Thursday, 20 July 2017

The Three Most Important Parts Of The Income Statement

The income statement, also known as profit and loss statement (P&L), reports a specific company’s revenue, expenses, and net income over a period of time. It is a reflection of how much money the firm made during that period, a crucial information for investors as well as the management itself.

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The operating section of this report includes revenue and expenses, while the non-operating section comprises revenues and gains from non-primary business activities. The bottom line is the net income calculated after subtracting the expenses from revenue.

Here are its three most important parts:

Gross profit

This shows revenues, or sales of goods and services, minus the cost of goods or how much was spent producing or acquiring the sold items. It excludes other expenses yet it reflects correct product pricing or too much discounting. This number is best compared against those in previous reports in order to track trends. The data here is also used to come up with gross margins, or the ratio of gross profits to net sales.

Operating expenses

This section shows the cost of doing business, not including costs of production. It includes salaries, benefits, rent, advertising, utilities, other operating costs, and even depreciation. Some of these are fixed while others are variable.

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Net earnings

This is the bottom line, showing how much profit or loss the company achieved in that period. This figure needs to be compared with previous periods and against the budget. This data, too, calculates net margin, the ratio of net earnings to net sales.

A deeper look at the different sections offer potential explanations if the firm did not hit its revenue goals or exceeded its budget for expenses. The income statement, after all, gathers these important metrics and establishes the areas that require special attention.

Currently at the helm of TodoModo, Luis Manuel Ramirez is a Fortune 100 CEO with public company and board-level experience. Learn more about business on this page.

Thursday, 15 June 2017

The Effects Of Company Mergers On Consumers

Mergers give companies plenty of advantages, from cost savings to opportunities for larger market shares. These kinds of transactions also redound to customers in various ways, such as the following:

Image source:middlemarketcenter.org


Prices


Prices, after mergers and acquisitions, can either go up or down. Because of the removal of at least one competitor in the market, the remaining companies can apply a coordinated price increase. However, merged companies can also lower their prices, if they decide to pass on the cost savings to their customers.



Customer service

Customer service is generally enhanced after a merger because the merged entity would be able to deliver improved products or services at a more efficient rate. Smaller companies, which previously had no access to the facilities and strategies of large businesses, will be able to enhance their products or services. There are instances, however, where mergers and acquisitions have negative implications on customer service, especially during the beginning stages of the transaction.

Image source:ceoadvisory.com


Variety

Consumer choices can also change in two ways after a merger. It can increase when the merged companies offer a wider selection of products and services, as they can do so more efficiently because of economies of scale. But variety can also be compromised if the branding of the merged businesses requires them to remove some or a set of their products from the market.



Luis Manuel Ramirez is the CEO of TodoModo, a company that has acquired and integrated more than $1 billion in mergers and acquisition deals. Visit the company’s official website for more information about the company.












Thursday, 11 May 2017

Surprising Oil Industry Myths That People Still Believe Today

The oil industry is both old and massive. Oil itself has been described as the mother of all products. Almost everything people see and use today has some oil footprint. Meanwhile, a lot of information on the product and the industry has been going around the internet. Some are true and some are false. Here are some of the myths that people have to stop believing in:

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Oil companies and stratospheric profits

With oil prices rising, and with just about everyone using and everything being made of oil, it’s easy to believe that oil companies are making a killing. This isn’t true. Taxes are pretty steep for oil companies, and eat into a huge chunk of the profits.

People and gas-powered vehicles

Because of soaring gas prices, a lot of individuals are choosing to believe that everyone no longer wants a car. This is false. Most people still prefer gas-powered cars. However, the number of environmentally-conscious car owners are opting for electric vehicles.

Image source:foodandwaterwatch.org

The dangers of fracking

Just how dangerous is fracking?  It’s probably as dangerous as any industrial process.  But with safety measures being implemented, the amount of casualties should be kept to a minimum.  As for its environmental impact, though it does produce its own share of pollutants, fracking is not as harmful as many small environmental groups claim it to be.

Luis Manuel Ramirez has become an expert in operations and the resolution of manpower issues. Learn more about him and what he does by visiting this website.

Monday, 10 April 2017

The Kind Of Leadership That Makes Startups Grow

Startups evolve into successful enterprises largely because of the leadership that is in place. One must meet the demands of a huge task of leading a startup to victory.

A leader must be flexible. Realistically, managing a startup will inevitably come to a point wherein consequences are not always favorable. As growing pains are normal in this type of business model, a leader must be able to bend himself as the unpredictable challenges come.

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Humility is also essential in startup leadership. A true leader owns up to his mistakes and is generous with praise to his subordinates when the startup succeeds. A leader understands that they must be ready to provide support and motivation to their people, even if they do not get to enjoy the credit.

