Business Financial Metrics

A business metric is also known as a financial ratio or performance indicator. Financial ratios lift the veil on a firm’s operating prowess, telling investors how the company navigates the doldrums of a bad company. There are four common types of performance indicators in modern-day financial analysis: Liquidity, Efficiency, Profitability, and Safety. Liquidity Ratios Working Capital Formula: Total Current Assets – Total Current Liabilities The working capital metric is a measure of both a company’s efficiency and its short term financial health.Positive working capital means that the company is able to pay off its short-term liabilities. Negative working capital means that a company currently is unable to meet its short-term liabilities with its current assets. Current Ratio Formula: Total Current Assets / Total Current Liabilities Generally this metric measures the overall liquidity position of a company. It is certainly not a perfect barometer, but good enough . Watch for big decreases in this number over time. Make sure the accounts listed in current assets are collectible. Quick RatioFormula: (Cash – Accounts Receivable) / Total Current Liabilities This is another good indicator of liquidity although by itself, it is not a perfect one. If there are receivable accounts included in the numerator, they should be collectible. Look at the length of time the company has to pay the amount listed in the denominator. Inventory Days Formula: (Inventory / COGS) * 365 Inventory days show how much inventory (in days) is on hand. It indicates how quick a company can respond to market and/or product changes. Not all companies have inventory for the metric.Accounts Receivable Days Formula: (Account Receivable / Sales) * 365 Accounts Receivable shows how much inventory (in days) is on hand. It indicates how quick a company responds to market and/or product can change. Not all companies have inventory for the metric. Accounts Payable Days Formula: (Accounts Payable / COGS) * 365 Accounts Payable shows the average number of days that lapse between the purchase of material and labor, and payment of them. It is a rough measure of how timely a company is in meeting payment obligations. Profits and Profits Margins Gross Profit MarginFormula: (Sale – COGS) / Sales The financial metric that uses a firm’s financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. Net Profit Margin Formula: (Adjusted Net Profit before Taxes / Sales) Net profit is one of the more important barometers that we look at. It measures how many cents of profit the company is generating for every dollar is sells. Track it carefully against industry competitors.This is a very important number in preparing forecasts. Advertising to Sales Formula: Advertising Expense / Sale Advertising to Sale s hows advertising expense for the company as percentage of sales. Borrowing Ratios Interest Coverage Ratio EBITDA / Interest Expense This ratio measures a company’s ability to service debt payments from operating cash flow (EBITDA). An increase ratio is a good indicator of improving credit quality. Debt-to-Equity Ratio Formula: Total Liabilities / Total Equity This balance sheet leverage ratio indicates the composition of a company’s total capitalization.The balance between money or assets owed versus the money or assets owned. Generally, creditors prefer a lower ratio to decrease financial risk while investors prefer a higher ratio to realize the return benefits of financial leverage. Debt Leverage Ratio Formula: Total Liabilities / EBITDA This ratio measures a company’s ability to repay debt obligations from annualized operation cash flow (EBITDA). Assets Ratios Return on Equity Formula: Net Income / Total Equity This measure show how much profit is being retur ned on the shareholders equity each year.It is a vital statistic from the perspective of equity holders in a company. Return on Assets Formula: Net Income / Total Assets This calculation measure the company’s ability to use its assets to create profits. Return on assets indicates how many cents of profit each dollar of asset is producing per year. It is quite important since managers can only be evaluated by looking at how they use the assets available. Business owners and managers continually monitor the performance of their companies, always looking for opportunities to improve and challenges to overcome.A number of important metrics of business performance management provide insight into how a company performs in a range of areas, including marketing effectiveness, financial management and operational efficiency. Keeping on top of these metrics can help your company to operate at its best. Reference Page http://www. mrdashboard. com/FinancialRatios. html http://www. soluti onmatrix. com/financial-metrics. html www. ehow. com/info_7753305_business-metrics. html http://cfowise. com/solution/financial-ratios

