Tashkent financial institute department of finance from "finance"
Figure 2. Amazon's competitive advantage34
Download 377,45 Kb.
|
Coursework.1
- Bu sahifa navigatsiya:
- Problems to increase income of corporative enterprises and their solutions
- CONCLUSION
- REFERENCES
- 3 http://vl-legal.uz/en/46-publication/company-news/194-forms-of-doing-business-in-uzbekistan
- 44 https://finance.yahoo.com/quote/NFLX/ .
- 47 https://finance.yahoo.com/quote/NFLX/ .
|
This figure explains all factors Amazon considers a primary force to target and focuses on. The buyers, suppliers, expected entrants, and substitutes that people consider a threat for Amazon products and services. This plan will focus on Amazon's financial statement. How well the company is performing year by year. The report will analyze Amazon's ups and downs from 2016 to 2019. Table 3 Financial Data (Amazon)35
The data here collected from Yahoo Finance from 2016 till 2019. All items in Table 3 are available in the income statement and the balance sheet. As we can see every factor and item shows an increase from one year to another. The figure illustrates the growth Amazon displayed from year to year. However, one can’t help but notice even though the asset in every year is high, the net income is shockingly low. Amazon has low net income because they have a lot of debt and liability collected. They also spent a lot of their money on acquiring companies and manufacturing big productions. This made a lot of people debate whether or not Amazon is profitable. The table below provides the ratios of current, quick, and cash. The current ratio reveals if companies can pay their debts. Any current ratio value that is less than 1 indicates the company might struggle to pay off its debts. Amazon from 2016 to 2019 has a current ratio above 1. While the quick ratio shows company capabilities to pay for its current liabilities without worrying about selling its inventory. The cash ratio shows if the company can look out and deliver their short-term requirement like paying for the salary. 0.5 to 1 is the preferred cash ratio. Amazon has shown in the table is between those number in every year.
As discussed above, these graphs are associated with the ratios. All current ratios above 1 indicate the company is in good condition to pay out its debts. The ideal quick ratio should be 1:1, unfortunately, Amazon in every year is less than 1. Indicating Amazon couldn’t be able to pay out its full liabilities in the short term. Whereas they are in good condition in Cash ratio, placed between 0.5 and. 0.6. Table 5 Activity Ratios of Amazon37
Inventory turnover is considered the ideal ratio of turnover. In Amazon cases, they have a high inventory level, meaning that they have good management skills. Receivable turnover shows how well the company is collecting their debts. A higher ratio means companies are collecting their debt faster. Interestingly, Amazon has a ratio decrease; from 16.3 in 2016 to 13.5 in 2019. Total asset turnover is the company's integration of its assets to generate sales. The ratio for total asset turnover for Amazon in the 4 years. Table 6 Debt Ratios of Amazon38
The return on equity is the company's ability to generate income from their equity. A ratio from 0.15 to 0.20 is considered to be good. Amazon has managed to get that in both 2018 and 2019.Return on Assets is related to how much success the company is having based on assets. The year 2018 has the highest return on assets with 6%. The profit margin is when sales revenue is greater than the cost of production. With Amazon's growth, we can see 2018 and 2019 has a higher ratio than in 2016 and 2017. Table 7
Profitability Ratios of Amazon To sum up, Amazon has been the top online retailer due to how they operate their strategy efficiently. Ever since the move to online, Amazon has seen consistent increases year by year. However, the low net income and the increased liability is alarming to many. But I think that is due to Amazon's commitment to investing in long-term projects and acquiring big enterprises. More expenses come when there are more obligations and responsibilities, but in the long term, Amazon can make up for the expected losses. There is no denying the progress Amazon has made, with the new project plans ahead and new manufacture production they are creating, Amazon has shown no sign of slowing down. Problems to increase income of corporative enterprises and their solutionsUnfortunately, the majority of businesses ultimately end up with their business. In large part, this is due to an inability to generate a sufficient profit, and it’s not a problem to scoff at even businesses built on solid ideas can suffer from a lack of profitability. So, what prevents businesses from being profitable in the first place? Here