Upgrade to Pro
— share decks privately, control downloads, hide ads and more …
Speaker Deck
Features
Speaker Deck
PRO
Sign in
Sign up for free
Search
Search
Introduction to business: finance
Search
Ted Major
February 23, 2016
Education
0
340
Introduction to business: finance
CC-BY-SA
Ted Major
February 23, 2016
Tweet
Share
More Decks by Ted Major
See All by Ted Major
Beowulf
tedmajor
0
230
Introduction to business: operations management
tedmajor
0
1.2k
Introduction to business: human resources management
tedmajor
0
1.2k
Introduction to business: motivation
tedmajor
0
1.3k
Introduction to business: management
tedmajor
1
1.3k
Introduction to business: distribution and pricing
tedmajor
0
1.2k
Introduction to business: product and promotion
tedmajor
1
1.3k
Introduction to business: marketing
tedmajor
1
1.3k
Introduction to business: personal finance
tedmajor
0
1.4k
Other Decks in Education
See All in Education
【みんなのコード】文科省生成AIガイドラインVer.2.0 入門編
codeforeveryone
0
110
(元)教育担当がお伝えする、若手社員が成長しまくるOJTポイント
masakiokuda
0
230
Informasi Program Coding Camp 2025 powered by DBS Foundation
futura_dicoding29
0
110
(モブ)エンジニアが伝えるアウトプット活動のススメ!! #カンリーLT
masakiokuda
2
240
Ilman kirjautumista toimivia sovelluksia
matleenalaakso
1
20k
新人研修の課題と未来を考える
natsukokanda1225
0
1.4k
Prógram La Liberazione
olafurtr90
0
170
小学校プログラミング教育、次の5年に向けて 〜つくること・学ぶことの歓びへ〜 /NextGenerationOfProgrammingEducation
kiriem
2
390
付箋を使ったカラオケでワイワイしましょう / Scrum Fest Okinawa 2024
bonbon0605
0
140
Web 2.0 Patterns and Technologies - Lecture 8 - Web Technologies (1019888BNR)
signer
PRO
0
2.6k
1127
cbtlibrary
0
190
Image compression
hachama
0
410
Featured
See All Featured
A better future with KSS
kneath
238
17k
A designer walks into a library…
pauljervisheath
205
24k
Refactoring Trust on Your Teams (GOTO; Chicago 2020)
rmw
33
2.8k
Designing Experiences People Love
moore
140
23k
Designing for humans not robots
tammielis
250
25k
Why Our Code Smells
bkeepers
PRO
336
57k
Intergalactic Javascript Robots from Outer Space
tanoku
270
27k
The Psychology of Web Performance [Beyond Tellerrand 2023]
tammyeverts
46
2.3k
Faster Mobile Websites
deanohume
306
31k
How GitHub (no longer) Works
holman
314
140k
Exploring the Power of Turbo Streams & Action Cable | RailsConf2023
kevinliebholz
30
4.6k
The Art of Programming - Codeland 2020
erikaheidi
53
13k
Transcript
Finance: Acquiring & using funds cc licensed ( BY NC
ND ) flickr photo by photog63: http://flic.kr/p/GzRs8
Quiz • Closed book/closed notes • Phones & computers put
away • You may collaborate with your team • You are responsible for the answers on your quiz • You do not have to choose the same answers as your team
cc licensed ( BY NC ND ) flickr photo by
tomfs: http://flic.kr/p/8zGd2J
cc licensed ( BY NC ND ) flickr photo by
Eric E Johnson: http://flic.kr/p/5TCmBJ
cc licensed ( BY NC ND ) flickr photo by
wallyg: http://flic.kr/p/azCBRS
Pay for it?
Cash?
Loan! (debt)
cc licensed ( BY NC SD ) flickr photo by
axoplasm: http://flic.kr/p/6wWbD
cc licensed ( BY SD ) flickr photo by salisasaki:
http://flic.kr/p/6Gx11F
cc licensed ( BY NC SD ) flickr photo by
drewish: http://flic.kr/p/2UczJ
Pay for it?
Loan?
Cash! (equity)
Risk: probability of bad outcome creative commons licensed (BY-ND) flickr
photo by GavinLi: https://flic.kr/p/7C7QQV
risk-reward tradeoff • higher return? • higher risk • lower
return? • lower risk
Remember accounting? organizing, analyzing, and reporting financial information ratio analysis
Liquidity Ratios current ratio: current assets current liabilities
acid-test (quick) ratio: cash + marketable securities + receivables current liabilities
Debt (Leverage) debt to OE: total liabilities owners’ equity describes
capital structure
Capital structure • Balance between debt and equity • Generally
similar within industry • Not always! –BUD: 1.084 –MolsonCoors: .4171 –SABMiller: .5549 –Boston Beer: .0011 • ????
Profitability EPS: net income after taxes number of shares outstanding
return on sales: net income net sales return on equity: net income after tax owners’ equity
creative commons licensed (BY) flickr photo by StockMonkeys.com: https://flic.kr/p/dxpt8u
leverage creative commons licensed (BY-NC-ND) flickr photo by Martin Whitmore:
https://flic.kr/p/5LVn8X
Leverage, equal capital Eck-Witty Corp. • Equity: $1,000,000 • Debt:
$0 • Earnings: $120,000 • ROE: 12% Oze-Mor, Inc. • Equity: $200,000 • Debt: $800,000 • Earnings: $60,000 • ROE: 30%
leverage, equal investment Eck-Witty Corp. • Equity: $1,000,000 • Debt:
$0 • EBIT: $160,000 • Taxes: $40,000 • Earnings: $120,000 • ROE: 12% Oze-Mor, Inc. • Equity: $1,000,000 • Debt: $4,000,000 • EBIT: $800,000 • Interest: $400,000 • Taxes: $100,000 • Earnings: $300,000 • ROE: 30%
leverage, equal investment Eck-Witty Corp. • Equity: $1,000,000 • Debt:
$0 • EBIT: $80,000 • Taxes: $20,000 • Earnings: $60,000 • ROE: 6% Oze-Mor, Inc. • Equity: $1,000,000 • Debt: $4,000,000 • EBIT: $400,000 • Interest: $400,000 • Taxes: $0 • Earnings: $0 • ROE: 0%
current assets creative commons licensed (BY-NC-ND) flickr photo by County
of Dare: https://flic.kr/p/nMo3ui
accounts receivable?
creative commons licensed (BY-SA) flickr photo by 401(K) 2013: https://flic.kr/p/biaNt6
creative commons licensed (BY) flickr photo by Inha Leex Hale:
https://flic.kr/p/73x1km
Time Value of Money • Dollar today vs dollar tomorrow?
creative commons licensed (BY-NC-SA) flickr photo by Cathérine: https://flic.kr/p/4wjsVc