Modernisation and emotional maturity

In modern society, education alone can provide the most dependable and the most effective apparatus for accelerating growth and development in all spheres of human austerity. Now we live in the technological era. The technology of 21st Century has revolutionized and enhanced our way of life. The public expects technology to have a similar revolutionary effect on education.Energy technologies and resulting globalization also provide unlimited possibilities for exciting new discoveries and developments such as new forms of energy, medical advances restoration of environmentally ravaged areas, communication and exploration into space and into the depth of the oceans. From the beginning of life till now life has been changing. Change is the law of nature, and changes in Society are always taking place. At times these changes are slow. Sometime they are so slow that people do not even perceive them.However, there are times when they are also rapid and drastic. All spheres of living things are changing. The word modernization is derived from Latin word ‘mood' means modern. Modernization refers to a model of a progressive transition from a ‘pre-modern' or ‘traditional' to a ‘modern' society. Modernization as a form of cultural response attributes which are basically universalistic and evolutionary. Modernization is generally regarded as a process of change-change of traditional Society into a Society based on Science and technology.Modernization refers to a model of a progressive transition from a ‘pre-modern' or ‘traditional' to a ‘modern' society. Modernization can best be defined as the process of transforming the old traditional society and nations to the modernity in the fields of social, economic, industrial, technological, political, cultural and educational advancement. Heraclites as beautifully laid down that it is impossible for a man to step into the same river twice. It is so because in the interval of time between the first and the second stepping both the river and the man have changed their positions.In the words of Moore, † modernization as a revolutionary change leading to transformation of a traditional society into an advanced, economically prosperous and relatively politically stable society. † Toward consider modernization as â€Å"the transformations in attitudes, institutions, and ideologies that are associated with processes such as arbitration and industrialization. â€Å"There is nothing more permanent than change. † Modernization is not westernizes purely. The modernized society believes in co- existence, co-operation and compromise rather than in competition and conflict.Modernization can be achieved only by improving and extending education. Again education, both the formal and informal is a means of communication. The transmission of meaning has important functions like colonization, surveillance, consensus building, raising expectations, focusing attenti on, broadening mental horizons, creating new attitudes, and values arousing interest in innovation, teaching kills, and encouraging experimentation. Each of these functions has relevance for programmer of modernization. Hence, the formal education if imaginatively and purposefully employed can be a powerful instrument of Modernization.The education today is linked with development. Education is the main agency for the development of attitudes, interests and values and the teacher is its main agent. The class consists of different types of students and they differ in their interest, ‘Q, attitude, achievement etc. Some students change with the changing time, some don't. There are certain causes behind this kind of difference in attitude. Emotions are important in our lives. Our emotions have the potential to serve us as a delicate and sophisticated interval guidance system.In the present circumstances, youth as well as children are facing difficulties in life. These difficulties are giving rise to many psychosomatic problems such as anxiety, tensions, frustrations and emotional upsets in day to day life. So, the study of emotional life is now emerging as a descriptive science. It deals with interplay of forces with intensities and quantities. Emotional maturity is not only the effective determinant of personality pattern, but it also helps o control the growth of adolescent's development.The concept ‘Mature' emotional behavior of any level is that which reflects the fruits of normal emotional development. A person who is able to keep his emotions under control, which is able to break delay and to suffer without self-pity, might still be emotionally stunned and childish. According to Walter et al. (1976), emotional maturity is a process in which the personality is continuously striving for â€Å"greater sense of emotional health, both intra-psychically and intra personality. † Emotional stability is one of the seventh important indicators of me ntal health.It simply means being grown up so that one may be able to personally manage his/her desires and feelings and may be better able to cope up the adverse life situations in a most befitting and socially approved manner. The most outstanding mark of emotional maturity is ability to bear tension. Life is becoming fast with the advancement of science and technology. Though man has conquered time and space to a great extent by the present level of scientific advancement, yet there is great threat to his existence.The Indian society is becoming increasingly materialistic. Emotional pressure is increasing day by day specially at higher secondary school stage. Unrest, anxiety and frustrations are occurring in all the spheres of life. Parents have no time to spend and guide their children. Students are frequently troubled with their daily problems because they do not have the capacity and training to solve problems. Our educational system also provides no direction to the children. Citizens of tomorrow are children attending today's schools.Those children in their capacity of being the future administrators, engineers, doctors and last but not least the citizens of the country must be brought p in a way worthy of the obligations which they