Topic Gateway Series Customer profitability analysis Customer profitability analysis Topic Gateway Series No. 55 1 Prepared by Jasmin Harvey and Technical Information Service January 2009 Topic Gateway Series Customer profitability analysis About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition‚ a brief overview and a fuller explanation of practical application. Finally they
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Customer profitabilty analysis idetifies customer service activities and cost drivers and determines the profitability of each customer or customer group. Here‚ customer service include all activities to complete the sale and satisfy the customer including advertising‚ sales calls‚ delivery‚ billing‚ collection‚ service calls‚ inquiries and other forms of customer service. Customer profitability analysis allow managers to: Identify most profitable customers Manage each customer’s cost-to-serve Introduce
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to Gina in her investment program? A. Liquidity B. Safety C. Business failure D. Market risk Question 3 of 20 5.0 Points Gina Davidson has received $50‚000 in a divorce settlement and is trying to decide how to invest it. She has looked at stocks but knows that some stocks have lost a lot of value for their owners recently. What aspect of investing is she most concerned about? A. Risk B. Return C. Diversification D. Liquidity Question 4 of 20 5.0 Points An individual
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adequate amount of capital in relation to their risk taking. Liquidity is ‘’the ability to convert an asset to cash quickly’’ (investopedia.com). A bank has to be in a position to obtain liquidity at short notice to avoid liquidity crises. Since not all of the bank’s customer’s deposits are fixed for long periods‚ cash has to be made available to meet the customer’s demand. Restrictions are set on the investments as liquidity levels have to be evaluated. It may be difficult and time consuming
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The Importance of Managing Liquidity for a Company Liquidity is a measure of a firm’s ability to meet immediate and short-term obligations‚ or assets that can be quickly converted to do it. There are two ratios to measure liquidity. Current ratio is calculated by dividing current assets by current liabilities. Since sometimes inventories are the least liquid of current assets‚ firms also calculate quick ratio. Managing liquidity is important in terms of operating activities. Firms which usually purchase
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NBER WORKING PAPER SERIES PROFITABILITY OF MOMENTUM STRATEGIES: AN EVALUATION OF ALTERNATIVE EXPLANATIONS Narasimhan Jegadeesh Sheridan Titman Working Paper 7159 http://www.nber.org/papers/w7 159 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge‚ MA 02138 June 1999 This paper has benefited from the excellent research assistance of Fei Zou and helpful comments from the participants of finance workshops at Indiana University and the University of Texas. All opinions expressed
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140 SU 3: Profitability Analysis and Analytical Issues QUESTIONS 3.1 Profitability Ratios Questions 1 and 2 are based on the following information. The financial statements for Dividendosaurus‚ Inc.‚ for the current year are as follows: Balance Sheet Cash Accounts receivable Inventory Net fixed assets Total $100 200 50 600 $950 Accounts payable Long-term debt Capital stock Retained earnings Total $140 300 260 250 $950 1. Dividendosaurus has return on assets
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and firms’ performance in emerging markets: The case of Jordan. 1-25. Akinlo and Olufisayo‚ O. (2011). The effect of working capital on profitability of firms in Nigeria: evidence from general method of moments (GMM). Asian Journal of Business and Management Sciences‚ Volume 1‚ Number 2‚ 130-135. Al-Debi’e‚ M. M. (2011). Working capital management and profitability: The case of industrial firms in Jordan. European Journal of Economics‚ Finance and Administrative Sciences‚ Volume 36‚ 75-86. Azam‚ M
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Profitability Analysis • In the last 5 years we can see the profitability ratios of the company taking a beating. • Especially in the last 2 years‚ these margins have drastically dropped. • As a result of this‚ the company’s profit margins have dipped and in this particular the company has incurred a loss. • As we can see in the graph‚ Net margin ratio has been affected and has seriously dipped in the past years. • Though gross margin and operating margin have looked like increasing‚ these
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Digitally signed by Poshan Raj Basnet DN: CN = Poshan Raj Basnet Location: Kathmandu Date: 2008.05.22 21:59:48 +05’45’ A STUDY ON PROFITABLILTY AND SOLVENCY POSITION OF Nabil Bank Limited Submitted By Poshan Raj Basnet TU Regd. No.: Roll No.: 23/28 Exam Roll No.: 1239 A Field Work Report Submitted to Everest College Tribhuvan University Kathmandu‚ Nepal In partial fulfillment of the requirement for the degree of Bachelor of Business Administration. KATHMANDU‚ NEPAL
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