Understanding The Financial Ratios

 Understanding The Financial Ratios

There are various ways one can monitor the business’s financial performance using the data available. By making use of the financial ratios, one can easily assess where the business is underperforming. Also, it helps in judging the effect of changes one part will have on another area.

By closely monitoring the figures you could minimize the waste and maximize the efficiency which would help the business to run smoothly in long run.  Business usually resorts to various financial ratios which will help them in monitoring the cash flow, non- financial factors like customer satisfaction, staff turnover, etc and profitability. The same applies to trade; you need to closely monitor all the activities so that you can take decisions which will increase the profit of your investments. If you don’t have much time in your hand to monitor continuously, you can opt to trade through the trading robots. Read through this review to learn about the process of trading using the robots.

Using ratios in business for monitoring

Ratios show how one number is related to another. When you conduct financial analysis, the ratios would be expressed as percentage or rate, depending on your preference. Financial ratios have to be compared with the following things for better monitoring purpose:

  • General business standards or industry benchmarks
  • The trend of the past year result (trend analysis)
  • Budgeted results
  • Results of the competitors
  • Effect of various economic conditions

 Financial ratios used commonly

You need to have a clear understanding of the financial ratios to be used. Most common categories of the ratios used are:

Liquidity and cash flow- These ratios to are used to assess the working capital amount of the business and to work out the solvency of the business in the medium or short term.

Return and risk- These ratios are used to judge the success rate of the investment made into your business and to find what effect any further investment will have on specific parts of the business.

Profitability- This uses the net profit margin and gross profit margin as two key indicators to measure the performance of the business and the likelihood of its success.

Sales and stock turnover- It uses this ratio to identify the deficiencies or overstocking in marketing or production strategies.

There are even non-financial ratios which are very much important for the business as it helps in highlighting those issues which will not show in the balance sheet.





Understanding The Basics Of the Income Statement

Understanding The Basics Of the Income Statement

The profit and loss statement is also called the income statement. It shows you the profitability of the business for a specific period.  Usually, it is produced annually, quarterly and monthly.  It is the best tool for businessmen to monitor their business activity. It shows the business owners where its business is struggling and where it’s succeeding. The investors would use the income statements to analyze the financial health and then take their decision on potential investment. They could easily identify what type of return they would be getting for their investment.

For investment purpose, even digital currencies to are gaining quite a bit of popularity nowadays.  You can easily invest in these currencies through varied auto-robots available in the market. Do check out this review to see how easily one can invest and earn money.

Profit and loss statement/ Income statement

This statement is generally split into two sections:

Revenue- This will include all the details of your income from the primary business activities like sales of services or products, any revenue generated from the secondary activities like bank interest and other financial gains it receives.

Expenses- It includes all the details of the expenditure incurred on the primary activities like labor costs, materials purchased. etc), secondary expenditure and other losses incurred during that period.


Total sales are one of the important sections in the revenue part. Other income and secondary revenue are always unpredictable, hence in order to grow the business one should focus mainly on the sales revenue.

You need to check out how much sales had fallen or risen since your last profit and loss statement. You need to find ways to increase the revenue between each income statement. If there is a pattern of revenue falling from the previous statement then it denotes that your business is in trouble.


The important figures in this section are:

Cost of the good sold- It is the cost of raw materials used and direct labor costs.

Operating expenses- It is the cost of the indirect labor and all other costs which does not have a direct link to producing the goods or services.

You always need to find ways to lower the costs whenever possible. For instance, if the material costs are rising then you should find a different supplier. However, inflation does cause the increase in price, hence some of the increase in cost is inevitable.



The Journey From Obscure to Distinct

Bitcoin has achieved its present popularity from a total obscure stage. Presently bitcoin is at $6000 market cap which was $600 a few months back. Some people have the clear idea on how to harness all the potential aspects of bitcoin after extensively learning the underlying technology. It is one of the valuable cryptocurrency of the world.

These currencies are created and held electronically and some leading banks and companies see immense potential in them to change the financial market. bitcoin is already used as a currency for online trade. It is gaining its popularity as a currency in e-commerce but is still in the stage of infancy when banks acceptance question comes.

The major advantage of bitcoins is in terms of payment as no one can steal the payment as it is a transparent network. The user has one private and one public to lock and unlock the transaction.

During the economic crisis of 2008, some government was forced to print some extra currency notes to meet the national debts. This leads to the decrease in currency value. But in the case of bitcoin, the currency generation is restricted to 21million coins which means coins cannot be generated beyond this so there is no question of inflation for bitcoin. However, this may have a positive and negative effect as well.

