The Commercial Bank of Ethiopia has been becoming a leader, pioneer, and role model for the country's financial industry, especially the banking industry. Currently, it aspires “to become a world-class commercial bank, financially driving Ethiopia’s future'', and it is working to provide banking services tailored to the needs of its esteemed customers. The bank has carried out a comprehensive assessment and strategy design work and drawn a business reform road map. Based on the assessment, reforms and organizational restructurings have been done. Accordingly, the bank has introduced a new customer-centric business model and undertaken amendments to its organizational structure in order to render effective service based on customer segments. Following this, new divisions and departments were established; the Micro Business Banking under the Wholesale Banking Division was established to address the banking needs of all individual and non-individual businesses.
The main objective of the department was to provide financing access to microbusiness customers. Since the number of microbusiness customers is very high, using digital channels has been considered an essential alternative. Due to this, the department has been assigned to provide digital micro saving and lending, which is the most efficient and effective form.
The strategic initiatives planned to achieve the department’s objectives have been successfully implemented, and the DMSL service is under a pilot test. However, there have been some problems that could be fixed only by restructuring the department, and the current structure is not conducive to providing successful digital loans. The digital lending being in a pilot test is also not going according to plan, and its performance status is not satisfactory. Due to those situations, I have been initiated to come up with this concept note, and I hope you will enrich and work on it to provide a successful solution.
2. Background
Technological advancements have significantly transformed the way services are delivered, leading to a shift in customer expectations and demands. Financial services are now focusing on providing seamless digital banking transactions and personalized engagements. Digital lending platforms are making lending easier, more accessible, and more efficient. Commercial Bank of Ethiopia (CBE) is leading in achieving national financial inclusion by establishing dedicated departments and implementing initiatives to improve the customer experience. This concept note proposes a structural adjustment for the recently established department called micro business banking department established under the wholesale banking division. The detail background leads me to this initiative is detailed as follow.
2.1. Micro Business Banking
CBE has established a department called Micro Business dedicated to microenterprise customers. According to the customer segmentation procedure of the bank, “Micro Business Banking” means a banking s
The document discusses financial management and management accounting. It defines financial management as measuring and reporting financial and non-financial information to help managers make decisions to fulfill organizational goals. Management accounting also measures and reports this information, but focuses on internal reporting to help managers make decisions. The document outlines the objectives, functions, key themes, and differences between financial and management accounting.
The document discusses financial management and management accounting. It defines financial management as measuring and reporting financial and non-financial information to help managers make decisions to fulfill organizational goals. Management accounting also measures and reports this information, but focuses on internal reporting to help managers make decisions. The document outlines the objectives, functions, key themes, and differences between financial and management accounting. It provides examples of a fund flow statement and cash flow statement, explaining their purposes and how they are computed.
1. The document discusses key concepts in financial management including the goals of a firm, objectives of financial management, management accounting, and the functions of management accounting.
2. It also covers the differences between financial accounting and management accounting, as well as the uses of fund flow statements and cash flow statements.
3. The fund flow statement describes sources and uses of funds over a period of time, while the cash flow statement provides a direct picture of where cash came from and where it went during an accounting period.
This document discusses financial management and analysis for new ventures. It explains that financial management involves raising funds and managing finances to achieve high returns. New ventures use historical and pro forma financial statements like income statements, balance sheets, and cash flow statements to assess performance and forecast future finances. Financial ratios are calculated from these statements to evaluate objectives like profitability, liquidity, efficiency and stability. Budgets and forecasts are made based on sales estimates and industry benchmarks to aid financial planning.
Finance for Managers
(Managerial Accounting)
Role of Financial Information
• Financial information pervades our economy
– It is the primary means of communication between profit seeking
organizations and their stakeholders
– For this reason organizations use financial measures internally as a broad indicator of performance
• This financial information provides a signal that something is wrong, but not what is wrong
• Financial information summarizes underlying activities
– But to explain financial results, managers need to dig deeper
– Detailed information provides additional insight into what is happening to
profits
This document provides information about the course "Financial Accounting for Managers". The course code is MBA203C11 and it is worth 3 credits. The objectives of the course are to familiarize students with accounting concepts and principles and their implications for managers. It also aims to develop students' skills in reading and interpreting financial statements. The learning outcomes are to analyze business transactions, construct financial statements, appraise and interpret financial statements, and create accounting information using accounting systems. The course syllabus covers 4 units - introduction to accounting, preparation of financial statements, analyzing and interpreting financial statements, and accounting information systems.
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.
The document discusses financial management and management accounting. It defines financial management as measuring and reporting financial and non-financial information to help managers make decisions to fulfill organizational goals. Management accounting also measures and reports this information, but focuses on internal reporting to help managers make decisions. The document outlines the objectives, functions, key themes, and differences between financial and management accounting.
The document discusses financial management and management accounting. It defines financial management as measuring and reporting financial and non-financial information to help managers make decisions to fulfill organizational goals. Management accounting also measures and reports this information, but focuses on internal reporting to help managers make decisions. The document outlines the objectives, functions, key themes, and differences between financial and management accounting. It provides examples of a fund flow statement and cash flow statement, explaining their purposes and how they are computed.
1. The document discusses key concepts in financial management including the goals of a firm, objectives of financial management, management accounting, and the functions of management accounting.
2. It also covers the differences between financial accounting and management accounting, as well as the uses of fund flow statements and cash flow statements.
3. The fund flow statement describes sources and uses of funds over a period of time, while the cash flow statement provides a direct picture of where cash came from and where it went during an accounting period.
This document discusses financial management and analysis for new ventures. It explains that financial management involves raising funds and managing finances to achieve high returns. New ventures use historical and pro forma financial statements like income statements, balance sheets, and cash flow statements to assess performance and forecast future finances. Financial ratios are calculated from these statements to evaluate objectives like profitability, liquidity, efficiency and stability. Budgets and forecasts are made based on sales estimates and industry benchmarks to aid financial planning.
Finance for Managers
(Managerial Accounting)
Role of Financial Information
• Financial information pervades our economy
– It is the primary means of communication between profit seeking
organizations and their stakeholders
– For this reason organizations use financial measures internally as a broad indicator of performance
• This financial information provides a signal that something is wrong, but not what is wrong
• Financial information summarizes underlying activities
– But to explain financial results, managers need to dig deeper
– Detailed information provides additional insight into what is happening to
profits
This document provides information about the course "Financial Accounting for Managers". The course code is MBA203C11 and it is worth 3 credits. The objectives of the course are to familiarize students with accounting concepts and principles and their implications for managers. It also aims to develop students' skills in reading and interpreting financial statements. The learning outcomes are to analyze business transactions, construct financial statements, appraise and interpret financial statements, and create accounting information using accounting systems. The course syllabus covers 4 units - introduction to accounting, preparation of financial statements, analyzing and interpreting financial statements, and accounting information systems.
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.
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This document summarizes a workshop on financial statement analysis. It outlines the key topics to be covered, including an overview of financial statements like the income statement, balance sheet, and cash flow statement. It will discuss how to analyze these statements, including through the use of ratios, in order to evaluate a company's performance and identify strengths and weaknesses. The workshop will address how to properly interpret financial data and ratios, and limitations to consider, such as differences in accounting treatments between companies.
This document provides an overview of financial reporting and analysis concepts. It discusses the primary purpose of financial reports which is to provide information about a company's financial position and performance. The key components of financial reports are the management commentary, balance sheet, income statement, statement of changes in equity, and statement of cash flows. It also defines common accounting concepts like the accounting equation, debit and credit system, and classifications of assets and liabilities as current vs non-current. The document provides examples of how to analyze a company's financial statements including calculating ratios from the balance sheet, income statement, and cash flow statement.
Introduction to Financial Accounting.pptSewaleAbate1
This document provides an introduction to financial management for pharmacists. It discusses the importance of financial management skills for pharmacy managers. The document outlines the objectives of understanding financial statements, goals of financial management, accounting and bookkeeping processes, and limitations of financial information. It also describes different types of business organizations like sole proprietorships, partnerships, and corporations.
This chapter introduces financial statements and accounting. It describes the main types of business organizations and their characteristics. The three principal business activities are financing, investing, and operating. Accounting records and communicates the economic events of a business to internal and external users. The key financial statements are the balance sheet, income statement, retained earnings statement, and statement of cash flows. These statements are interrelated and supplement each other. An annual report contains these statements along with additional information.
This document provides an overview of basic accounting and financial management concepts. It defines accounting as identifying, classifying, recording, and summarizing business transactions, and interpreting and communicating the results. It distinguishes accounting from bookkeeping, and explains the differences between management accounting for internal users and financial accounting for external users. Key financial statements like the income statement, balance sheet, and cash flow statement are also summarized.
The document discusses financial statement analysis and financial models. It provides an overview of financial statement analysis, including that it involves selecting, evaluating, and interpreting financial data to assess a company's financial condition and performance. It also discusses the objectives of financial statement analysis, the different types of financial statements (income statement, balance sheet, cash flow statement), and methods of analyzing financial statements, including ratio analysis, horizontal analysis, vertical analysis and common-size statements. The document is intended to provide information on financial statement analysis for investors and other stakeholders.
This document discusses financial statement analysis and financial models. It provides an overview of key topics including the objectives and importance of financial statement analysis, the main financial statements (income statement, balance sheet, statement of cash flows), and methods used for analysis such as ratio analysis and common-size statements. The document also outlines the purpose of financial statement analysis for both internal and external users and how it can be used to evaluate a company's performance, financial condition, risk, and future prospects.
This document provides an overview of accounting concepts including:
- Owner-managers run owner-managed businesses while creditors lend money and investors buy ownership in the form of stock.
- Financial accounting collects and processes financial information to produce reports for internal and external decision-makers.
- The main financial statements are the income statement, balance sheet, statement of retained earnings, and statement of cash flows.
- The income statement reports revenues and expenses to determine net income/loss over an accounting period using accrual accounting.
- The balance sheet lists assets, liabilities, and equity on a given date based on the accounting equation Assets = Liabilities + Equity.
The document discusses financial statement analysis and financial models. It provides an overview of key topics including:
- The objectives and importance of analyzing financial statements for both internal and external users.
- The main components of financial statements - the income statement, balance sheet, and statement of cash flows - and how each provides key information.
- Common methods for analyzing financial statements, including horizontal analysis, vertical analysis, common-size statements, trend percentages, and ratio analysis.
- Standardizing financial statements through the use of percentages in common-size statements to enable comparisons between companies.
- The role of ratio analysis in comparing relationships between financial metrics while avoiding issues from comparing companies of different sizes.
This document discusses financial statements and their analysis. It defines key financial statements like the income statement, balance sheet, statement of retained earnings, and statement of cash flows. It also describes different types of financial statement analysis, including horizontal analysis, vertical analysis, common size statements, ratio analysis, trend analysis, and fund and cash flow analysis. The purpose of financial statement analysis is to evaluate a company's performance and financial position over time and in comparison to other companies.