Proper leadership in the startup business is also characterized with decisiveness. The leader must make sound decisions for the company every day, and they must be quick to recognize windows of opportunity that will allow them to make decisions fast.

A good leader is also a visionary. However, a leader does not keep the vision to themselves. They must be able to encourage the people around them to make the dream their own so that each step toward success is motivated by an individual’s emotional investment. This can be quite an unstoppable force once it gets going.

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It is not easy to have all of these qualities from the very start. However, leadership can be learned if one has the willingness to make himself better each day.


Luis Manuel Ramirez is the current CEO of TodoModo. He is a recognized growth leader with extensive experience in various industries. For more advice on business, visit this page.

Friday, 31 March 2017

Facts and figures on oil in the US

It is a massive understatement to say that the oil industry in the United States is huge. Many Americans take it for granted, not knowing that almost everywhere they look, there is evidence of the oil industry. And this is how it’s been for the past few centuries. Historians, as well as leading authorities in business and economics, call oil the “mother of goods.” A majority of the commodities used by the human race such as fuel, soap, plastic and rubber shoes, could not have been made without oil. Let’s take a look at some of the amazing facts on the oil industry. 

Image source: blurbpoint.com 

1. About 50% of the oil in the US is for transportation. 

2. The states of Louisiana, California, and Texas account for over half of the oil in the US. 

3. Texas leads all other states in producing oil. It has an astounding five billion barrels in reserves. 

4. A single barrel of oil amounts to approximately 42 gallons. Among these 42 gallons, 19 goes to gasoline, 9 to diesel, 4 to jet fuel, 1.75 to heating, while the remaining 7 gallons are allotted to other commodities like tar and asphalt. 

5. There are more than 200,000 miles of pipelines all over the country. 

6. The US uses up almost 20 million barrels of oil a day. This is the most for any country. They however rank 11th in total oil reserves in the world with 21 billion barrels. 

7. It’s absurd how the US uses 25% of the oil of the world, while Americans are only 4% of the world’s population. 

Image source: peakoil.com 

Luis Manuel Ramirez
is the CEO of Todo Modo. Learn more about him by visiting this page.

Friday, 10 February 2017

The Rise Of Renewable Energy Sources In The Middle East

The renewable energy sector in the Middle East looks promising. Despite the decline in the oil and gas industry in the past few years, governments in the oil-rich region have taken a bold step by increasing their investment in alternative energy sources.

Image source: Alarabiya.net
Countries in the region have established their respective green energy projects, which are seen to expand in the next years. An example of this massive project is the Mohammed bin Rashid Al Maktoum Solar Park in the United Arab Emirates that will expand up to 3,000 megawatts. In a decade, this project will be responsible for 15% of the country’s demand for electricity.

On the other hand, the Kingdom of Saudi Arabia will soon start the first phase of its renewable energy program that will need USD 30-50 billion. By 2025, the country aims to generate 10 gigawatts from solar and wind sources. And by 2030, the kingdom plans to generate 30% of its power from alternative energy sources. Neighboring countries such as Qatar, Kuwait, Oman, and Bahrain are also taking the necessary steps to enter the field of renewable energy.

Image source: Constructionweekonline.com
As the global economy shifts its focus from traditional energy sources to renewable and sustainable alternatives, new projects seen to bring profit to participating countries in the decades to come have arisen. The Middle East has already entered the industry and once all the region’s initial efforts bear fruit, it will be set to reap the advantages as a bloc.

Todo Modo CEO Luis Manuel Ramirez is an expert in establishing the vision and strategies necessary to grow global, billion-dollar portfolios. Visit this page for updates on the energy sector.

Friday, 13 January 2017

What Does It Take To Be a Part Of The Fortune 100?

Making it to the list of Fortune magazine’s list of top companies to work for is the goal of many companies. Being a part of the Fortune 100, 500, or 1000 is taken today as a sure index of success. But before going further, what does it mean to make it to such lists?

The prestigious Fortune 100 names the top 100 public and private companies in the US based on reported annual figures. These are also the top companies that people should aspire working for. Those who are seeking employment set their sights on some of these companies because they are known to have a great working environment while providing enviable benefits for their employees.

Image source: Springrole.com

To be part of this elite group, a business has to be known for its outstanding management, productivity, and output. For strategies to be implemented, the expertise of leaders is necessary. With their direction, they can bring improvement to their employees and provide excellent output for their companies.

Certain leadership qualities become the guiding direction of some companies in pursuing prestige. For instance, Todo Modo Group’s CEO Luis Manuel Ramirez, whose company focuses on the oil and energy sector, became part of the Fortune 100 through his strength as a growth leader. He is able to establish the necessary vision and strategies to grow global, billion-dollar portfolios. With his many years in the industry, he continues to have great enthusiasm for solving big problems and creating commercial opportunities for global companies.

Get to know more about Luis Manuel Ramirez by visiting this page.