working capital, and improving risk management.
2) 60% of respondents saw potential for releasing trapped working capital in their industries in the next five years.
3) Close to 80% said their industries needed alternative financing as bank credit tightened.
4) Over 85% saw potential to release liquidity from accounts receivable.
5) Supply chain finance was becoming increasingly popular, with 40% of respondents already offering it to suppliers.
Book pdf- Working capital management ( cost of capital and working capital)Tanjin Tamanna urmi
This document discusses working capital management at Best Buy. It begins by noting that Best Buy has performed well over the past decade due to sound financial practices, including effective working capital management. Working capital management involves optimizing levels of cash, receivables, inventory, and financing these assets as cheaply as possible. For Best Buy, inventory levels are most important to maintain sales, as it stocks stores to meet customer demand. Best Buy uses real-time sales data and automatic reordering to keep shelves full while minimizing excess inventory. After reading this chapter, the reader will understand how to manage working capital to maximize profits and stock prices.
Acct 504 mart perfect education acct504mart.comstudent2345
FOR MORE CLASSES VISIT
www.acct504mart.com
Case Study 1 (Part A)Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc
Financial Statements
Today, I will be describing a balance sheet, income statement, retained earnings statement, and statement of cash flows and how a company uses these financial statements as a tool to make future decisions for the company.
Balance Sheet
Equity-Investment Analyst who have been working in the financial markets for over 35 years. A University of Pennsylvania Wharton School of Business Graduate, an Investment and Financial leader on Capital Hill in Washington, DC and 20 years of financial modeling and analysis consulting experience. I am a teacher, a mentor and accomplished businessman eager to share my experience, and helpful advice
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
This document initiates coverage on discount brokers Schwab, E*Trade, and TD Ameritrade with favorable outlooks. The analyst forecasts 21.5% average earnings growth over three years given secular trends driving assets to discount brokers and forecast interest rate increases benefiting money market funds. Discount brokers are well-positioned to grow as investors take control of their finances through do-it-yourself investing enabled by technology. Younger investors and expected advisor departures from wirehouses could also fuel asset growth. Increased popularity of ETFs may lead to asset and revenue growth opportunities for discount brokers through custodial services and revenue sharing. Higher interest rates will significantly boost discount broker earnings.
Warren Buffett rarely invests in tech stocks because he often does not understand them, which is outside his area of expertise. Unless an investor understands a company's business model and the drivers of future growth, they risk being blindsided. Fundamental analysis attempts to determine a company's value by focusing on internal factors like finances, management, and products, as well as external factors such as the economy and interest rates, to evaluate growth potential and investment risk. Performing various financial ratio calculations and comparing them over time and between competitors can provide important insights for fundamental investors.
The document discusses whether companies' cash flows can continue to support high levels of share repurchases. It notes that share buybacks by S&P 500 companies have increased significantly in recent years and are expected to rise further in 2015. However, the document argues that cash flows at some companies may come under pressure due to rising costs from restructuring programs and pension obligations. It examines four companies - Cisco, General Mills, Coca-Cola, and Philip Morris - that have high buyback levels but may face tightening cash flows due to factors like declining margins, negative sales growth, and increasing debt. The document questions whether such companies can sustain high repurchases and whether buybacks represent the best use of corporate cash.
Working Capital Management: Meaning of Working Capital, its components & types, Operating Cycle, Factors affecting working capital, Estimation of working capital requirement. (Total Cost Method & Cash Cost Method)
Discounted cash flow techniques are used to evaluate investment projects by estimating relevant cash flows over time and discounting them to calculate net present value (NPV). NPV is the primary criterion for accepting or rejecting projects and considers the timing of all cash flows. When capital is limited, mutually exclusive projects must be ranked according to NPV to allocate funds to the most valuable opportunities. Accurately determining relevant cash flows requires understanding how items like depreciation, working capital, taxes, and capacity utilization affect cash flows over time.
This document summarizes key points from a chapter that discusses whether stock market valuations are truly driven by fundamentals like return on capital and growth. It finds that:
1) In the long-run, stock prices are driven by factors like return on invested capital and growth. However, short-term price movements can deviate from fundamentals.
