Dangerous Dave's Tech Manager » DD Tech Manager Business

Financial Leveraging

admin — Sat, 09 Aug 2008 20:13:46 +0000

Financial leveraging is the idea that an investment results (return) can be multiplied if the investment is increased. This means that a person would buy or invest on debt in order to increase the return on the investment. The drawback to this is if the yield was negative, it would also increase the negativity of the retur

Financial Change

admin — Thu, 31 Jul 2008 05:21:44 +0000

The pitfall for any change in financial result is the inability to continue to keep up business in the next quarter, year, etc. Eventually, the immediate change in financial earnings may yield quick cash but will soon be a pitfall once the next earnings results come in. Also, if an audit were to catch the manipulation, then it is a distrust in a company that can lead to many people removing investment from the company.

Off Balance Sheet

admin — Tue, 29 Jul 2008 07:07:03 +0000

An off balance sheet can help banks and other organizations to avoid tax. With an off balance sheet, it is then understood that those risks and numbers will not transfer over during a financial statement analysis and potentially ignore risk that was previously there. It also provides the off balance sheet writing organization to develop its balance sheets in such a way so that investment into its organization is less risky.

Off Balance Sheets

admin — Mon, 21 Jul 2008 08:37:55 +0000

Off balance sheets are simply that. They are liabilities to an organization that have not been explicitly written on balance sheets. Generally, these sheets are in place for investment purposes but can have a negative connotation such with Enron (when they would “move the money” to another balance sheet or different organization in order to hide it). The organization can also move the balance (and subsequently its risk) to another balance sheet.

Debt As Capital

admin — Fri, 18 Jul 2008 22:09:50 +0000

Debt can be used as capital. The debt to capital ratio tells others how much debt has been used as capital and the financial structure of the organization. Using debt as a source of capital may also provide the outside world that the organization has a week financial system. The cost of the risk may also increase the organizations likelihood of increasing its default risk.

Equipment

admin — Fri, 18 Jul 2008 21:41:19 +0000

One of my good business partners wanted me to look for a place where he could buy fitness equipment for cheap. He wanted to purchase them and resell them to clients of his. I told him I found a great place to do it even if he buys them for himself. He said he would test them out and then make sure they work as well as they look. I hope they do because they are a fine piece of equipment.

Ideal Capital Structure by Business

admin — Sat, 28 Jun 2008 04:21:36 +0000

I think we have many indicate that it really does depend on the organization and their specific ideal capital structure. I also do agree that it really
does depend on the organization depending on which type of capital structure it is best for it. I would suspect most organizations might fall in the
middle form of capital structure which indicates that they are not within the idealistic part of Modigligani-Miller theorem. Therefore, they are in the
realistic portions of the trade and pecking order theory (which indicate that bankruptcy and internal financing is used first respectively).

Source Of A Fund: Brick and Mortar vs. E-business

admin — Sat, 28 Jun 2008 04:16:07 +0000

The source of a fund for an organization provides the company, auditors, and investors with the ability to track the money from receiving to spending. You can draw a conclusion based on the funding as how long the organization has been financed in such a way (though history), develop future expectations of funding, and develop concerns if the funding is shaky or taken from a fund that is not considered reliable. Any brick and mortar business will likely have a location, stock, and employees. The brick and mortar may have goods or services that slowly decrease in profit. Generally, the overhead for utilities is a stationary price that they pay. The brick and mortar usually has a source of funding outside of the revenue stream and can take a bit longer to generate enough money to become profitable. The e-business on the other hand may not have any of those restrictions. A e-business can be as easy as one person running it and drop shipping its products so there is virtually no overhead (minus the web hosting, domain name, and time to update the website). It can be independently financed and it can be profitable in as little as a month.

A Friends Information

admin — Thu, 19 Jun 2008 06:12:19 +0000

One of my good friends was looking to get a drug to help him. Unfortunately, he did not get a prescription or know that there is a way for him to get it without one. I told him that he should go to Phentermine no prescription and get him the drug dosage he needed. He said he would be right on it and I hope it helps him out.

Specific Financial Ratios

admin — Thu, 19 Jun 2008 05:48:58 +0000

Lets look at this from specific ratios that address each business and the ones that would specifically look different due to the nature of the business. Any ebusiness (in my mind one similar to www.newegg.com) will have a lower profitability ratio as there is a huge system built in place with online and reduced costs AND lower profitability per sale but increased number of sales. I would also suspect that the e-organization would have an increased asset turnover ratio as many times payments are made quickly to deliver a product. A health care business (such as a hospital) would have an increased profitability ratio due to the nature of health care. A global business may have many combinations of concerns from ratios dependent on the nature of the business. I would suspect them to have both increased profitability, increased asset turnover, and lower liquidity ratio. The reason for the lower liquidity ratio is because a organization that requires to be in many countries can be very expensive to run and I would suspect increased short term debt.