owe to their community and their country at large. They should normally possess the best physical and mental health for performing their duties. But unless something is done to help the child, he will continue to suffer from anxiety due to heavy work load. Due to high anxiety, child develops certain personality traits which inhibit his proper physical, emotional and social development.All these factors add to emotional tensions of the child and make him an unbalanced personality. In later years, such a child because of his under plopped personality becomes a burden for the society in one form or the other. In this modern world of science and technology, nothing but change is eternal. This generation of ours, lives at the me rcy of science and technology. It is believed that science based technology is the ‘column bunkum' of our life. Moreover, there is a lot of competition in every walk of life. Here Darning's law of survival of the fittest is truly valid.Only those who succeed can survive. This rapid change in man's life due to advancement in scientific technology has made man's life easy and comfortable but t the same time has created many complexities too. Apparently, man appears to be happy but internally, he is full of conflicts. Parents and educational institutions pressurize the children to excel in academics and other areas of performance. There are several things one may feel like doing because of his emotions but emotional maturity will keep him doing the right thing and may even help him to remain calm in the most difficult situations.Emotional maturity is the ability to differentiate and properly identify one's emotions while granting himself the freedom to experience whatever emotion is appropriate to a given situation. Adolescence is the most crucial and significant period of an individual's life. It is a period of rapid revolutionary changes in the individual's physical, mental, moral, spiritual, sexual and social outlook. It is a period to learn new things, and it is a period of anxieties, worries, conflicts, complexities, and ambitions. Adolescence is the period of heightened emotionality.It is the most demanding period in one's life- a period of storm and stress because accurate portrayal of self to others, which is an identifying criterion of healthy personality, is in the process of establishment during this period. The present study is on modernization and emotional maturity of higher secondary students. The study attempts to analyze the various aspects of modernization and emotional maturity among higher secondary students. The end of the twentieth century and beginning of the twenty first century have seen an unprecedented upsurge in activities revolv ing around the teenage adolescence students.It is the dire need of the hour that as teenage adolescence students we should have proper emotional development to rightly use our human emotions. So our minds have something vital to do with our emotions and we should have a self concept to control our emotions with the mind! But our emotions need to be understood, taught, trained and controlled by the mind! Emotional maturity moves beyond intelligence to a higher state of consciousness, guided by what one senses, feels and intuits, and one's heart. Modernization and Emotional maturity is a tool for promoting students' mental health and personality.The specific needs for identifying these phenomena of Emotional Maturity and modernization are natural and inevitable outcome of student growth and development rather than among pathological symptom. The Emotional maturity becomes important in the behavior of individuals. As the dents are the pillars of the future generations their value patte rn and emotional maturity are vital. So the present study intends to measure the emotional maturity and modernization level of the Higher Secondary school students. Citizens of tomorrow are children attending today's schools.Those children in their capacity of being the future administrators, engineers, doctors and last but not least the citizens of the country must be brought up in a way worthy of the obligations which they owe to their community and their country at large. They should normally possess the best physical and mental health for performing their duties. But unless something is done to help the child, he will continue to suffer from anxiety due to heavy work load. Due to high anxiety, child develops certain personality traits which inhibit his proper physical, emotional and social development.All these factors add to emotional tensions of the child and make him an unbalanced personality. In later years, such a child because of his under developed personality becomes a b urden for the society in one form or the other. The Emotional maturity becomes important in the behavior of individuals and the development of education is depending to the level of modernization. As the students are the pillars of the future generations their modernization and Emotional maturity are vital ones.So the present study intends to measure the Modernization tenets and Emotional Maturity of Higher Secondary school students. The study will help and guide teachers and parents in taking necessary steps to develop psychological attitude of the pupils in proper lines. Schools are an important place where children have contacts with their peers, form friendship, and participate in social groups and with other children. As children grow from infancy through adolescence, peers are increasingly important in their lives. Their interactions become more complex with age.In adolescence peer relationships affect whole personality. The specific needs for identifying these phenomena of Em otional Maturity and modernization are natural and inevitable outcome of student growth and development rather than among pathological symptom. The Emotional maturity becomes important in the behavior of individuals. As the students are the pillars of the future generations their value pattern of Emotional Maturity are vital. For all these reasons this study on the Emotional Maturity and modernization level of Higher Secondary school students is relevant and is a need of the time.

