difference between operating leverage and financial leverage?
605215
operating leverage i reckon is the interest paid on financing current asset, while financial leverage is total of all interest paid out on debentures, loans & other debt instruments.
1136609
There is a huge difference between  bankers and venture capitalists. And I'm not just referring to the cost of borrowing so tread cautiously here.\n\nBefore I can provide you with advice I need a little more information. How long have you been in business?  About how many people work there?  Why do you need the money?\n\nJust a quick note " fund some of our operations " might suggest you need money just to keep the business open. If this is not the case it may be better to delete this part of your question.
1101396
A security is a fancy name for a stock.  You may also hear the term "equity."  They are interchangeable in that regard.\nYield refers to the other side of the investment equation- bonds.  Yield is another word for the interest rate you accrue for holding the bond.  In other words, how much you get paid for buying and holding it.
1089279
This is more complicated than can a short answer will allow but here's a start:\n\nThe method used in reporting cash flows will be apparent from the top and bottom lines.  If the top line is net income, and everything adds to net income, then they are using indirect.  If the top portion has changes in net working capital (change in receivables, change in cash, change in payables) then the firm is using direct.\n\nThe 10-K will ideally have multiple years' data, but that doesn't always happen.  However, you can look up the 10-K for the same quarter prior year for comparison purposes.  From there get comparative net income and operating cash flows.
228551
P/E, growth, leverage, price variance, income variance
60748
Wow.  I would have paid attention in Physics.  That's some heavy stuff and try as I might (I looked at about 25 links) I couldn't find a definition for CFO.
144586
I concur with the first 2 responders.  There is however a way you can use leverage without borrowing money. I am reporting this only to complete the answer.  I am not recommending it.  That is to buy calls or puts, especially out of the money calls and puts. It is best illustrated by an example.\n\nDevon Oil trades at say about $62 a share. I am guessing.\nYou can purchase an April call at $65 for $5. Another guess.\nIf Devon goes to $75 before the April expiration your call will be worth $10. You will have doubled your money whereas if you had purchased the stock you would have only increased your money by 21%. That is leverage.  You, however, will have noticed that if Devon does not rise to $70 by the expiration date, you loose money. However, the price swings of options, especially options of volitile stocks such as the oil stocks can be dramatic.  Also the price drop of an option in relation to the price drop of the underlying stock is generally less on options with long expiration dates, but the price rise is generally greater. \n\nLets say you bought the option for $5.00 tomarrow.  During the next five day Devon rises $5.00 a share to $67. That price swing has probably happened a dozen times during the last year. Your option will probably trade at $7.50, a 50% increase in a week. But the stock rose only 8%.
426768
Hi.\n\nYou can look at the source below for a more detailed answer, but here it is summarized:\n\nFirst, they're both essentially the same, for all intents and purposes.  However, if you really want to get nitpicky...\n\nNon-profits mean zero profits.  At the end of the year, they shouldn't have any assets in excess of their liabilities.\n\nNot-for-profits mean that they can make a profit but they're not specifically a for-profit enterprise.  Think of the American Red Cross or a local school.  They're not there to make profits for stockholders, but clearly they leave the year with more than they started with (or at least hopefully they do!).
70608
Otherwise the difference must be financed by issuing debt. Having significant debt will mean that a lot of future revenues will be used to pay interest on the debt. In extreme cases, this can result in financial insolvency - as in the case of the city of San Diego.
304669
ROaA\nReturn on Average Assets\n\nRoaE\nReturn on Average Equity\n\nNIM is net interest margin
251756
Equity = Less risk \nDebt = More risk\n\nFor a particular amount of capital, \nGreater the debt, greater the risk, greater the return to equtiy\nGreater the equity, lesser the risk, lesser the return to equtiy\n\nSo depending on the situation whether greater risk is to be taken to earn greater return for equity or lesser risk is to be taken accepting lesser returns for equity ... is to be decided upon..\n\nhttp://www.futureaccountant.com/
21282
Dividend income is an OPERATING ACTIVITY. Dividends PAID are a financing activity.
1145611
Ah, you are asking for something magical and unattainable, like drinking from the fountain of everlasting youth.\n   Option trading is a highly leveraged skill.  If there were a firm that was successful at it, they would have exited the "advisory" business and gone into pure options trading itself.\n   The many popular advisors are rolling the dice, but with your money.  I know because they threw too many "snake-eyes" with my money.
