WHAT I KNOW ABOUT MANAGERIAL FINANCE
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10% Progress: The first thing to know about .
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Financial Ratios are tools used to measure the financial business health. They are categorized into: PROFITABILITY. efficiency. Liquidity. Gearing. INVESTMENT. Once the ratio has been calculated it is compared to a benchmark.
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PROFITABILITY ratios are: return on ordinary shareholder fund (ROSF). Return on capital employed (ROCE). Net_Profit_Margin and gross profit margin.
Efficiency ratios (how is many spent): average stock_turnover_period. average settlement period_for debtors. average settlement period_for creditors. SALES to capital Employed. And SALES per employee.
40% Progress:
LIQUIDITY RATIOS r about making the company able 2 fund its activities. When u c ratios of Liquidity u can c cash. CURRENT Ratio related 2 comparing the cash (& soon to be cash) 2 liabilities. Acid test RATIO excludes non-cash which makes it a more stringent kind of test.
investment ratios: dividend payout r dividend yield r earnings per Share. And price earning r
When the Firm of the business get the outside Support, then gearing occurs. gearing r and interest ( which is not BENEFICIAL) are there
When the good business achieves the good EQUAL of revenue and total cost, we call that break EVEN
CONTRIBUTION Sales Outcomes per UNIT less variable_costs per U. Why is it called that? It helps meeting FIXED COST and also PROFIT.
budgeting most importance is its ability to help make decisions. It is a short term financial PLAN. It forecasts the costs of the FUTURE. It is valuable as a forward thinking activity. It has control embedded, what more motivation you NEED?
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Financial Ratios are tools used to measure the financial business health. They are categorized into: PROFITABILITY. efficiency. Liquidity. Gearing. INVESTMENT. Once the ratio has been calculated it is compared to a benchmark.
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20% Progress:
PROFITABILITY ratios are: return on ordinary shareholder fund (ROSF). Return on capital employed (ROCE). Net_Profit_Margin and gross profit margin.
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30% Progress:
Efficiency ratios (how is many spent): average stock_turnover_period. average settlement period_for debtors. average settlement period_for creditors. SALES to capital Employed. And SALES per employee.
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40% Progress:
LIQUIDITY RATIOS r about making the company able 2 fund its activities. When u c ratios of Liquidity u can c cash. CURRENT Ratio related 2 comparing the cash (& soon to be cash) 2 liabilities. Acid test RATIO excludes non-cash which makes it a more stringent kind of test.
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50% Progress:
investment ratios: dividend payout r dividend yield r earnings per Share. And price earning r
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50% Progress:
Limitations of the financial Ratios: - as good as their financial statements where they where taken from.
- Does not convey BIG PICTURE.
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60% Progress:
When the Firm of the business get the outside Support, then gearing occurs. gearing r and interest ( which is not BENEFICIAL) are there
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70% Progress:
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80% Progress:
When the good business achieves the good EQUAL of revenue and total cost, we call that break EVEN
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90% Progress:
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100% Progress:
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Reference:
Accounting and Finance for Non-Specialists
Prentice Hall
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Self Assessment:
Effort: 1 minimum to 5 maximum
Understanding: 1 minimum to 5 maximum
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Prepared By: Ghassan Samaha -
Strathclyde MBA - B.s.Electrical Engineering.
email: ghassan@feedbackonlinetraining.com
telephone: 058-5997950
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