How an economy works ? Essay

I wasn’t entirely surprised by the article considering that, in truth, when we open ourselves up to the myriad of thing that the course teaches, all of these can be learned. Only our interests make us choose what we learn more, what we retain and what we want to forget. Stating that more people learn the â€Å"economic way of thinking† I feel that I have to agree with the 75. 5% of people who learned â€Å"how an economy works. † The difficulty of economics is, indeed at a high level considering that there is a drill on models and computations. This focus reveals that the analytical aspect of economics that we are applying is based on current existing models that we have to work around with. However, it is not complicated as to integrate the intricacies of its liberal roots. Although there are touches of it, it isn’t drilled in too deep. The role of critical thinking is highly important and for economics to weigh more on models and computations to analyze the economy is a little detrimental on the part of course itself. This is because many of today’s economic problems are not entirely reliant on predictable circumstances that models and computations simplify the world to be. It is therefore more instructional and beneficial for students to give a little more emphasis on the liberal arts side, forcing students to think out of the box. Many of the critical thinking skills that economics has given me largely relies on the fact that every issue about our current economic state makes me think about what economic models to use. However, as an independent thinker, I also believe there is more that policymakers and today’s economists can give rather than recycling old methods and using old analyses. As an economics major, I feel that the class has taught me that there are a myriad of solutions waiting to be explored and there is certainly no hard and fast rule to come up with a solution.

A people without the knowledge of their past history, origin and culture is like a tree without roots