This document provides an outline for an accounting course titled "Accounting for Managers" that covers general accounting overview, financial accounting, and management and cost accounting. The first part introduces key accounting concepts and defines accounting and its objectives. It distinguishes between financial accounting, which provides information to external users primarily through financial statements, and management accounting, which provides internal users with special information for decision-making. The second part covers financial accounting and its major financial statements - the balance sheet, income statement, and statement of cash flows. The third part discusses management accounting and how it differs from financial accounting in focusing on internal reporting and providing both financial and non-financial information to aid managerial decisions.
This document provides an introduction to financial statements and accounting. It begins with an introduction by the instructor, including their qualifications. It then outlines the key objectives to be covered, which are the primary forms of business organization, users and uses of accounting information, the three types of business activities, the four main financial statements and their purpose, and the components that supplement financial statements in an annual report. The document then proceeds to cover each of these topics in detail over multiple pages with examples and illustrations. It concludes with some key points about international accounting standards.
The preparation of financial statements is a key aspect of an organisation's financial management as it relates to the recording and reporting of financial transactions and activities.
Financial statements support decision-making and financial analysis by providing a comprehensive overview of a company's financial performance, position and cash flow.
This document provides an overview of topics for analyzing the financial health of nonprofit organizations, including trend analysis, analyzing statements of activities and financial position, liquidity ratios, and budget considerations. It discusses analyzing financial statements from the perspective of different users and looking at factors like reliance on limited revenue sources, liquidity, receivable turnover, and comparing actual results to budgeted amounts. The document provides formulas and explanations for various ratios and financial metrics used to evaluate nonprofits.
Financial statements are prepared by a company's management to provide information on financial performance and position to outside users. They generally include a balance sheet, income statement, statement of cash flows, and statement of owner's equity. Financial statement analysis involves reviewing these statements to evaluate a company's risks, performance, financial health and future prospects. The statements provide recorded facts based on accounting records and conventions but also involve some personal judgment in their preparation.
This document provides an overview of a course on corporate accounting. It discusses why accounting is an interesting field, why financial accounting information is needed, and the course objectives of making students sophisticated financial statement users. An overview of financial statements is also provided, including the balance sheet, income statement, statement of retained earnings, and statement of cash flows.
Budgeting is a process of expressing quantified resource requirements (amount of capital, amount of material, number of people) into time-phased goals and milestones.
Check out more @ www.eleaderstochange.com
Follow: #eleaders2change
ADVICE TO ALL EMPLOYEES
1. Build a home earlier. Be it rural home or urban home. Building a house at 50 is not an achievement. Don't get used to government houses. This comfort is so dangerous. Let all your family have good time in your house.
2. Go home. Don't stick at work all the year. You are not the pillar of your department. If you drop dead today, you will be replaced immediately and operations will continue. Make your family a priority.
3. Don't chase promotions. Master your skills and be excellent at what you do. If they want to promote you, that's fine if they don't, stay positive to your personal.
development.
4. Avoid office or work gossip. Avoid things that tarnish your name or reputation. Don't join the bandwagon that backbites your bosses and colleagues. Stay away from negative gatherings that have only people as their agenda.
5. Don't ever compete with your bosses. You will burn your fingers. Don't compete with your colleagues, you will fry your brain.
6. Ensure you have a side business. Your salary will not sustain your needs in the long run.
7. Save some money. Let it be deducted automatically from your payslip.
8. Borrow a loan to invest in a business or to change a situation not to buy luxury. Buy luxury from your profit.
9. Keep your life,marriage and family private. Let them stay away from your work. This is very important.
10. Be loyal to yourself and believe in your work. Hanging around your boss will alienate you from your colleagues and your boss may finally dump you when he leaves.
11. Retire early. The best way to plan for your exit was when you received the employment letter. The other best time is today. By 40 to 50 be out.
12. Join work welfare and be an active member always. It will help you a lot when any eventuality occurs.
13.Take leave days utilize them by developing yr future home or projects..usually what you do during yr leave days is a reflection of how you'll live after retirement..If it means you spend it all holding a remote control watching series on Zee world, expect nothing different after retirement.
14. Start a project whilst still serving or working. Let your project run whilst at work and if it doesn't do well, start another one till it's running viably. When your project is viably running then retire to manage your business. Most people or pensioners fail in life because they retire to start a project instead of retiring to run a project.
15. Pension money is not for starting a project or buy a stand or build a house but it's money for your upkeep or to maintain yourself in good health. Pension money is not for paying school fees or marrying a young wife but to look after yourself.
16. Always remember, when you retire never be a case study for living a miserable life after retirement but be a role model for colleagues to think of retiring too.
17. Don't retire just because you are finished or you are now a burden to the company and just wait for your day t
Entrepreneurship Short Note.pptx for Business Studentsetebarkhmichale
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
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This document summarizes a workshop on financial statement analysis. It outlines the key topics to be covered, including an overview of financial statements like the income statement, balance sheet, and cash flow statement. It will discuss how to analyze these statements, including through the use of ratios, in order to evaluate a company's performance and identify strengths and weaknesses. The workshop will address how to properly interpret financial data and ratios, and limitations to consider, such as differences in accounting treatments between companies.
This document provides an overview of financial reporting and analysis concepts. It discusses the primary purpose of financial reports which is to provide information about a company's financial position and performance. The key components of financial reports are the management commentary, balance sheet, income statement, statement of changes in equity, and statement of cash flows. It also defines common accounting concepts like the accounting equation, debit and credit system, and classifications of assets and liabilities as current vs non-current. The document provides examples of how to analyze a company's financial statements including calculating ratios from the balance sheet, income statement, and cash flow statement.
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This document provides an introduction to financial management for pharmacists. It discusses the importance of financial management skills for pharmacy managers. The document outlines the objectives of understanding financial statements, goals of financial management, accounting and bookkeeping processes, and limitations of financial information. It also describes different types of business organizations like sole proprietorships, partnerships, and corporations.
This chapter introduces financial statements and accounting. It describes the main types of business organizations and their characteristics. The three principal business activities are financing, investing, and operating. Accounting records and communicates the economic events of a business to internal and external users. The key financial statements are the balance sheet, income statement, retained earnings statement, and statement of cash flows. These statements are interrelated and supplement each other. An annual report contains these statements along with additional information.
This document provides an overview of basic accounting and financial management concepts. It defines accounting as identifying, classifying, recording, and summarizing business transactions, and interpreting and communicating the results. It distinguishes accounting from bookkeeping, and explains the differences between management accounting for internal users and financial accounting for external users. Key financial statements like the income statement, balance sheet, and cash flow statement are also summarized.
The document discusses financial statement analysis and financial models. It provides an overview of financial statement analysis, including that it involves selecting, evaluating, and interpreting financial data to assess a company's financial condition and performance. It also discusses the objectives of financial statement analysis, the different types of financial statements (income statement, balance sheet, cash flow statement), and methods of analyzing financial statements, including ratio analysis, horizontal analysis, vertical analysis and common-size statements. The document is intended to provide information on financial statement analysis for investors and other stakeholders.
This document discusses financial statement analysis and financial models. It provides an overview of key topics including the objectives and importance of financial statement analysis, the main financial statements (income statement, balance sheet, statement of cash flows), and methods used for analysis such as ratio analysis and common-size statements. The document also outlines the purpose of financial statement analysis for both internal and external users and how it can be used to evaluate a company's performance, financial condition, risk, and future prospects.
This document provides an overview of accounting concepts including:
- Owner-managers run owner-managed businesses while creditors lend money and investors buy ownership in the form of stock.
- Financial accounting collects and processes financial information to produce reports for internal and external decision-makers.
- The main financial statements are the income statement, balance sheet, statement of retained earnings, and statement of cash flows.
- The income statement reports revenues and expenses to determine net income/loss over an accounting period using accrual accounting.
- The balance sheet lists assets, liabilities, and equity on a given date based on the accounting equation Assets = Liabilities + Equity.
The document discusses financial statement analysis and financial models. It provides an overview of key topics including:
- The objectives and importance of analyzing financial statements for both internal and external users.
- The main components of financial statements - the income statement, balance sheet, and statement of cash flows - and how each provides key information.
- Common methods for analyzing financial statements, including horizontal analysis, vertical analysis, common-size statements, trend percentages, and ratio analysis.
- Standardizing financial statements through the use of percentages in common-size statements to enable comparisons between companies.
- The role of ratio analysis in comparing relationships between financial metrics while avoiding issues from comparing companies of different sizes.
This document discusses financial statements and their analysis. It defines key financial statements like the income statement, balance sheet, statement of retained earnings, and statement of cash flows. It also describes different types of financial statement analysis, including horizontal analysis, vertical analysis, common size statements, ratio analysis, trend analysis, and fund and cash flow analysis. The purpose of financial statement analysis is to evaluate a company's performance and financial position over time and in comparison to other companies.
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Budgeting is a process of expressing quantified resource requirements (amount of capital, amount of material, number of people) into time-phased goals and milestones.
Check out more @ www.eleaderstochange.com
Follow: #eleaders2change
Similar a Financial management for Business CoursesPPT.ppt (20)
ADVICE TO ALL EMPLOYEES
1. Build a home earlier. Be it rural home or urban home. Building a house at 50 is not an achievement. Don't get used to government houses. This comfort is so dangerous. Let all your family have good time in your house.
2. Go home. Don't stick at work all the year. You are not the pillar of your department. If you drop dead today, you will be replaced immediately and operations will continue. Make your family a priority.
3. Don't chase promotions. Master your skills and be excellent at what you do. If they want to promote you, that's fine if they don't, stay positive to your personal.
development.
4. Avoid office or work gossip. Avoid things that tarnish your name or reputation. Don't join the bandwagon that backbites your bosses and colleagues. Stay away from negative gatherings that have only people as their agenda.
5. Don't ever compete with your bosses. You will burn your fingers. Don't compete with your colleagues, you will fry your brain.
6. Ensure you have a side business. Your salary will not sustain your needs in the long run.
7. Save some money. Let it be deducted automatically from your payslip.
8. Borrow a loan to invest in a business or to change a situation not to buy luxury. Buy luxury from your profit.
9. Keep your life,marriage and family private. Let them stay away from your work. This is very important.
10. Be loyal to yourself and believe in your work. Hanging around your boss will alienate you from your colleagues and your boss may finally dump you when he leaves.
11. Retire early. The best way to plan for your exit was when you received the employment letter. The other best time is today. By 40 to 50 be out.
12. Join work welfare and be an active member always. It will help you a lot when any eventuality occurs.
13.Take leave days utilize them by developing yr future home or projects..usually what you do during yr leave days is a reflection of how you'll live after retirement..If it means you spend it all holding a remote control watching series on Zee world, expect nothing different after retirement.
14. Start a project whilst still serving or working. Let your project run whilst at work and if it doesn't do well, start another one till it's running viably. When your project is viably running then retire to manage your business. Most people or pensioners fail in life because they retire to start a project instead of retiring to run a project.
15. Pension money is not for starting a project or buy a stand or build a house but it's money for your upkeep or to maintain yourself in good health. Pension money is not for paying school fees or marrying a young wife but to look after yourself.
