My Nguyen
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Articles
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Outsourcing
FormalThe transfer (or outsourcing) of part of an undertaking to a third party for better service or lower cost from a specialist in that niche. Other benefits can include the release and refocusin...
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Ownership Risks
FormalThe risks of ownership over and above renting or leasing.1) Why own an asset for the whole of its useful life when you only need it for a period?2) Let a rental partner maximise its second ha...
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Ownership Rewards
FormalThe benefits of ownership over and above those of renting or leasing. These include:Full rights to the assetAn asset for bank securityLikely to ‘care’ for the equipmentFull life utilisationRe...
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P/E Ratio
FormalUsed for quoted companies. Calculated: Price per share/Earnings per share. If share price is $10 and the company declares earnings of 50 cents then the P/E ratio is 20. Often stated as, ‘the ...
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Payback
FormalA simple measure, usually related to cash flow, of the time taken to recover any investment or spend in terms of years and months. E.g. Day 1 Spend $100 Day 30 Receive $50 Day 60 Receive $50 ...
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Private Limited Company
FormalA limited liability company whose shares are privately owned and distributed. Shares in private companies are subject to special conditions for transfer / sale.Real-world ExampleA family-owne...
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Profit
FormalVariously described as the excess of revenues over cost, income over expenditure, or gains in excess of losses. Gross Profit is the first stage profit arising from manufacture or trading befo...
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Profit and Loss Account
FormalA historic record of the performance of a business listing all the gains / revenues / profits etc. and deducting all the losses, costs and expenses to arrive at a ‘net’ Profit or Loss positio...
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Prospective Earnings
FormalThe expectation of the Stock Market as to the projected future profitability of an enterprise. Key to share valuation assumptions.Real-world ExampleAn investor considering a growing company l...
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Prospectus
FormalA formal summary of a business venture, or development proposal that is used to inform potential investors about prospects for a business and to persuade investors to commit funds to the proj...