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  • Finance and Management – 10

    In the earlier blog, we had looked at the receivables section. In today’s section we will look at the Non-current aspects of the balance sheet – the property, plant and equipment section.
    Non-current assets generally include the fixed assets; these assets cannot be liquidated within an accounting period and hence they are considered non-current. Investment into these non-current assets wouldn’t exactly be a measure of the company strength, but it’s the utility of these fixed assets like – plant, machinery etc that actually enables the production of current assets. So investors really don’t pay much attention to this section except when there is a huge capital investment into the new plant or something where in the there is a potential for long term gains.
    One place where people can really lose faith in the Balance sheet is due to the way the company’s would handle these non-current assets. Since these assets cannot be sold in a reasonable period of time, and are carried on the balance sheet at cost regardless of the actual value – so the company can grossly inflate the numbers. This makes an investor question about its.
    Read in Kannada:
    http://somanagement.blogspot.com/2011/07/blog-post_2921.html

  • Finance and Management – 9

    In the earlier blog, we had a look at the inventory and its implications from the investor’s perspective. In today’s blog we look at what the Receivable could mean to the investor.
    Receivable as defined would mean outstanding (uncollected) bills. If a company sells a product and delays collecting the payment for it, it sure has to be foolishness. While giving a period of credit is a business norm today, it would be foolish to give a lot of credit and not collect them. The speed at which the company collects the amount owed to it tells us a lot about its financial efficiency.
    If the collection period has been increasing it is an indication of the impending problem for the company. The larger the credit period that would be given to the customers, the higher the exposure would be to a potential threat of a not recovery of the amount. The company’s customer might face a cash crunch and decline repaying the amount. The collection period would also affect the internal working of the organization in that it could make it hard for the company to pay the salaries, buy necessary goods, etc that might be very essential.
    Here too it highlights the importance of cash being very liquid and its criticality to the business.
    Read in Kannada:
    http://somanagement.blogspot.com/2011/07/blog-post_29.html

  • Finance and Management – 8

    In the earlier blog, we looked at how an investor would look at the cash available in the balance sheet of a company and form an opinion. In today’s blog we would look at the inventory heading.
    Inventories are finished goods that haven’t yet been sold. An investor would be watchful to see if a lot of the company’s money is tied up in its inventory. While inventory gives a cushion against any industrial relations problem to a certain extent, or could act as a part of the company’s prize war with another company; the investor would look as from an angle that says the money is locked up in inventory.
    Companies have very little money to invest in inventory, if a lot of inventory is being piled up, and sales are low, it indicates that the company is building up for serious trouble. The longer it takes to make a sale, the longer the inventory would be with the company hence locking up the capital (money) flow. The issue might grow up to such an extent that the company might find it hard to pay off its suppliers in time!
    How many iterations the inventory would take up within a year is measured by “inventory turnover”. This is measured as the total cost of goods sold divided by the average inventory. The Inventory Turnover measures how quickly the company is moving merchandise through warehouse to customers. If inventory grows faster than sale, it is almost always an indication of a fundamental mismatch.
    Read in Kannada:

  • Finance and Management – 7

    In the earlier blog, we had a brief explanation of what the various heads in the Balance sheet meant. We would keep explaining some of the additional heads as we progress with the blogs.
    As a manager it is important to understand the way an investor would look at the various components on the balance sheet. So we begin understanding this over the next few blogs.
    In business “cash is king” – it the most liquid format of assets and can be easily converted for a variety of purposes. A good reserve of cash shown in the Balance sheet would attract a lot of the investors towards such a company. They would believe cash would offer some protection against the sluggish times that are common in the economic cycles; also, the extra cash could be used for exploring new options for growth.
    A company that is performing consistently would generally have a healthy cash reserve, this is an indication that the company has been performing well – The management is short of time to really utilize the accumulating money! The opposite of cash in surplus, i.e. if the cash is found to fast dwindling then this is sign of serious trouble.
    If the cash accumulation over a long period is not used up for productive purposes, the question of the effectiveness of management could also arise. The reason management has allowed such accumlation, could be lack of good investment opportunities.
    Read in Kannada:

  • Finance and Management – 6

    In the earlier blog, we put up a rough structure to the various components in a balance sheet, but we haven’t explained the various headings. While it is pretty logical to understand these from common parlance, explaining them here would add to the context.
    • Cash – the cash is the revenue that is earned by the company
    • Receivables – are outstanding (uncollected bills) amount to be collected from the customers
    • Inventory – these are finished goods that have not yet been sold
    • Fixed Assets – includes the investment of money into plant and machinery
    • Account Payable – the payment to be done to suppliers etc
    • Notes Payable – some of the promissory notes (like cheques etc) that are to be paid up
    • Long Term Debt – Long term loan that might have been taken from banks, and have been invested in the business
    • Owner’s Equity – this includes the initial capital generated by the promoters, (share holder also later on)
    Read in Kannada:
    http://somanagement.blogspot.com/2011/07/blog-post_3720.html