Most of the transactions by the banks ask for fees. Especially if you are sending money beyond the borders it has to go through a number of formalities this in turn results in transaction fees. The peer to peer technology, on the other hand, makes this elaborate process cheaper and faster. Here the buyer and seller can deal directly with the decentralized technology discards intervention of any intermediates.

A few weeks back 40 of the world’s largest bank conducted a test on cloud-based technology to understand the blockchain technology and how the smart contracts can be used for banks. As bitcoin is decentralized and there are no chances of failure of the central point, that can disturb the trade. The decentralization also means the government cannot take it away which means no central authority has control over it.

Presently bitcoin is facing the problem of block size limitations; however, the scientist from Bitcoin foundation has confirmed that there will be a 40% rise in the size of the blocks in every two years until 2036. Before the organizations back up this technology the problem should get solved.

Marketing And Advertising -Low Cost Ideas

Marketing And Advertising -Low Cost Ideas


Everybody would certainly agree that not mere production of quality products would be enough to earn a profit.  To boost up sales one must take the product to the prospective client at the right time using a right advertising medium.

The world of advertising has grown from ‘unsolicited and interrupting pop-up’ to ‘inbound marketing’.  Many of the advertisers involve the viewer’s contribution by seeking product design/improvement ideas, reviews on quality etc. This will certainly convey the ‘you are important to us’ feeling to the customer.

Even now the traditional media of advertising like print media, Television ads, Radio ads are in vogue.  But there are numerous additional ways like internet advertising, blog advertising, telemarketing etc.  Data analytics help a greater extent to identify and group needs of the customer.  The general skills that are required in the marketing industry are good looks, communication skills etc.  But recently data science skills are most required in the industry.  This is because data science helps to easily reach the correct buyer.  Based on recent internet activities the need of the user can be identified and a promotional mailer can be sent.  This helps in reducing wasteful efforts and achieve cost reduction.

The social network can be used to easily attract a group of buyers.  This is based on the logic that members of the same group normally share the same interests and tastes.  Online advertising is relatively cheap and can reach the target audience without a single miss out.

To reduce advertising and marketing costs the following are important:

  1. The advertiser has to choose the nature of prospective buyers like youngsters, women, kids etc.


  1. Based on the size of the business they can restrict the geographical areas for marketing activities. For example, air heaters need not be marketed in counties which are not affected by freezing temperatures.  A concept like mobile advertising can be used based on tracking the location of the user.


  1. The advertiser has to select the right media based on the target For capturing the attention of investor, a cryptocurrency trading software can advertise in share trading websites.  This is because such websites have a viewership of high net worth investors looking for good investment opportunities.



When the user finds the suggestions and reviews authentic, the user will refer the product to a friend by easily sharing the online ad link.  This type of advertising will certainly build brand loyalty and strengthen the customer relationship.  This is will automatically help in improving customer base also.





Marketing Through Social Media


Marketing Through Social Media

Social media is the perfect way to ‘meet your customers face to face’ online and yet many Irish agencies are not worried and are not living up to their clients’ desires.

Customer engagement and constructing relationships are the maximum important element of social media advertising. However, masses of agencies aren’t doing this.

Be social don’t ‘tough promote’

Online networking is ‘social’, it’s not about the hard offer. The key to progress is to develop associations with others so they spread the news about your items and administrations.


Is your organization connecting with a group of human beings via net-based networking media? Do you know who your adherents are? Remember, individuals will recollect forget how you affected them via web-based networking media, so be decent, be respectful and be useful.

Initial steps

So, in what capacity would it be advisable for you to begin?  The initial step is to discover where your clients are hanging out. Are they on Facebook, Twitter, Instagram or LinkedIn?

If they are adolescents, for instance, they will be on Instagram and Snapchat. Yearning ladies, keen on beauty products or wedding thoughts, are in all likelihood on Pinterest and Instagram. Moderately aged golfers are well on the way to be on Facebook and Twitter.

Who, what where?

Try to discover – who is your objective client? What are they discussing, who are they affected by, what radio stations do they tune in to?

When you have set up who your clients are, solicit individuals from that age set what social media channels they use.

Ask companions, nieces, nephews, anybody in your prompt circle, or complete a basic overview utilizing your email contacts.

Ask customers while they come into your shop what social media systems they use. Perhaps deliver them an incentive to go into a draw to win taken into consideration one of your merchandise? Urge your staff to get some information about their most loved online networking destinations when they are managing them. Most clients may be happy to chat with you about this topic.

Follow and be observed

So for what reason do we require devotees? Devotees are a potential armed force of promoters for your business. If clients like your product or service, they may thankfully endorse you to others. For instance, in case you positioned up a publish on social media that pastimes them, they will maximum possibly percentage the publish or comment on it. This drives engagement and other followers of their network will see their tweets and spot them attractive with you.