are seven major problems: Low prices; Too much overhead; Too many ongoing costs; Unseen or hidden costs; Fierce competition; A lack of market awareness; Inconsistency. Low prices. Setting prices is one of the first and most important decisions company will have to make for business. How lider set prices could easily dictate company future success. Most entrepreneurs immediately caution themselves not to set prices too high; if company product costs more than firm competitors', company could turn away company entire target market.Too much overhead. There are some things business absolutely needs to survive. However, company may be overestimating needs in some key areas. Too many ongoing costs39. It doesn’t take much for business expenses to start spiraling out of control; and because expenses come in so many forms, it’s hard to pin down any one area where company is bleeding money.Unseen or hidden costs. Company may have a solid expense plan worked out, but there are some expenses and they generally aren’t lumped into “regular” expenses. For example, if business runs into emergency repair needs, that event could instantly demand all the revenue team has made for the month40.Fierce competition. It’s possible that enterprise expenses and prices are just fine, but company is facing competition too tough to keep up with. For example, if firm competitors have products similarly priced to theirs but objectively better, firm won’t sell enough to say alive.A lack of market awareness. Company may also be suffering from a lack of market awareness; if company product is at an ideal price for both corporate enterprise and its customers, enterprise still might not generate a profit if no one knows it exists. Firm greatest tools to overcome this obstacle are marketing and advertising; they cost a bit up-front, but are well worth the investment if company plan them properly.Inconsistency. There’s a chance that enterprise have a perfect way to make business profitable -- but firm is executing too inconsistently for business to reap the rewards. For example, company expenses may swing enormously from month to month, or sales team might perform unpredictably based on individual variables.If corporate enterprise is currently struggling to generate a profit for its business, or if company can’t work the details out in business plan, take these problems one step at a time until company isolate the cause of the problem. There’s always a solution or at least an improvement to be had41. To keep business running, company need to increase revenues. Increasing revenues are a sign of good financial health of a business. The basic operational marketing and service tactics below can help small business owners cut their costs and boost their business revenues. Corporate enterprise must start with a clear strategy that is aligned with revenue goals. Company need to identify what success looks like and develop the route to get there. Defining enterprise revenue goals is important in each stage of business. Greece didn’t have enough money to meet its obligations. And with it, it raised the question of how to fix cash flow management problems for big businesses42. In business, we focus a lot on profit, but it’s easy to forget that operating with a positive cash flow can be just as important. Companies can be profitable and yet not have adequate cash flow – in a worst-case scenario, insufficient cash flow in a business over the long term leads it to bankruptcy. In manufacturing, let’s look at an example of an automotive company making car parts and selling them at a profit. There’s a long supply chain and the wholesale customers work with can take months to pay in invoices. However, the suppliers work with to create parts often want to be paid upon receipt or in a couple of weeks. Even if corporate enterprise have a great product that is increasing in sales, firm is in trouble if company is caught between suppliers that want corporate enterprise to pay and buyers that are slow to pay. Although corporate enterprise is a profitable company, this situation means company can’t pay suppliers on time or meet payroll and operational expenses. Corporate enterprise has got itself into a cash flow crisis. On the other hand, corporate enterprise sales could grow with money coming in but it doesn’t necessarily mean company is making a profit if corporate enterprise is spending too much elsewhere. If corporate enterprise borrow money to solve cash flow problems (and Carillion ended up owing billions), the rising debt costs can raise costs above what corporate enterprise is making. Like Carillion, eventually cash flow dries up and the business fails43. Big businesses and their financial departments constantly look at ways to improve cash flow. Here are ten ways to fix cash