16. Always remember, when you retire never be a case study for living a miserable life after retirement but be a role model for colleagues to think of retiring too.
17. Don't retire just because you are finished or you are now a burden to the company and just wait for your day t
Entrepreneurship Short Note.pptx for Business Studentsetebarkhmichale
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
6. Self Confidence
Confidence is, I'll be fine if they don't like me.
GOD BLESS YOU🙏❤️
EYA Oliver Uchenna®️
Success demands these 6 things..
(The Secret Formula)
1. Hard Work
Don't believe in luck, believe in hard work.
Stop trying to rush the process or searching for a shortcut.
There is none.
2. Patience
If you are losing the patience, you are losing the battle.
First nothing happens, then it happens slowly and suddenly all at once.
Most people give up at stage one.
3. Sacrifice
If you don't sacrifice for what you want, then what you want becomes the sacrifice.
Everything has its price. The question is: Are you ready to pay it for the life you desire?
4. Consistency
Consistency is what transforms average into excellence.
Without consistency, you will never achieve greater success.
5. Discipline
Motivation gets you going, but discipline keeps you growing.
There will be days when you don't “feel” like doing it.
You have to push through those days regardless of how you feel.
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Digital Lendings Relationship Officer
Expired 5 months ago!
Related Jobs
Banking and Insurance Jobs Senior Level Jobs Dashen Bank S.C Jobs
Job Description:
Digital Lendings Relationship Officer
Place of work- Addis Ababa
DB/ Vacancy-0077/23
Job Summary
Digital Lendingss Relationship Officer is Responsible for assisting Digital Lenging Relationship Manager in the process of relationship and partnership creation and management, and product & digital lending business development and enhancement to deliver best quality service to customers with the expectation of increasing profitability and/or reducing operational expense and risks of different nature, ensure health-check of the different digital value propositions, compliance to regulatory directions, take proactive measures to identify early warning signals to keep management informed.
Job Requirements:
Academic & Professional Qualification
Economics, and/or related fields is an added advantage.
Bachelor Degree in Accounting, Economics, Business Administration, Management, Marketing Managerment, and/or related fields.
Master’s in Accounting, Economics, Business Administration, Management, Marketing Management, and/or related fields is an added advantage.
Experience
Minimum of 4 (four) years relevant work experience on similar roles.
Behavioral & Leadership Competency
Leadership and people management including performance management, coaching & mentoring.
Demonstrated business acumen - able to create strategy and actions that impact business success.
High-level interpersonal and cross-cultural skills, including ability to build consensus, alliances and collaborative relationships with sensitivity to diversity/inclusion.
Creativity and innovation skills, with ability to use technology and other modern tools to drive decision making and implementation.
Strategic thinking and decision making- ability to consider emerging trends/developments and long-term opportunities for Dashen Bank.
Professionalism and integrity in line with Dashen Bank values.
High-level oral and written communication skills.
Critical and analytical thinking and problem solving skills
Personal motivation and drive exhibited through commitment to hard work, continuous improvement and achievement of goals.
Good customer relationship management skills (internal and external customers)
Risk awareness and focus- demonstrates understanding of risk management practices, standards and regulatory requirements
Effective stakeholder management.
Required Technical Competency
Experience working cross-functionally to develop new ideas and
Register
Navigation
Jobs
Latest Jobs
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Register
Courses
Advice
Employers
Copyright 2023. All Rights Reserved.
Get In Touch
Snap Plaza 8th floor, Bole Next to The Millennium hall. Addis Ababa, Ethiopia
info@ethiojobs.net
+251-116-67-33-24
+251-924-91-08-47
Get Social
Facebook
Twitter
LinkedIn
YouTube
Telegram
Links
About Us
Contact Us
FAQs
Copyright 2023. All Rights Reserved.
Digital Lendings Relationship Officer
Expired 5 months ago!
Related Jobs
Banking and Insurance Jobs Senior Level Jobs Dashen Bank S.C Jobs
Job Description:
Digital Lendings Relationship Officer
Place of work- Addis Ababa
DB/ Vacancy-0077/23
Job Summary
Digital Lendingss Relationship Officer is Responsible for assisting Digital Lenging Relationship Manager in the process of relationship and partnership creation and management, and product & digital lending business development and enhancement to deliver best quality service to customers with the expectation of increasing profitability and/or reducing operational expense and risks of different nature, ensure health-check of the different digital value propositions, compliance to regulatory directions, take proactive measures to identify early warning signals to keep management informed.
Job Requirements:
Academic & Professional Qualification
Economics, and/or related fields is an added advantage.
Bachelor Degree in Accounting, Economics, Business Administration, Management, Marketing Managerment, and/or related fields.
Master’s in Accounting, Economics, Business Administration, Management, Marketing Management, and/or related fields is an added advantage.
Experience
Minimum of 4 (four) years relevant work experience on similar roles.
Behavioral & Leadership Competency
Leadership and people management including performance management, coaching & mentoring.
Demonstrated business acumen - able to create strategy and actions that impact business success.
High-level interpersonal and cross-cultural skills, including ability to build consensus, alliances and collaborative relationships with sensitivity to diversity/inclusion.
Creativity and innovation skills, with ability to use technology and other modern tools to drive decision making and implementation.
Strategic thinking and decision making- ability to consider emerging trends/developments and long-term opportunities for Dashen Bank.
Professionalism and integrity in line with Dashen Bank values.
High-level oral and written communication skills.
Critical and analytical thinking and problem solving skills
Personal motivation and drive exhibited through commitment to hard work, continuous improvement and achievement of goals.
Good customer relationship management skills (internal and external customers)
Risk awareness and focus- demonstrates understanding of risk management practices, standards and regulatory requirements
Effective stakeholder management.
Required Technical Competency
Experience working cross-functionally to develop new ideas and
English Email Writing byme- at work place ppt pptxetebarkhmichale
Understanding the Structure of a Successful Digital Credit Provider in Kenya.
Kenya's financial services sector is embracing FinTech, with digital credit providers like Tala, Zenka Digital, and Ksmart leveraging AI, machine learning, robotic process automation, data analytics, and blockchain. A fintech in the lending space may cater to various kinds of product offerings, which can be broadly categorized as follows:
1. Consumer loans
2. Personal loans
3. Business or MSME (Micro, Small, and Medium Enterprise) loans
1. What are the critical back-end tech solutions/integrations needed?
1. Customer acquisition
2. Application, website, and/or app
3. Verification APIs
4. Credit underwriting/ Scorecards/Fraud detection
5. Credit Bureau Integration
6. Automatic analysis of qualitative factors
7. Disbursement/Repayment
8. Collection/Recovery
9. Loan Management System (LMS)/Accounting
10. Legal
Let's delve deeper into each of the above for a deeper understanding.
1.1. Customer acquisition
Drawing in customers is a top priority for any fintech. There are various methods or sources through which a DCP acquires its customers. The customer acquisition process may differ for each lending institution depending on their product, the area in which they operate, the customer profile, etc. To attract potential borrowers, leverage digital marketing strategies, social media, and partnerships with relevant platforms. Focus on providing a seamless user experience to make your platform stand out from existing or traditional lenders.
1.2. Application, website, app or USSD
Develop a user-friendly and intuitive digital platform for borrowers to apply for loans easily. Mobile apps have become increasingly popular in Fintech, allowing users to access services conveniently. Consider application login through Gmail, social media, and so on to enable the user to seamlessly log in to the mobile application for the website without creating any new login credentials. At the same time, this also provides the Fintech with the profile of the loan applicant. Do you need customers to upload documents for KYC/AML verification? Ensure your platform allows uploading these documents and has back-end integration to verify the documents' authenticity. Consider using the different available Optical Recognition Technologies (OCR), which should be able to read the data from the documents provided and create the text. For verification and authentication of the information in the documents, the Fintech can develop its software and subscribe to various services or do an API integration with a service provider who can provide such services. The main goal is to give users a comfortable journey, so they must manually type minimum information.
1.3. Verifying APIs
Integrated person’s registry system (IPRS) is Kenya'sKenya's reputed organization providing APIs for KYC, Identity, etc., suitable for all lending businesses. The IPRS system aims to consolidate population information into a
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow the reasons. Successful people don't sit around and say "I'll try," they say yes and act on it.
Chapter - 1
The Law of Attraction
The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because th
Power of Personal Appearance
Image management is the ongoing process of evaluating and controlling the impact of your appearance and the resulting response on you and others.
The concept of image management applies to anyone who has ever needed to improve self-image, self-esteem, self-confidence, capability and credibility. It applies to anyone who has ever wanted to get an idea across to someone else, to influence opinion or action is it in the home, school, church, community or business setting. It is creating an authentic, appropriate, attractive, and affordable image. Intelligence, knowledge, ability, initiative, and effort are vital to success of any kind, but regardless of whom you are, how old, and what your role or goal, ongoing image management can give you the personal/professional presence you need.
As an individual living and working in a highly complex and competitive society, you must recognize and understand the impact of your appearance as it communicates first to you and then to others. What you wear and the way you look affects:
1. The Way You Think
You can’t afford to think negatively about yourself due to some aspect of your appearance. When you appear authentic, attractive, and appropriate, you think more positively about yourself, your situation, and others.
2. The Way You Feel
You can’t afford to feel depressed, unproductive, uncomfortable, antagonistic, argumentative, self-conscious, inferior, or full of self-doubt. A positive personal appearance is a fast, effective way to boost self-confidence and overcome anxiety regarding ability or acceptance. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you feel more comfortable, confident, capable, cooperative and productive.
3. The Way You Act or Behave
You can’t afford to act awkward, insecure, submissive, out-of-place, or out-of-order. Nor can you afford to act defensive, arrogant, aggressive, affected, superior, or conceited. A positive personal appearance is one of the most effective ways to improve behavior and enhance performance level or productivity. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you act more secure, at ease, mannerly, competent, and naturally able to do your best.
4. The Way Others React and Respond to You
Your appearance is the one personal characteristic that is immediately obvious and accessible to others. You can’t hide it. Your appearance makes a strong statement about your personality, values, attitudes, interests, knowledge, abilities, roles, and goals. You can’t afford to be seen as disrespectful, antagonistic, affected, scatterbrained, irresponsible, ineffective, or unproductive. You can’t afford to create a negative impression or to build barriers between you and others because of unattractive, inappropriate, distracting, or offensive appearance.
When you appear attractively dressed and groomed, personally authentic, and ap
Email Writting Guideline Follow step by step PPT.pptxetebarkhmichale
Digital credit process and the steps to obtain an instant loan
𝙰𝚕𝚎𝚖𝚊𝚢𝚎𝚑𝚞 𝚂𝚒𝚖𝚎𝚗𝚎𝚑
𝙰𝚕𝚎𝚖𝚊𝚢𝚎𝚑𝚞 𝚂𝚒𝚖𝚎𝚗𝚎𝚑
𝙰𝚕𝚎𝚖𝚊𝚢𝚎𝚑𝚞 𝚂𝚒𝚖𝚎𝚗𝚎𝚑
Digital Marketing Manager @ Bank of Abyssinia | Marketing Management MA
Published Jul 9, 2023
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Digital Lending has made it possible for many people to access the funds they need quickly and securely, without having to worry about paperwork or trips to physical banks and collateral. With competitive rates, flexible repayment plans, and fast disbursement of funds – digital lending is changing the way we view financing.
