Last week, I talked about ratio analysis as a whole and the right and wrong uses for the method. This week, as I promised, I will described a few types of ratios and what they are used for. Continue reading
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
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.
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.
Last semester, due to the heavy workload that every first semester senior goes through, my independent seminar digressed a little bit from the mathematical fields of business. Therefore, this semester I decided to focus on something much more math-related in the field of business, and I picked financial accounting as the starting point of the study. Continue reading
I was originally going to use this blog post as a reflection of the semester, but I remembered that there was a separate blog post just for that, so I’m going to talk about the different types of stocks in the stock market, like I said I would in the previous post.
To be honest, the project is going at a slower pace than expected. I think most of this comes from my hasty expectation of everybody doing things the way I want them to and everything working out perfectly, but there are certainly other factors that weigh into the problem. The first suspected cause is college. Now this isn’t a major time-consumer, but it’s something that stays on my mind 24/7 and is sort of a constant stymie. However, the process will be over by the second semester, and I think the project will pick the pace up for the second half of the semester too. Continue reading
This week, there wasn’t much progress with the competition, so this week’s blog post is going to be focused more on the academic side of my independent project. My online course this week focused on the stock market, so I thought that it would be good to write the blog post to inform you guys about the different types of stocks in the stock market and some basic knowledge on it.
Making Progress – Ricky Yu
The main focus of this blogpost will be the competition. As of now, the competition planning is on a great track, and there are just people now that I have to reach out to and work out details with. Firstly, I concluded that it was unrealistic to try and have this happen in the winter, so the possible dates were pushed backed to the spring. Secondly, T. Carolyn brought this idea up to the board of administration, and she said that they have expressed enthusiasm for the project, which was absolutely great news to me.
Week 4 Blog Entry – Ricky Yu
This week, my online course was about Interest Rates and Cash Flow Analysis. Divided up into 4 main parts of Inflation, APR & EAR, Term Structure and Discounted Cash Flow (Decision Making), the course mainly dealt with how a cash flow chart is structured, and how interest rates and the time value of money affect the cash flow analysis. Although the course material was pretty straightforward, the example cash flow charts made it inevitable to think that the structures of them were unnecessarily complicated.