  • ಹಣಕಾಸು ವ್ಯವಸ್ಥೆ ಮತ್ತು ನಿರ್ವಹಣೆ – ೩

    ಹಿಂದಿನ ಅಂಕಣದಲ್ಲಿ ನಾವು ವಿವಿಧ ಹಣಕಾಸಿನ ಹೇಳಿಕೆಗಳು ಕಂಪನಿಯ ಬಗ್ಗೆ ಅರಿಯಲು ಮತ್ತು ವಿಶ್ಲೇಷಿಸಲು ಯಾವ ರೀತಿಯಲ್ಲಿ ಮಾಡುವುದು ಎನ್ನುವುದನ್ನು ತಿಳಿದೆವು. ಇಂದು ನಾವು ಪ್ರತಿಯೊಂದು ಹೇಳಿಕೆಯ ಬಗ್ಗೆ ಅರಿಯೋಣ. ಮೊದಲು ಶುರು ಲೆಕ್ಕ ಪತ್ರ (Balance Sheet) ನ ಬಗ್ಗೆ ನೋಡೋಣ.

    ಹೆಸರೇ ಸೂಚಿಸುವಂತೆ ಇದು ಸಮಾನತೆ (Balance) ನ್ನು ಹೇಳುತ್ತದೆ. ಗಣಿತದ ಮೂಲಭೂತ ತತ್ವವಾದ ಒಂದು ಸಮೀಕರಣದ ಎಡಭಾಗವು ಬಲಭಾಗದೊಂದಿಗೆ ಸಮ ಹೊಂದುವುದು ಅನ್ನುವುದರ ಮೇಲೆ ಈ ಹೇಳಿಕೆಯು ಆಗುವುದು. ಯಾವುದರ ಸಮಾನತೆ ಬಗ್ಗೆ ಲೆಕ್ಕ ಪತ್ರ ಹೇಳುವುದು ಮತ್ತು ಅದರ ಸಮೀಕರಣ ಏನು?

    ಯಾವುದೇ ವ್ಯವಹಾರದಲ್ಲಿ ಹೂಡಿದ ಬಂಡವಾಳವು ಉದ್ಯಮಕ್ಕೆ ಒಂದು ಆಸ್ತಿಯನ್ನು ಕೊಳ್ಳಲು ಉಪಯೋಗಿಸುವರು. ಹಾಗಾಗಿ
    ವ್ಯವಹಾರಕ್ಕೆ ಹೂಡಿದ ಬಂಡವಾಳ = ವ್ಯವಹಾರಕ್ಕೆ ಲಭಿಸಿದ ಆಸ್ತಿಗಳು
    ವ್ಯವಹಾರಕ್ಕೆ ಬಂಡವಾಳವು ಮಾಲಿಕರಿಂದ ಬರುವುದು ಮತ್ತು ಸಾಲದ ಮೂಲಕ ಲಭಿಸುವುದು.
    ಇವೆಲ್ಲ ಒಟ್ಟು ಸೇರಿ ಸಮೀಕರಣ
    ವ್ಯವಹಾರದ ಆಸ್ತಿ (Asset) = ಮಾಲಿಕರ ಹೂಡಿಕೆ (Owner’s Equity) + ಆರ್ಥಿಕ ಬಾಧ್ಯತೆ. (Liability)

    ಇದರ ಅರ್ಥವೇನೆಂದರೆ ಕಂಪನಿಯ ಆಸ್ತಿ ಅಥವಾ ಕಂಪನಿಯನ್ನು ನಡೆಸಲು ಬೇಕಾದ ದ್ರವ್ಯಗಳು ಕಂಪನಿಯ ಮಾಲಿಕರ ಹೂಡಿಕೆ ಮತ್ತು ಕಂಪನಿಯ ಆರ್ಥಿಕ ಸಾಲಗಳೆರಡು ಒಟ್ಟು ಸೇರಿ ಸಮದೂಗಿಸುವುದು. ಈ ಕೆಳಗಿನ ಚಿತ್ರದಲ್ಲಿ ಇನ್ನು ಸ್ಪಷ್ಟವಾಗಿ ಅರ್ಥೈಸಬಹುದು.