Digital lending is the process of obtaining a loan online through digital channels such as mobile apps and websites. And, this process has been gaining popularity in recent years in our country due to its convenience and ease of use. There are noteworthy examples of this. One is Michu, a platform by the Cooperative Bank of Oromia that offers credit based on a borrower's score. It specifically provided for micro, small, and medium enterprises (MSMEs). Another is Telebirr's different types of microloan services offered in collaboration with Dashen Bank. This service allows users to obtain small loans without needing collateral, using their credit score as a basis. Additionally, the Bank of Abyssinia's different Apollo instant digital loans, which is set to launch this month.
The digital credit process typically consists of the following major activities. And, the borrower will need to research and compare the existing digital lending platforms to find one that suits his needs. He should consider factors such as service charges, interest rates, loan terms, eligibility criteria, and customer reviews.
Create an account: Once the borrower has selected a provider, he will need to create an account on their platform. This typically involves providing basic personal information (name, address, phone number, email) and setting up a username and password.
Loan Application: Once he has chosen a lender, the borrower will need to fill out an online application form. This typically involves providing personal information (like name and address), financial information (such as income, employment status, and outstanding debts), and the purpose of the loan.
Document Submission: After filling out the application, the borrower will usually need to submit supporting documents. These might include proof of identity, proof of income (like pay stubs or tax returns), and bank statements. Thanks to digital technology, these documents can often be uploaded directly to the platform.
Consent to a credit check: Most digital credit providers will perform a credit check as part of the application process. By agreeing to a credit check, the borrower needs to give the provider permission to access his credit history and score, which will be used to assess his creditworthiness.
Review the loan terms: If the application is approved, the provider will present the borrower with a loan offer,
Digital Lending Platform: The only guide you’ll ever need(https://moba.finance/what-is-digital-lending-platform/)
New changes in rates, regulations, competitions, and new technologies all the more increase this pressure of digital lending. Banks need a new lending technology to rapidly adapt to market shifts and stay ahead of competitors.
Fortunately, a Digital Lending Platform can help banks address all those challenges.
What is Digital Lending Platform
A Digital Lending Platform automates the journey from application to disbursement for any lending product—be it mortgages, consumer loans, or deposit accounts.
With Digital Lending Platforms, banks can acquire and assess customers faster while enhancing back-office processes and reducing costs. It helps banks solve these challenges by delivering an all-in-one place to manage individual customers’ lending journey—from application, underwriting, to disbursement and collection.
In today’s everything-digital world, customers are so used to the seamless and intuitive shopping experience from Momo, Shopee, and Grab. They expect the same thing from lending. Customers demand the ability to apply for loans and are disbursed online via digital platforms, without having to visit the physical branch.
Below are some of the capabilities of a Digital Lending Platform:
Seamless customer experiences from application to collection
With the Digital Lending Platform, your potential lenders can use any device—be it the mobile phone, tablet, or desktop—to apply for loans and complete the follow-up tasks to receive the disbursement. The platform supports everything involved in the lending workflow, which involves connecting to their bank account, uploading documents, completing the eKYC process, providing e-signature, … All that is customizable to meet banks’ unique requirements.
Role-based tools for loan officers
A Digital Lending Platform provides each officer with a digital workspace to support lenders. The workspace typically includes interfaces for managing applications, communicating with customers online to complete follow-ups, providing settlement and closing services, and engaging with referral partners.
Automated verification and accuracy checks
By directly connecting to financial data sources, the digital lending platform helps banks eliminate the use of paper. It makes approvals faster and reduces fraud risk by integrating a wide range of eKYC solutions to verify customers’ identity, assets, employment, and income.
Data-driven workflows and automated decisioning
The Digital Lending Platform applies workflows that loan officers can customize themselves without having to write codes. The result is that manual, paper-based processes are reduced significantly. Also, it can automate requests for information, which provides underwriters with accurate and up-to-date loan files to finalize credit decisioning. In addition, the platform can automatically apply bank’s credit policies to unlock more efficiency
Supply Chain Financing to MSMEs businesses PPT.pptetebarkhmichale
Bank
Management
In Africa, women entrepreneurs play a growing role in diversifying production and services. However, they are facing the problem of financial shortage; a recent report by the African Development Bank showed that there is an estimated $42 billion financing gap for female entrepreneurs in Africa. The study demonstrated that women are facing more difficult conditions than men entrepreneurs such as limited access to key resources (including land and credit), the legal and regulatory framework, and the socio-cultural environment. The economy's full potential cannot be realized if half of its population cannot fully contribute, and women have faced many hurdles in the entrepreneurship journey, prompting responsible bodies to devise affirmative solutions.
Ethiopia's female population is 49.8%, but small businesses owned by women only make up 16.5% of the total number of entrepreneurs. Limited access to finance, business networks, development services, and business management skills hinders women entrepreneurs. The government is promoting women entrepreneurs through initiatives like training and financial support. The Commercial Bank of Ethiopia (CBE) is introducing a customer-centric business model to cater to its customers' needs and values. The bank aims to increase the outreach of financial products and services to a larger population, particularly women who own business enterprises. The bank has established a micro business department to adjust itself with the micro business loan demanding customers. These factors can be considered as business drivers and factors enforcing CBE to come up with a gender-specific solution.
The micro business banking department conducted a feasibility study on financing women-owned Micro, Small and Medium Enterprises (MSMEs), and has proposed a collateral-free loan product to bridge the financial gap. In the feasibility study it has been also demonstrated that financing women owned MSMEs could promote financial inclusion and economic empowerment, boosting growth and forming the backbone of vibrant economies.
Therefore, this proposal aims to provide a method how CBE should finance for selected formal women-owned MSMEs in Ethiopia to alleviate their financing gap. It is being proposed that, the CBE shall start the product by making a pilot test for women-owned microbusinesses from Addis Ababa City Administration, with local stakeholders providing data, support, and training for three years. The bank could be benefited from implementing this proposal to attract and retain micro customers, penetrate the micro credit-market, and to adjust itself with the micro customers’ demand.
2. Objectives of the proposal
2.1. General Objectives
This proposal aims to provide customized microloans for women MSMEs to ensure equitable resource allocation and profitability for the bank.
2.2. Specific Objectives
• To play a major role in supporting and promoting women-owned MSMEs through availing useful and affordable loan
1.1. Nature and Definition of Auditing
Different scholars have defined auditing in different ways. For example, Auditing is a process of collection and evaluation of evidence for the purpose of reporting on economic transaction. The other definition of auditing given by the Institute of Chartered Accountants of India, in its publication titled, General Guidelines on Internal Auditing has defined auditing as ‘ a systematic and independent evaluation of data, statements, records, operations and performances ( financial or otherwise) of an enterprise for stated purpose. In any auditing situation, the auditor perceives and recognizes the propositions before him for examination, collects evidence, evaluates the same and on this basis formulates his/her judgment which is communicated through audit report.
As it is cited in Kanal Gupta and Arora A.(1996,p6), Arens and Loebbecke defined auditing as the process by which a complete, independent person accumulates and evaluates evidence about quantifiable information related to specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria. To sum up, Auditing is the process of verifying the assertions produced by accounting, as to whether they present a true and fair view of the entity's financial position in accordance with accounting standards and GAAP. In other words, auditing seeks to verify whether or not financial records have been properly prepared.
Study Note
The term audit is derived from the Latin term ‘audire,’ which means to hear. In early days an auditor used to listen to the accounts read over by an accountant in order to check them Auditing is as old as accounting.
It was in use in all ancient countries such as Mesopotamia, Greece, Egypt. Rome, U.K. and India. The Vedas contain reference to accounts and auditing.
The original objective of auditing was to detect and prevent errors and frauds and most recently objective of audit shifted to ascertain whether the accounts were true and fair rather than detection of errors and frauds.
Auditing evolved and grew rapidly after the industrial revolution in the 18th century with the growth of the joint stock companies the ownership and management became separate.
The shareholders who were the owners needed a report from an independent expert on the accounts of the company managed by the board of directors who were the employees.
1.2. Historical Development of Auditing
The development of auditing is closely linked to the development of accounting. In the early stage of civilization, the number of transaction was usually so small that able to record the transactions himself. However, with the growth of civilization and consequential growth in volume and complexity of transactions, it becomes necessary to entrust the job of recording the transactions to other persons. The trend started with maintenance of accounts to empires by public officials
Today’s complex global challenges require partnerships across sectors and societies to achieve equitable and sustainable results for stakeholders and realize strategic objectives stipulated. The United Nations General Assembly defines partnerships as voluntary and collaborative relationship between various parties, both public and non-public, in which all participants agree to work together to achieve a common purpose or undertake a specific task and, as mutually agreed, to share risks, responsibilities, resources and benefits.
Alexander et al. (2001) also defines partnership as strategically formed relationship between organizations that involve varying degrees of resource sharing, joint decision making, and collaborative work to address common interests, and achieve shared goals. While there are many theoretically recognized benefits and advantages to partnerships, the answer to why one seeks to establish partnership is relatively simple. The presumption is that, there is added value in working with other organizations .
Strategically, the Commercial Bank of Ethiopia (CBE) has adopted partnering with developmental organs (Regional Organs) and collaboration institutions strategic response in crafting both local and foreign currency resource mobilization strategies.
A strategic partnering for CBE is nothing but it is a form of an agreement with government/public organs/Institutions under the theme of mutual growth and success. In other words, it is forming a strong relationship with organizations like governmental organs that have shared interest, vision, goal & objectives (development) in order to reach a new market and excel competitors/rivals by providing excellent banking services.
On the other hand, collaboration for CBE shall mean work with another organ in order to achieve or do something that sounds disarmingly simple and coordinating the efforts of employees and resource deployed in providing services and selling of products. Since then, it is struggling to implement these strategic responses accordingly at all level of the bank in the course of resource mobilization tasks.
According to the revised Deposit Mobilization Strategy for 2015/16-2019/20 outlines various strategic responses for deposit mobilization. Strengthening Collaboration with Development Partners is one of them. The document begins by stating the invaluable importance of strategic partners in the success of CBE over the past strategic periods and without the active support of partners, CBE’s deposit mobilization effort would have been very difficult, if not impossible.
But the strategy document stresses that it is not sufficient to sustain their support for long unless the CBE understands their interest or demand and support their area of concern as much as possible.
