BU121 Study Guide - Final Guide: Triple Bottom Line, Operating Leverage, Mass Customization
Document Summary
E d w i n a c h e u n g | 1. Different analytical measures are important to different users at different stages. Different measures as there are different concerns at different stages. Cash burn rate how quickly the venture uses cash. Liquidity the venture"s ability to meet short-term financial obligations: helps you evaluate how you"re managing the working capital, measuring the trend over time. Conversion period the length of time of the operating/working capital cycle: time to convert an assert into cash. Leverage implications relating to the use of debt. Industry comparable analysis compare against the industry average. If going into new industry, the data will be hard to get so compare to competitors. Trend analysis compare to your own company over time. Operating and financial leverage pros and cons. Higher return to company (tax- deductible, less to pay) Negotiating (9 marks: 5 marks mc, 4 marks sa)
