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Click to Download: Oil and Natural Gas Prices-Are They Sustainable at These Levels? Executive Summary. Issue. There are three primary drivers that must be considered when looking at oil and gas prices. First, they are commodities, and move with the complex economics of global supply and demand. Second, they are very volatile. And third, they can be significantly influenced by global, geopolitical factors.
Definition of Inventory Conversion Period. The inventory conversion period is the timeframe that encompasses the process of obtaining the raw materials, manufacturing, to selling the product. It helps the firms estimate the timespan between the day raw materials are bought to the day the product is sold. The ideal inventory conversion ratio differs between industries.
In Captain Phillips , a pirate hijacks a ship and turns to the captain and says (in what is an amazing improvised line) “Look at me, I’m the captain now.” [1] While the comparisons between piracy and M&A will take us only so far, let us start with an observation: boards and special committees overseeing M&A transactions — much like ship captains in treacherous waters — need to be wary of other constituencies attempting to overtake their role not only once the transaction has been signed,
Definition of the Receivable Collection Period. The receivable collection period is a period when a firm receives the amount owed by their customers (Account receivable). Firms need to know this because they have to make sure they have enough in hand for their current obligations. Because of the time value of money, firms aim to keep this period as short as possible without losing other benefits.
Speaker: Susan Spencer, Principal of Spencer Communications
Intent signal data can go a long way toward shortening sales cycles and closing more deals. The challenge is deciding which is the best type of intent data to help your company meet its sales and marketing goals. In this webinar, Susan Spencer, fractional CMO and principal of Spencer Communications, will unpack the differences between contact-level and company-level intent signals.
Definition of the Payables Deferral Period. The period of time a firm takes to pay back their suppliers or creditors for their material purchases is known as payable deferral. Firms with a high payable deferral period have the ability to use the available cash for other short term investments and would benefit from the time value of money. For that reason, some suppliers give discounts to firms who pay faster.
Definition of Cash Conversion Cycle. The amount of time it takes a firm to convert its inventory into cash is known as the cash conversion cycle. In other words, it is the time taken for firms to convert their resources into cash. What is the Formula for the Cash Conversion Cycle? The cash conversion cycle (CCC) is calculated by adding days inventory outstanding and days sales outstanding and subtracting them by days payable outstanding. .
Definition of Gross Profit Margin. The gross profit margin compares the difference between the revenue and cost of goods sold, against revenue. It is represented in the form of a percentage. It is used to evaluate the company’s financial health. A higher markup price and lower cost of goods sold would increase the gross profit margin. What is the Formula for Gross Profit Margin?
Definition of Gross Profit Margin. The gross profit margin compares the difference between the revenue and cost of goods sold, against revenue. It is represented in the form of a percentage. It is used to evaluate the company’s financial health. A higher markup price and lower cost of goods sold would increase the gross profit margin. What is the Formula for Gross Profit Margin?
Definition of EBIT Margin. EBIT margin stands for Earning Before Interest and Tax margin. This margin helps stakeholders understand the cost of running the firms as well as profitability. The higher the EBIT the better it is for the firm. What is the Formula for the EBIT Margin? EBIT margin is calculated by dividing EBIT by revenue. EBIT margin = EBIT / Revenue .
Definition of EBIT Return on Assets. EBIT return on asset measures the firm’s earnings before interest and tax with respect to the firm’s total asset. The main focus on this ratio is the income and the total asset. The reason EBIT is used and not net income is because EBIT focuses only on operating cash flows. . What is the Formula for EBIT Return on Assets?
Definition of Return on Invested Capital (ROIC). Return on invested capital is a method of calculation in which you measure the performance of a company in terms of profitability. The ROIC is expressed in terms of percentages. The ratio also helps you understand how efficient a company is at utilizing its capital to generate returns. The more income generated from the investment, the more efficient the company is.
Definition of Return on Equity (ROE). ROE is another method to measure the profitability of a company. The ROE divides the net income of a company with the shareholder’s equity. The ROE is expressed as a percentage. The shareholder’s equity is the company’s assets minus the company’s debt. Therefore the ROE is arguably the net return on assets.
