How To Use Financial Ratios To Evaluate Performance

Financial ratios are a great tool to achieve a fair idea on a company’s performance. These ratios demonstrate the relationships in between the financial statement aspects. Albeit the financial ratios offer historical data, your management can count on the ratios to fathom the internal strengths & weaknesses of your organization- as well as estimate the financial performance by the company in future. Ratios aren’t generally meaningful as the standalone numbers yet they imply sense while compared to industry averages and historical. It should be stressed here an analysis of the financial ratios lead to two forms of comparison. First of all, the analyst could compare present ratio result with that of the past of one company. The 2nd method involves comparing ratio of a particular company with that of a similar enterprise.

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There are 4 major financial ratios that help to evaluate performance and the article below highlights how these ratios assist the management in the evaluation.

Liquidity

Current ratio is said to be the most usual liquidity ratio. It refers to ratio of the current assets in relation to the current abilities of the company. It indicates the firm’s capacity to pay off its short-term bills. The experts say that a ratio which is higher than1 is generally a minimum since anything lesser to 1 implies the firm is burdened with more liabilities in comparison to assets.

Solvency

These ratios indicate the financial stability of a company as they calculate the firm’s debt relation to its equity & assets. A firm with much debt might not be flexible enough to manage the cash flow in case business situations deteriorate or rate of interest rises. The usual solvency ratios refer to debt-to-equity & debt-to-asset.

Profitability

These ratios point to management’s capacity to convert the sales dollars to profits & cash flow. Common ratios here are operating margin, net-income margin and gross margin.

Efficiency

The two usual efficiency ratios imply receivables turnover and inventory turnover. Higher inventory-turnover ratio signifies your firm is quite successful in transforming its inventory to sales. Higher receivables turnover ratio means your firm has succeeded in collecting outstanding credit-balances.

Boost Your Credit Rating/Step By Step Guides

A good credit record is of utmost importance when you have to apply for a car or house loan. Many borrowers get readily rejected given poor credit score since the lenders find them unsafe to lend. Are you too planning for a car or a new house anytime soon? Well, it’s only natural that you would be looking for a loan then which is almost impossible without a strong credit rating. The target is to keep a rating of 751 or above to confirm great loans at least rate of interest- even if it’s impossible your goal would be to assure a rating of 651 at least. The article below is a guide on how to boost up your credit rating.

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Be sincere with the bills

This is one of the simplest and vital most steps to ensure an improved credit rating. Make sure to pay all your bills on time to bypass any chance of penalty fees that can cast a severe impact on your credit score. The best thing here is to inform your bank to extract automatic payments right from bank account as the due date approaches.

Keep check on credit report

You must keep check on credit report from time to time. Many a times the credit reports show up with errors which can divert your luck on the desired loans. When you are able to monitor your credit record you can always identify out the report errors before the lenders get to view that- thereby ensuring an authentic error free credit report by the time of loan approval.

Clear up card debts

You must clear up all your credit card debts before you go to apply for the car or house loan. The trick here is to take some loan from a trusted friend or relative and repay the card dues. Yes, it won’t reduce your loan burden but an informal loan from a near one is unable to cast any shadow on the credit report. A debt free portfolio will always work to enhance your credit rating.

Guides To Student Auto Loans

Are you a student looking for the right advice on auto financing? Well, students are often subjected to rejection for auto finance loans given their lack of credit score. Now, cars are indispensable for almost every student these days in today’s fast paced life where teens are juggling hard between their college/high school, tuitions and of course the outings. But the usual rejection by the auto financers renders them unable to have their own vehicle in most of the cases. However, the situation is not that gory and there are steps that can actually help the students to have sufficient auto loans.

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As mentioned earlier, zero credit score is generally the reason behind the rejection for car loans for the students, you can expect positive results by ensuring the financer about your economic stability.