2) The stock market generally focuses on long-term economic fundamentals rather than short-term fluctuations. It rewards investments in areas like R&D.
3) Accounting differences do not affect market valuation as much as underlying economic realities. The market sees through to fundamentals.
4) Significant deviations from intrinsic value are relatively rare and short-
Charles Schwab is rated Outperform with a target price of $38 per share, representing 27.6% implied upside. It has the strongest franchise among peers and is best positioned to capitalize on secular tailwinds and benefit from higher interest rates. Consensus price target is $32, while RBC's price target and valuation see more upside for Charles Schwab given its business model and ability to leverage industry trends.
Mel feller looks at creating a more profitable businessMel Feller
Mel Feller Looks at Creating a More Profitable Business
Making a profit is the most important - some might say the only - objective of a business. Profit measures success. It can be defined simply: Revenues - Expenses = Profit. Therefore, to increase profits you must raise revenues, lower expenses, or both. To make improvements you must know what is really going on financially at all times. You have to watch every financial event without any kind of optimistic filter.
This article is a series of questions with comments to help you analyze your profits, their sufficiency and trend, the contribution of each of your product lines or services to them, and to help you determine if you have the kind of record system you need. The questions and comments are not meant to be definitive presentations on the subjects.
Yasser Al Mimar - Etisalat and IT OutsourcingYasser Al Mimar
This document discusses strategic management and IT outsourcing strategies, with a case study on Etisalat. It begins with an introduction on how outsourcing and blue ocean strategies can help companies gain competitive advantages. It then provides an overview of outsourcing and IT outsourcing, including definitions, history and evolution. Challenges of outsourcing like risks to security, quality and flexibility are discussed. The case study focuses on Etisalat and how it uses outsourcing as a strategy to reduce costs and maintain service quality amid competition in the UAE telecom market.
Principles of marketing chapter-8 promotion (pu)Saroj Khanal
Promotion involves raising customer awareness of products and brands to generate sales and loyalty. It uses communication strategies like advertising, public relations, personal selling, and sales promotion to inform, persuade, and remind target audiences. These strategies can be push-based, using sales teams to promote to retailers and customers, or pull-based, building demand through high consumer advertising. The promotional mix aims to influence feelings, beliefs, and behaviors to benefit the organization.
Principles of marketing,branding,advertisingAhmed Soliman
The document provides information about Ahmed Soliman's background and qualifications as a business administration instructor. It lists the marketing-related courses he has taught for various organizations and includes his contact information. The remainder of the document outlines over 50 marketing topics that could potentially be covered in his courses.
Comparing pricing strategies Etisalat VS dUInam Uddin
The document summarizes a study comparing the pricing strategies of Etisalat and Du, the two major telecommunications companies in the UAE. It found that Etisalat offers higher quality service but at higher prices, using promotional strategies, while Du provides lower quality service at cheaper prices through allowance and discount strategies. The majority of customers prefer Etisalat due to quality but Du has gained market share through its cheaper prices. The document recommends ways for each company to improve their strategies.
Etisalat is a major telecommunications company based in the UAE. Over the last decade, it has experienced strong growth through expanding its mobile, internet, and phone services both within the UAE and internationally. However, its growth has slowed in recent years within the UAE due to market saturation and increased competition. Going forward, Etisalat's future success will depend on its ability to expand into new underserved markets and offer innovative services.
Marketing report mobile service industry (1)cherath
The mobile services industry in Sri Lanka has over 14 million users and provides telecommunication and information services to 90% of the population. Mobile service providers can help develop a more sustainable society by providing access to information and services that enable low-carbon living. The report assesses the current state of the mobile industry in Sri Lanka and provides recommendations to further its sustainability. The largest mobile service providers in Sri Lanka are Mobitel, Dialog, Airtel, and Etisalat.
The document provides an overview of advertising and public relations. It discusses setting advertising objectives like informing, persuading and reminding target audiences. It also covers evaluating advertising effectiveness, selecting advertising media, and developing advertising strategies and messages. For public relations, it outlines common tools like press relations, product publicity, and lobbying. It describes the role of public relations in building awareness through lower-cost and higher-impact means than advertising.
