Category: 08. Financials

Financial cardinals needed

Of the many financial measures available, only three qualify as financial cardinals – the ones whose alarm bells must ring to prompt action in good time They are total revenue, total cost and profitability They’re ‘catch-all’ measures covering all outputs, outcomes and inputs: Total revenue covers net outputs sold and outcomes the customers took into …

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Financial metrics are not enough

How do you know if an organisation has performed well?   If it’s a private company, financial results will reflect customers’ valuations of what they were offered and translate them into revenue and profits   If it’s a public sector unit, the tax-paying public will judge quality and service levels received – actual costs are …

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Bank Loans need Trust, Growth needs Credit

The essence of the following examples was extracted from a splendid book, Sapiens, written by Dr Yuval Noah Harari Example 1 – Loans require Trust: For most of history per capita production remained the same In 1500, global production of goods and services was equal to about $250 billion – today it hovers around $60 …

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The need for money

Hunter gatherers had no money – they specialised in different tasks and shared their goods and services through an economy of favours and obligations A piece of meat given or free would carry with it the assumption of reciprocity – say free medical assistance or sea shells (much valued currency) for flint Local trade specialists …

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Financial data can be ‘dangerously misleading’

Transcript of a second broadcast where the UK’s Ed Smythe is interviewed by the USA’s Real News Network GREGORY WILPERT: Welcome to the Real News Network. I’m Gregory Wilpert, joining you from Quito, Ecuador. The Bank of England has raised interest rates in the UK for the first time in a decade. The official bank …

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