4 Top Financial Ratios That Every Investor Should Know

Financial ratios are commonly used by companies to determine the financial health of a business. If you’re a prospective investor, who would like to become a shareholder in a company, it’s critical you understand the Earnings per Share (EPS) before checking out other ratios.

EPS refers to the profit that a company makes in a year. Companies with high EPS for the past five years are more robust and stable making them the best to invest in if you are a potential investor. Also, creditors, financial analysts, managers, and shareholders use financial ratios to find out the strength and the weakness of a company.

There are four categories that companies use to analyze financial ratios data.

Profitability Ratios

These ratios measure how a company utilizes its resources. Profitability ratios also help to establish the ability of companies to make sufficient return on sales, total assets, and the sum capital invested. They include:

  • Profit margin Ratio – Evaluated by dividing the net income by the purchases made over a period.
  • Return On Equity – Determined by calculating the difference between the Net income and Net Equity.
  • Gross Margin Ratio – This is the difference between the Gross profit and Net sales
  • Return on Investment Assets –This is the difference between the Net Income and Total Assets.


Liquidity Ratios

The liquidity ratio of companies is the ability of a company to pay short term loan within 12 months. A company can determine its liquidy rate in this way:

  • Current Ratio –The current ratio should be less than 1.0, the company has more short term debts than assets. As a potential investor, always invest in a company with a current rate higher than 1.0
  • Quick Ratio – This is the variance between inventory from current assets and the current obligations.
  • Operating Cash Flow – The difference between the total debts and the operating cash flow.
  • Cash Ratio – The cash ratio is arrived at when you add the marketable securities and the operating cash, then you get the difference of the total with the current liability.


Debt Ratios

The debt ratio is the difference between the amount of capital borrowed and equity ( the amount of money contributed by shareholders). Its also known as the leveraging ratio or a proportion of a company’s assets that are financed by the company’s debts. Here are the debts ratios that companies look at and which every investor should know.

  • Debt Equity Ratio – This is the fraction between long term debt (total liability) versus shareholders equity.
  • Total Debt Ratio – This is the difference between the total liabilities and the total assets. It’s riskier to invest in a company if it has a high debt ratio.
  • Cash Flow to Debt Ratio –This is the difference between the operating cash flow and total debt.


Activity Ratios

If a company is capable of converting different accounts of balance sheet into cash or sales, then they have the chance to measure the relative efficiency of the business.

In short, if you’re a potential investor, don’t forget to check out those top three points we’ve discussed here. For more information, check out Investors Hangout.

What to Look For in a Water Damage Restoration Company?

When a flood or water disaster attacks your house, it can disrupt your life.

An overflowing toilet, mould, storm damage, flooding, a roof leak or burst pipes can damage your building. Ever-changing weather can be the reason for water damage. You can drastically decrease the damage by acting fast to solve the problem and initiate repairs.

After water damage, it is necessary to restore your house quickly. You will need a water damage restoration company for reliable services, superior results, and detailed plan.

Here are some tips to identify and choose reliable restoration services. Before choosing a water damage restoration company, you have to consider the following elements:

Immediately Respond at the Time of Disaster

Water damage will compound only and become more complicated if you take a longer period to address this problem. You have to select water remediation services that may quickly approach you on one call. If the company is available 24/7 to respond your calls, you should choose this company. The company must offer mental piece and planning services for an emergency.

Well-trained, Insured and Licensed Team

While searching a restoration company, you should focus on their restoration services. Choose a company with insured and licensed employees. Moreover, consider the expertise of staff and training level. Check the experience of staff members. You can talk to the satisfied clients of the company.

Trustworthy Local References

After weather-related disaster and storms, homeowners find themselves overwhelmed by fly-by-night and unreliable repair services. To avoid this problem, look for reliable services of restoration companies with excellent references from local clients like neighbours and friends. Consider the location of the company because locally operated and owned companies depend on the words of mouth created by reliable offering, through repairs.

A Comprehensive Plan for Damage Upkeeps

Getting your house back into safe and proper shape after a water disaster means preparing a comprehensive plan to make repairs after an attack. It allows you to avoid future problems, such as mould growth. Moreover, an experienced and reliable water damage restoration organization will provide you an accurate and complete assessment of the damage and repair on your property. They help you to make a reliable estimate of cost so you can make right decisions about procedures.