Applying eTOM (enhanced Telecom Operations Map) Framework to Non-Telecommunic...Alan McSweeney
The document discusses applying the eTOM (enhanced Telecom Operations Map) framework to non-telecommunications companies for product/service/solution innovation. It describes eTOM's processes for product/solution/service lifecycle management from concept to delivery and operation. It also discusses the changes required for companies transitioning to a greater service orientation like utility-based services, including changes to business models, costs, services provided, and customer information and relationships.
The document discusses how to analyze a business using financial ratios. It explains that ratios show the relationship between two numbers and can be used to compare a company's performance over time and to other companies in the same industry. The document then outlines 12 steps for conducting a basic financial analysis of a company, including acquiring financial statements, calculating common size ratios and other key financial ratios related to liquidity, debt, profitability, efficiency and stock value. These ratios can provide insights into a company's strengths and weaknesses.
What are the four 4 major financial statements.pdfsarikabangimatam
Financial statements summarize a company's business activities, financial performance, financial position, and cash flows through a series of written reports. All reports should be structured to convey relevant data in an easily digestible manner. Specifically, a cliff note on the financial performance of the Business Accountants. These reports typically provide a snapshot of a specific period of time and typically represent activity over a specific month, year, or specific time period. These financial statements are critical to understanding your business and performance.
The document provides an overview of balance sheet basics and components. It includes the balance sheet of Global Telesystems for the year ending March 31, 2000, showing assets, liabilities, and equity. It then defines and explains each line item, such as gross block, net block, capital work in progress, inventory, receivables, equity share capital, reserves, total debt, and creditors. It discusses the role of balance sheets in investment decision making and analyzing areas like inventories, receivables, debt, and management comments.
6 Essential Accounting Terms for Small BusinessesSimonAllsop3
This document provides definitions for 6 essential accounting terms for small business owners. It defines balance sheet as a snapshot of a company's financial position listing assets and liabilities. It describes profit and loss statement as a summary of company revenues and expenses over a period. It explains accounts receivable as amounts owed by customers and accounts payable as amounts owed to suppliers. It outlines cash flow statement as tracking cash inflows and outflows. It defines budget as a financial plan for expenses. And it distinguishes gross profit as revenue minus costs, and net profit as profit after all expenses.
Cash flow statement vs fund flow statementshaivlini
A cash flow statement shows the changes in cash position of a company over a period of time by outlining cash inflows and outflows from operating, investing, and financing activities. It differs from a funds flow statement, which analyzes changes in working capital and is based on accrual accounting, while a cash flow statement strictly focuses on changes in a company's cash balance on a cash basis. Cash flow statements are more useful for assessing a company's short-term liquidity as they directly track cash inflows and outflows.
The document discusses key financial statements and concepts:
1. It defines financial statements, balance sheets, income statements, cash flow statements, and statements of owner's equity. These statements are important for internal and external reporting and analysis of a company's financial performance and position.
2. The balance sheet provides a snapshot of a company's assets, liabilities, and equity. The income statement measures profitability. The cash flow statement shows cash inflows and outflows. Together these statements allow analysis of a company's leverage, liquidity, profitability, and cash generation.
3. Accurate financial reporting is critical for management to understand the business and make informed decisions. It also allows for external control and
Module 2 - BackgroundPrinciples of AccountingConsider that acc.docxroushhsiu
Module 2 - Background
Principles of Accounting
Consider that accounting terms are not always obvious in their meanings. If you are learning terminology or need to clarify a vocabulary item, a good reference for accounting terms is:
New York Society of Certified Public Accountants (2017) Accounting Terminology Guide - Over 1,000 Accounting and Finance Terms. Retrieved from: http://www.nysscpa.org/professional-resources/accounting-terminology-guide#sthash.UMS3kGjf.dpbs
For a glossary of general business terms:
Berry, T. (n.d.) Business terms glossary. BPlans. Retrieved from http://articles.bplans.com/business-term-glossary/
The Annual Report
The annual report is the way a firm summarizes its performance over the past year and where it sets a vision for the future. Publicly held companies (traded on the stock exchange) must prepare annual reports, and annual reports are usually public documents. Investors and the general public use annual reports as sources of information about the financial health of a company. We will be learning about reading annual reports to learn general accounting principles in the context of learning about a company and the industry in which it operates. Although we will not discuss all sections of an annual report, we will touch on the sections that have the most relevance to providing the HRM professional with the most helpful insights into the operations of the firm.