In 2017, CBE undertook an assessment on the possible areas of engagement with Developmental Partners (DPs) . In this assessment, it is observed that there has been limited understanding about the concep
Concept of Customer Relationship Management (CRM) fINAL PPT.pptetebarkhmichale
• Type and location of collateral;
• Evidence of collateral (title deed No., booklet No, etc);
• The security/collateral coverage (the security-to-loan ratio) is as per the Bank’s requirement;
• The comment of the Bank engineers’ on the property estimation format;
• The completeness of the collateral documentation;
• The strength of the collateral depends on the stability of its realizable value and convertibility to cash as and when desired; and
• Other collateral risks, if any.
5. Management/Owner of the business:
• The number and breakdown of the employees of the business and their educational qualification;
• Comment on the experience and skills of the owner/management of the business;
• Assess the character, competence and capacity of the owner/management of the business;
• The integrity of the borrower;
• The borrower’s past track record;
• The borrower’s response to the Bank’s information requirements;
• The willingness of the borrower to allow the Bank’s authorized personnel to have access to the books of records as well as to the business and the collateral; and
• Management/ownership risk, if any.
6. Key Customers and Suppliers of the Business:
Identify the main customers and suppliers of the business and comment on the terms of the trade for sales and purchases.
7. Credit Exposure
All existing lending exposure, types, terms, repayments and status of the loans within the Bank and other banks clearly indicated.
8. Borrower’s Loan Account Performance
This assessment shall be conducted when the borrower is or was a customer of the CBE. The Lending Officer should clearly indicate the utilization of the credit facilities and/or loan repayments of the applicant. (Attach the range of account/Overdraft utilization worksheet).
9. Condition of Fixed Assets
Analyze the age and condition of the fixed assets (buildings, machinery, equipment, etc.) owned by the business;
Identify any plans for asset replacement, or expansion in the next years.
10. Financial Statement Analysis
The Lending Officers must assess the repayment capacity of a business to meet its loan and identify the source of repayment. The Lending Officer must also have done a ratio analysis in order to assess the customer ability to repay his/her/its debt.
The Lending Officer must analyze and interpret the cash-flow and the financial ratios from the historical financial accounts of the business. If the Lending Officer has a computer, he/she must have prepare the CBE Financial Analysis Spreadsheet and attached therewith.
Ratios are the main tools of financial analysis. There are an endless number of ratios that could be established between the figures in a set of financial statements. Nonetheless, the Lending Officer must calculate at least the following ratios that will give useful information to the Bank. The Lending Officer must also compare each ratio from the previous periods. The reason for any major changes from one period to another must be ascertained t
Starting A Foundation Guidance for Advisors.pptetebarkhmichale
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose of long-term financing and long-term capital requirement. The Capital mark
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose of long-term financing and long-term capital requirement. The Capital mark
Money Market and Capital Market: Difference
Both the money market and the capital market are the two different types of the financial markets where in the money market is used for the purpose of short term borrowing and lending whereas the capital market is used for the long term assets i.e., the assets which have the maturity of more than one year.
Money markets are unorganized markets where banks, financial institutions, money dealers and brokers trade in financial instruments for a short period of time. They trade in short-term debt instruments like trade credit, commercial paper, certificate of deposit, T bills, etc. which are highly liquid and can be redeemed in the period less than 1 year . It helps the business and industries with working capital requirements.
The capital market is a type of financial market where financial products like stocks, bonds, debentures are traded for a long duration of time. They serve the purpose
General Principles of Lending:
When a request for a loan is received, it is important to ensure that the borrower has the legal capacity to borrow. The other matters upon which the information should be obtained are: the purpose of advance, the amount involved, the duration of the advance, the sources of repayment, the profitability of transaction, and, where applicable, the security offered. The most fundamental principle of all is that the bank should have confidence in the integrity, competence and continuing credit worthiness of the borrower.
• Know Your Customer:
While entertaining a proposal for advance, the branch has to first ensure compliance with the KYC norms.
• Pre- Sanction Stage:
Obtain/compile the following:
• Bio-data/declaration of assets owned by the borrower and guarantor along with latest income tax/wealth tax assessment copies and compilation of opinion reports.
• Particulars of immediate family members/legal heirs along with their father’s name and age.
• Audited balance sheets for the previous 3 years, estimated balance sheet for the current year and projected balance sheet for the next year.
• Particulars of existing borrowing arrangements and credit reports/no objection letters from existing banks if any.
• It should be followed by independent verification by the branch incumbent.
• Details of associate/group concerns, their borrowing arrangements and their latest balance sheets.
• No objection letter from term loan lender(s) if already financed by them and their permission/willingness to cede pari passu/ second charge on their security.
• The position of term working capital liabilities with various banks/FIs and details thereof viz., Limit, DP, Out standings, Irregularities (if any).
• Conduct a search/obtain a search report from Registrar of Companies to ascertain position of charges created already.
•
• Due Diligence:
• Branch Manager should do adequate Due Diligence before bringing an asset to the Bank’s books. This will avoid NPA.
• Thorough inquiry about the prospective borrower (with other banks, Financial Institutions, etc.) market intelligence, his past track record of performance and repayment of obligations, credit worthiness (Net Worth) must be done.
• Personal visit to his office/place of business will give an idea of his business.
• Processing of Applications:
While processing the applications, the following should be looked into and commented upon in the proposal:
• Due diligence on promoters’ background, their track record of repayment by checking with their existing bankers (NPA status) (any rephasements, any compromise entered into), credit worthiness, market reputation etc.
• Latest RBI defaulters’ list and willful defaulters' list —Company and their Directors.
• Bank’s loan policy.
• Contractual capacity of the borrower regarding borrowing powers/any restrictions on borrowings and names of persons authorized to borrow by verifications of:
• Partnership deed
Power of Personal Appearance
Image management is the ongoing process of evaluating and controlling the impact of your appearance and the resulting response on you and others.
The concept of image management applies to anyone who has ever needed to improve self-image, self-esteem, self-confidence, capability and credibility. It applies to anyone who has ever wanted to get an idea across to someone else, to influence opinion or action is it in the home, school, church, community or business setting. It is creating an authentic, appropriate, attractive, and affordable image. Intelligence, knowledge, ability, initiative, and effort are vital to success of any kind, but regardless of whom you are, how old, and what your role or goal, ongoing image management can give you the personal/professional presence you need.
As an individual living and working in a highly complex and competitive society, you must recognize and understand the impact of your appearance as it communicates first to you and then to others. What you wear and the way you look affects:
1. The Way You Think
You can’t afford to think negatively about yourself due to some aspect of your appearance. When you appear authentic, attractive, and appropriate, you think more positively about yourself, your situation, and others.
2. The Way You Feel
You can’t afford to feel depressed, unproductive, uncomfortable, antagonistic, argumentative, self-conscious, inferior, or full of self-doubt. A positive personal appearance is a fast, effective way to boost self-confidence and overcome anxiety regarding ability or acceptance. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you feel more comfortable, confident, capable, cooperative and productive.
3. The Way You Act or Behave
You can’t afford to act awkward, insecure, submissive, out-of-place, or out-of-order. Nor can you afford to act defensive, arrogant, aggressive, affected, superior, or conceited. A positive personal appearance is one of the most effective ways to improve behavior and enhance performance level or productivity. When you appear attractively dressed and groomed, personally authentic, and appropriate for the occasion, you act more secure, at ease, mannerly, competent, and naturally able to do your best.
4. The Way Others React and Respond to You
Your appearance is the one personal characteristic that is immediately obvious and accessible to others. You can’t hide it. Your appearance makes a strong statement about your personality, values, attitudes, interests, knowledge, abilities, roles, and goals. You can’t afford to be seen as disrespectful, antagonistic, affected, scatterbrained, irresponsible, ineffective, or unproductive. You can’t afford to create a negative impression or to build barriers between you and others because of unattractive, inappropriate, distracting, or offensive appearance.
When you appear attractively dressed and groomed, personally authentic, and ap
Economy of money, banking, and finance EuroMAC_Ch11.pptxetebarkhmichale
The 5 C's of leadership are:
1. Communication: Effective leaders are skilled communicators who can convey their ideas clearly, listen actively, and foster open dialogue among team members.
2. Confidence: Strong leaders have confidence in themselves, their abilities, and their decisions. They inspire trust and instill confidence in others through their demeanor and actions.
3. Commitment: Leaders demonstrate commitment to their goals, vision, and values. They are dedicated to the success of their team or organization and are willing to put in the necessary effort and resources to achieve it.
4. Creativity: Successful leaders are innovative and adaptable, able to think outside the box and find creative solutions to challenges. They encourage creativity and embrace new ideas and perspectives.
5. Character: Leaders with strong character possess integrity, honesty, and ethical behavior. They lead by example, earning respect and trust from their followers through their actions and moral principles.The 5 C's of leadership are:
1. Communication: Effective leaders are skilled communicators who can convey their ideas clearly, listen actively, and foster open dialogue among team members.
2. Confidence: Strong leaders have confidence in themselves, their abilities, and their decisions. They inspire trust and instill confidence in others through their demeanor and actions.
3. Commitment: Leaders demonstrate commitment to their goals, vision, and values. They are dedicated to the success of their team or organization and are willing to put in the necessary effort and resources to achieve it.
4. Creativity: Successful leaders are innovative and adaptable, able to think outside the box and find creative solutions to challenges. They encourage creativity and embrace new ideas and perspectives.
5. Character: Leaders with strong character possess integrity, honesty, and ethical behavior. They lead by example, earning respect and trust from their followers through their actions and moral principles.
CRM 101: What is CRM?
This is a simple definition of CRM.
Customer relationship management (CRM) is a technology for managing all your company’s relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business. A CRM system helps companies stay connected to customers, streamline processes, and improve profitability.
When people talk about CRM, they are usually referring to a CRM system, a tool that helps with contact management, sales management, agent productivity, and more. CRM tools can now be used to manage customer relationships across the entire customer lifecycle, spanning marketing, sales, digital commerce, and customer service interactions.
A CRM solution helps you focus on your organization’s relationships with individual people — including customers, service users, colleagues, or suppliers — throughout your lifecycle with them, including finding new customers, winning their business, and providing support and additional services throughout the relationship.
Who is CRM for?
A CRM system gives everyone — from sales, customer service, business development, recruiting, marketing, or any other line of business — a better way to manage the external interactions and relationships that drive success. A CRM tool lets you store customer and prospect contact information, identify sales opportunities, record service issues, and manage marketing campaigns, all in one central location — and make information about every customer interaction available to anyone at your company who might need it.
With visibility and easy access to data, it's easier to collaborate and increase productivity. Everyone in your company can see how customers have been communicated with, what they’ve bought, when they last purchased, what they paid, and so much more. CRM can help companies of all sizes drive business growth, and it can be especially beneficial to a small business, where teams often need to find ways to do more with less.
Here’s why CRM matters to your business.
CRM is the largest and fastest-growing enterprise application software category, and worldwide spending on CRM is expected to reach USD $114.4 billion by the year 2027. If your business is going to last, you need a strategy for the future that’s centered around your customers, and enabled by the right technology. You have targets for sales, business objectives, and profitability. But getting up-to-date, reliable information on your progress can be tricky. How do you translate the many streams of data coming in from sales, customer service, marketing, and social media monitoring into useful business information?