Navigate the Procedure of Insurance Claim

After water damage, you have to deal with the frustrating procedure of water damage. Look for the reliable, experienced and responsive water damage services. They can help you to document your damage and file timely claims.

Latest Advanced Techniques and Equipment

After water damage, your home will need immediate water extraction, dehumidification and drying to avoid mould problems in your house. With the use of advanced techniques and equipment, a restoration organization can increase the speed of restoration procedure. It is essential to prevent mould growth in the future. Reliable services ensure your property like restore and care for crucial items, photographs, artwork, and documents.

Carefully Treat Your House and Its Important Contents

Keep it in mind that your house deserves the best attention and care. Water damage can increase your frustration and stress, and a reliable and compassionate team of restoration may assist you to alleviate your troubles. This procedure is used to decrease your pain and pressure. These services may offer secure storage for your personal belongings.

Restore Your Property with Reliable Restoration Services

To decrease the effects of a water disaster, you must hire the services of a restoration company with a reliable team. They should have experience for residential and commercial restoration services. Instead of wasting your time, you should immediately call a water damage restoration company.

Principles That Makes a Good Software Design

If you are a software developer, you know that software design will always be an essential phase during the development cycle. So, when you think on how you can structure code even before you can write becomes a critical task. As time goes, the updates and changes will inevitably rise. However, if you have a good software design plan, it will make allowances to new integrations, algorithm changes, and some added features.

The best thing you need is to ensure you plan so that you can save yourself from a headache, maintenance cost, original software extension, upkeep and valuable time. When getting help at Software development company Intetics Inc, it becomes a problem-solving the exercise. It will require you to break the task down to form various parts. Moreover, you will also need to decide on the way you will address all the parts so that you come up with the desired functionality.

Here are some of the principles making a good software design:

  • Simplicity

When developing software, you aim at simplicity. Each of the module, class, and method in your code needs only to have a single role. So, in every new task, you should give its module that is easy to use or modify independently.

If you make your software simple, you will have minimized regressions making codes much easier to use. However, it becomes vital to embrace simplicity and therefore avoid adding complexity especially a place where simple solution works. Sometimes, it becomes tempting for you to think that you have a brilliant solution. Besides, the best thing is for you to choose a simpler solution for you to accomplish your task.

  • Changing Requirements

Today, there is a high demand for software and therefore, numerous changes in the requirements. It’s therefore important for you to have a good software design. In some cases, a client will need new features, change tools or libraries so that he can accomplish a certain task.

Ultimately, as time goes, all the software becomes legacy and will need updates to help you keep up with your business requirements. The challenges that you might face when designing software from the start is that the future needs may not be clear. Having a good software design will anticipate your future needs. It will, therefore, implement better practices from the start unlike you start hacking solution any time there comes to a new problem.

  • Flowcharts

All software will fall into three categories: semi-automated, completely automated and user-centered.

For user-centered software, it includes an interface where the users interact with the software so that it can produce the desired results. In some cases, you might need to consider user experience when creating the user-centered software.

On the other hand, creating completely automated software will not need a user or interface. The interaction will be between software to software. In such a case, you will not need to have a storyboard, but it might be essential to map its components organized in a flow chart.

For semi-automated, you have to consider both interaction and user’s with the processes taking place autonomously.

Top 5 Things to Look Out for When Buying a House

When you’re viewing a property for sale, you’re excited, you’re nervous, and you’re being shown around by someone who is keen to sell it. Naturally, you’re not going to be in the best position to pick up on every last detail. However, it’s these small details which end up being costly in the long run.

To help you avoid the most expensive pitfalls, we’ve put together a list of 5 things to look out for when you’re buying a new house.

1: Scout out the area

If you’ve planned to visit a house for sale, then there’s a good chance you’ve got a rough idea of what the local area is like. You’ll have worked out how far you’ll need to go for a pint of milk and what the nearby schools are like. However, what you’ll also need to assess is how the area might impact you at night.

