Brief Notes on Finance Management

Dr.  S.  Maurer,  
MBA Professor

So how do you kindle that passion? For openers,  you havë to make sure your salespeople understand that jobs depend on the forecast.  I don't want our salespeople to do forecasts for my benefit.

Liquidity Ratios - Liquidity Ratios help us understand if we can meet our obligations over the short-run.  Higher liquidity levels indicate that we can easily meet our current obligations.  We can use several types of ratios to monitor liquidity.

The vast majority of major UK financial institutions are based within the 'square mile' of the City of London or have moved out to the Docklands area.

If your enterprise fits into the latter category,  now is the time to step back and take a dispassionate look at your credit picture and then fix any problems before they come back to haunt you.

Core elements of ECR Efficient assortment – Product offerings should be rationalized to better meet customer needs and improve supply chain performance [ex.  – Why 100 different SKUs that confuse consumers when 30 SKUs would meet their needs?].

Economists think of citizens as consumers and rely on them to put their disposable income to work.

it has been said that you must measure what you expect to manage and accomplish.

There are several detail ratios that we can monitor,  such as acid test,  inventory turnover,  and debt to equity.

Neither group can independently create timely and accurate reporting,  but acting as the link between it and management,  a controller has the “hands-on” insight to ensure that systems meet rapidly changing business needs.

For the banks,  securities pooled and reconstituted from loans or other credit exposures [asset-backed securitisation],  provided the means to reduce credit risk in their portfolios.

EXAMPLE — Net Income for the year was $ 60,000 and Sales were $ 480,000.  Profit Margin is $ 60,000 / $ 480,000 or 12.5%.  For each dollar of sales,  we generated $ .125 of profits.

I've been tracking them from the beginning,  and I still don't know the key number for sales in the bin business.

The need for improving financial reporting it systems may first be recognized by your business' controller or chief financial officer.

Now a growing number of small and midsize businesses are turning to counselors-for-hire as well.  In fact,  these enterprises may need them the most.

During Japan's economic slump in the 1990s,  the Nikkei 225 fell from a peak of 39,000 in 1989 to 16,000 in 1992.