Financial Ratios in Sports

Financial statements both report on a firm's position at a point in time and on its operations over some past period. However, their real usefulness lies in the fact that they can be used to help predict the firm's future earnings and dividends as well as the risk factor of these cash flows. From equity investor's viewpoint, predicting the future is what financial statement analysis is all about. From management's viewpoint, financial statement analysis is useful both as a way to anticipate future conditions and, more important, as a starting point for planning actions that will influence the future course of events for the firm.

Financial ratios are designed to show relationships among financial statement accounts. Ratios put numbers into perspective. They provide the necessary comparisons in order to comprehend the firm's current situation along with it's past performance and its future potentials and threats. Such comparisons are made by ratio analysis. It must be pointed out that according to financial analysts
, a single ratio is relatively useless in making relevant evaluations of a firm's health. Thus, if it is to be effectively interpreted a ratio must be systematically compared with other ratios of the examined company, or even the industry competitors during a specific period of time.

Analysts who use financial ratios extensively may be characterized as belonging to three main groups. Managers, who use ratios to help analyze, control, and improve the firm's operations, credit analysts, who analyze ratios to help ascertain a company's ability to pay its debts, and securities
analysts, who are concerned with a company's efficiency and growth prospects. As it is expected, each group of analysts has specific areas of interest, which it wishes to investigate. Therefore, ratios may be characterized into specific task groupings. The five group categories are liquidity ratios, asset management ratios, debt management ratios, profitability ratios and market value ratios.

One of the first concerns of most financial analysts is liquidity. It is actually the ability of the firm to measure its maturing obligations. By relating the amount of cash and other current assets to the current obligations, ratio analysis provides a quick and easy-to-use measure of liquidity. The second groups of ratios, the working capital ratios, measure how effectively the firm is managing its assets. If it has too many assets, its interest expenses will be too high, and hence their profits will be depressed. On the other hand, if assets are too low, profitable sales may be lost. Thus, having the proper level of each type of asset is considered important. The stock turnover ratio is defined as cost of sales divided by inventories. These ratios suggest that the company hold extensive stocks of inventory; excess stocks are, of course, unproductive and represent an investment with a low or zero rate of return.

Profitability is the net result of a large number of policies and decisions. Although the ratios examined thus far provide some information about the way the firm is operating, the profitability ratios show the combined effects of liquidity, asset management, and debt management on operating income and net income. Return on capital employed is calculated by dividing the net profit before tax with the share capital and reserves.

About the Author

Jonathon Hardcastle writes articles on many topics including Finance, Business, and Home Improvement

8 Places to Find Golf Employment

The popularity of golf has really taken off in recent years. To accommodate the many people who play, take lessons, watch, or read about the sport, golf employment has become much more readily available, in a variety of interesting businesses.

Golf courses: There are many more golf courses in operation today than there was twenty years ago, and every one of them offers dozens of golf employment opportunities. In order to run smoothly, golf courses need groundskeepers to care for the turf, operators and technicians for the equipment needed on a golf course, instructors to provide training for the golf course's members, and managers to make sure everything runs smoothly. Additionally, many golf courses have clubhouses and golf stores, both of which require sufficient staff in order to provide members with their conveniences.

Golf resorts: Golfing vacations are becoming more and more popular, as the explosion of golf resorts has indicated. A golf resort requires all of the same staff as a golf course does, except that a golf resort is often bigger and therefore requires more employees. Additionally, a golf resort needs a larger establishment to house their guests, and with a bigger building and more services comes a larger staff: housekeepers, front desk employees, and an expanded kitchen staff all contribute to the success of a golf resort.

Golf schools: As golf becomes more and more popular, more schools are opening every day to teach the sport. These schools are a wonderful source of golf employment for those who would rather teach the sport as the next best thing to playing it themselves.

Golf stores: There are a variety of retail businesses that sell golf equipment, clothing and accessories. Some stores, such as those small stores located in golf course clubhouses, may sell only products that relate to golf. Other stores, such as large sports stores, sell equipment and clothing for a variety of different sports, golf included. Both types of stores offer excellent opportunities for golf employment, as they both have a need for sales associates who know about golf well enough to give their customers the best service possible.

Community centers: Believe it or not, your neighborhood community center may be able to provide you with golf employment. Community centers frequently offer residents fun, seasonal programs, such as classes on art, dance, and golf. Even if your community center doesn't already offer a golf program, you may be able to get a job just by suggesting one.

Junior high or high schools: Extracurricular activities are an important part of most junior high and high schools. Whether you are a teacher or just a golf enthusiast living in the area, you may be able to score a part time job by suggesting golf lessons or a golf club as an after school activity.

Golf publications: Most people wouldn't think of it, but golf publications offer another source of golf employment. There are at least a half-dozen golf magazines on the shelves of any well-stocked bookstore, and every one of them needs writers, editors, and photographers who know all about golf.

On your own: Golf is an industry that leaves plenty of room for entrepreneurs. As an experienced golfer, you can offer private golf lessons, meeting your clients wherever they enjoy golfing the most. You can also translate your knowledge and experience into written form by publishing biographies about famous golfers, travel guides that discuss the pros and cons various golf resorts around the world, or even how-to manuals for golf enthusiasts who want to learn more about the sport.

As you can see, there are many places of employment for golf enthusiasts. The golf industry is so popular that anyone with the right education and experience will never have to worry about having reliable golf employment.

About the Author

Andy West is a writer for SDGA. San Diego Golf Academy is a premier golf school with five locations across the United States. To learn more about golf employment, please visit http://www.sdgagolf.com/golf_careers.php .