In this article we will discuss about:- 1. Meaning of Forecast 2. Financial Forecasting Techniques 3. Benefits. Meaning of Forecast: A forecast is a prediction of what is going to happen as a result of a given set of circumstances. The dictionary meaning of 'forecast' is 'prediction, provision against future, calculation of probable events, foresight, prevision'. In business sense it [...]
EFR is calculated with the help of following formula, when other ratios remain constant: Where, A/S = Total assets/Sales L/S = Current liabilities and provisions/Sales ∆S = Expected increase in sales over current year (S-S1) S = Sales of current year S1 = Projected sales of next year D = Dividend payout ratio M = Net profit margin The expected [...]
The following main points highlight the thirteen main techniques used for restructuring the business. The techniques are: 1. Management Buy-Out (MBO) 2. Management Buy-In (MBI) 3. Strategic Alliances 4. Reverse Merger 5. Sell-Off 6. Divestitures 7. Slump Sale 8. Equity Carveout 9. Franchising 10. Intellectual Property Rights 11. Holding Companies 12. Going Private 13. Liquidation. Technique # 1. Management Buy-Out [...]