flow problems for business: Increase prices. Like small businesses, big businesses need to be careful about raising prices – it’s a balance between increasing prices and doing it in a way which doesn’t alienate or cost customers. In 2017, it was well publicized that streaming giant Netflix increased prices on products, which caused a backlash in the media and on social channels. However, Netflix is still going from strength to strength, and most of its customers believe the value of what they get from the product is worth what they pay44. Reduce the cost of payroll. Payroll is typically the biggest expense for a business. The tough reality is that when earnings fall below a certain point, cutting personnel will be the main way that outgoing cash flow can be stemmed. If business does make this decision, it needs to work out what to cut, when to cut and how to minimize the damage. However, there are other more palatable ways company can cut payroll costs, such as shortening the working week, cutting salaries, turning full-time workers into part-timers, enacting leave of absences and cutting bonuses. Get rid of excess inventory. If company is a manufacturer and enterprises have excess inventory in the form of goods produced that firm haven’t been able to sell, then enterprise effectively have money sitting around that can be a huge drain on profits and cash flow if company can’t sell it. Unfortunately, it’s unlikely corporate enterprise will be able to recover all it costs, but company can mitigate the damage from additional storage and carrying costs, as a decline in value as inventory ages. If inventory comes in the form of raw materials, corporate enterprise can use it in other lines or other plants. Company might even want to work with competitors by sharing inventory and supplies. Negotiate with suppliers. Finding business in a weak position with suppliers can negatively affect cash flow, which means corporate enterprise should look at ways to offer value and get concessions on price. One of the ways company can do this is by offering a way to reach new markets45. If corporate enterprise are part of a food and drink company facing a supplier price increase, company could offer opportunities to enter and be successful in new developing markets that a supplier might not be able to get traction in. Another way corporate enterprise could get price concessions from a supplier is by reducing price risk. For example, if company is a chemical manufacturer facing a price rise from a supplier, corporate enterprise can persuade them to keep prices lower by entering a long-term contract, which from their side is a safer bet than dealing with short-term economic fluctuations. Merge the business. Mergers and acquisition are a big part of corporate finance, with news headlines routinely talking about bringing companies together to form bigger ones. Mergers concern the combination of two companies, while an acquisition is where one business buys another. Company can also create a more skilled management team, especially if the two companies are a good cultural fit and complement each other. It also offers a way to reach new markets and geographies, which can increase market share and bring in more money. Sell assets which don’t need. A natural effect of mergers and acquisitions is that corporations may end up having non-core assets that lack management time and investment, which end up as unwanted assets and become a drain on finances. Sometimes it’s worth selling these non-core assets to other businesses that can add the technology and distribution capabilities to take better advantage of what it can produce. One thing to remember is that although selling off assets will increase corporate enterprise cash flow, it doesn’t necessarily mean it will leave company in better shape. For example, if business sells a division for millions, it won’t make money for the company next year and can’t be sold off again. Lets take General Electric. Poor results in 2017 meant it put plans in place to sell $20bn of non-core assets to improve cash flow, and it remains to be seen whether this activity which will keep it attractive to investors46. Delay capital spending. There are good reasons for businesses to have a high capital expenditure, particularly in industries that require significant investment in areas such as innovation for future growth. However, capital budgets can consume a large amount of cash flow and sometimes difficult decisions need to be made around cutting the money spent on acquiring or maintaining assets. It’s here where financial leaders need to have a good knowledge of the capital requirements of future projects, the balance sheet, and cash flow constraints. In wholesale and distribution, for example, although it may help cash flow to