Front matter
This is largely text material that sets the stage for the quantitative data that follows.
The Opening letter to the Shareholders
The opening letter is generally the first section of the annual report and is a statement by the chairman of the board. The letter sets the stage for how the firm’s management wants you to view the report and the previous year’s performance, and so in this sense sets the “strategic intent” of the report. A careful reading of the letter can give context to the numbers that follow by giving you clues of what to look for in terms of goals met – or problems that prevented goal attainment. The firm may be on the verge of explosive growth, or a meltdown.
Sales and Marketing
This section covers the company’s product/service line. Typically, it also contains descriptions of key departments or groups and the work they do. By reading this section, you can deduce what products or services are most important to the firm and which divisions are seen as most critical to its success. This section can also give you clues as to what the future may hold.
The Auditor’s Letter
You might be tempted to skip this section, because it probably seems superfluous (like the terms and conditions acknowledgment on software updates. You know you don’t read those!). However, you should know that by law, a publicly traded firm needs to be independently audited every year. This is to protect the investor, and the auditors will state whether or not the data the company presents is accurate and if they have sufficient controls in place to prevent frau ...
Finance is the language of business. You have to make the best decisions possible for yours or your client’s business. And, understanding financial analysis is the key to making this happen.
The document provides an agenda for a two-day credit training seminar covering various topics related to understanding financial statements and their use in lending decisions. Day one includes sessions on cash flow, understanding financials, and group exercises. Day two focuses on more group exercises and examples of analyzing example client financial statements.
This document provides a summary of the key financial considerations for a company's expansion project requiring Rs. 100 crore of funding. It recommends short-term financing over long-term options due to lower costs, flexibility, and less interference in management decision-making. Short-term sources could potentially provide long-term funding through renewals. While interest is fixed and assets may be tied up as security, the proposal addresses these shortcomings through negotiation, alternative securities like shares, and preparing legal teams. Overall, short-term financing is presented as the most suitable option given the company's strategic goals and the dynamic home appliances market in India.
The document provides an overview of how to analyze key components of a balance sheet, including assets, liabilities, and shareholders' equity. It then presents a sample balance sheet for Coca-Cola, discussing current assets like cash, receivables, inventory, and current liabilities like accounts payable. Key metrics for evaluating assets and liabilities, such as current ratio and inventory turnover, are also covered.
A balance sheet shows a business's assets, liabilities, and net worth. It breaks down assets into fixed assets (long-term assets like machinery and buildings) and current assets (short-term assets that can be converted to cash within a year like inventory). Fixed assets are depreciated over their useful life. Liabilities include current liabilities (due within a year) and long-term liabilities. The balance sheet provides a snapshot of a company's financial position on a given date.
This document provides an overview of financial statement analysis and key metrics used to analyze companies. It defines the key financial statements - the income statement, balance sheet, and statement of cash flows. It then explains various ratios used to evaluate a company's liquidity, leverage, asset utilization, profitability, and market performance, including definitions of ratios like the current ratio, debt-to-equity ratio, inventory turnover, return on assets, and price-to-earnings ratio. Industry averages from sources like RMA and Dun & Bradstreet are also discussed for comparison purposes.
The balance sheet shows a company's assets and liabilities at a particular point in time. Assets are what the company owns, while liabilities are what it owes. The balance sheet forms an accounting equation where assets minus liabilities equals capital invested in the company. It is prepared at the end of an accounting period and shows fixed assets, current assets, current liabilities, and how the company's net assets are financed.
Financial statement analysis is important for several reasons such as obtaining loans, evaluating investment opportunities, and assessing creditworthiness for suppliers. The key steps in analysis involve calculating ratios over several years from the income statement, balance sheet, cash flow statement, and shareholders' equity statement. Common ratios calculated include liquidity, leverage/debt, profitability, efficiency, and value ratios. Limitations of ratio analysis include subjectivity in interpretation, lack of comparability between companies, reliance on past financial data, and accounting differences across countries.
