The yield of a company

3 December 2009 - 17:12

One says that a company is profitable when it generates sufficient utility or benefit, that is to say, when their income are majors that its expenses, and the difference among them is considered like acceptable.

But the correct thing at the time of evaluating the yield of a company is to evaluate the relation that exist between its utilities or benefits, and the investment or the resources that have used to obtain them.

And to find this yield, one becomes use of indicators, indices, ratios or yield reasons, of which, the main ones are the following:

IT NIBBLES

The index of return on assets (IT NIBBLES by his abbreviations in English) measures the yield of a company with respect to the assets that it owns. IT NIBBLES gives an idea us of how efficient is a company in the use of his assets to generate utilities.

The formula of NIBBLES is:

Labels: Finances

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Guide to invest of Robert Kiyosaki

2 December 2009 - 17:18

The following one is a brief summary of the guide of investment presented/displayed by Robert Kiyosaki through its books, especially its book guides to invest, and other means; guide whom it tries to help the people to become investors who generate wealth and reach the financial freedom.

In order to begin, we will say that Kiyosaki affirms that two types of investments exist: assets that are created or bought soon to sell, and assets that to be created or buy so that they generate to him to one a cash flow:

• Assets that are created or bought soon to sell: they are assets that, generally, are bought at a low price, with the hope of which with time they are appraised (it increases his value), soon to sell them to a price greater than the price of purchase, and to obtain therefore a gain. For example, one house that is acquired to be remodelada, and soon to be sold to a price greater than the price of purchase.
• Assets that are created or bought so that they generate to him to one a cash flow: they are assets that are created or they are bought with the intention of which they generate to him to one an immediate gain based on the generation of a cash flow. For example, one house that is acquired soon does not stop to be sold, but to rent it and to thus generate income by rent. Other examples of this type of assets or investments are the businesses, real estate, the actions and the obligations.

Labels: Personal finances, Finances

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How to save

24 November 2009 - 19:31

An important requirement in the handling of the personal finances is to have the discipline to save, that is to say, to have the discipline to reserve a part of the obtained income of money, and to keep them for a later use.

Acquiring the custom to save will allow us to have the knowledge security that we have money with which we can respond before any emergencia or unforeseen circumstance; it will allow us to join money soon to be able to invest it and thus to obtain new sources of income, for example, when acquiring businesses or investments; and also it will allow us to join money soon to be pleasant some to us that allows us to improve our quality of life, for example, when buying a new automobile, or when going to us of trip.

We see next a method made up of 5 steps that will help us to save:

1. To make a picture of income and debits

In the first place we must make a picture with the games that generate income to us and those that generate debits to us, as well as the monthly amount that to us usually generates each game.

Labels: Personal finances, Finances, Step by step

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The true cost of a credit

26 October 2009 - 17:49

The main criterion that is taken into account at the time of evaluating the different banks or financial organizations that they can grant to a company a credit to him, is the interest rate that receives.

Nevertheless, the interest rate that promises to receive the banks or financial organizations is not so representative, because other additional costs exist that are included in the loan, such as the expenses of granting or maintenance, that usually is not with clarity, and which they lift the cost of the credit.

Reason why at the time of evaluating and comparing the different financial supplies that they exist in the market, before to take into account the interest rate, which in fact we must take into account is the total cost of the financing (well-known like effective cost, or total cost financial), which includes the interest rate plus the other additional costs.

We see an example, we suppose that we want to acquire a loan of 1000 by a period of 5 months. We suppose that the bank offers to us to acquire a monthly rate of 4%, whereas bank B offers to us to acquire a monthly rate of 5%.

Labels: Finances

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Advice when acquiring a loan

10 October 2009 - 15:46

We see next some advice who we would have to take at the time of deciding to us to acquire some loan or credit for our business.

To assure to us that really we needed a loan

The first advice is to assure to us that really we are going to need extra money for our business, and that the unique form to obtain it is through an external financing.

We could need money to increase our capital of work, to acquire new to scheme, abrir new the premises, to be able to cancel other debts, etc.

We must consider that to ask for a loan implies a great responsibility, reason why before asking for it, we must make sure that we will be able to pay it in its due time.

Labels: Advice, Finances

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How to choose the indicated enterprise credit

9 October 2009 - 15:32

Once we have been convinced that we needed an enterprise credit, and we have made sure in one first instance of which we are in the capacity to pay the loan, the moment has arrived for evaluating and for comparing the different banks or financial organizations that the required credit can grant us, and the different financial products that they offer.

Besides the amount and the requirements or conditions that can solicit to us, the factors or criteria that we would have to take into account at the time of deciding us by the more advisable financial supply are:

The cost of the loan

Before to take into account the interest rate that offer the banks or financial organizations, which in fact which must take into account is the total cost of the financing (well-known by total financial cost, or effective cost), is conformed by the interest rate, plus other additional costs that usually are included in the loan, such as the expenses of granting or maintenance.

Labels: Finances

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How to calculate the quota of a loan

2 October 2009 - 15:36

The quota of a loan is the amount that is due periodically to pay after to acquire one, with the purpose of to be giving back part of this one and, simultaneously, to be paying the interests that have been received to acquire it.

Besides the amount of the loan, the interest rate and the granted term, to determine the quota to pay the method or system of amortization that uses the bank or financial organization are due to take into account that grant the credit; which basically use two methods: the German method and the French method.

We see next each of them:

1. German method

The German method is very nowadays not used; in this method the quotas are decreasing, that is to say, at the outset high quotas are pleased, but soon they are falling.

In order to understand this method, we see an example:

Labels: Personal finances, Finances, Step by step

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Definition of yield

1 October 2009 - 15:10

The yield is the capacity that has something to generate sufficient utility or benefit; for example, a business is profitable when it generates more income than debits, a client is profitable when she generates majors income that expenses, an area or department of company is profitable when it generates majors income that costs.

But one more a more precise definition of the yield is the one of which the yield is an index that measures the relation between utilities or benefits, and the investment or the resources that were used to obtain them.

In order to find this yield, simply we must determine the rate of variation or growth that has had the initial amount (investment), when becoming the final amount (utilities).

For example, if we invested 100 and after a year it grows in 110, we can say that the 100 had a growth of 10%, that is to say, the investment of the 100 had a yield of 10%.

The formula to find this yield consists of reducing the investment of the utilities or benefits; the turn out to divide it the investment enters, and soon to multiply it percent to turn it into percentage.

Labels: Concepts, Finances

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