Speaker: Wayne Spivak - President and Chief Financial Officer of SBA * Consulting LTD, Industry Writer, and Public Speaker
The old adages that "cash is king" and "you can’t spend profits" still hold true today. But however well-known these sayings might be, it requires a change in mindset to properly implement a cash flow management system that predicts your business's runaway as accurately as possible. Key to this new mindset is understanding the difference between the Statement of Cash Flows, a historical look at the source and uses of cash, and the Cash Flow Statement, which uses transaction history and forward-l
Definition of Du Pont Analysis. The Du Pont analysis was created by the Du Pont corporation and is similar to the Return on Equity (ROE) but more accurate. The Du Pont analysis is known to decompose the drivers of ROE. The Du Pont analysis helps you understand the strengths and weaknesses of a company. What is the Formula for Du Pont Analysis? The formula for the Du Pont is the Net Profit Margin multiplied by the Asset Turnover and Equity Multiplier.
Definition of Net Profit Margin. The net profit margin is a financial ratio that tells you how much profit a company makes compared to its revenue in the form of a percentage. For example, if a company has a net profit margin of 20%, then they make 20 cents a dollar. The net profit margin can only be calculated when all the expenses have been deducted from the revenues.
Definition of Asset Turnover Ratio. The asset turnover ratio is used to measure the efficiency of a company. The higher the ratio, the more efficient the company is. . The asset turnover ratio looks at how efficiently a company uses its assets to produce sales. What is the Formula for Asset Turnover Ratio? The asset turnover ratio can be calculated by dividing the revenue by the average total assets.
Definition of Return on Assets. The return on assets focuses on how profitable a company is in relation to its total assets. The ratio is always presented in the form of a percentage. The higher the ratio, the more efficient and productive a company is. What is the Formula for Return on Assets? The return on assets can be calculated by dividing the net income by the average assets.
In this webinar, Joe Apfelbaum, CEO of Ajax Union and business strategist, will take you through the ABCs of intent data. You'll learn how to effectively use it to drive business results, with practical tips on how to leverage both company and contact intent data to maximize your marketing efforts. Whether you're a seasoned marketer or just getting started, this webinar is a must-attend for anyone looking to stay ahead in the ever-evolving world of digital marketing.
Definition of Assets to Equity Ratio. The assets to equity ratio allow you to understand to what extent a business is funded by equity or debt. The ratio measures the total assets in relation to total equity. In the case of the assets to equity, the higher the ratio, the more debt a company holds. What is the Formula for Assets to Equity Ratio? To find this ratio, you would have to take the total assets and divide it by the total equity.
Definition of Growth YoY. The YoY growth looks at a company’s performance/profit year after year or period after period. . The YoY compares the performance/profit and looks at how well the company is doing. The growth YoY is essential to investors as it allows them to see whether or not the business is worth investing in. What is the Formula for Growth YoY?
Definition of Liabilities to Assets Ratio. The liabilities to assets ratio is also known as the debt to asset ratio. The liabilities to assets ratio shows the percentage of assets that are being funded by debt. The higher the ratio is, the more financial risk there is in the company. What is the Formula for Liabilities to Assets Ratio? The liabilities to assets ratio can be found by adding up the short term and long term liabilities, dividing them by the total assets, and then multiplying the an
Definition of Risk Assessment. Risk assessment is an evaluation method used to understand an investor’s risk rating, which helps them come up with a suitable investment strategy to achieve their financial goals. What Impacts Risk Assessment? Financial risk assessment evaluates where a client stands in regards to taking risks. This can be understood through three approaches, including the client’s attitude towards risk, the tolerance for risk, and the capacity for risk.
Definition of Current Ratio. The current ratio or working capital ratio is a liquidity ratio that measures a firm’s ability to pay its short term liabilities. Short term liabilities are debts or any obligation that is due within one year. An ideal current ratio is between 1.2 and 2. . If the ratio is low, it means the firm does not have enough liquid assets to offset its short term liabilities.
Definition of Quick Ratio. The quick ratio is a liquidity ratio that measures a firm’s ability to pay its short term liabilities with its most liquid assets. Unlike the current ratio, the quick ratio is only calculated using the most liquid assets. The ideal current ratio is 1:1. The higher the ratio, the safer is the firm as that would mean they have excess cash.
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