Economic and Financial Profitability Analysis
Profitability and Financial Metrics
Profitability is a concept that relates the results achieved in a fiscal year with the elements that, directly or indirectly, have led to their derivation. Its determination is given by the following ratio:
Profitability = Profit / Capital Invested
Or more broadly:
Profitability = Profit for the Year / Capital Invested
Multiplying and dividing by net sales for the period under analysis, we obtain the two essential components in the formation of profitability:
Return
Read More1929 Economic Crisis and the Great Depression
The 1929 Economic Crisis and the Great Depression
The Economic Crisis of 1929 and the Great Depression
The main cause of the crash of the New York Stock Exchange was speculation, fueled by the desire to get rich, the economic boom of the 1920s, and the lax regulations of Wall Street. This situation was exacerbated by monetary inflation, a banking structure dependent on rising stock prices, the existence of portfolio companies focused on increasing contributions, and mass psychology.
This system began
Read MoreGlobal Retail Market: Strategies and Logistics
Marketing Channels and Utility
31) In spite of Walmart’s potential to transform India’s [retail market]… E) all of the above
32) Marketing channels exist to create utility for customers… B) price utility.
33) Coca-Cola Company’s global marketing leadership position is based on… A) place utility.
34) Some wine importers insist on shipping their wines [in temperature-controlled containers to protect the product’s integrity]… C) form utility
35) Which of the following most accurately describes the
Read MoreMarket Structures: Perfect Competition to Monopoly
Market Structures and Competition
Competition is the rivalry among several firms that want to sell the same kind of goods or services to the plaintiffs in that market.
Types and Models of Market by Level of Competition
- Perfect Competition: The consumer is benefited most as it is at a very low price and a very high amount of goods are produced. The product sold is identical.
- Imperfect Competition:
- Monopolistic Competition: Characterized by having a large number of bidders.
- Oligopoly: Oligopolistic firms
Key Concepts in Economics: Scarcity, Markets, and Efficiency
1. Defining Economics and the Questions Economists Answer
Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity, all the things that influence those choices, and the arrangements that coordinate them. Economics has two parts:
A) Microeconomics: The study of the choices that individuals and businesses make and the way these choices interact and are influenced by governments.
B) Macroeconomics: The study
Uneven Development in the Neoliberal Era
What is Neoliberalism?
Neoliberalism is an economic and social policy model that shifts control of production factors from the public sector to the private sector. Emerging in the 19th and 20th centuries, neoliberalism advocates for governments to reduce subsidies, limit protectionism, decrease deficit spending, reform tax laws to broaden the tax base, and open markets for trade. It aims to abolish fixed exchange rates, privatize state-owned property, and establish privately managed businesses.