Author Archives: rickyyu1999

Non-Financial Metrics to Financial Performance

Linking Non-Financial Metrics to Financial Performance

 

In accounting analytics, most of the predictions and calculations are done with numbers that come directly out of a financial statistic that the company gives, or a financial prediction that a company forecasts. However, in certain situations when making key managerial decisions at a company, one has to utilize non-financial metrics to the maximum due to three reasons: 1. Cash flow can be forecasted from the company’s investments in intangible assets. 2. Projects should be chosen based on which has the highest expected payback rate, and non-financial metrics are very useful for that. 3. Financial metrics are not the only factors that go into considering and evaluating managerial and/or business performance. Continue reading

Reflecting- Ricky

The semester is almost over, and I’m inching closer and closer to graduation. My independent study this semester was so much more better structured than it was last semester, and I think it has been much easier because I put more time into planning out the details of how the course was going to go. However, I am still a little bit behind the schedule, because I did not expect the courses to be double the workload they were the last semester. This is only to say that I am behind on the blog posts, because it is insanely difficult to squeeze over two hours of online lectures into one page of a blog post. The learning is very much on track. Continue reading

Earnings Management

Earnings Management

 

After a long 4-week break, I sort of had to force myself to get back into the rhythm of studying finance, because I practised experiential entrepreneurship for my senior project. It wasn’t an entirely separate topic, but was very different in the method of learning that I had to actually experience the situations rather than learn it through videos online. Anyways, this week’s topic was Earnings Management. Continue reading

Earnings Management

Earnings Management

 

After a long 4-week break, I sort of had to force myself to get back into the rhythm of studying finance, because I practised experiential entrepreneurship for my senior project. It wasn’t an entirely separate topic, but was very different in the method of learning that I had to actually experience the situations rather than learn it through videos online. Anyways, this week’s topic was Earnings Management. Continue reading

Ratio Analysis – Ricky

Ratio Analysis

Ricky Yu

2017/2/13

 

Ratio Analysis is a very self explanatory subject, as it is really just analyzing situations using different kinds of ratios. Ratios are very handy when assessing risk, liquidity, and profitability, because they can be used to accentuate competitive advantages and warn for potential trouble. Continue reading

Cash Flows

Operating, Investing, and Financing Cash Flows

 

This week, my study was mainly based on what cash flow statements are and what they consist of. The format of the Statement of Cash Flows is as follows: Net cash from operating activities + net cash from investing activities + net cash from financing activities = Net change in cash balance. On a cash flow statement, non-cash transactions are listed on the bottom below the cash transactions, and interest and taxes paid in cash also have to be recorded on the cash flow statements.

cash-flow Continue reading

Balance Sheet Equations – Ricky

The Balance Sheet Equation

 

There is one basic underlying grammar rule in writing a balance sheet, and that is the balance sheet equation. The balance sheet equation goes: Assets = Liabilities + Stockholder’s Equity. This means that the resources of a company is represented by the claim of resources by the owners of the companies and the outsiders. An apt example of this is housing mortgages. If I pay a part of the price of the house and leave a percentage of it as mortgage, the price that I paid becomes my, the owner’s, claim of the property, which is the house in this case, and the mortgage is the outsider’s claim of the resources.

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