Regular income proof

You have to provide your lender a solid proof of regular income on your behalf so that the lenders do not find you risky to approve the loans. It won’t be a problem if you are working part-time-  everybody understands that students have to juggle between studies and job and hence get no time for a full time work. You have to prove that your job offers uninterrupted payments every month which implies that you will be able to stay serious with your loan repayments. Show the latest pay-stubs to your lender as your income proof.

Get a co-signer

This is one of the most significant tips to ensure a hassle free student auto loan. If you get a backing from a third-party, the loan approval chances are always higher. In many cases, students aspiring for auto loan take a financially stable adult friend or relative as their co-signer who promises to repay the loan in case the young student fails to.

Down payment

You are most likely to get approved for student loans if you are able to make a sufficient down payment- say 10 percent of the vehicle’s cost.

No-credit lenders

Do you know that there are some lenders who won’t involve any credit check for loan approval? Thus, try to find a no-credit lender to whom your zero credit record won’t be a criterion to approve the car loan.

Good Ways To Reduce Bad Debt

The term “bad debt” refers to the debts not cleared on the specified timelimit or not repaid at all. Many business owners tend to get loose with loyal customers allowing them to enjoy a cash free service (buy now pay later) for a couple of months or more. But what if the customers fail to submit the due payment on time or are unable to repay at all? This results in serious financial crisis within the company which might even lead to employee unrest. Thus, the article here highlights on some good ways to reduce bad debt.

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Consult debt recovery groups                                        

A competent debt recovery group will be an able help here. These recovery companies have their collection strategies that are customized for all customers & would function with your own team to assure their approach is cordial enough & doesn’t scare away the clients. The debt recovery companies are willing to help you at any level of invoice transaction.

Send a 10-15 day ultimatum

You need to be really firm with the customers as much as you are needed to stay cordial with them. It’s true that customer is your king but sometimes even the kings had to be bowed down to ensure common good. You must know that customers always have their preferences on which debts to solve first & which ones to keep on hold- make sure your company does not fall on the second category. Hence, it’s advised that you inform them that you are backed by a strong collection agency by sending them a 10-15 day ultimatum letter. Usually, the ultimatum letter from collection agencies seems sufficient to get the indebted clients to come up with the needed payments.

Credit protection companies

You must be in touch with a credit protection agency to save yourself & your company during the debt crisis. These agencies function like insurance- in case your customer hasn’t paid, you will be getting invoice value right from credit protection firms. You would have to pay monthly charges to these agencies to ensure a safe financial coverage all through, regardless of the number of invoices.

Credit Card Tricks That Saves You Money

Credit cards are vital financial instruments these days. It’s really hard to find a wallet which is not stuffed with these cash rich cards. Credit cards ensure an easy shopping anywhere, sans the need to carry hefty cash bundles which has eventually led to its overwhelming popularity. Are you too a credit card user? Well, then you must have a look at the article below since its all about the credit card tricks that can save you money.

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Maximize statement cycle

This is one of the most vital points which can save money for a credit card user and a smart way to utilize the card. Those who are able to the balances on time and in full generally receive a free of charge loan from the banks.  Any of the charges made on the day prior to the closing of your statement would be due twenty to twenty-five days later. In case you are able to make the similar charge the very day post your statement closure, you will have another additional thirty days for payment sans incurring interest. In implies that by using this trick you would be getting a grand interest-free tenure of up till 55 days.

Stay away from credit card debt

The credit card users often complain about getting trapped in card debt which in turn pulls away a huge lot of savings. But there are ways how you can save money by avoiding credit card debt. The first thing is to use the card wisely and never to jump on frequent and impulsive shopping. Keep a record of your expenses with the card so that by the end of the month you can evaluate your shopping spree and understand where to control. Besides, make sure to pay up your monthly bills on time. Lastly, try to limit the number of credit cards- because more cards you have, easier would be the shopping and hence an uncontrolled expenditure in turn.