cut the spending needed to improve the effectiveness of a warehouse, it may cost a company long term if it doesn’t increase storage and access to inventory. Shut down the loss-making parts of business. Sometimes large businesses may have to shut down its loss-making divisions to focus on its bigger markets. For an automotive manufacturer, it may be the case that it’s losing money in an operation in Europe due to increasing competition and bigger overheads but is profitable in a developing country with better growth prospects. In a worst-case scenario, a business may consider shutting down completely so it stops the risk of losing money during ongoing production. This may buy time to evaluate the future of the business and what corporate enterprise should do next to stem losses. However, there’s a whole lot of issues around making such a move – corporate enterprise will need to think about the negative media attention corporate enterprise might get, the loss of confidence with customers and clients, as well as what it will do in affecting employees and any perishable inventory which company haven’t sold. Raise new debt or refinance. Refinancing is an expected part of corporate businesses, which might involve restructuring a debt with a lower business rate or issuing new equity to pay down debt. If businesses have cash flow problems, refinancing could be a way for to meet debt obligations before getting in further trouble and resorting to bankruptcy. More positively, corporate enterprise can use refinancing to take advantage of better credit ratings or favorable market conditions. Corporate enterprise may also want to raise new debt to support a growth or acquisition strategy, which company have predicted in the long term will increase cash flow through increased sales. Again, using the Netflix example, the company offered $1.6bn in new debt in 2017 to fund an extended content budget. The idea around this is to attract new subscribers internationally with original content – and Netflix more than hitting targets that were set47. The Netflix example is unique in that it currently operates with negative cash flow, which it expects to continue for a few years. This is because it pays for content before viewers watch it. However, over the long term, the thinking is that it will profit from recurring revenue and a loyal customer base. While “negative” cash flow doesn’t sound good, it isn’t always bad – sometimes company have got to spend money to make money. Raise equity through the stock market. If enterprise reaches a certain size, then it may reach a stage in its develop. What this means is that business will essentially sell ownership in the form of shares, which it can raise funds to increase cash flow and which company spend on growing further. This type of activity can be a huge media event, such as the giant billion-pound initial public offerings (IPOs) for companies such as Facebook and Google. The benefit of equity capital over debt is that business won’t have to repay the shareholder investment with accumulated interest48. However, company will be expected to provide a return on investment for shareholders from positive performance in the stock market in the form of dividends and stock valuations. The disadvantage from a business point of view is that shareholders now hold pieces of company, which means corporate enterprise is beholden to ensure the business remains profitable. CONCLUSIONA general rule in corporate enterprise financial success in business is that company cannot increase profits directly, only indirectly. Company can just say that enterprises are going to increase profits of business without some specific strategy. The only thing that according to below analytical information of Amazon and other companies, there have been given my opinions to make more profit of corporate enterprise. If companies allow to my suggestions, corporate enterprises may increase their income and can help them to show higher economical results. Lead generation is process that corporate enterprise use to attract interested prospects to business. If five out of ten prospects come into place of business end up buying from company and corporate enterprise can increase the number of people coming in from ten to 15, firm can make more money and increase profits by 50 percent49. Lead Conversion is the process by which corporate enterprise convert leads into paying customers. This is the measure of the effectiveness of company sales efforts. If corporate enterprise can increase corporate enterprise conversion rate from one out of ten to two out of ten, company can double its sales and increase profits. The number of individual sales that corporate enterprises make to each customer that corporate enterprises acquire. By increasing the frequency