    ಆಂಗ್ಲದ ಅಂಕಣ
    http://somanagement.blogspot.com/2011/06/finance-management-3.html

  • ಹಣಕಾಸು ವ್ಯವಸ್ಥೆ ಮತ್ತು ನಿರ್ವಹಣೆ – ೨

    ಈ ಹಿಂದಿನ ಅಂಕಣದಲ್ಲಿ ಸೂಚಿಸಿದಂತೆ ೩ ಹಣಕಾಸಿನ ಹೇಳಿಕೆಗಳು ಕಂಪನಿಯ ಸ್ವರೂಪದ ಬಗ್ಗೆ ಮಾಹಿತಿಯನ್ನು ನೀಡಬಲ್ಲವು. ಇಲ್ಲಿ ನಾವು ಸೂಕ್ಷ್ಮವಾಗಿ ಇವುಗಳಿಂದ ಯಾವ ರೀತಿಯ ವಿಶ್ಲೇಷಣೆ ಮಾಡಬಹುದೆಂಬುದರ ಬಗ್ಗೆ ತಿಳಿಯೋಣ.

    ಲೆಕ್ಕ ಪತ್ರ (Balance Sheet):
    ಒಬ್ಬ ನೋಡುಗನಿಗೆ (ಬಂಡವಾಳದಾರ ಅಥವಾ ಭಾವೀ ಬಂಡವಾಳದಾರ) ಈ ಕೆಳಗಿನ ೩ ಮುಖ್ಯ ಮಾಹಿತಿ ನೀಡುವುದು.
    ೧. ಕಂಪನಿಯಲ್ಲಿ ಎಷ್ಟು ಸಂಪತ್ತಿದೆ?
    ೨. ಕಂಪನಿಗೆ ಎಷ್ಟು ಋಣವಿದೆ?
    ೩. ಕಂಪನಿಯ ಶೇರುದಾರರಿಗೆ ಎಷ್ಟು ಹಣ ಉಳಿಯುವುದು?

    ಹಣದ ಹರಿಯುವಿಕೆಯ ಹೇಳಿಕೆ:
    ಹಣವು ಎಲ್ಲೆಲ್ಲಿ ಖರ್ಚಾಗಿದೆ ಎನ್ನುವುದರ ಬಗ್ಗೆ ಮಾಹಿತಿಯನ್ನು ನೋಡುಗನಿಗೆ ನೀಡುವುದು.

    ಆದಾಯದ ಹೇಳಿಕೆ:
    ಇದನ್ನು ಲಾಭ ಮತ್ತು ನಷ್ಟದ ಹೇಳಿಕೆ ಎಂದೂ ಕೂಡ ಕರೆಯುವರು. ಹಾಗಾಗಿ ಇದು ಕಂಪನಿಯ ಲಾಭ ಹೊಂದುವದರ ಬಗೆಗೆ ಹೇಳುವುದು. ಕಂಪನಿ ಎಷ್ಟು ಆದಾಯ ಗಳಿಸಿತು ಅಥವಾ ನಷ್ಟ ಮಾಡಿಕೊಂದಿತೆನ್ನುವುದರ ಬಗ್ಗೆ ಹೇಳುವುದು.

    ಈ ಹಣಕಾಸಿನ ಹೇಳಿಕೆಗಳ ಮೂಲಕ ಕಂಪನಿಯಲ್ಲಿ ಬಂಡವಾಳ ತೊಡಗಿಸುವ ಅಥವಾ ಬೇರೆ ಏನಾದರು ಮಾಡುವ ನಿರ್ಧಾರವನ್ನು ಒಬ್ಬ ಬಂಡವಾಳದಾರ ಮಾಡಬಹುದು. ಒಬ್ಬ ವ್ಯವಸ್ಥಾಪಕನಿಗೆ ಈ ಕಂಪನಿಯ ಕಾರ್ಯ ನಿರ್ವಹಣೆಯ ವಿಶ್ಲೇಷಣೆಯು ಕಂಪನಿಯ ಸ್ಥಿತಿಗತಿಗಳ ಬಗ್ಗೆ ಅರಿವು ಮೂಡಿಸುವುದು, ಶೇರು ಹೂಡಿಕೆದಾರರ ಅಭಿಪ್ರಾಯವನ್ನು ಅರ್ಥಮಾಡಿಸುವುದು ಜೊತೆಗೆ ಚಾಲಕಗಳನ್ನು ಹುಡುಕಿಸುವುದು ಮತ್ತು ಆ ಮೂಲಕ ಲಾಭಾಂಶ ಹೆಚ್ಚಿಸಲು ಅವುಗಳೊಂದಿಗೆ ಕಾರ್ಯ ನಿರ್ವಹಿಸಲು ತೊಡಗಿಸುವುದು.