Financial reporting and analysis is the process of collecting and tracking data on a company's finances, including revenues, expenses, profits, capital, and cash flow. Key reports include the income statement, balance sheet, and cash flow statement. The benefits of financial reporting include improved debt management, trend identification, real-time tracking, managing liabilities, ensuring progress and compliance, and monitoring cash flow. Financial reporting is used by investors, shareholders, lenders, business managers, regulatory institutions, consumers, employees and other stakeholders.
Financial Account group assignment on Financial statement of Golden Agricultureamykua
This document provides an overview and examples of key financial statements including:
1) The balance sheet reports a company's assets, liabilities, and owner's equity at a point in time. It divides assets into current and long-term categories.
2) The income statement reports a company's revenues, expenses, and profits over a period of time. It follows revenue recognition and expense matching principles.
3) An example income statement from Golden Agri is presented showing revenues, expenses, and net income.
4) Financial statements provide important information to both internal and external users about a company's financial performance and health.
Types of Ratio analyis and their significanceFred Mmbololo
Ratio analysis is used to analyze financial statements and determine key metrics and relationships between items. It can help management with forecasting, planning, control, and decision making. There are various types of ratios that provide different insights. Liquidity ratios like current and quick ratios measure a company's ability to meet short-term obligations. Leverage or capital structure ratios like debt-to-equity examine how the company is financing its assets and level of financial risk. Activity/turnover ratios review how efficiently a company uses its assets. Profitability ratios assess return on sales, assets, and equity. Ratio analysis provides both opportunities to understand a business better but also has some limitations to consider.
1) The document provides an overview of key finance concepts related to equity, debt, and accounting. It defines terms like authorized shares, issued shares, outstanding shares, treasury stock, senior debt, subordinate debt, investment grade bonds, and retained earnings.
2) It explains how a company's revenue is distributed between debt holders and equity shareholders. Interest payments go to debt holders, taxes are paid, and any remaining earnings belong to equity shareholders.
3) The key components of shareholders' equity that must be reported on the balance sheet are paid-in capital, retained earnings, treasury stock, and accumulated other comprehensive income.
Similar to Leading Business Online Module - Balance Sheet (20)
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4. A SNAPSHOT that provides a financial picture of a
company at a specific point in time.
Usually that time is the last day of a
month, a quarter, or a financial year.
Standards of accounting dictate that at least two “snapshots” or periods
are shown.
For example we can look at the balance sheet for a company as of
December 31st, 2012 and December 31st, 2013.
6. 1. ASSETS The resources and items
you OWN that have
economic value, such as
cash, accounts receivable,
buildings, equipment, and
other things used to
generate revenue or income
The balance sheet provides information on:
7. 2. LIABILITIES
The debts you OWE to
others, such as bank loans,
accounts payable, and
mortgage loans.
The balance sheet provides information on:
8. 3. EQUITY
What the owners of the
business would have left
over after selling all of the
assets and paying off all
the liabilities.
The balance sheet provides information on:
9. 1. ASSETS
2. LIABILITIES
3. EQUITY
These are all factors of
your asset strength.
Along with the income
statement, it can indicate
how effectively your
company’s assets are
being utilized to produce
return.
The balance sheet provides information on:
10. ASSET STRENGTHis a very good indicator of financial health. Because a company
can rely on its assets when things go wrong. Strong assets with
few liabilities means a company can survive financially at times
of trouble or crisis.
11. ASSET STRENGTHis a very good indicator of financial health. Because a company
can rely on its assets when things go wrong. Strong assets with
few liabilities means a company can survive financially at times
of trouble or crisis.
If your company has 3 million EGP to be repaid in 60 days
and 8 million EGP in cash or assets that can be turned into
cash within 60 days, the company is in good shape. If it is the
reverse....then things are not so good!!
12. ASSET STRENGTHis a very good indicator of financial health. Because a company
can rely on its assets when things go wrong. Strong assets with
few liabilities means a company can survive financially at times
of trouble or crisis.
If your company has 3 million EGP to be repaid in 60 days
and 8 million EGP in cash or assets that can be turned into
cash within 60 days, the company is in good shape. If it is the
reverse....then things are not so good!!
