0
What are the Characteristics of a firm with long operating cycle?
Wiki User
∙ 6y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Where are some of the characteristics of a firm with a long cash cycle?
. What are some of the characteristics of a firm with a long cash cycle?
How do you calculate long term solvency and profitability ratio?
Long-term SolvencyDebt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues Long-term Solvency Debt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues
Define business finance?
Business finance is an economic activity that helps commercial entities and non-profits organizations for short-term operating needs or long-term investment decisions. An investment banker typically partners with a firm's corporate finance employees to find adequate funding sources based on size of the firm, financial health and monetary needs For more information visit the Related Link.
For a firm to operate in the shortrun the total revenue must at least be equal to Why?
A firm would still operate if revenues are below total coots, but not if revenues are below variable costs. The reason is that as long as revenues are above variable costs, the firm will earn a difference to contribute to the fixed costs (fixed costs are costs that a company has to pay in the short-run whether it operates or not). If the firm stops operating in the short-run, it will have to pay for the full fixed costs (e.g., rent, some fixed labour) If revenues are below variable costs, for every unit of production, the company loses the difference and does not contribute to the fixed costs. It is more economical to shutdown in the short-run.
What are the goals of the firm?
To maximize profit.To have low costs.To have profit in the short run and business value in the long run.To get a social function (some firms only).To grow/expand as a firm.
Where are some of the characteristics of a firm with a long cash cycle?
. What are some of the characteristics of a firm with a long cash cycle?
What factors affect the operating cycle?
1. Liquidity Vs Profitability decisions of the firm; The higher a firm retains liquid assets (cash), the shorter the operating cycle2. Industry norms: eg Retail vs construction. A Construction firm will have a longer operating cycle, since they have long term projects, while the bulk of payment is received towards the end of the project. A retail business on the other hand, eg a supermarket has a short or even negative operating cycle, since there are very few credit customers, there is high turnover and can negotiate long credit period with suppliers.3. Management efficiency. The less efficient the management of a firm, the longer the operating cycle and vice versa.
How long has Cobra Insurance been operating for?
Cobra Insurance has been operating since 2006. Cobra Insurance is a firm of insurance brokers and was formed by a merger in 2006 of two previous companies.
Why Profit maximization can never be the objective of a firm?
Profit maximization IS an objective of a firm, but its not the ONLY objective. A firm will have different long term and short term goals which will vary depending on the current business cycle. If you need a more specific answer, please ask a more specific question. - Stavka
How do you calculate long term solvency and profitability ratio?
Long-term SolvencyDebt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues Long-term Solvency Debt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues
What is mean by extra expense exposure?
In the event that a long-term loss of customers would occur and/or a shutdown temporarily would impose large costs on customers or suppliers, it might be optimal for the firm to keep operating following a loss by arranging for the immediate use of alternative facilities at higher operating costs.
What is meant by the phrase generally accepted accounting principles?
GAAP help to ensure that financial information fairly presents a firm's operating results and financial position.GAAP is important for uniformity reasons. Any where in the world as long as the two companies are operating in the same industry you can easy compare them simple because of GAAP.
Is long term debt an operating liability?
NO. But the Current maturities of long-term debt is an operating liability.
How long is a panda's life cycle?
a pandas life cycle is about 22 years long
How long do lizards live What is their life cycle?
how long do lizard live what is their life cycle
What is the primary objective of the firm?
The primary objective of a firm is to maximize profit and shareholder value while meeting the needs of its customers and stakeholders, and operating in a sustainable and ethical manner. This involves making strategic decisions that optimize resources and generate long-term growth and success.
What is the difference between the short and long carbon cycle?
The difference between the short and long carbon cycle is that the short cycle emphasizes the interaction between the biosphere and atmosphere while the long cycle emphasizes the formation and destruction of fossil fuels.