A CRM system can give you a clear overview of your customers. You can see everything in one place — a simple, customizable dashboard that can tell you a customer’s previous history with you, the status of their orders, any outstanding customer service issues, and more. You can even choose to include information
According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.08% during the forecast period, reaching USD 12290.99 million by 2028.According to the World Supply Chain Finance Report, the global Supply Chain Finance market size was valued at USD 7298.46 million in 2022 and is expected to expand at a CAGR (Compound Annual Growth Rate) of 9.0
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
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Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
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Top mailing list providers in the USA.pptxJeremyPeirce1
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Training my puppy and implementation in this story
Financial management for Business CoursesPPT.ppt
1. 1 - 1
Financial Management
The maintenance and creation of
economic value or wealth.
2. 1 - 2
Financial Management
It measures and reports financial and
nonfinancial information that helps
managers make decisions to fulfill the
goals of an organization.
3. 1 - 3
Goal of the Firm
1) Profit Maximization?
This Goal Ignores:
a) Timing of Returns
b) Uncertainty of Returns
4. 1 - 4
Goal of the Firm
2) Shareholder Wealth
Maximization?
this is the same as:
a) Maximizing Firm Value
b) Maximizing Stock Price
5. 1 - 5
OBJECTIVES OF FINANCIAL
MANAGEMENT
Relevant To Making Decisions
Types Of Decisions
• Operating
• Investing
• Financing
6. 1 - 6
Management Accounting
Management accounting measures and reports financial
and non-financial information that helps managers make
decisions to fulfill the goals of an organization
Managers use management accounting information to
• choose, communicate and implement strategy
• coordinate product design, production and marketing
decisions
Management accounting focuses on internal reporting
Management accounting is future oriented
7. 1 - 7
Functions of Management
Accounting
Management accountants perform three
functions
Attention-directing--make visible
opportunities and problems on which
managers need to focus
Problem-solving--conduct comparative
analysis to identify the best alternatives in
relation to the organization’s goals
Page 11
Scorekeeping--accumulate data and report
reliable results to all levels of management
8. 1 - 8
Key Themes in Management
Decision Making
Key Success
Factors
1.Cost and
2.Efficiency
3.Quality
4.Time
5.Innovation
Continuous
Improvement
And
Benchmarking
Value-Chain
and
Supply-Chain
Analysis
Customer
Focus
9. 1 - 9
Financial and Management
Accounting
The primary questions about an organization’s
success that decision makers want to know are:
What is the financial picture of the organization
on a given day?
How well did the organization do during a given
period?
10. 1 - 10
Financial and Management
Accounting
Accountants answer these primary questions with
three major financial statements.
• Balance sheet – shows financial picture on a given
day
• Income statement – shows performance over a given
period
• Statement of cash flows – shows performance over a
given period
11. 1 - 11
Financial and Management
Accounting
Annual report - a document prepared by
management and distributed to current and
potential investors to inform them about the
company’s past performance and future
prospects
• The annual report is one of the most common
sources of financial information used by investors
and managers.
12. 1 - 12
Financial and Management
Accounting
1. The major distinction between financial and
management accounting is the users of the
information.
• Financial accounting serves external users,
such as investors, creditors, and suppliers.
• Management accounting serves internal
users, such as top executives,
management, and administrators
within organizations.
13. 1 - 13
Management Accounting and
Financial Accounting
Help managers plan and
control business operations
Help investors, creditors, and others make
investment, credit, and other decisions
2. Purpose of Information
14. 1 - 14
Management Accounting and
Financial Accounting
Relevance
Reliability, objectivity, and focus on the past
3. Focus and Time Dimension
15. 1 - 15
Management Accounting and
Financial Accounting
Internal reports not restricted by GAAP
Financial statements restricted by GAAP
4. Type of Report
16. 1 - 16
Management Accounting and
Financial Accounting
No independent audit
Annual independent audit
5.Verification
17. 1 - 17
Management Accounting and
Financial Accounting
Detailed reports on
parts of the company
Summary reports primarily
on the company as a whole
6.Scope of Information
18. 1 - 18
Management Accounting and
Financial Accounting
Concern about how reports
will affect employees behavior
Concern about adequacy of disclosure
7.Behavioral Implications
20. 1 - 20
Fund Flow Statement
FFS is a method to study changes in the financial
position of a business enterprise between beginning
and ending financial statements dates. IT is a
statement showing sources and uses of funds for a
period of Time.
Anthony
“ The fund flow statement describes the sources
from which additional funds were derived and the
use to which these sources were put.”
21. 1 - 21
A summary of a firm’s changes in
financial position from one period to
another; it is also called a sources and
uses of funds statement or a statement
of changes in financial position.
Fund Flow Statement
22. 1 - 22
•Fund means working capital i.e.
excess of current assets over current
liabilities.
•Flow means movement and
includes both inflow and outflow of
working capital.
Fund Flow Statement
23. 1 - 23
Includes important noncash transactions while
the cash flow statement does not.
Is easy to prepare and often preferred by
managers for analysis purposes over the more
complex cash flow statement.
Helps you to better understand the cash flow
statement, especially if it is prepared under the
“indirect method.”
Fund Flow Statement
24. 1 - 24
Uses of Fund Flow Statement
It helps in the analysis of financial operations
It throws light on many perplexing questions of
general interest
It helps in the formation of a realistic dividend
policy
It helps in the proper allocation of resources
It acts as a future guide
It helps in appraising the use of working capital
It helps knowing the overall creditworthiness of a
firm
25. 1 - 25
Statement of schedule of changes in working capital
Particulars Previous Year Current Year Effect of working Capital
Increase Decrease
Current Assets:
Cash in hand
Cash at bank
Bills Receivable
Sundry Debtors
Temp. Investments
Stocks/Inventories
Prepaid Expenses
Accrued Incomes
Total Current Assets
Current Liabilities:
Bills Payable
Sundry Creditors
Outstanding Expenses
Bank Overdraft
Short-term Expenses
Dividends Payable
Proposed dividends
Provision for taxation
Total Current Liabilities
Working Capital(CA-CL)
Net increase or decrease
in working capital
26. 1 - 26
SOURCES AND APPLICATIONS OF FUNDS
SOURCES APPLICATIONS
Funds from operations Funds lost in operations
Issue of Share Capital Redemption of Preference Share
Capital
Issue of Debentures and Repayment of Long-term Loans
Raising of Long-term Loans and Redemption of debentures
Sales of Non-Current Assets Purchase of Non-current Assets
Non-trading Receipts Payment of Dividend and tax
Decrease in Working capital Non-Trading Payments
28. 1 - 28
Introduction to Statement
of Cash Flows
The statement of cash flows gives a direct picture
of where cash came from and where cash went.
Preparation of the statement of cash flows
• List the activities that increased (inflow) or decreased
(outflow) cash.
• Place each inflow or outflow into the proper
categories.
29. 1 - 29
Introduction to Statement
of Cash Flows
The statement of cash flows provides a thorough
explanation of the changes that occurred in a
firm’s cash balance during the entire accounting
period.
• The statement of cash flows reports cash receipts and
payments of a company during a given period for
operating, financing, and investing activities.
• “Cash” includes cash and cash equivalents.
30. 1 - 30
Introduction to Statement
of Cash Flows
Income does not measure an entity’s performance
in generating cash, especially if the income is
measured using the accrual basis.
In a way, accountants use both the accrual and
cash bases.
• The accrual basis is used in the income statement.
• The cash basis is used in the statement of cash flows.
31. 1 - 31
Introduction to Statement
of Cash Flows
Statement of cash flows - reports the cash receipts
and cash payments of an entity during a particular
period
• It summarizes activity over a period of time, so it
must be labeled with the exact period covered.
• It details the changes in the cash account,
much like the income statement which
shows changes in retained earnings.
32. 1 - 32
CASH AND CASH
EQUIVALENTS
Generally items that are cash or can be
converted into cash within 90 days or less
Cash on hand, cash in bank, certificates of
deposit, money market funds, Treasury notes
33. 1 - 33
Purposes of Cash Flow Statement
Statement of cash flows.
• shows the relationship of net income to changes in
cash balances.
• It reports past cash flows as an aid to:
– Predicting future cash flows
– Evaluating the way management generates and uses cash
– Determining a company’s ability to pay interest and
dividends and to pay debts when they are due
• It identifies changes in the mix of productive assets.
34. 1 - 34
Purposes of Cash Flow Statement
The statement of cash flows, along with the
income statement, explains why balance sheet
items have changed during the period.
• The balance sheet shows the status of a
company at a point in time.
• The statement of cash flows and the
income statement show the
performance of a company over a
period of time.
December 2003
35. 1 - 35
Purposes of Cash Flow Statement
The relationship among the balance sheet, income
statement, and statement of cash flows:
Balance Sheet
December 31,
20X3
Balance Sheet
December 31,
20X2
Income Statement
Statement of Cash Flows
36. 1 - 36
Typical Activities Affecting Cash
Cash is affected by two primary areas of a firm.
• Operating management - largely concerned with the
major day-to-day activities that generate revenues and
expenses
• Financial management - largely concerned with where
to get cash and how to use cash for the
benefit of the entity
37. 1 - 37
Typical Activities Affecting Cash
Operating activities - transactions that affect the income
statement
Investing activities - activities that involve (1) providing
and collecting cash as a lender or as an owner of
securities and (2) acquiring and disposing of plant,
property, equipment, and other long-term productive
assets
Financing activities - activities that include obtaining
resources as a borrower or issuer of securities and
repaying creditors and owners
38. 1 - 38
OPERATING ACTIVITIES
SALES (MARKETING)
MANUFACTURING
PURCHASING
ADMINISTRATION
COMPLIANCE WITH GOVERNMENT
REGULATIONS
39. 1 - 39
INVESTING ACTIVITIES
PURCHASE AND SALE OF PROPERTY,
PLANT, AND EQUIPMENT
PURCHASE AND SALE OF STOCK OF
OTHER COMPANIES
40. 1 - 40
FINANCING ACTIVITIES
ISSUING AND REPURCHASING OF A
FIRM’S OWN STOCK
BORROWING AND REPAYMENT OF
LOANS
PAYMENT OF DIVIDENDS
41. 1 - 41
Typical Activities Affecting Cash
Cash inflows
Collections from customers
Interest and dividends
collected
Other operating receipts
Cash outflows
Cash payments to suppliers
Cash payments to employees
Interest and tax payments
Other operating cash payments
Typical operating activities
42. 1 - 42
Typical Activities Affecting Cash
Cash inflows
Sale of property, plant, and
equipment
Sale of securities that are not
cash equivalents
Receipt of loan repayments
Cash outflows
Purchase of property, plant, and
equipment
Purchase of securities that are
not cash equivalents
Making loans
Typical investing activities
44. 1 - 44
Investing and Financing
Activities
Analysis of balance sheet items for investing and
financing activities:
• Increases in cash (cash inflows) stem from
– Increases in liabilities or stockholders’ equity
– Decreases in non cash assets
• Decreases in cash (cash outflows) stem from
– Decreases in liabilities or stockholders’ equity
– Increases in noncash assets
45. 1 - 45
Investing and Financing
Activities
Changes in fixed assets can usually be explained
by:
• Assets acquired
• Asset dispositions
• Depreciation
Increase in
net plant
assets
= Acquisitions - Disposals - Depreciation
46. 1 - 46
Investing and Financing
Activities
Changes in stockholders’ equity can be explained
by:
• New issuances of stock
• Net income
• Dividends
Increase in
stockholders’
equity
= New issuance + Net income - Dividends
47. 1 - 47
Approaches to Calculating the
Cash Flow from Operating Activities
Two approaches may be used to compute cash
flow from operating activities.
