How to become a winner company in crists time

18/04/2020 19:18

5. During the coming 3-6 months keep liquidity for survival à what to do?
   • reduce operating costs, focus on irrelevant costs /look for efficiency, cutting some CAPEX or defer it / new funds, extend maturity to defer interest payments or get new loans though governments. Larger cooperation with vendors, customers from a financial point of view (to defer debts, collections,). capital markets for big corporates with high rates from investors to get additional credits (investments bonds to raise liquidity)
5. Companies with strong balance sheets tend to have more buffer
5. Keep capital structure and increase liquidity as reducing OPEX
5. For future build resilience  (STRONG B/S AND LIQUDIITY CASH/FLOW AND REVENUE)
   • 46% CAR (MICROSOFT) 1% (ROYAL CARIBEEAN) 23%  (INDITEX)

What Is the Cash Asset Ratio (CAR)? 

The cash asset ratio is the current value of marketable securities and cash, divided by the company's current liabilities. Also known as the cash ratio, the cash asset ratio compares the amount of highly liquid assets (such as cash and marketable securities) to the amount of short-term liabilities. This figure is used to measure a firm's liquidity or its ability to pay its short-term obligations

What Are Current Liabilities? 

Current liabilities are a company's short-term financial obligations that are due within one year or within a normal operating cycle.

Current liabilities are typically settled using current assets, which are assets that are used up within one year. Current assets include cash or accounts receivables, which is money owed by customers for sales. The ratio of current assets to current liabilities is an important one in determining a company's ongoing ability to pay its debts as they are due.

The cash asset ratio is a liquidity ratio and is similar to another liquidity ratio, the current ratio. The current ratio, however, includes current assets other than cash and marketable securities, such as inventories. Including all current assets, not just those that are immediately convertible into cash, makes the current ratio a less stringent measure than the cash asset ratio. The cash asset ratio is, therefore, a better measure of a firm's liquidity.

• Cash ratio = (Cash + Marketable Securities)/Current Liabilities
• Quick ratio = (Cash + Marketable Securities + Receivables)/Current liabilities
• Current ratio = (Cash + Marketable Securities + Receivables + Inventory)/Current Liabilities
• Cash return on assets measures the proportional net amount of cash spun off as the result of owning a group of assets. The measure is commonly used by analysts to compare the performance of businesses within the same industry, since it is very difficult for someone to obfuscate the cash flow figure. Thus, the ratio is quite a reliable and comparable measure of asset performance across an industry. A high percentage of cash return on assets is especially necessary in an asset-heavy environment (such as any manufacturing industry), where the cash is needed to maintain, update, and invest in additional assets. The measure is usually derived in aggregate for an entire business, in which case the calculation is:
• Cash flow from operations ÷ Total average assets = Cash return on assets
• In the calculation, the cash flow from operations figure comes from the statement of cash flows. The denominator includes all assets stated on the balance sheet, not just fixed assets. 
• The cash return on assets is especially valuable when there is a notable difference between cash flows and reported net income, as can sometimes be the case when the accrual basis of accounting is used. In this situation, calculating the return on total assets can be misleading, so cash flow is used instead of the net income figure.

The cash asset ratio is the current value of marketable securities and cash, divided by the company's current liabilities. Also known as the cash ratio, the cash asset ratio compares the amount of highly liquid assets (such as cash and marketable securities) to the amount of short-term liabilities. This figure is used to measure a firm's liquidity or its ability to pay its short-term obligations.

5. WHICH ARE THE NEW CONSUMER HABITS TO GENERATE NEW CASH FLOW AND NEW I NVESTMENTS NEEDED TO GENERATE NEW REVENUES FROM NEW FUTURE CUSTOMERS HABITS AFTER COVIT-19

WINNERS (ONLINE ELECTRONICS) AND LOSERS  (I.E RESTAURANTS) (LEFT AND RIGHT HAND)

After covit-19: More flexibility / companies working in projects and team dismantled after that, change on the company structure no physical location, multidisciplinary team projects. Rely on variable costs and less in fix costs

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