Dangerous Dave's Tech Manager » DD Tech Manager Efficency

Financial Leverging pt. 2

admin — Thu, 14 Aug 2008 05:51:15 +0000

Financial Leverging works well in stocks if one would purchase on buying on margin. This type of purchase is common in stock and is done with the purchase of a futures stock (buying or “betting” that a stock will rise and fall in the future). This type of purchase is also done within a loan.

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.

Running A Video Business

admin — Tue, 29 Jul 2008 07:09:21 +0000

One of my good friends was running a television business but he was faltering in one major way. He had a high definition movie connected to a high definition TV with a low definition cable. OUCH! I told him he needed to upgrade his cables as soon as possible to HDMI. That’s right, the change in video quality was amazing and he saw a huge difference in sales.

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.

Organizaton Condition

admin — Fri, 18 Jul 2008 21:38:59 +0000

The overall condition of an organization will increase with the increased “co owners” of the organization. The company can also increase its buying power by offering stock to purchase other organizations or for investments. Its imperative that the investments are procured when the “iron is hot” otherwise you will find that it will become very difficult to continue to sustain your business in this type of economy.

Disadvantages of Having Stock as a Business

admin — Sun, 06 Jul 2008 22:31:50 +0000

The disadvantages of having stock are the ability to do as you please. If your organization does something that is not favorable, it will be highlighted and picked apart with more detail due to many investors. Many times, the organizations need to provide quiet a bit of communication and ensure that they are very open with the public. There are many initial and ongoing expenses with cost associated with going public.

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.

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.

Ratio Methods

admin — Mon, 02 Jun 2008 05:58:48 +0000

Different ratio methods are used in order to develop a specific set of information. For example, liquidity ratio will provide the user the ability to see if the organization can pay its short term financial concerns. This equation is:
current ratio =current assets/current liabilities.
When using ratios, it is important to note that a few precautions need to be taken to reduce erroneous numbers. This includes ensuring that the compared organization is indeed a competitor of the company. Ratio’s should not be taken as concrete information but as guides. The last concern is that the ratio’s are only as good as the data they are provided. GIGO should be understood (garbage in garbage out).

Risk and Contact

admin — Tue, 29 Apr 2008 07:36:40 +0000

Project managers are the main contacts for any updates and concerns for risk and assessment. The first reason for the PM to have such control is the risk assessment. Risk assessment is done primarily before the project is started due to ensure the risks that can be addressed and found while the project is in process.