a)Customer-centered, take the market demand as the original dynamic b)Concentrate on core business, outsource not-core business. c)Close cooperation with other enterprises, share risks and benefits d)Design the procedure of work, material, information and fund, and revise and improve these procedures from time to time e)Use information system to optimize the operation of supply chain f)Shorten […]
Supply Chain Management (“SCM”) is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer. SCM has three primary goals: reduce inventory, increase the transaction speed by exchanging data in real-time, and increase sales by implementing customer requirements more efficiently.
The supply chain represents the flow of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Many organizations are looking to supply chain optimization as a means of gaining significant competitive advantages. The internal process perspective of the balanced scorecard often contains performance measures […]
a) Conduct a thorough review of your objectives, risk tolerance, income and cash flow requirements, appreciation targets, estate planning and tax considerations and investment policy guidelines, etc. b) Conduct In-depth analysis of the historical and expected returns, risk and correlation characteristics for each asset class. c) Determine the portfolio of equity investment or debt investment to achieve the […]
Debt to Equity Ratio is also referred to as Debt Ratio, Financial Leverage Ratio or Leverage Ratio. The debt to equity (debt or financial leverage) ratio indicates the extent to which the business relies on debt financing. Upper acceptable limit of the debt to equity (debt or financial leverage) ratio is usually 2:1, with no […]
Transactional alternatives that are frequently considered in a liquidity analysis include the following: a)Sale of the company’s stock in an initial public offering b)Sale of the company to a strategic acquirer c)Sale of the company to a financial investor d)Sale of a minority interest in the company to a passive investor e)Sale to the company’s existing management f)Sale of the company […]
The purpose of a liquidity analysis is to provide the business owner with an objective view of the value of his or her company. Furthermore, a liquidity analysis will help the business owner to understand the alternatives available that will permit him or her to tap into the wealth that may be trapped there. A liquidity […]
The following liquidity ratios are all designed to measure a company’s ability to cover its short-term obligations. Companies will generally pay their interest payments and other short-term debts with current assets. Therefore, it is essential that a firm have an adequate surplus of current assets in order to meet their current liabilities. If a company […]
Liquidation of assets and maintaining borrowing reserves are two major liquidity management strategies. The dimensions of liquidity that affect these strategies include: Time necessary to covert assets into cash. Loss of value as a result of liquidation of assets. Availability of borrowing reserves.
Because there is no optimal capital structure, the choice between debt and equity will depend on a number of considerations: a) Macroeconomic conditions. High real (inflation-adjusted) interest rates and low activity growth will prompt companies to de-leverage. Inversely, rapid growth and/or low real interest rates will favor borrowing. b) The desire to retain a degree […]