Guide For a Novice To Angel Investing

Guide For a Novice To Angel Investing

For a few more mature investors, the conventional vehicles of stocks, securities, and common assets can be restricted and too notably exposed to market huge fluctuations. A few financial specialists who have considerable money reserve funds, yet don’t wish to begin their own business, frequently pick to end up “angel buyers”, folks that invest without delay in corporations out in their own pocket, looking for better returns and a more comfy diploma of manage and ownership over a business enterprise. They are the inverse of venture capitalist, cash together for comparative, however more organized ventures. The upsides of being an angel investor are clear – your decisions and advantages are yours and yours alone. “angel investors” were given their famous name in the mid-twentieth century by Broadway producers to the well-off businessmen who upheld their manifestations. Today, anybody with enough money and business insight can be an Angel investor.

  • An annual profits of over $90,000.
  • Total assets of over $750,000
  • A comfortable quantity of free income flow
  • A thorough knowledge of nearby groups
  • An enthusiasm for putting resources into small organizations (90% of angel buyers invest in organizations with much less than 20 employees)
  • Previous revel in traditional non-public investing or franchising
  • Arrangement for a 1 out of 3 chance that your venture will fall flat

The Small Business Administration evaluates that there are something like 250,000 dynamic angel buyers within the state putting resources into 30,000 small agencies yearly.  As per net wealth, there are 2 million capacity angel investors in the United States. Their investments range broadly throughout the board et across the country are equivalently higher than formal venture capitalist investments, which average $3-$five billion every year. Angel investors expect a lower rate of benefit for their theories than a venture capitalist, however, the underlying casual nature of the relationship wants a stable platform before it might continue. If you are inquisitive about angel making an investment or searching out an angel investor, right here are some things to recollect earlier than constructing a courting.

  • The target organization ought to have a securities legal professional and an advisory board which maintains direct touch with the control to draft a complete marketing strategy for the angel investor prior to consideration.
  • All things considered, holy messengers select 30% of requested speculations. Basic purposes behind dismissals incorporate absence of development potential, the absence of administration discernment, the absence of key staff in key positions and overrated value.
  • Angels normally look to possess 5-25% of a business. This may be in commonplace or favored stock with liquidation precedence over common inventory. You should set policies with the organization and bar them from proportion-diluting inventory income at lower charges to raise capital, or issuing additional inventory to cutting-edge control.

While this is in no way, shape or form an exhaustive guide, it will ideally give you, as either an angel investor or small commercial enterprise proprietor, a higher expertise of things to take into consideration before diving into this type of investment relationship.

I Could Have Not Asked For Anything Better Than This!

I Could Have Not Asked For Anything Better Than This!


It was my New Year resolution to be able to make a little extra:

This was my parent’s golden anniversary and I was so looking forward to it. I have been not very close to them but after having children of my own, I have this strange epiphany that parents deserve so much more than the kind of life and attention that we give them.

This year, I wanted to show them my gratitude and to be able to give them a good time. My plan was to buy something precious for both of them and also to gather a few of their close friends to have an in-house party so that they can unwind and also socialize. With leg injuries, both had been homebound and I could sense that they were so longing for outside company.

I had to begin saving for the gifts!

When I began trading online, I had no idea I was going to embark on such a beautiful journey. I was on a day job but inflation and other correlated events meant that the salary got out of my bank account in the same way that it had come in – steadily!

It was normal to not have anything left on me by the third week itself but I wanted to change it all. I adopted minimalism and picked up the most durable things from second-hand shops to be able to make the ends meet.

Anniversary gift was a burden. I wanted to do it nevertheless.

I started trading online in cryptocurrencies on one of the finest trading software and guess what; I could actually afford everything that I had planned without putting any undue pressure on myself.

The anniversary went well but trading online stayed on:

One year hence, I am so proud of myself. My parents were delighted and I saw their face glow when they saw what I had gifted them. It is one of my most precious memories and it makes me go when I have a particularly hard day.

I still trade and I am so happy that with every few months of trading I am able to plan something for my family and close friends. It is such a rewarding journey to be able to do something for them. I feel extremely satisfied.

You can also afford the fine things in life. There is no big investment or no great commitment whatsoever, log on to the trading website, credit $250 in your trading account and you are good to go!

Trading In Binary Options Is Not Gambling!

Trading In Binary Options Is Not Gambling!


Whoever equates trading online with gambling!

There is not even a bit of semblance between trading ion binary options and gambling.  If you are thinking that speculation is the same in both then you have definitely missed out on the finer points.

I had a friend who used to look down upon legitimate trading on websites only because he had this prejudice about it. I have been trading for more than a year now and I can tell you from experience that it is not just a legit way of earning money but also a great way to earn a few extra bucks every day.