According to science, out of all of the parts of a tree, roots are quite an important feature. It has several purposes, adsorbing water and vital nutrients from the ground and into the rest of the tree, supporting the whole tree, from the bark, to the leaves to the fruit/flowers it produces. It also helps stabilize the tree so it wouldn’t fall down easily when the weather is tough. The roots are the foundation of the tree, without it, the rest of the tree would dry up and die, moreover, the structure of the tree would be quite unstable, as it has nothing to grip the soil with and die easily due to lack of water and vital minerals. So what is culture and how is culture to people like roots to a tree? On sources like the Internet, culture is defined as an â€Å"act or a belief of a racial, religious or social group†. Cultures are tools which helps binds people together, a rich source of wisdom, knowledge and an instrument which keeps the successful humble, in short, the greatest element in keeping order in humanity. Keep in mind here that â€Å"a people† in this quote is sort of like a group of people, but with similarities which bonds/categorizes them e. g. culture. Like a tree, people who have knowledge of their cultures and their past would have a foundation to support them. This enables the group to hold onto the ground and not get uprooted when storms or big winds come, promising stability to the whole tree. The roots would also help provide tree with important nutrients and other vitamins from the soil, which allows the tree to bear fruits and flowers. In this case, knowledge and wisdom of the culture provides the people to bring wealth, health, prosperity and peace. It is also a known fact that as the tree grows larger; the roots have to grow in length in proportion to the growth of the tree. So that the support and stability needed for the growing structure of the tree are met. Failing to follow this simple yet vastly ignored rule would result in the structure of the society would be unbalanced and topple over, similarly to the bark of the tree. Which shows us that our culture must grow in proportion to the plurality of the individuals in our group. With the help of Globalization, different types of cultures are being shared around the world, logically speaking; combining traditions, knowledge and wisdom would increase the overall human culture on the planet right? In reality, not all things go as planned. As the richer, more developed countries would dominate the trade it would also dominate the Cultural Revolution pop culture is a fitting example of this. On one hand, countries that correctly use their cultural roots would benefit in wisdom from the Cultural Revolution. There are quite a few cultures that follow this trait (most of the countries originate in Asia). China, India and Japan are the most cultured ethic groups and yet the most economically successful. Just less than 50 years ago, all of the countries are experiencing various economic crisis such as war. The core of all their successes are obviously not based on money or weaponry power, neither is it from large numbers of people or the size of the country. Instead, the support comes from their deep, still intact roots of their cultures dating back to 6000 years+, providing knowledge and wise teachings to the people through ethics and traditions. This enables the whole tree to survive the winds and floods, ending with a much more fertile soil after the disaster. Unfortunately, on the other hand, there are numerous types of ethic groups who don’t follow or even have any respect left for their own cultures. There is hunger, ignorance and hatred lingering still within the society, killing the tree and it’s roots daily. Without knowledge and wisdom, individuals in the group are increasing in instability as only a few are extremely wealthy and most of the people in that group are in poverty. Another outcome of this cause is the shallow thinking of others, becoming murderers, prostitutes and drug users. These groups are like trees with rotting roots, unable to provide any water or nutrients and destroying their future. Without the foundation the tree would experience yellowing leaves and dying branches. Which a small gust of wind can easily damage the tree. This quote by Marcus Garvey is targeted to African people, who have forgotten their culture. Some people think that the main cause of this is found in the European’s divide and conquer technique and America’s public school system, where history classes are mainly about the European and the American culture. Rarely is there any topic about African or African American culture covered due to racism. Garvey is pointing to us that before globalization; the first civilizations (Africans) have deep rooted cultures, designing their own economy, weapons and jewelry before spreading to Europe. Sadly, this culture is being replaced by the western version of African culture, where they believed that Africa is where savages ran wild. My country, Indonesia is one of the countries that have a lot of cultures, from traditions, to traditional crafts to myths and legends. Which probably was the core support for the soldiers who bravely risk their lives in the Javanese war against the Dutch. In reality, I am actually quite ashamed that moving down the modern Indonesian generations seemed to have decreasing respect of culture and traditions. We’re slowly giving in to consumerism and losing our roots and traditions.

Hedging Equity Case Study Example | Topics and Well Written Essays - 1750 words

Hedging Equity - Case Study Example Another advantage of using options is its ability to allow the trader to sell them against shares that he or she already owns. Through this option, the trader can earn extra income from the sale of these shares. On the other hand, option strategies have some drawbacks. Options can be of high risk even though they are designed to reduce risks. Options fall the risk-reward ration in that, options with higher returns are also characterized with greater risks and vice versa. Also, even though options have got the leverage advantage, it also has disadvantages arising from the leverage as the loss resulting from them can be horrible since all losses are multiplied. This is especially where too much leverage is used. The use options are also sophisticated in that it takes long for someone to know how it works (LearnMoney.co.uk 2015). Options are also risky where there is less information about the quotes as well as other analytical information such as the implied volatility. Dunbar (2012) notes that, options are also not available to cover all stocks as it limits the number of possibilities available to the trader. Another limitation of using the options strategies is the highest commission per do llar invested, which is incurred during their trade. This is especially common for spreads where an investor pays commissions for both spread sides. According to the ThinkTrade.net (2006), the options have higher spreads due to the lack of liquidity. This makes the trader incur more costs in the form of indirect costs when trading them as he will be giving up the spread. There is always a waste of assets since options lose value over time. Therefore, the traders should be right on the direction as well as his timing. According to Arunajith (2007), the zero cost collars are also called the castles collar and is an option trading strategy, whose use is in the short term so as to seek

Analyzing HR Policies of Tesco Essay Example | Topics and Well Written Essays - 1750 words