of purchase by ten percent, boss increase company sales and increase profits by the same percentage. Profit margin is the gross profit that corporate enterprises make from the sale of each product or service. By continually seeking ways to raise the price or to lower the cost of the product or service without decreasing the quality, enterprise can increase profits per sale. Cost of customer acquisition is the amount that corporate enterprises have to pay to acquire each paying customer. Company should be continually seeking creative ways to improve its advertising and promotion so that it costs corporate enterprise less to buy each customer. This can impact and increase profits of business dramatically. Increasing Customer Referrals. The customers who come to corporate enterprise as the result of referrals from satisfied customers. Developing one or more proven referral systems for business can have an inordinate impact on sales and business will make more money50. Eliminate costly services and activities. Many corporate enterprises get into a routine of offering expensive services to their customers that they could easily discontinue with no loss of customer satisfaction. Reduce break-even. It point is the number of items that corporate enterprise must sell each month to break-even or start making a profit. Corporate enterprise uses this break-even point to evaluate the potential effectiveness of any advertising or any other expense that corporate enterprise incur to increase sales. Every expense to increase profits must be seen as an investment with an expected rate of return that is greater than the cost. REFERENCESConstitution of the Republic of Uzbekistan. -T .: “O’zbekiston” NMIU, 2017. Address of the President of the Republic of Uzbekistan Sh.M.Mirziyoyev to the Oliy Majlis of January 24, 2020. MirziyoyevSh.M. Together we will build a free and prosperous, democratic state of Uzbekistan. –T .: “O’zbekiston”, 2016. Saidova M. H. The granted opportunities for promotion business and their economic results in Uzbekistan, 2015. G'oyibnazarov B. K. The granted opportunities for promotion business and their economic results in Uzbekistan, 2015. Bahromov N. I. Assessment and regulation of corporate credit risks in the activities of commercial banks, 2018. Collins, Jim. "The Classics: The Complete Guide to the Best Business and Management Books Ever Written." Inc., December 1996. American Library Annual for 1956-1957. New Providence, NJ: R.R. Bowker, 1957. Cornell Legal Information Institute."Accumulated Earnings." Accessed April 11, 2020. Athabasca University. Dauderis, Henry & David Annand. "Introduction to Financial Accounting Version 2019–Revision A." Accessed April, 2020. Reporting Excess Deductions on Termination of an Estate or Trust on Forms 1040, 1040-SR, and 1040-NR for Tax Year 2018 and Tax Year 2019. Accessed August 3, 2020. Cambridge Dictionary. "Earnings." Accessed April 10, 2020. U.S. Securities and Exchange Commission Form 10-K Apple, Inc. 2019. Internal Revenue Service. "Topic No. 407 Business Income." Accessed Dec. 21, 2020. Investor.gov. "Earnings Per Share." Accessed April 11, 2020. IRS. "What is Earned Income?" Accessed April10, 2020. www.prezident.uz - Official site of the President of the Republic of Uzbekistan. www.lex.uz- National Data base of Legislation of the Republic of Uzbekistan. www.stat.uz – The State Committee of the Republic of Uzbekistan on Statistics data. www.sciencedirect.com– Site of Popular Scientific Journals. www.vl-legal.uz - Forms of Doing Business in Uzbekistan. www.worldbank.org – The World Bank Annual Report. www.entrepreneur.com - Home of Entrepreneur magazine. www.freshbooks.com - Business Name Generator. www.fieldengineer.com - Online Marketplace. www.moneycrashers.com – Personal Finance Guide. www.briantracy.com – Leading Self Development Courses. www.getpenta.com – Business Banking. www.Finance.yahoo.com - Yahoo is now a part of Verizon Media. www.thehartford.com - Business, Home and Car Insurance Quotes. www.nibusinessinfo.co.uk - Official online channel for business advice. www.investopedia.com - The world's leading source of financial content journal. www.news.morningstar.com – Latest Market Headlines. www.smallbusiness.chron.com –Business Website. www.finweb.com – The Independent Financial Portal. www.sciencedirect.com - Science, health and medical journals, full text articles and books. 1www.stat.uz – The State Committee of the Republic of Uzbekistan on Statistics. https://www.stat.uz/uz/ 2 www.worldbank.org. Annual report of World bank 2019 3 http://vl-legal.uz/en/46-publication/company-news/194-forms-of-doing-business-in-uzbekistan4 www.lex.uz - National Data base of Legislation of the Republic of Uzbekistan 5https://stats.oecd.org/glossary/detail.asp?ID=454#:~:text=Corporate%20enterprises%20are%20defined%20as,entities%20independent%20of%20their%20owners.6 https://www.quora.com/What-are-the-various-kinds-of-corporate-enterprises 7 American Library Annual for 1956-1957. New Providence, NJ: R.R. Bowker, 1957. 