• Direct method - the method that calculates net cash
provided by operating activities as collections minus
operating distributions
• Indirect method - the method that adjusts the accrual
net income to reflect only cash receipts and outlays
Under either method, the final cash flow from
operating activities will be the same.
48. 1 - 48
Approaches to Calculating the
Cash Flow from Operating Activities
Under the direct method, income statement
amounts are adjusted for changes in related asset
and liability accounts.
• Each revenue and expense account calculated under
the accrual method is adjusted to reflect the actual
cash paid or received.
Under the indirect method, accrual net income is
adjusted to reflect only cash transactions.
49. 1 - 49
Approaches to Calculating the
Cash Flow from Operating Activities
The FASB prefers the direct method because it
shows operating cash receipts and payments in a
way that is easy for investors to understand.
The indirect method is more common because
many people are used to thinking in terms of net
income.
50. 1 - 50
Transactions Affecting Cash
Flows from All Sources
Effects of operating transactions on cash:
Sales of goods and services for cash +
Sales of goods and services on credit 0
Receive dividends or interest +
Collection of accounts receivable +
Recognize cost of goods sold 0
Purchase inventory for cash -
Purchase inventory on credit 0
Pay trade accounts payable -
“0” denotes that the transaction has no effect on cash.
51. 1 - 51
Transactions Affecting Cash
Flows from All Sources
Effects of operating transactions on cash:
Accrue operating expenses 0
Pay operating expenses -
Accrue taxes 0
Pay taxes -
Accrue interest 0
Pay interest -
Prepay expenses for cash -
Write off prepaid expenses 0
Charge depreciation or amortization 0
“0” denotes that the transaction has no effect on cash.
52. 1 - 52
Transactions Affecting Cash
Flows from All Sources
Effects of investing activities on cash:
Purchase fixed assets for cash -
Purchase fixed assets by issuing debt 0
Sell fixed assets +
Purchase securities that are not cash equivalents -
Sell securities that are not cash equivalents +
Make a loan -
“0” denotes that the transaction has no effect on cash.
53. 1 - 53
Transactions Affecting Cash
Flows from All Sources
Effects of financing transactions on cash:
Increase long-term or short-term debt +
Reduce long-term or short-term debt -
Sell common or preferred shares +
Repurchase or retire common or preferred shares -
Purchase treasury stock -
Pay dividends -
Convert debt to common stock 0
Reclassify long-term debt to short-term debt 0
“0” denotes that the transaction has no effect on cash.
54. 1 - 54
A Detailed Example
of the Direct Method
ECO-BAG COMPANY
Balance Sheet (in thousands)
December 31, 20X3 and 20X2
Current assets: Current liabilities:
Cash Rs 16 Rs 25 Accounts payable Rs 74 Rs
6
Accounts receivable 45 25 Wages and salaries payable 25 4
Inventory 100 60
Total current assets Rs161 Rs110 Total current liabilities 99 10
Fixed assets, gross 581 330 Long-term debt 125 5
Accum. depreciation (101) (110) Stockholders’ equity 417 315
Net 480 220
Total liabilities and
Total assets Rs641 Rs330 stockholders’ equity Rs641
Rs330
======== ======== ======== ========
55. 1 - 55
A Detailed Example
of the Direct Method
ECO-BAG COMPANY
Statement of Income (in thousands)
for the Year Ended December 31, 20X3
Sales Rs200
Costs and expenses:
Cost of goods sold Rs100
Wages and salaries 36
Depreciation 17
Interest 4
Total costs and expenses 157
Income before income taxes 43
Income taxes 20
Net income Rs 23
========
56. 1 - 56
A Detailed Example
of the Direct Method
ECO-BAG COMPANY
Statement of Cash Flows (in thousands)
for the Year Ended December 31, 20X3
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash collections from customers Rs 180
Cash payments:
To suppliers Rs 72
To employees 15
For interest 4
For taxes 20
Total cash payments (111)
Net cash provided by operating activities Rs 69
57. 1 - 57
A Detailed Example
of the Direct Method
ECO-BAG COMPANY
Statement of Cash Flows (in thousands)
for the Year Ended December 31, 20X3
(continued)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets Rs(287)
Proceeds from sale of fixed assets 10
Net cash used by investing activities (277)
58. 1 - 58
A Detailed Example
of the Direct Method
ECO-BAG COMPANY
Statement of Cash Flows (in thousands)
for the Year Ended December 31, 20X3
(continued)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of long-term debt Rs120
Proceeds from issue of common stock 98
Dividends paid (19)
Net cash provided by financing activities 199
Net decrease in cash (9)
Cash, December 31, 20X2 25
Cash, December 31, 20X3 Rs 16
========
59. 1 - 59
A Detailed Example
of the Direct Method
The first step in developing the statement of cash
flows is to compute the amount of the change in
cash from the beginning to the end of the period.
• This calculation is often included at the bottom of the
statement.
• The net change is added to the beginning
balance to compute the ending balance.
60. 1 - 60
A Detailed Example
of the Direct Method
In this example, cash decreases by Rs9,000.
• Operating activities contribute Rs69,000 cash during
the period.
• Investing activities use Rs277,000 cash during the
period.
• Financing activities contribute Rs199,000 cash during
the period.
This example shows how a firm may have net
income but still have a decline in cash.
61. 1 - 61
Computing Cash Flows from
Operating Activities
Collections from sales to customers are usually
the largest source of operating cash inflows.
Disbursements for purchases of goods to be sold
and operating expenses are usually the largest
sources of operating cash outflows.
Operating cash inflows minus operating cash
outflows equals the net cash provided by (or used
by) operating activities.
62. 1 - 62
Working from Income Statement
Amounts to Cash Amounts
Accountants often compute collections and other
operating cash flow items from figures in the
income statement.
• Many accountants use the balance sheet along with
additional information and familiarity with the causes
of certain changes in balance sheet amounts to
compute the cash flow items.
• However, many accounting systems are not capable of
providing detailed information needed for that
method.
63. 1 - 63
Working from Income Statement
Amounts to Cash Amounts
In our example, Rs180,000 was collected from
customers. That amount is determined as follows:
Sales Rs200,000
+ Beginning accounts receivable 25,000
Potential collections Rs225,000
– Ending accounts receivable 45,000
Cash collections from customers Rs180,000
===============
or
Sales Rs200,000
Decrease (increase) in accounts receivable (20,000)
Cash collections from customers Rs180,000
===============
Note that the increase in A/R means that sales > collections.
64. 1 - 64
Working from Income Statement
Amounts to Cash Amounts
The difference between cost of goods sold and
cash payments to suppliers can be determined by
looking at inventory and accounts payable.
Ending inventory Rs100,000
+ Cost of goods sold 100,000
Inventory to account for Rs200,000
– Beginning inventory (60,000)
Purchases of inventory Rs140,000
===============
Beginning trade accounts payable Rs 6,000
+ Purchases of inventory 140,000
Total amount to be paid in cash Rs146,000
– Ending trade accounts payable (74,000)
Accounts paid in cash Rs 72,000
===============
65. 1 - 65
Working from Income Statement
Amounts to Cash Amounts
The effects of inventory and accounts payable on
the previous slide can be combined into one
calculation as follows:
Cost of goods sold Rs1,00,000
Increase (decrease) in inventory 40,000
Decrease (increase) in trade accounts payable (68,000)
Payments to suppliers Rs 72 ,000
===============
66. 1 - 66
Working from Income Statement
Amounts to Cash Amounts
Cash payments to employees can be determined by
examining wages and salaries payable.
Beginning wages and salaries payable Rs 4,000
+ Wages and salaries expense 36,000
Total to be paid in cash Rs 40,000
– Ending wages and salaries payable (25,000)
Cash payments to employees Rs 15,000
==============
or
Wages and salaries expense Rs 36,000
Decrease (increase) in wages & sal. payable (21,000)
Cash payments to employees Rs 15,000
==============
67. 1 - 67
Working from Income Statement
Amounts to Cash Amounts
Notice in this example that both interest payable
and income taxes payable were zero at the
beginning and end of the period.
• This means that the entire amounts of interest expense
and income tax expense were incurred and paid
during the period, so the cash
flows are the amounts of the
expenses, Rs4,000 and Rs20,000,
respectively.
68. 1 - 68
Preparing a Statement of Cash
Flows - The Indirect Method
In calculating cash flows from operating
activities, the alternative to the direct method is
the indirect method.
• The indirect method is generally more convenient.
• The indirect method reconciles
accrual net income to cash flows
from operating activities.
69. 1 - 69
Reconciliation of Net Income to
Net Cash Provided by Operations
The indirect method begins with net income.
• Additions or deductions are made for changes in
related asset or liability accounts (items that affect net
income and net cash flow differently).
If a company uses the direct method, the FASB
requires such a reconciliation using the indirect
method.
70. 1 - 70
Reconciliation of Net Income to
Net Cash Provided by Operations
Items included in the reconciliation:
• Depreciation is added back to net income because it
was deducted in arriving at net income, but it does not
represent a use of cash.
• Increases in noncash current assets result in less cash
flow from operations, so such increases are deducted
from net income.
• Decreases in noncash current assets result in more
cash flow from operations, so such decreases are
added back to net income.
71. 1 - 71
Reconciliation of Net Income to
Net Cash Provided by Operations
Items included in the reconciliation (continued):
• Increases in current liabilities result in more cash flow
from operations, so such increases are added back to
net income.
• Decreases in current liabilities result in less cash flow
from operations, so such decreases are deducted from
net income.
72. 1 - 72
Reconciliation of Net Income to
Net Cash Provided by Operations
The general rules for additions and deductions to
adjust net income using the indirect method are
the same as those for adjusting line items on the
income statement under the direct method.
73. 1 - 73
Reconciliation of Net Income to
Net Cash Provided by Operations
The cash flows from operating activities for Eco-
Bag Company:
Net income Rs23
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation Rs 17
Net increase in accounts receivable (20)
Net increase in inventory (40)
Net increase in accounts payable 68
Net increase in wages and salaries payable 21
Total additions and deductions 46
Net cash provided by operating activities Rs 69
=======
74. 1 - 74
Reconciliation of Net Income to
Net Cash Provided by Operations
As stated earlier, depreciation is an allocation of
historical cost to expense over a period of time.
Depreciation does not entail a current outflow of
cash, therefore, it is a noncash expense.