Certainly, it’s never a bad thing to have a good pub close at hand, but is this pub known for getting a bit rowdy after hours? Is there the chance that you’ll be disturbed each weekend as people make their way back home? Getting answers to these questions will definitely allow you to purchase with more confidence.

2: Take a look at the roof. A close look.

Before stepping foot into the house you’re viewing, you’ll need to take a good look at the roof. Of course, the obvious advice is to make sure there’s no gaping holes. The not so obvious advice is that you’ll want to find out what materials it’s made of, how much these materials cost to insure, and how recently it was installed.

Any estate agent worth their salt will be happy to answer all of these questions and let you know how sturdy the roof over your head will be.

3: Go behind the scenes.

A house viewing is all about appearances. It’s about imagining yourself in the kitchen and the lounge, creating memories with your family. What it’s not about is plumbing and wiring. However, those memories you’re excited to start making are going to be fairly miserable if they’re invaded by mould, leaks, and power cuts.

To avoid any and all future headaches, take a closer look beneath the sink, check for any unpleasant smells and take note of the condition of power points.

4: Identify which way the house faces

Determining how much sunshine and natural heat a house enjoys in summer, the benefits of a south-facing home cannot be overstated. Indeed, there’s nothing quite like a dark and dingy house to put a damper on an otherwise beautiful day.

With compasses featuring on modern smartphones, this is an easy thing to find out as soon as you’ve arrived at a property.

5: Remember that you’re seeing a stage

Well, more accurately, you’re seeing a house that is being presented in its best possible light. There’s no clutter, no pile of laundry in the utility room, and certainly no kids running about the place. This might be great for a film set, but the reality is that it isn’t what the place will look like once it’s lived in.

This is why it’s crucial to think about how much space will be taken up once you’ve moved in. Will you need to build an extra wardrobe, install shelves, or will everything be perfectly fine as it is?

Should you find that you’d like a little more professional assurance when buying a new home, it also doesn’t hurt to get in touch with a reputable estate agent such as Pymm & Co to get all of your questions answered well before you make an offer.

What is Black Hat SEO?

Whilst its relevance is often discussed in SEO communities, the subject of black hat SEO is something we continue to find clients asking about.

‘there’s no such thing as black hat SEO’, there can be no doubt that there are definitely bad practices that compromise the integrity and performance of a given website.

Perhaps it would be more accurate to define these strategies as ‘unethical SEO’ rather than ‘black hat SEO’.

How to Create an Office That Inspires Productivity

Whilst there can be no doubt that having a good-looking office is desirable, it’s far better to have one that inspires and fosters productivity. Indeed, there’s no point surrounding yourself with vintage decorations and fancy desk chairs if they’re not helping you to tick things off your to-do list.

The question, it seems, is how to create an attractive workspace that puts your mind into a state that’s primed for working effectively. Besides getting an appropriate temperature, noise level, and comfortable desk chair, what more can you do to get ahead?

First and foremost, it seems, is to decide whether an open or closed working space is best for you. Frustratingly, this isn’t something that science can clear up for you. Some studies present convincing arguments for retreating to the comfort of a cubicle whilst others suggest that the social element of an open-plan office is more conducive to productivity.

Suppliers like Office Furniture Scene are able to provide everything you need, no matter what kind of office layout you’re after. Indeed, their wide range of acoustic pods and cove screens are ideal for those who like to shut themselves off, whilst their selection of larger desks are equally great for those who prefer collaborative working arrangements. 

Finding a suitable layout is of course the first step towards the creation of an effective workspace. The next step is finding a colour which helps you to focus and complete tasks, this is where science can come into play to provide some answers. Specifically, research has shown that certain shades of blue help to inspire feelings of productivity whilst red is believed to create hunger – not the greatest feeling to experience when trying to work!

Another important factor to consider is the amount of natural light that your office is receiving. In particular, you’ll want to ensure that a steady flow of sunlight is able to make its way into the workspace. This will help to improve your mood and make you far more efficient than if you were left in a dark and gloomy office.

With these essential elements in place, you’ll simply be left to get creative with the decoration and theme of your office. Want to be on trend? Why not get playful and add some retro posters or quirky wall hangings. Ultimately, your finishing touches should all be about providing comfort that helps to kick your productivity into orbit.