April 18 - SMM-Class Note: April 18, 2011. If you find out...

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SMM-Class Note: April 18, 2011. If you find out that financial issue become the problem then you find out the problem. You might not realize your findings, try to see if you can classify What you have rated low in your tows, do not rated high in SPACE. THE STRATEGIC POSITION and ACTION EVALUATION (SPACE) MATRIX You can expand the variable more than 8 elements sometimes it goes up to 30 or 40. I have made them bold and light. ROI (%) = Net Profit / Total Assets. Operating leverage = Fix cost / contribution margin. The more the fix cost, the bigger break even sales. The lower fix cost, the smaller BE Sales Or, Fix cost / EBit (Operating profit). Compare one year with another, Rules: 1. Look for the trend within the company itself. Going up or going down. 2. Average, compared to industry. 3. Then you form the opinion. Financial leverage = Level of debt, or cost of debt. We are looking for EBiT (operating income) / the cost of debt (interest expense). Same Rules:
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April 18 - SMM-Class Note: April 18, 2011. If you find out...

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