Analyzing HR Policies of Tesco - Essay Example All these policies are closely knitted with one another. Human resource management components cannot be separated from each other and they together denote effectiveness of the approach. Tesco employs approximately 310,000 people in its UK branch. The company witnessed certain challenges in terms of declining sales margin and falling share price value. This aspect greatly affected employee base and it was essential to boost up their morale. In this report, drawbacks in HR policies of the company shall be highlighted along with some recommendations to be implemented in the system. HR practices and policies revolve around various theoretical frameworks. These frameworks basically state the need for human resource management strategies. Employees should be motivated in every sphere of workplace simply because they are the most valuable asset of an organization. Recruitment and selection procedure are basic methods through which a pool of talent is structured within an organization. These initial methods are then followed by the training and development approach. Learning plays an important role in organizational success (Torrington, Hall and Taylor, 2014). A learning organization is always more productive in comparison to other firms. Kolb’s learning cycle includes different components that are generally focused on by HR practitioners. Figure1 further elaborates this cycle. As per figure1, the first phase of this learning cycle is to identify probable learning need. On basis of this need, learning opportunities are appropriately designed. This eventually leads to influencing candidates so that they are able to opt for these opportunities. The last phase of this cycle is critical since it denotes effectiveness of entire learning program (Bonnici, 2011). Evaluation phase helps a team leader to analyze overall impact of learning program on employees.

PROJECT and investment report Essay Example | Topics and Well Written Essays - 2000 words

PROJECT and investment report - Essay Example This trend is majorly visible in China. In India, although there are strong government regulations against the practice of consuming wine, the young generation of the country are increasingly showing greater interest towards wine drinking. This paper presents a comparative study of the social-economic, political and financial conditions of two countries, India and China. Based on the information revealed, a particular country is chosen in which an Australian wine producing firm might invest for making international expansion. 2. Market Research Market size and potential growth Country China India Potential demand Drinking wine is one of the oldest traditions in China. This tradition can be dated as long as 5000 years back in the history of the country to. Brewing was a dominant industry in China. Wine made from food grains (such as rice) and grapes are the most favourite drinks for the people of China. This shows that the potential demand for wine in the country is quite high. Recent studies reveal that wine consumption by the population of China is showing an increasing trend over the period of last ten years. According to various researchers, consumption of wine by the Chinese would almost become double of the current figure (UPENN, 2012). Pattern of changes in the society as well as the economy has been the major thrust behind the changing trends in wine consumption in China. The market for wine in India is changing. The rise of the retail industry and the growing middle class in India acts as a catalyst to the growth of wine industry in the country. According to recent research, wine consumption in India reflects tremendous growth since the beginning of the 21st century. Wine market in India has increased by almost 30 percent between 2003 and 2010. As a result of globalization, India has been exposed to western culture. The middle class in the country is fast accepting and adapting to the western fashion. Although India does not have a heritage of drinking wine, practice of wine consumption is increasing, particularly, in social occasions. In the past, only the males in elite class used to patronize wine drinking culture. However, presently, the high income middle class is gradually becoming a loyal customer base for wine sellers. Costs Cost of the product is determined by the cost of the raw material used in the production of the good and cost of other inputs. Grapes are one of the major ingredients used in wine production. China has grape vines covering 1.25 million acres. Half of the produce is dedicated for the production of wine (G. G. Brostrom and J. Brostrom, 2008). Since there is adequate availability of grapes in China and cheap labour is also available, costs of producing wine in China is not very high. In India, the government protects the domestic wine industry against competition from foreign producers. Although cheap labour is available in abundance, other ingredients, such as grapes, are costly. This makes cost of produ cing quality wine quite high in India. Sellers often discriminate among the target customers with regard to pricing policies. While prices of certain products are lowered to attract more customers, while prices of premium brands are kept high. The premium products are generally consumed by the rich customers, who have a taste for wine developed through consuming wine over a long period of time. Degree of competitiveness China is emerging as a super market for global