Posts Tagged ‘Financial’
Financial Ratios
Liquidity Ratios
Are the financial ratios that measure the availability or cash solvency, or the ability of the company to cancel its short-term obligations.
In turn, liquidity ratios are divided into:
* Current liquidity ratios.
* Severe liquidity ratio or acid test.
* Absolute liquidity ratios or ratio test effectiveness or superacid.
* Working capital.
1. Current liquidity ratio
This ratio shows what proportion of short-term debts are covered by assets whose cash conversion roughly corresponds to the maturity of the debt.
Its formula is:
Current Assets / Current Liabilities
If the result is equal to 2, the company meets its obligations in the short term.
If the result is greater than 2, the company runs the risk of idle assets.
If the result is less than 2, the company runs the risk of not meeting their obligations in the short term.
2. Severe liquidity ratio or acid test
This ratio shows a more accurate measure of liquidity than before, because it excludes inventories (goods or inventories) because they are assets held for sale and not for payment of debts, and therefore less liquid, plus be subject to losses in bankruptcy.
Personal Financial Planning, evaluating goals and risks
Plan is to build a clear and organized to achieve a goal.
Planning your finances is the process of identifying targets for the management of asset and liability flows of money in the medium and long term, and implementing appropriate steps to achieve them, with due professional advice.
Put simply, we start to assess where we are today (economically speaking, assets, liabilities, revenues and expenses), where we are going, and what is more important, where it is heading and how we will.
In Personal Financial Planning, everything revolves around the person and their wants and needs, not including business plans.
It is a process that develops over time, with appropriate modifications as conditions change and the environment. Read the rest of this entry »
Financial Planning: Start Savings
Some practical ideas to start our savings:
* Make a list of expenses and income of the household
* Eliminate unnecessary expenses, such as reducing cellular costs, we live in a world sometimes unnecessarily hyper-connected, replace the use of fixed telephony, IP telephony, watch less TV, this simple action can save energy. I leave to the reader’s imagination as to continue the list.
* Look for things that are no longer used inside the house and sell them online
* Optimize food purchases using trade fairs, consumer organizations, better targeting products
* Organize and manage time better, it allows to better distribute the money that comes in the house
Buy a plan with a savings or retirement fund that allows relatively low monthly contributions to debit credit card normally give an average annual return rate of 9% in dollars, these plans create wealth and welfare in the future.
* Make a list of “do”, this involves determining goals for the short, medium and long term. For example, a beach vacation in luxury, traveling on a cruise ship, change your car, buy a house, jewelry, or just do a postgraduate accumulate cash.
If in doubt, seek advice
After defining the objectives, and before taking any investment decision, it is important to know what the risk tolerance that we as investors and what is the expected return.
As stated in the prospectus, any doubt, consult with a physician.
In conclusion we can say that planning is one of the pillars of success, but will not be effective if the plan is not met or do not take the right decisions with the right expertise at the right time.