1105530
C.\n\nThe risk will determine how much is too much risk.  If the firm is cyclic, then the amount of debt should be lower so that the firm can still make interest payment during the down times.\n\nThe tax structure determines the amount of tax shield and also factors into the optimal capital structure.  More tax means more debt.\n\nEdit: By the way, Mark, I've gone through your papers a few years back and they were rather interesting.  I would have sent an email, but you don't have your up here on Answers and I didn't really want to invade your privacy by going through other channels.
253265
For the indirect method:\nOPERATING ACTIVITIES\n1. Start with net income. Then add depreciation expense, add (subtract) losses (gains) on the disposition of fixed assets, investment losses (gains), amortization of intangibles, and cumulative effect of change in accounting principle. These charges (credits) must be added (subtracted) because they are non-cash in nature.\n\n2. Then, look at the balance sheet and add (subtract)decreases (increases) in operating assets (e.g. accounts receivable, inventory, prepayments) for the period. For example, if prepaid insurance increases by $1,000, add $1,000 to the operating activities section. This must be done because the balance of the account increased (i.e. cash outflow) but this has not yet been reflected in net income. Next, add (subtract) increases (decreases) in operating liabilities (e.g. accounts payable, accrued expenses, taxes accrued, salaries payable).\n\nNote: The investing activites and financing activites section are the same under both the direct and indirect methods. The indirect method only applies to the operating activites section.\n\nINVESTING ACTIVITES\n\n1. Analyze the activity in the fixed asset and investment accounts. Determine the amount of cash paid for capital expenditures and purchases of investments classified as held-to-maturity or available for sale (Note that purchases and sales of trading securities are considered operating activities. The change in balance of trading securities assets should be included in the operating activites section.).\n\n2. Determine the amount of cash received for sales of fixed assets or investments. Report this amount as a cash inflow.\n\n3. For steps 2 and 3, merely taking the change in balance of the fixed asset and investment accounts will not work. You must analyze the activity in the accounts.\n\n4. Also include in this section cash paid to acquire companies. The amount of cash outflow reported should be net of cash received in the acquisition. Conversely, include cash received from the sale of subsidiaries in this section. Note that when there is an acquistion or divestiture, the change in the operating assets and liabilties on the balance sheet will not match the change reported in the operating activites section of the statement of cash flows because the amounts shown in the operating activites section do not include the change in the asset or liability due to the acquisition or divestiture.\n\nFINANCING ACTIVITES\n\n1. Determine the change in short-term debt. If short-term debt increased during the period, report a cash inflow. If it decreased, report a cash outflow. This amount may be reported as a net number if the maturities of the short-term debt do not exceed 90 days. Otherwise, the gross amounts must be reported.\n\n2. Determine the amount of long-term debt issued. Show this amount as a cash inflow. Determine the amount long-term debt repaid/retired. Show this amount as a cash outflow. \n\n3. Do not show interest paid in this section. All interest paid is an operating activity.\n\n4. Determine the amount of dividends paid during the period. Show this amount as a cash outflow. Note that dividends received are not a financing cash flow and should be reported as operating activities.\n\n5. Determine the amount of cash received for the issuance of stock. Report this amount as a cash inflow. Report repurchases of common stock separately in this section as a cash outflow.\n\n6. If there were any debt issue costs incurred (underwriting fees, bond discount), they should be reported as a cash outflow in this section.\n\n7. If there were excess tax benefits from share-based payment arrangements credited to paid-in capital, these amounts would also be reported as financing cash inflow.\n\nGOOD LUCK!!!! Post additional questions if you need help.
399507
False.  Leverage means debt.  Debt means ability to generate payments.  If sales are cyclical, there will be some periods where income can easily service payments, but there will also be periods where it will be tough, which leads to the downfall of a business.
220783
These terms are mostly used in some banking segments:\n\nCreditor means a person or entity who lends you money to purchase a thing on interest basis. \n\nWhereas the owner means a person or entity who provides you a thing on leasing basis or lends you money on profit and loss sharing basis against an agreement under which his benefits may not jeopardize even if you suffer with a loss.