Purchase gift cards

There are rewards or gift cards these days which allow the customers to enjoy great discounts from particular stores. You can buy gift cards with credit cards from the stores you hit frequently and use those reward cards for significant discounts in your credit card purchase.

Tips to get an Auto Loan with Bad Credit

The only possibility for a man or a woman with bad credit to buy a new car was to buy it in cash (which is actually very sensible, as you acquire the car immediately and there are no monthly reminders from the bank), but now you can afford the car even with bad credit. Here are the tips for getting an auto loan with bad credit:

  • Try to Bring the Bills that are Overdue as well as Payments into the Line: After the credit industry notices you are trying to settle you’re paying and spending habits, your credit score increases and you get more creditworthy, which results in a car loan.
  • Use a Trustworthy Co-Signer: In case you have a trustworthy member of the family or friend who can operate as a co-signer for your car, then your chances of being approved for a car loan are high, notwithstanding your credit history. The thing is that the co-signer is as responsible for the vehicle as you, so you should make all the monthly payments or you may risk damaging that person’s credit history.
  • Other Possibilities for Taking a Loan: There are people who pay for their cars with credit cards, and sometimes such a loan makes good sense to do it like this. If the dealership allows it, you may just take the car for a test drive. And if this car appears to be what you want it to be, you then take out your plastic credit card and on condition that the credit line on the credit card is high enough and there is enough place for the whole purchase, then all you have to do is to have the card swiped through the reader, sign all the necessary documents and you then become a car owner.
  • Look for a Lender that Works with High Risks: At first verify the bad credit lenders in order to make sure that they do give bad credit card loans. Of course you would not like to apply to lots of lenders, because all of them will definitely carry out a credit check. And as you know, having lots of credit check inquiries will high up your bad credit history. So the main point is to look for the proper lender that is surely offering auto loans with bad credit.
  • Check out for the Credit Unions that Offer Bad Credit Car Loans: In case you belong to any credit union, ask them which way is a better way to afford a car with bad credit at first, even with a dvla lost driving license. Credit unions help their participants, and do not help the board of directors, so actually they will search for a way that gives you the possibility to keep the interest low when you want to purchase the car with bad credit.

As you may see, following the advises given in the article above, you may learn how you can get a guaranteed auto loan even in those cases when you get bankrupt, or have bad credit or even have no credit at all.

Great deals on Bridgestone Tyres

Are you in quest of affordable Bridgestone tyres? The Bridgestone products always assure premium quality and are a common fixture for most of the Aussie vehicles, be it an Australian 4 x 4 or SUV.  This Nippon tyre manufacturer is unanimously recognized as one among the best of tyre developers and hence a one-stop choice for the smart car owners. Now, are you worried that these superlative tyres are going to cost you a leg? Don’t be so scared since a quality buy doesn’t always involve huge expenses and there are ways actually how you can achieve great deals on the Bridgestone tyres. The post below suggests the essential tips on landing up with awesome deals on these premium tyres.

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First of all, you should know that there are some auto dealers over the internet which run special discount packages from time to time. So, while searching for the Bridgestone tyres online search as “good deals on Bridgestone tyres” or “discounted Bridgestone tyres”. As you make a search with these keywords, the search engine will provide you auto dealer websites that are presently offering special rebate packages on the Bridgestone products. The discounts can vary from store to store and hence you have browse through the discounted packages available from varied online dealers to find out the most compatible Bridgestone deal for you.

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If you search well you can land up with as much as 50 percent of discounted package on Bridgestone products. Ozzytyres would be suitable portal for you here as the high profile Australia based automotive dealer often extends great rebated deals, amounting to 50 percent, on premium quality car tyres.

Besides, there are some sites that are ready for discounted packages throughout the year, round the clock. These are discounted automotive portals online which are ready to extend diverse discounted deals with rebates ranging from 20% to even up till 80%. It depends on how well you can search for these amazing discounted stores online. Just check out beforehand that the discounted Bridgestone product from these 24/7 rebated sites do not bear any compromise on tyre condition.