COMM 103 Lecture Notes - Lecture 3: Capital Asset, Cash Flow

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gary Bissonette

Document Summary

To do for next class: need to be responsible for formulas on the front of the foundation fast track, read appendices and understand break even point calculations, 4 practice exercises on course website. Terms to understand (by end of next few sessions): profit formula, cost structure and drivers, cost ladder, depreciation, cash flow positice, breakeven point, margin management, cash operating cycle, capitalization, liquidity and solvency, capacity, velocity (turnover, kpis or kpms. Capital challenge: all organizations (small, large, profit, non-profit) will have an ongoing thirst for capital. In order to grow your capital capacity, you have to consider how investments will drive revenue and improve profitability position. Cash flow: ultimately determines organization"s growth and success, and therefore should drive decision-making. Earnings per share (eps) = net income / stocks outstanding: a company would buy back shares to raise the eps, and thus raise share price. Liquidity and solvency are really based on cash flow.