234 p 8 https://accountlearning.com/advantages-and-disadvantages-of-corporate-enterprises/ 9 Saidova M. H. The granted opportunities for promotion business and their economic results in Uzbekistan, 2015. 106 p. 10 Collins, Jim. "The Classics: The Complete Guide to the Best Business and Management Books Ever Written." Inc., December 1996. 187 p. 11 Prepared by author 12 https://www.upcounsel.com/can-i-use-enterprise-in-my-business-name 13 https://accountlearning.com/advantages-and-disadvantages-of-corporate-enterprises/ 14 https://www.bizfilings.com/toolkit/research-topics/managing-your-taxes/federal-taxes/s-and-c-corporations-create-different-tax-consequences 15 https://www.thehartford.com/business-insurance/calculate-business-income-insurance16 U.S. Securities and Exchange Commission Form 10-K Apple, Inc. 2019 17 Cambridge Dictionary. "Earnings." Accessed April 10, 2020 18 Cornell Legal information institute. "Net Earnings." Accessed April 11, 2020. 19 Cornell Legal Information Institute."Accumulated Earnings." Accessed April 11, 2020 20 Athabasca University. Dauderis, Henry & David Annand. "Introduction to Financial Accounting Version 2019–Revision A." Page 9. Accessed April 9, 2020 21 https://www.finweb.com/taxes/3-different-forms-of-small-business-income.html 22 https://www.nibusinessinfo.co.uk/content/sales-and-other-sources-business-income23 Internal Revenue Service. "Topic No. 407 Business Income." Accessed Dec. 21, 2020 24https://www.investopedia.com/ask/answers/122214/what-difference-between-revenue-and-income.asp#:~:text=Revenue%20is%20the%20total%20amount,company's%20total%20earnings%20or%20profit 25 https://www.investopedia.com/terms/n/netincome.asp 26 Reporting Excess Deductions on Termination of an Estate or Trust on Forms 1040, 1040-SR, and 1040-NR for Tax Year 2018 and Tax Year 2019," Page 1-3. Accessed August 3, 2020. 27 http://news.morningstar.com/classroom2/course.asp?docId=142913&page=2. 28 https://www.investopedia.com/terms/n/netincome.asp. 29 https://getpenta.com/en/blog/7-different-types-of-income-streams/ . 30 G'oyibnazarov B. K. The granted opportunities for promotion business and their economic results in Uzbekistan, 2015. 286 p. 31 https://paginas.fe.up.pt/ipc/suporte/varios/amazon_final.pdf. 32https://www-emerald-com.adu-libatabase.idm.oclc.org/insight/content/doi/10.1108/17410401211263872/full/html. 33 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2165444 34https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3234380 35 https://finance.yahoo.com/quote/AMZN/ 36 https://finance.yahoo.com/quote/AMZN/ 37 https://strategiccfo.com/inventory-turnover-ratio-analysis/ 38 https://finance.yahoo.com/quote/AMZN/ 39 https://www.fieldengineer.com/blogs/top-business-expansion-problems . 40https://mariopeshev.com/the-biggest-business-challenges-growing-companies/ . 41 https://www.entrepreneur.com/article/284772 . 42 https://chargebacks911.com/top-5-challenges-facing-small-medium-and-large-businesses/. 43 https://www.freshbooks.com/hub/startup/increase-revenue 44 https://finance.yahoo.com/quote/NFLX/ .45 https://www.apogaeis.com/blog/10-ways-to-increase-your-business-revenue/ . 46 https://www.entrepreneur.com/article/284772 47 https://finance.yahoo.com/quote/NFLX/ .48 Bahromov N. I. Assessment and regulation of corporate credit risks in the activities of commercial banks, 2018. 34 p. 49 https://www.moneycrashers.com/ways-increase-revenue-business/. 50 https://www.briantracy.com/blog/financial-success/10-tips-to-increase-profits-in-your-business-make-more-money/. Download 377,45 Kb. Do'stlaringiz bilan baham:
|
Bosh sahifa
юртда тантана
Боғда битган
Бугун юртда
Эшитганлар жилманглар
Эшитмадим деманглар
битган бодомлар
Yangiariq tumani
qitish marakazi
Raqamli texnologiyalar
ilishida muhokamadan
tasdiqqa tavsiya
tavsiya etilgan
iqtisodiyot kafedrasi
steiermarkischen landesregierung
asarlaringizni yuboring
o'zingizning asarlaringizni
Iltimos faqat
faqat o'zingizning
steierm rkischen
landesregierung fachabteilung
rkischen landesregierung
hamshira loyihasi
loyihasi mavsum
faolyatining oqibatlari
asosiy adabiyotlar
fakulteti ahborot
ahborot havfsizligi
havfsizligi kafedrasi
fanidan bo’yicha
fakulteti iqtisodiyot
boshqaruv fakulteti
chiqarishda boshqaruv
ishlab chiqarishda
iqtisodiyot fakultet
multiservis tarmoqlari
fanidan asosiy
Uzbek fanidan
mavzulari potok
asosidagi multiservis
'aliyyil a'ziym
billahil 'aliyyil
illaa billahil
quvvata illaa
falah' deganida
Kompyuter savodxonligi
bo’yicha mustaqil
'alal falah'
Hayya 'alal
'alas soloh
Hayya 'alas
mavsum boyicha
yuklab olish