Trading is fraught with risks but there is a risk in everything!

The trader who takes the maximum risk is bound to make the most money. That is the principle upon which trading works. However, time and again in all my blogs and even the lectures that I deliver in colleges, I cannot stress more on the fact that you need to determine beforehand the amount of money that you can afford to lose in trading, This will give you an almost perfect yardstick for investing in it optimally.

Why would you not want to trade when it is a legit way of earning?

Over the months, I have been scammed by websites that have touted themselves to be the saviors of humanity. I have been defrauded more than once by software that refused to let me withdraw my profits or have used delaying tactics for me to get frustrated and leave. But I have also made hundreds of dollars as profits on legit software. I have made good all the loss by getting on the right software. It was a matter of getting on to the right place and then the right things started to happen.

The websites boast of sophisticated algorithms:

The trading software is a powerhouse of information. They have in their database the history of trading signals and that is how they can predict the winning trade signals when you switch on the autopilot mode. I have realized that both manual trading and automatic trading have worked for me. I may have made little profit every day but the cumulative effect is overwhelmingly big. I cannot even begin to tell you how much my bank saving account has swelled and how much confidence boosting this trading exercise has turned out to be for me!

Have You Heard How People Are Earning Smartly Over The Internet Yet?

Have You Heard How People Are Earning Smartly Over The Internet Yet?


There is nothing quite as intriguing as trying to learn easy ways of making money!

As adults, we are all used to looking out for the easiest way to do things. We want to be able to make big money with the least efforts and that is why we look out for tutorials for hacks to work out things for us without actually working too hard. Isn’t that Oxymoronic?!

Trading online was that for me:

About the time that I learned about this new method of making a little extra, I was also working full time on a project that required that I spend more than eight hours on the field. It was hectic and I knew that with this kind of commitment I would either lose out on my health or all the recreational time that I was used to. I did not want to compromise on either.

Quitting job was out of the question:

The filed was rife with demand for a well-paying job. Quitting this job would mean dropping the axe on my foot. I knew that I had to be able to have a corpus ready to be able to take the risk of quitting. It just does not make any sense to be able to follow your heart when your pockets are empty. It is not practical for any purpose.

But setting up a corpus was the challenge:

I took up online trading only because it did not require any big investment greater than $250. I could afford to lose it even in the worst circumstance. With time, I understood the nitty-gritty of trading online and I was getting better at it. I always preferred manual trading to Autobot trading because it gave me the freedom to choose the trade signals.

But not to say that the autopilot mode is not useful:

The trading robots are fantastic at the job that they do. The trader only has to set the limit on the trade like say for example a trade at $10 or $25, the robot will use the trading history available to decipher the best signal. Nine out of ten times, I have won the auto trading mode and I am so glad that every day I have been able to consistently profit to have been able to create a corpus for myself.

The day I had enough, I decided to quit my job and settled down with full-time trading. I have so much time today to be able to follow my passion for playing squash as well as earn good enough to live decently.



Ways To Make Team Work Easier

Ways To Make Team Work Easier

I can say a team is just a heaven to work with because we can have a lot of chats and laughs. It really makes us happy to do work and obviously, the teamwork will reduce the work of the individuals. When a work takes some long hours to finish off, it can be done in a short span of time when we work as a team. That is why many bigger companies are recruiting a large number of people who have the positive spirit to blend with the team members and give out a fabulous outcome. The teamwork helps us in many ways and there are some ways to follow to make our teamwork in an easy manner. Let us have a look at it in this blog post.

The team will give us the motivation what we actually need and it will try to open up ourselves in front of the others.

  • Leader:

Managing the team and making the team work easier is all in the hands of the leader. Once the leader is not worth, then it is not possible to expect the positive outcome and when the leader is more powerful and has the capability to make their members work, then the business will definitely reach greater heights.

  • Establishment of team rules:

Yes, there are some rules to be followed in a team and the manager should make all the team members to obey the rules to attain great results. So, while establishing the rules, the leader should be strict at sometimes.

  • Communication:

In every field, one thing the much needed is communication. Without proper communication, we cannot do anything in life. It is very important when we work as a team. The leader and the team members should have a powerful communication about the work they are going to do for the day and how to satisfy the clients by delivering their expected products. Without a proper communication, it is really a hard thing to grab the success.

  • Rewards:

Who does not want to get rewards? The answer will be a big no. Everybody wants to have some rewards for the work we do and it actually works great for a company. When a member has got some rewards from the team leaders for their work, they will be really happy and will become so enthusiastic to do more and more to get much more rewards. The rewards here specifies not only the appreciation or bonus, we can also provide them with some incentives and extra leaves for the year. This will really make the employees very happy.