Depreciation is added back to net income to
compute cash flows from operating activities
simply to cancel its deduction in calculating net
income.
75. 1 - 75
Reconciling Items
Add charges (expenses) not requiring cash
Depreciation
Depletion
Amortization of intangible assets
Nonoperating losses
Amortization of bond discount
Deduct credits to income (revenue) not providing cash
Nonoperating gains
Amortization of bond premium
Adjust for changes in current assets and liabilities relating to
operating activities
Changes in noncash Current Assets Changes in noncash Current Liabilities
deduct increases add increases
add decreases deduct decreases
76. 1 - 76
Reconciling Items
Non operating gains and losses are gains and
losses that are not part of the normal ongoing
activities of the business but are included in net
income.
Gains (losses) must be deducted (added back)
from net income because they arise from
activities other than operations.
• The transaction that created the gain or loss must be
included elsewhere on the statement of cash flows,
including the gain or loss; removing it from net
income keeps the gain or loss from being included
twice.
77. 1 - 77
Reconciling Items
Boyd Corporation sells a piece of land for
Rs50,000 in cash. The land originally cost
Rs75,000. The loss on the sale is Rs25,000.
How does this transaction affect the operating
activities section of the statement of cash flows?
78. 1 - 78
Reconciling Items
Net income includes the loss of Rs25,000. The
cash flow from the sale is Rs50,000, but this is
not cash from operations.
The Rs50,000 cash flow from the sale is included
in the investing activities section (sale of long-
lived asset).
The Rs25,000 is added back to net income in the
reconciliation to avoid including elements of the
sale in two places on the statement of cash flows.
79. 1 - 79
Cash Flow and Earnings
The income statement and the statement of cash flows
fill different critical information needs.
• The income statement shows how a
company’s owners’ equity changes
as a result of operations.
• It matches revenues and expenses
using the accrual concept and provides
a measure of economic activity.
• The statement of cash flows focuses on the net cash
flow from operating activities.
80. 1 - 80
CASH FLOW STATEMENT
PRINCIPAL USES
• ASSESS THE ABILITY TO GENERATE POSITIVE
NET CASH
• DETERMINE THE ABILITY TO MEET
OBLIGATIONS, TO PAY DIVIDENDS, TO USE
EXTERNAL FINANCING
• ASSESS THE DIFFERENCES BETWEEN NET
INCOME AND CASH FLOWS
• ASSESS THE EFFECTS ON FINANCIAL
POSITION (BALANCE SHEET)
82. 1 - 82
Ratio Analysis
The key concept of ratio analysis is
establishing the
relationship of one number to another
number.
83. 1 - 83
RATIOS
Ratios are tools that enable management to:
Measure and compare information within a
business over several periods
Compare similar businesses in the same
industry
84. 1 - 84
Sources of information
Information used in ratios comes from:
Statement of Financial Position
– Current ratio
– Liquid or quick asset ratio
– Debt to equity ratio
Statement of Financial Performance
– Gross profit ratio
– Net profit ratio
Both Statement of Financial Position and Performance
– Accounts receivable turnover
85. 1 - 85
KEY RATIO
Current ratio
Equity Ratio
Gross Profit Ratio
Inventory Turnover Ratio
Net Profit Ratio
Quick Asset Ratio
Accounts receivable turnover ratio
86. 1 - 86
KEY RATIO
Return on Equity Ratio
Return on Asset Ratio
Working capital ratio
Debt Ratio
Debt to Equity ratio
87. 1 - 87
TYPES OF RATIOS:
100%
sales
Net
profit
Gross
ratio
profit
Gross
100%
sales
Net
profit
Net
ratio
profit
Net
PROFITABILITY RATIOS
88. 1 - 88
TYPES OF RATIOS:
100%
equity
s
owner'
Average
profit
Net
equity
on
Return
100%
assets
total
Average
profit
Net
assets
on
Return
PROFITABILITY RATIOS
89. 1 - 89
TYPES OF RATIOS:
s
liabilitie
Current
assets
Current
ratio
capital
Working
overdraft
bank
-
s
liabilitie
Current
s
prepayment
-
s
inventorie
-
assets
Current
ratio
asset
Quick
100%
assets
Total
equity
s
owner'
Total
ratio
Equity
FINANCIAL STABILITY
90. 1 - 90
TYPES OF RATIOS:
EFFICIENCY RATIOS
Inventory efficiency ratios
s
inventorie
Average
sold
goods
of
Cost
turnover
Inventory
turnover
Inventory
365
days
in
Inventory
92. 1 - 92
Financial Ratios
• Debt Ratio
• Earnings per Share (EPS)
• Price-Earnings (P-E) Ratio
• Dividend-Yield Ratio
• Dividend-Payout Ratio
93. 1 - 93
Debt Ratio
The debt ratio measures the proportion
of company’s assets financed by debt.
Total liabilities ÷ Total assets
94. 1 - 94
Debt ratio = Total liabilities ÷ Total assets
Debt Ratio
The debt ratio indicates the proportion
of assets that is financed with debt.
This ratio measures a business’s
ability to pay total liabilities
A low debt ratio is safer than a high debt ratio.
95. 1 - 95
Debt-to-Equity Ratio
This ratio expresses the relationship
between liabilities and equity.
Total liabilities ÷ Total equity
96. 1 - 96
Earnings per Share (EPS)
EPS is shown on the face of the income
statement.
Earnings per share is the net income per common
share of stock outstanding during a period.
g
outstandin
shares
of
number
Average
income
Net
EPS
97. 1 - 97
Price-Earnings (P-E) Ratio
The P-E ratio measures how much investors are
willing to pay for a chance to share the
company’s potential earnings.
share
per
Earnings
share
per
price
Market
Ratio
E
-
P
98. 1 - 98
Price-Earnings (P-E) Ratio
A high P-E ratio indicates that investors predict
that the company’s net income will grow rapidly.
The ratio is determined by the marketplace
because the market price of the stock is used to
compute the ratio.
99. 1 - 99
Dividend-Yield Ratio
The dividend-yield ratio measures dividends paid
for a period compared to the market prices of the
stock on a given day.
share
per
price
Market
share
per
dividend
Common
Dividend-Yield
Ratio
100. 1 - 100
Dividend-Payout Ratio
The dividend-payout ratio measures the
percentage of earnings per share distributed in the
form of cash dividends.
share
per
Earnings
share
per
dividends
Common
Dividend-Payout
Ratio
101. 1 - 101
Current ratio
= Total current assets
÷ Total current liabilities
The current ratio measures
the company’s ability to pay
current liabilities with current assets.
Current Ratio
Rule of thumb: A strong current ratio is 2.00.
103. 1 - 103
Current Liabilities
Current liabilities are obligations due within
one year or within the company’s normal
operating cycle if it is longer than one year.
104. 1 - 104
Current Liabilities
Accounts payable
Short-term notes payable
Sales tax payable
Current portion of long-term debt
Accrued expenses
Payroll liabilities
Unearned revenues
105. 1 - 105
Current Liabilities
Accounts payable are amounts owed to suppliers
for goods or services purchased on account.
Short-term notes payable are notes
payable due within one year.
106. 1 - 106
TYPES OF RATIOS:
100%
sales
Net
expenses
selling
Total
ratio
expense
Selling
100%
sales
Net
expenses
tion
administra
Total
ratio
expense
tion
Administra
100%
sales
Net
expense
operating
Total
ratio
expense
operating
Total
100%
sales
Net
expenses
finance
Total
ratio
expense
Finance
OTHER RATIOS
107. 1 - 107
INTERPRETATION OF RATIOS
Profitability ratios
Financial stability ratios
Ratios of efficiency
108. 1 - 108
INTERPRETATION OF RATIOS
PROFITABILITY RATIOS
Gross profit ratio
Shows the return on net sales prior to adding
revenue or deducting expenses
• Reasons gross profit ratio increases:
– selling prices increase and purchase price remains
unchanged
– opening inventory undervalued
– closing inventory overvalued
– purchase bought at lower price
109. 1 - 109
INTERPRETATION OF RATIOS
PROFITABILITY RATIOS
Gross profit ratio
• Reasons gross profit ratio decreases:
– discounts given on sales products
– closing inventory undervalued
– obsolete or damaged stock written off
– purchases bought at higher price but sales values not
adjusted
110. 1 - 110
INTERPRETATION OF RATIOS
PROFITABILITY RATIOS
Net profit ratio
Shows the amount earned by normal activities
after accounting for other revenue and expenses
• Measures operation efficiency
• Reasons net profit ratio increases:
– expenses decrease
– operating revenue increases
– fixed costs spread over higher sales revenue
111. 1 - 111
INTERPRETATION OF RATIOS
PROFITABILITY RATIOS
Net profit ratio
• Reasons net profit ratio decreases:
–expenses increase at higher rate than COGS
–other operating revenue sources decline
• To arrest declining net profit margins:
–investigate business selling plans and techniques
–increase effective promotion and advertising
–encourage areas of operating revenue
–review alternative and cheaper interest rates
–review all expenses
112. 1 - 112
INTERPRETATION OF RATIOS
PROFITABILITY RATIOS
Return on equity ratio
Shows the return on every dollar invested in the
business
Return on assets
Indicates the earning capacity of the business
• Measures efficiency of business asset usage
113. 1 - 113
INTERPRETATION OF RATIOS
FINANCIAL STABILITY RATIOS
Working capital ratio
Test of business solvency, to see if it can meet
short-term debts from its current assets
• Shows amount of dollars to cover every dollar of
liabilities
• The higher the ratio, the better the position of the
business
114. 1 - 114
INTERPRETATION OF RATIOS
FINANCIAL STABILITY RATIOS
Quick asset ratio
Only the liquid business items that easily convert
to cash are used
• Inventories and prepayments are excluded from
current assets and the bank overdraft from current
liabilities
• Ratio well above 1:1 is acceptable
115. 1 - 115
INTERPRETATION OF RATIOS
FINANCIAL STABILITY RATIOS
Equity ratio
Shows relationship of owner’s equity invested in
business to the total assets of the business
• It is the degree to which the business relies on owner
capital
• The higher the ratio, the lower the need for externally
borrowed funds
• High equity ratio = long-term financial stability
116. 1 - 116
INTERPRETATION OF RATIOS
RATIOS OF EFFICIENCY
Inventory turnover times
Means the number of times that inventories turn
over per year.
Inventory turnover in days
• Low turnover rate indicates inventory levels are too
high.
• Product demand may have slowed.
117. 1 - 117
Interpretation Of Ratios
Ratios Of Efficiency
Accounts receivable turnover
Measures the efficiency of management in
collecting the debts of the business
• The shorter the period of collection, the greater the
cash flow of the business.
• Long collection periods may lead to bad debt.
118. 1 - 118
LIMITATIONS OF RATIOS
Ratio analysis and interpretation can be
influenced by factors such as:
• poor or inadequate accounting methods
• incomplete financial reports
• changes in accounting methods
• existence of unusual items during a financial year e.g.
losses by fire
• management changes
• changes to the economy, such as an industry recession