Banks, investors, and analysts review a company’s balance sheet
closely to determine the amount of risk involved in loaning money to,
investing in, or buying stock in the company. What they want to see
is enough asset strength to cover all of the possible events that a
business is exposed to every day such as a downturn in the market
or failed launch of a new product.
14. Assets = Liabilities + Equity
The Balance Sheet Formula
Cash & Cash Equivalents
+ Other Assets
= Total Assets
− Total Liabilities
= Total Shareholders’ Equity
The balance sheet shows a company’s assets and the sources of capital (cash) used to
acquire or fund those assets, The balance sheet “balances” because it shows that the money
to purchase the assets came from (balances with) the total of what was borrowed (liabilities)
plus what was earned or contributed from the owners’ pockets (equity).
16. 4
Reading a Balance Sheet in Minutes
Cash Position
Cash Position Change
Equity Ratio
Return on Assets (ROA)
If you only have a couple of minutes to look at a balance sheet,
quickly look for the following four:
17. Cash Position
A company’s cash position is the item listed as “Cash and Cash Equivalents”. This reflects how
much cash the company has on hand or in accessible accounts at a point in time.
You want to see a strong cash position on the balance sheet, this means that the company can
survive tough times. The worse the economy the more important the cash position becomes.
Reading a Balance Sheet in Minutes
18. Cash Position
A company’s cash position is the item listed as “Cash and Cash Equivalents”. This reflects how
much cash the company has on hand or in accessible accounts at a point in time.
You want to see a strong cash position on the balance sheet, this means that the company can
survive tough times. The worse the economy the more important the cash position becomes.
Cash Position Change
Look for how the company’s cash position has changed over the years. An increase is a
usually a good thing, unless the company is keeping too much cash, as that represents lost
opportunities and not enough investments in growth, also cash produces a very low return.
If the cash position has decreased, why has it decreased? Has the company used cash for big
investments? Or have revenue and profits declined, forcing the company to dig into its cash
reserves to sustain itself?
Reading a Balance Sheet in Minutes
19. Cash Position
A company’s cash position is the item listed as “Cash and Cash Equivalents”. This reflects how
much cash the company has on hand or in accessible accounts at a point in time.
You want to see a strong cash position on the balance sheet, this means that the company can
survive tough times. The worse the economy the more important the cash position becomes.
Cash Position Change
Look for how the company’s cash position has changed over the years. An increase is a
usually a good thing, unless the company is keeping too much cash, as that represents lost
opportunities and not enough investments in growth, also cash produces a very low return.
If the cash position has decreased, why has it decreased? Has the company used cash for big
investments? Or have revenue and profits declined, forcing the company to dig into its cash
reserves to sustain itself?
Equity Ratio
Divide the Total Equity by Total Assets and multiply by 100 to get the Equity Ratio.
A higher percentage means that the company relies on its owners’ equity to finance its assets.
A higher percentage also means the company has more equity to borrow against in case it
wishes to use loans to finance itself.
Reading a Balance Sheet in Minutes
20. Return on Assets (ROA)
ROA is a measure of profit generated on the company’s assets.
Divide the Net Income by Total Assets and multiply by 100 to calculate the ROA.
The higher the percentage the better, profits are the best kind of return!
Reading a Balance Sheet in Minutes
21. Let us take a look at a real balance sheet that is very relevant to you.
The following is an excerpt from Etisalat Group Annual Report for Year 2012.
Balance Sheet Example
24. Now that you have taken a quick
look at a balance sheet example, let
us break down the major
components of a balance sheet.
The following is an excerpt from
Etisalat Group Annual Report for Year
2013.
BalanceSheetBreakdown
25. non-current assets
These are assets that are fixed or long-term.
These assets are not intended to be turned into
cash in the next twelve months. A company
with more cash than it needs in the short term
will look for ways to invest it for higher return
in longer term assets.
26. current assets
These are assets that the company expects to
convert to cash within the next twelve months.
As we learned before, cash is the most liquid
asset. It includes funds in banks and other
financial accounts, as well as cash equivalents
such as interest in a money market fund.
