Revision as of 11:52, 26 June 2021

MEETING STAT

Join Zoom Meeting
https://zoom.us/j/93608785870?pwd=ZDFzY2U2djI2TlloeVdUUFE0L3FoUT09
Meeting ID: 936 0878 5870
Passcode: 855014

QUIZ
Learning from SW Airlines
- Cost: food: $6 to 20 cents; Per mile cost: 30 cents
- Every employee awareness
DAY 1:
- Fundamentals of financial statements
  - Market capitalization = stock price x No of shares outstanding
    - Drivers for stock prices
      - 8% by macro economics (GDP; news, policy; pandemic etc)
      - 31% by Stock market
      - 18% Industry
      - 41% Company specific actions
  - Shareholder expectations
    - Maximise ROI, EPS, Profits, Survival, sales
  - Drivers of Company Performance
    - Growth profit
    - Robust Margins
    - Managing by assets efficiently
  - Shareholder value
    - Shareholder value = Dividend Yield + Price appreciation
    - Return on Invested Capital
      - Share holders view : (ROIC) = Net profit / Invested capital
      - Managers view: Income statement; Balance sheet...
        Income statement: How much is earned over a period of time (net income)
        
        Sales Revenue: Sales and is Realised and Earned (post the delivery)
        
        Expenses: When resource is used
        
        Income:
        
        Revenue : price x volume
        
        Balance Sheet: Assets; What we Own & What we Owe (Liabilities, Owners equity, inventory )
        
        Cash Flow analysis: At least 6 months cash flow is to be available when income becomes zero
        
        Capital MGT is in 8 words: Buy low, Sell high; Collect now; Pay later

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 *** Operation
 *** Multiple
+** Cost DECISIONS
+*** Avoidable  cost
+*** Opportunity  cost
+*** Incremental  cost (or marginal cost)
+*** Differential cost
+** Setting standards
+*** It is basically a cost per unit that should be attained (For eg: Rs0.75 per plant on SFM is setting standards)
+***
 **