2013년 11월 29일 금요일

About 'industry financial ratios'|Identifying Financial Distress Condition in Indonesia Manufacture Industry







About 'industry financial ratios'|Identifying Financial Distress Condition in Indonesia Manufacture Industry








As               most               business               owners               and               financial               managers               know               there               is               a               significant               failure               rate               in               businesses               that               are               fairly               new.

Statistics               might               vary,               but               everyone               would               agree               that               any               business               failure               is               a               disappointment               for               all               concerned,               the               entrepreneur,               and               his               lenders,               suppliers,               etc.

It               is               generally               agreed               upon               that               businesses               fail               due               to               mismanagement               or               poor               financing.


               We               will               take               a               look               at               how               business               owners               and               their               managers               fair               to               recognize               operating               difficulties.
               Proper               control               in               a               business               revolves               around               good               information.

In               business,               whether               we               like               it               or               not,               it's               about               the               numbers.

The               business               owner               must               be               familiar               with               what's               happening.

So               how               does               he               or               she               do               that?

Well,               let's               say               we               have               our               'numbers               '.

Then               what?

The               answer               is               we               need               to               look               into               and               beyond               the               numbers.

That               is               the               essence               of               our               message               -               what               are               the               '               relationships'               between               some               of               those               very               important               numbers               such               as               sales,               gross               margins,               expenses,               income,               etc.
               The               analysis               and               understanding               of               those               'relationships'               in               the               numbers               is               called               ratio               analysis.

It               can               take               very               rudimentary               forms,               and               it               can               also,               by               the               owner's               choice,               be               very               sophisticated.
               Where               do               the               numbers               come               from               -               the               answer               is               of               course               the               balance               sheet               and               income               statement.

(To               some               degree               the               cash               flow               statement               also)
               Owners               and               managers               who               are               'non-               financial'               in               their               backgrounds               know               there               is               'a               lot               'of               info               in               those               numbers!

The               balance               sheet               provides               the               true               values               of               the               assets               and               liabilities               of               the               business;               the               income               statement               shows               sales,               profits               and               expenses.

Typically               the               owner               is               provided               with               comparative               numbers               on               a               month               to               month               or               year               over               year               basis.
               So               what               else               does               the               owner               need               then?

Remember               also               that               is               suppliers               and               lenders               and               others               who               have               a               vested               interest               in               the               business               that               want               to               see               those               numbers               also.
               The               key               to               our               message               of               number               'relationships'               -               those               'ratios               'is               comparison.

When               numbers               are               compared               they               have               the               ability               to               convey               a               lot               more               to               the               business               owner.
               Financial               ratios               are               essentially               one               number               divided               by               another               number.

There               are               hundreds               of               possibilities               for               the               business               owner               to               look               at               ratios               which               are               relevant               to               their               business.

The               purpose               of               every               ratio               is               to               find               some               meaning               in               the               numbers.

Lenders               and               credit               people               thrive               on               ratios.
               For               business               owners               there               are               essentially               four               groups               of               ratios:
               Liquidity               
               Leverage               
               Profitability               
               Operating
               Business               owners,               especially               non               financial               in               background               often               don't               want               to               spend               too               much               time               on               all               these               ratios!

However               effective               and               regular               use               of               ratios               can               allow               business               to               compete               and               change               more               effectively.
               What               can               ratios               tell               us?

As               we               have               said,               there               are               hundreds               of               possible               ratios               to               be               analyzed,               and               they               can               answer               the               most               basic               of               questions:
               How               liquid               are               we               -               can               we               pay               out               bills               
               What               types               of               returns               are               we               making               on               our               investments?


               Are               out               inventories               turning               fast               enough               for               our               industry
               Let's               look               at               only               one               ratio               as               an               example               -               We               will               use               the               'SALES               PER               EMPLOYEE               'ratio.

It               is               calculated               by               taking               Net               Sales               and               simply               dividing               by               total               employees               -               Naturally               if               the               answer,               in               comparison               is               that               our               sales               per               employee               are               going               down               we               may               have               issue               to               investigate.

Again,               that's               one               example               of               many               hundred.
               In               summary,               ratios,               or               the               relationships               of               the               numbers               in               business               help               business               owners               to               better               manage               and               understand               their               company.

That's               important               in               today's               competitive               environments.






Image of industry financial ratios






industry financial ratios
industry financial ratios


industry financial ratios Image 1


industry financial ratios
industry financial ratios


industry financial ratios Image 2


industry financial ratios
industry financial ratios


industry financial ratios Image 3


industry financial ratios
industry financial ratios


industry financial ratios Image 4


industry financial ratios
industry financial ratios


industry financial ratios Image 5


  • Related blog with industry financial ratios





    1. ppiuk.wordpress.com/   06/20/2007
      ... historical data and comparing it to current condition. Industry-Relative ratios, Unadjusted Financial Ratios and Auditor Reputation are the variables...
    2. harbinus.blogspot.com/   10/19/2005
      ...price of $1.50, using a price to book ratio of 1, or a trailing P/E of 6.7...personal advice and / or ensure any investment or financial decisions are appropriate for...
    3. jeremyowinvestingexperience.blogspot.com/   12/18/2009
      .... One should compare similar companies in an industry when using such financial ratios as the capital structure of companies in different industries...
    4. anandvijayakumar.blogspot.com/   12/04/2010
      ... of the company in the current financial year and the previous year) • between a single company and the industry performance Ratios are generally meaningless unless we benchmark...
    5. ivythesis.typepad.com/   03/17/2008
      ...the industry. One such toll that can be paired with the key industry success factor analysis is the financial ratio analysis. (c). Macro-environmental Analysis The macro-environmental analysis...
    6. visciouspuppet.blogspot.com/   07/16/2007
      ... outselling their competitors at an almost 2 to 1 ratio. That being said, it was actually something akin to comparing...
    7. waelsasso.wordpress.com/   02/22/2010
      ...the fourth place! Financial ratios are ... to 5% industry average” or “... and move down. Financial Ratios Process Like this...
    8. johnbarbar.wordpress.com/   08/15/2010
      ... over time, compared to industry standards and prior results, ratios allow the reader of a financial statement to gage the direction of a company...
    9. harbinus.blogspot.com/   02/06/2006
      ...price of 0.32, HQSM has a TTM P/E ratio of 8.7, but ex-items this rises...professional advice and / or ensure any investment or financial decisions are appropriate for...
    10. thethirdsector.blogspot.com/   01/21/2009
      Nonprofit Financial Ratios For profit businesses use finantial ratios... with similar businesses in your industry. Many of the ratios you normally use will...



    Related Video with industry financial ratios







    industry financial ratios Video 1








    industry financial ratios Video 2








    industry financial ratios Video 3




    industry financial ratios































    0 개의 댓글:

    댓글 쓰기