As a general rule you want to see cash
increasing over time, unless the company
makes a strategic decision to use cash in
investment opportunities, paying dividends to
shareholders, or maybe paying bonuses to
employees.
28. current liabilities
These are the liabilities to be paid within twelve
months. An important question when reviewing
current liabilities is “are there enough current
assets to cover all current liabilities?”.
Although liabilities are necessary in most
companies to finance and grow operations, too
many liabilities can be troublesome. More
liabilities mean greater interest payments, and
interest payments impact the bottom line.
29. equity
Equity is used to calculate several ratios. One
of the most important is the Equity Ratio which
measures equity as a percentage of assets. A
high equity ratio suggests that a company has
a lot of equity to borrow against if it needs to
raise cash. Another is the debt-to-equity ratio,
which is total liabilities divided by total equity.
30. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
31. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
The balance sheet formula is Assets = Liabilities + Equity
32. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
The balance sheet formula is Assets = Liabilities + Equity
The balance sheet primarily measure a company’s financial strength. It has a
particular focus on liquidity and ratios of debt to equity and assets.
33. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
The balance sheet formula is Assets = Liabilities + Equity
The balance sheet primarily measure a company’s financial strength. It has a
particular focus on liquidity and ratios of debt to equity and assets.
The balance sheet must balance the amount of assets with the source of funds
to acquire them, that is the liabilities coming from creditors plus equity coming
from the owners.
34. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
The balance sheet formula is Assets = Liabilities + Equity
The balance sheet primarily measure a company’s financial strength. It has a
particular focus on liquidity and ratios of debt to equity and assets.
The balance sheet must balance the amount of assets with the source of funds
to acquire them, that is the liabilities coming from creditors plus equity coming
from the owners.
Keys to look for in a balance sheet include: cash, current assets, total assets,
current liabilities, total liabilities, and equity.
35. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
The balance sheet formula is Assets = Liabilities + Equity
The balance sheet primarily measure a company’s financial strength. It has a
particular focus on liquidity and ratios of debt to equity and assets.
The balance sheet must balance the amount of assets with the source of funds
to acquire them, that is the liabilities coming from creditors plus equity coming
from the owners.
Keys to look for in a balance sheet include: cash, current assets, total assets,
current liabilities, total liabilities, and equity.
Net income from the income statement, divided by total assets on the balance
sheet is what is called: Return on Assets. (ROA), which is a measure of
productivity.
36. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
The balance sheet formula is Assets = Liabilities + Equity
The balance sheet primarily measure a company’s financial strength. It has a
particular focus on liquidity and ratios of debt to equity and assets.
The balance sheet must balance the amount of assets with the source of funds
to acquire them, that is the liabilities coming from creditors plus equity coming
from the owners.
Keys to look for in a balance sheet include: cash, current assets, total assets,
current liabilities, total liabilities, and equity.
Net income from the income statement, divided by total assets on the balance
sheet is what is called: Return on Assets. (ROA), which is a measure of
productivity.
Equity is equal to assets minus liabilities. Equity is generated through
shareholders investing in the company and by profit being retained by the
company.
37. Points to remember
about the balance sheet
The balance sheet is a snapshot taken at the end of a month, quarter, or year.
It is used in comparing the financial status of the company between two
snapshots (two specific points in time).
The balance sheet formula is Assets = Liabilities + Equity
The balance sheet primarily measure a company’s financial strength. It has a
particular focus on liquidity and ratios of debt to equity and assets.
The balance sheet must balance the amount of assets with the source of funds
to acquire them, that is the liabilities coming from creditors plus equity coming
from the owners.
Keys to look for in a balance sheet include: cash, current assets, total assets,
current liabilities, total liabilities, and equity.
Net income from the income statement, divided by total assets on the balance
sheet is what is called: Return on Assets. (ROA), which is a measure of
productivity.
Equity is equal to assets minus liabilities. Equity is generated through
shareholders investing in the company and by profit being retained by the
company.
Debt to equity ratio indicates how much debt is used to finance the growth of
the company over time.
38. to positively influence your company’s balance sheet:
What you can do....
Reduce or eliminate nonproducing assets
Acquire more effective assets
Make better use of, or conserve, cash
Negotiate better terms on credit or debt
Improve profitability using existing assets