  • ಹಣಕಾಸು ವ್ಯವಸ್ಥೆ ಮತ್ತು ನಿರ್ವಹಣೆ – ೧

    ಸಾಮಾನ್ಯವಾಗಿ ಒಂದು ಉದ್ಯಮ ಸ್ಥಾಪಿಸಲು ಬಹಳ ಮುಖ್ಯವಾಗಿ ಎರಡು ಅಂಶಗಳನ್ನು ಪ್ರತಿಯೊಬ್ಬರೂ ಯೋಚಿಸುವರು. ಒಂದು ಎಷ್ಟು ಆರ್ಥಿಕ ಬಂಡವಾಳದ ಅಗತ್ಯವಿದೆ, ನಂತರ ತೊಡಗಿಸಿದ ಬಂಡವಾಳದಿಂದ ಎಷ್ಟು ಸಮಯದಲ್ಲಿ ಇದಕ್ಕನುಗುಣವಾಗಿ ಉತ್ತಮ ಗಳಿಕೆಯನ್ನು ಪಡೆಯಬಹುದು ಎಂಬುದು. ಈ ಎರಡೂ ಅಂಶಗಳು ದುಡ್ಡಿನೋಡಗಿನ ವ್ಯವಹಾರವಾದ್ದರಿಂದ ಹಣಕಾಸು ವ್ಯವಸ್ಥೆ ಮತ್ತು ನಿರ್ವಹಣೆಯ ಒಳಗೆ ಬರುತ್ತವೆ.

    ಕಂಪನಿಯ ಹಣಕಾಸು ವ್ಯವಸ್ಥೆಯ ಲೆಕ್ಕಪತ್ರಗಳು ಕಂಪನಿಯ ಕಾರ್ಯ ನಿರ್ವಹಣೆಯನ್ನು ಬಿಂಬಿಸುತ್ತವೆ. (ಈ ಬಗ್ಗೆ ಮುಂದೆ ಚರ್ಚಿಸೋಣ) ಜೊತೆಗೆ ಕಂಪನಿಯ ಸ್ಥಿತಿಗತಿಗಳ ಬಗ್ಗೆ ಆಳವಾದ ಮತ್ತು ಅಗತ್ಯವಾದ ಮಾಹಿತಿಗಳನ್ನು ಹೊರ ನೀಡುತ್ತವೆ. ಇದರ ವಿಶ್ಲೇಷಣೆಗೆ ೩ ಮೂಲಭೂತ ವಸ್ತುಗಳ ಅಗತ್ಯವಿದೆ.

    ೧. ಲೆಕ್ಕ ಪತ್ರ (Balance Sheet)
    ೨. ಆದಾಯ ವಿವರಣಾ ಹೇಳಿಕೆ (Income Statement)
    ೩. ಹಣ ಹರಿಯುವಿಕೆಯ ವಿವರಣಾ ಹೇಳಿಕೆ (Cash Flow Statement)

    ಮುಂದಿನ ಅಂಕಣಗಳಲ್ಲಿ ಇವುಗಳ ಬಗ್ಗೆ ಸ್ವಲ್ಪ ಅರಿಯೋಣ. ನಂತರ ಇವಗಳನ್ನು ಉಪಯೋಗಿಸಿ ಹೇಗೆ ವಿಶ್ಲೇಷಣೆ ಮಾಡುವುದು ಎನ್ನುವುದರ ಬಗ್ಗೆ ಮುಂದುವರಿದು ಕೊನೆಗೆ ವಿಸ್ತಾರವಾದ ಉದ್ಯಮಗಳ ಹಣಕಾಸು ವ್ಯವಸ್ಥೆಯ ಬಗ್ಗೆ ಅರಿಯೋಣ.

  • Finance and Management – 5

    In the earlier blog we looked at the current assets and current liabilities, we now take another look at the other components in the Balance sheet.
    In the last blog we also got to know the reason why these are called – current (assets or liability), so one could safely assume that the ones that do not fall into this category would generally be of a longer time frame in nature. What would these be?
    If we look at the assets side of the Balance sheet, we realize that the ones that do not get converted in a year’s cycle should generally – of the nature of buildings, furniture, machinery etc. These are called the Fixed Assets.
    On the liability side, the ones which of long term nature could further be looked at as two components – A debt which is long term (would take a long time to clear off) or could be the equity that is put in by the owner. Thus we would generally have two sub-components – Long term Liabilities and Owner’s Equity.
    We could represent the balance sheet in the following manner.
    Read in Kannada:

  • Finance and Management – 4

    Current Assets and Current Liabilities
    Continuing our discussion from the earlier blog on Balance sheet, in today’s blog we have a look at two sections – Current Liabilities and Current assets.
    A look at the balance sheet and we generally see items under the title Current Assets and Current Liabilities. Why are these called current? A look at the nature of the sub-items would give us an understanding of the same.
    Current Assets generally have items like – Cash, Accounts Receivable, and Inventory etc. Current Liabilities has items like Accounts payable, Notes Payable.
    All these items get converted from one form to another or change hands within one business cycle (may be an accounting year) or shorter. Hence they are termed current – meaning have to be processed in the current business year.
    Read in Kannada: