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Liquidity in BMW and Daimer
Liquidity in BMW and Daimer
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3.1. Current ratio
BMW: Calculating current assets
Item 20122013
Inventories 9.73 9.58
Trade receivables 2.54 2.57
Receivable from sales financing 20.61 20.79
Financial assets 4.61 4.65
Current tax 0.97 0.97
Deferred tax assets 0.00 0.00
Other assets 3.69 3.73
Securities 0.00 0.00
Cash and cash equivalents 8.37 9.37
Total current assets 50.52 51.67
BMW: Calculating current assets
Other provisions 3.28 3.31
Current tax liabilities 1.48 1.50
Financial liabilities 30.41 30.21
Trade payables 6.43 6.48
Other liabilities 6.82 6.88
Total current liabilities 48. 43 48.39
BMW: Current ratio 2012
Current ratio= current assets/current liabilities
Current assets= 50.51
Current liabilities= 48.43
Current ratio= 50.51/48.43
Current ratio=1.042
BMW: Current ratio 2013
Current ratio 51.67/48.39
Current ratio=1.068
Daimer consolidated financial statements
Current ratio= current assets/current liabilities
Daimer current assets calculation
Item 2013 2012
Inventories 19,246 17,720
Trade receivables 7,884 7,543
Receivables from financial services 22,120 21,998
Cash and cash equivalents 11,607 10,996
Marketable debt securities 5,532 4,059
Other financial assets 2,411 2,070
Other assets 3,160 3,072
Total current assets 71,960 67,458
Daimer current liabilities calculation
Trade payables 10,381 8,832
Provisions for income taxes 869 1,006
Provisions for other risks 5,913 6,292
Financing liabilities 34,021 32,911
Other financial liabilities 6,382 6,699
Deferred income 1,867 1,640
Other liabilities 1,687 1,336
Total current liabilities 61,120 58,716
Daimer Current ratio 2012
Current ratio= current assets/current liabilities
Current ratio = 61,120/58,716
Current ratio=1.041
2013
Current ratio 71,960/67,458
Current ratio = 1.067
3.2. Acid Test Ratio
Acid test ratio= (Current assets – Inventory) / Current Liabilities
BMW
2012
Acid test ratio = 50.51-9.73/48.43
Acid test ratio =0.842
2013
Acid test ratio=51.67-9.58/48.39
Acid test ratio =0.870
Daimer
Acid test ratio= (Current assets – Inventory) / Current Liabilities
2012
Acid test ratio = 61,120-17,720 /58,716
Acid test ratio= 0.740
2013
Acid test ratio 71,960-19,246 /67,458
Acid test ratio = 0.781
Suggestions or comments based on the calculation
Liquidity ratios show whether or not a company is able to meet its short term obligations. Current ratio demonstrates capability of a company to pay its short term debts such as payables using its liquid assets. The standard ratio is 1:1. From the figures above all the companies have a higher than 1:1 ratio. This shows that in the two years, the companies were able to meet all their short term obligations without need for external financing. In the case of BMW, the Current ratio grew from 1.042 in 2012 to 1.068 in 2013. Similarly, for Daimer, the current ratio rose from 1.041 in 2012 to 1.067 in 2013.
Evidently, the two companies did not experience any cash and liquidity issues in the two years, even if the debtors failed to honour their bargain on time. However, these figures should not rise higher. A higher current ratio would mean that a lot of liquid assets are held at hand. If the ratio rises further, the companies may opt to invest them in money markets where they can earn some short term interests.
Acid test ratio on the other hand is a more conservative measure of a firm’s liquidity. This liquidity measure eliminates inventory from current assets. Inventory, as compared to other current assets, cannot be quickly converted into cash, thus removed. In all the years, the acid test ratio grew by a small margin. However, the figures are all less than 1. For example, in the case of Daimer in 2013 the acid test ratio was 0.781. That is, for every euro of Daimer’s current liabilities, the company has 0.781 euros of very liquid assets that can be used to cover any immediate obligation. On the other hand, for BMW in 2013, the acid test ratio was 0.870. That is, for every Euro of BMW’s of current liabilities, has 0.870 euros of very liquid assets that can be used to cover any immediate obligation. Comparatively, BMW has a better acid test ratio as compared to Daimer. This is because higher acid test ratio demonstrates a condition of better financial security in the short term.
The low acid test ratios that the two companies are over-leveraged as they struggle to maintain sales levels or grow sales, pay bills quickly or collect the receivable slowly. As a suggestion, the companies should raise the acid test ratio. Since the ratios are less than 1, the companies may not have enough quick /most liquid cash to meet their accounts payable, interest expenses and other current bills as their accrue. Further, the higher inventory levels may be held as security against stock out costs. With the higher inventory value, the management may be seeking to avoid possible high costs of stock out. However, they may still incur more costs of stock storage. While lower inventory level shows that less cash is tied in stock; implying higher liquidity, the companies need to have optimum inventory levels so as to manage their liquidity effectively.
References
BMW 2014 Financial Report 2014
Daimer 2014 Interim Report Q2 2013
A Letter Addressing Nursing Challenge If Medicaid Cuts Are Implemented
A Letter Addressing Nursing Challenge If Medicaid Cuts Are Implemented
(Your Names),
Hospital Nurses Representative,
St. Louis University Hospital,
3635 Vista At Grand Blvd, St. Louis, MO 63110.
27th June 2011.
To Rep. Carnahan Russ,
The US Representative for M03,
MO House of Representatives, 201 West Capitol Avenue,Room 406A,Jefferson City MO 65101.
Dear Sir/ Madam
RE: Nursing Challenge If Medicaid Cuts Are Implemented
My name is (insert your names as in address above) and a leader in the Nurses Association at the St. Louis University Hospital, one of the major healthcare facilities that serve the 3rd Congressional District of Missouri and the state in general. I am the Associations’ Public Relations Representatives and communication with third parties on behalf of the Association falls under my docket. It is my responsibility to reach out to the public and other official partners to relay the intended communication, after consultations during our meetings. The aim of this letter is to reach to the office of the US Representative to highlight the plight of the Nurses Association with regard to the proposed Medicaid budgetary cuts in the 2011-2012 budgetary allocations. Specific challenges presented to the nursing service provision in the 3rd Congressional District of Missouri are the focus of the letter, which form the basis of our petition for political intervention from the US Representative’s office (govtrack.us, 1).
Healthcare provision in the 3rd Congressional District of Missouri, the entire state and indeed the whole country heavily relies on the medical provision plan outlined in the Medicaid program. A significant proportion of the population (over 10 per cent) of people in St. Louis County in which the University Hospital that we work with is situated is covered by the Medicaid program. The coverage has been below satisfaction under the current funding provision. The point of our concern is presented by the proposal by the Republican Party at the US Congress to reduce budgetary allocation for the program even under the realization of the fact that current funding is insufficient. Many citizens in the State of Missouri will be exposed to the several healthcare challenges and risks that the Republican-proposed cuts occasion to the program. In order to clarify our petition for political intervention at the US Congress, I will highlight the specific challenges as will be faced by various citizen groups thereby affecting dispensation of our mandate in healthcare provision.
Senior citizens covered by the Medicaid program in the 3rd Congressional District of Missouri are more than 11,000 individuals who will face the blunt of a healthcare system with insufficient funding upon the cuts (house.gov, 2). It will be difficult for the 1,800 nursing homes across the 3rd Congressional District to handle the population of seniors who rely on Medicaid as well as people with disabilities served in the homes. In addition, infants and children covered by Medicaid who are beyond the 62000 mark and reduction in the funding for the program places these young people at serious healthcare risk. Alternatively, a significant number of hospitals and healthcare facilities in the district are funded by the program, which implies that some of their important healthcare programs will be affected if reductions are implemented. St. Louis University Hospital for instance handles numerous emergency room visits which cannot be conducted comprehensively without cooperation with other facilities that require funding. Reducing such funding not only presents a serious threat to healthcare but also poses a challenge to the St. Louis University Hospital which will eventually be overwhelmed by such healthcare needs. Hospital visits covered by Medicaid is materially significant to the healthcare industry in the district at 8 percent and reduction in funding poses a huge challenge. Finally, the economy stands to lose heavily over the proposed period of Medicaid cuts. It is important that funding is increased rather than reduced due to the negative impact that these healthcare elements stand to experience.
In conclusion, it is our hope that these negative impacts are stopped at the floor of the US Congress with an analysis of such impacts pointing at difficult times ahead for our district. Our petition does not only touch on the healthcare sector but directly points at the development agenda that the 3rd Congressional District has. Your assistance in opposing these challenges is therefore sought in a very timely juncture for the good of our district. Our hope is mainly built on your record to support the plight of humans suffering under difficult but avoidable circumstances.
Yours Sincerely,
(Insert your names as in the address)
Works Cited
“Impacts of Republican Medicaid Cuts in Missouri’s 3rd Congressional District,” 2011. Web. http://docs.house.gov/energycommerce/med_2011/MO3.Carnahan.pdf
“Missouri’s 3rd Congressional District & Map,” 2011. Web. http://www.govtrack.us/congress/findyourreps.xpd?state=MO&district=3
Behavioral Psychology
Behavioral Psychology
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Behavioral Psychology
There is a close relationship between the mind and human behavior. Many factors influence the behavior of an individual. There are external factors that influence how a person relates to other people. There are also the personality traits that emanate from within and individual without the influence of any external factor. There has been much research to establish the factors that influence human behavior, and many psychologists intimate that there are situational and dispositional effects on human behavior. In every community, there are cultural practices that affect how people relate to one another. When one is born in a particular environment, they learn certain behaviors by observing what people in that specific place behave. However, it is critical to note that cultural practices are passed from one generation to another, which plays a vital role in shaping how people behave. Cultural practices provided a framework that guides human behavior, and when one is born in a certain cultural setting, they adapt to the norms practiced by other people.
Cultural practices differ widely across the world, and in some instances, they also vary among different communities within a given region. For example, in western culture, individuals are trained to maintain a culture of independence. These people are prepared to make an individual decision without the influence of other community members. On the other hand, people in Asia are trained to relate and depend on one another. Most of the make decisions based on the norms of their communities, and anyone who goes against their cultural training is often viewed as a rebel. Many people still exercise their traditional beliefs in African, which influences how they relate with one another. However, cultural practices differ from ethnic group to another. Although people are affected by their cultural practices, it is important to note that people’s mobility from one place to another has also shaped the way people behave. In the last few years, global development has necessitated people from different regions, which has enabled them to exchange their cultural practices, thus influencing how people behave (Cole, 2011).
The technological revolution is another factor that has shaped human behavior in the last few years. The emergence of social media has revolutionized how people do things and influenced how they behave. Social media has been identified as one of the leading causes of mental health issues among young people. Social media is a very effective tool that is easy to use, and many people have created accounts that they use to socialize with other members of society. Although social media was intended to bring people to close together to socialize and interact, many people are now comparing themselves with their peers and coping with their lifestyles, which hurts their mental health. Equally, social media has revolutionized how people do their shopping. Unlike a few years ago, where people would go to the in-stores to do their shopping, they can now order their products and deliver them to their doorstep. This has limited the interaction that existed before, and this has had a direct influence on how people behave. Before social media was established, people used to interact and share their experiences. But that has changed before establishing relationships online with strangers, which has equally affected how people behave (Wakefield and Wakefield, 2016).
Although situational circumstances largely influence human behavior, it is critical to note that genetics also plays a role in how individuals behave. Many scholars have researched to establish the different behaviors exhibited by people, and there is sufficient evidence to link the inheritance of genes to a certain form of behavior. It has been shown that people who come from a family with mental health issues are like to pass the same genes to the other generations. Dispositional behavior is largely associated with individuals making decisions or exhibiting certain behavior not influenced by external forces. According to multiple studies conducted, these are people who have inherited most of their parents’ behavior. These people can individually formulate their perception of certain things in society and act in a manner that is not conforming to societal expectations (Flint et al. 2020).
Human behavior is also influenced by gender. Research has shown that both men and women can perform the same tasks when given equal opportunities. However, society members have created the notion that they are certain responsibilities that can only be executed by men or women. Although there has been a lot of development in bridging the gap in the gender roles, women are still viewed as the primary caregivers whose responsibility is to take care of the children at home. Despite the existing evidence to show that women can also undertake leadership roles, society members still view leadership responsibility as a reserve for men. The stereotype created in the society on the gender roles influences how people relate with one another and how they behave in the society.
In conclusion, many factors influence how people behave. These factors include the cultural practices in the community and how hereditary factors among members of a family. The development of technology has also brought a revolution in how people interact with one another, which has impacted how people behave.
References
Cole, M., & Packer, M. (2011). Culture in development. Psychology Press.
Flint, J., Greenspan, R. J., & Kendler, K. S. (2020). How Genes Influence Behavior 2e. Oxford University Press.
Wakefield, R., & Wakefield, K. (2016). Social media network behavior: A study of user passion and affect. The Journal of Strategic Information Systems, 25(2), 140-156.
