A Comprehensive Study on Banks Essay Example for Free

A Comprehensive Study on Banks Essay Every business needs funds for two purposes for its establishment and to carry out its day-to-day operations. Long terms funds are required to create production facilities through purchase of fixed assets such as plant and machinery, land, building, etc. Investments in these assets represent that part of firms capital which is blocked on permanent or fixed basis and is called fixed capital. Funds are also needed for short-term purpose for the purchase of raw material, payment of wages and other day-to-day expenses etc. These funds are known as working capital. In simple terms, working capital refers to that part of the firms capital which is required for financing short-term of current assets such as cash, marketable securities, debtors inventories. Funds, thus, invested in current assets keep revolving fast and are being constantly converted into cash and this cash flow out again in exchange for other current assets. Hence, it is also known as revolving or circulating capital or short term capital. 1) Jeng-Ren, C. Cheng, L. (2006) in their article, â€Å"Determinants of working capital† investigate the determinants of working capital management. This study investigates the relation of business indicator and management of short-term capital from the perspective of a firms working capital management, which traditionally is rated by current ratio, quick ratio, and net working capital.The authors have used net liquid balance and working capital requirements as measures of a companys working capital management. Results indicate that the debt ratio and operating cash flow affect the companys working capital management, and how it influences the business cycle, industry effect, growth of the company, performance of the company and firm size. From the data it can be seen that companies could maintain relatively loose capital management during the prosperous period (1999-2000), when capital was readily available in the market. When the economy slumped dramatically at the end of 2000, financial institutions began to tighten their capital policies, forcing companies to gradually operate a looser policy in working capital management. The regression results show the company has to operate a looser working capital management policy in times of recession, as it is not easy to raise capital from outside the firm, so more liquid assets are kept to maintain a relatively higher NLB. The authors conclude that debt ratio and operating cash flow evaluated by both WCR and NLB exert influence on working capital management. 2) Harris, A. (2005) conducted a study â€Å"Working capital management: difficult, but rewarding†. It focuses on the different requirements and the important role that human beings play in the working capital management process. There are various important steps that need to be met in order for them to manage their short term needs primiarily. The author compares Working Capital Management in theory and practice. Internal considerations such as organizational structure, shared systems, autonomous business units, multinational operations and even information technology can impact working capital. The author also stresses on the importance of proper forecasting for efficient Working Capital Management. 3) Filbeck, G. Krueger, T. (2005) in their article, â€Å"An Analysis of Working Capital Management Results Across Industries,† find that all industries use different modes of working capital managament techniques for their functioning. Even their techniques change over time. Industry factors may impact firm credit policy, inventory management, and bill-paying activities. Some firms may be better suited to minimize receivables and inventory, while others maximize payables. Given everything the importance of working capital cannot be ignored and its reticfication to cope with the changing environment should be the main focus of the company. 4) Pimplapure, V. Kulkarni, P. (2011) conducted a study, â€Å"Working Capital Management: Impact of Profitability†. A firm can be very profitable, but if this is not rendered into cash from operations within the same operating cycle, the firm would need to borrow to support its continued working capital needs. For this study various statistical tools such as correlation and multiple regressions can be used. These tools are used to understand the direct impact of working capital on the profitablity of the firm. 5) Erasmus, P. (2010) in his article, â€Å"Working capital management and profitability: The relationship between the net trade cycle and return on assets,† states that, efficient working capital management should contribute to the creation of shareholder value. This study investigates the relationship between working capital management and firm profitability. Based on the results of the study done in this article, it would appear that management could attempt to improve firm profitability by decreasing the overall investment in net working capital. There is an indirect relationship between the two this is also proved in the article, â€Å"Working Capital Management: Impact of Profitability.† Regarding the normal operations of a firm, working capital management attracts less attention than capital budget and capital structure in financial management. Working capital management relates to the source and application of short-term capital. When working capital is managed improperly, allocating more than enough of it will render management non-efficient and reduce the benefits of short-term investment. On the other hand, if working capital is too low, the company may miss profitable investment opportunities or suffer short-term liquidity crises, leading to degradation of company credit, as it cannot respond effectively to temporary capital requirements. We cannot dimiss the importance of the working capital management in the working of a successful enterprise. 6) Singh, P. (2008) conducted a study titled, â€Å"Inventory and Working Capital Management: An Empirical Analysis†. The importance of working capital management is due to two reasons: (i) a substantial portion of the investment is invested in current assets, and (ii) level of current assets will change quickly, with the variation in sales. Hence, in this study, an attempt has been made to analyze the size and composition of working capital and whether such an investment has increased or declined over a period. We need to first determine the requirement of current assets, one of the important tasks of the financial manager is to select a group of appropriate sources of finance for the current assets. Normally, the excess of current assets over current liabilities should be financed by the long-term sources. It is not possible to find out precisely which long-term sources has been used to finance current assets, but it can be examined as to what proportion of current assets has been financed by long-term funds. Therefore, this article tries to carry out a study in this regard. Inventory is one of the major components of current assets, which requires huge investments. The main purpose of carrying inventory is to uncouple the operation, to make each function of the firm independent of the other functions, so that delay in one area does not affect the production and sales activities. As the shutting down of the production results in increased costs and delay in the delivery can result in loosing the customers, inventory management assumes significance in any firm and it is of great concern to any financial manager. Any firm would like to hold higher inventory. This will enable the firm to be more flexible in supply and find ease in its production schedule. Most of the customers may require immediate help in meeting their demands. However, there is always a cost involved in the inventories. This cost includes the capital cost of the stock and the cost of storing and carrying. Inventories are the assets of the firm and as such, they represent an investment. As such investments require a commitment of funds, managers must ensure that the firm maintains inventories at the correct level. If they become too large, the firm loses the opportunities to employ those funds more effectively. Similarly, if they are too small, the firm may lose sales. Therefore, it is better to maintain an optimum level of inventories that is needed in an organization. While analyzing working capital, it is important to analyze the various components of working capital especially inventory, because inventory is one of the major components and is nearly 50% of the current assets. Hence, it is necessary to analyze the size of inventory and the impact on working capital management. 7) Lifland, S. (2010) in his article, â€Å"The Corporate Soap-Opera, As the Cash Turns: Management of Working Capital and Potential External Financing Needs† finds that firms that efficiently manage their working capital are characterized as having increasing asset turnover ratios and decreasing days of receivables and inventories over the years, are ‘freeing up’ capital. Corporations use these ‘found’ funds to improve their supply chains, corporate logistics, and payment systems. The Days of the Working Capital Cycle represents the average number of days that cash must be committed to the management of a company’s working capital needs. A decline in the ratio translates into the firm’s ability to improve its inflows and management of cash. The existence and maintenance of working capital is the lifeblood of a corporation. It is the cash flow that revitalizes operations or slows it down to inoperable levels. Regardless of the size of th e company, the management of working capital accounts should influence its financial health. Kargar and Blumenthal (1994) found that small businesses were significantly impacted by management’s ability to successfully plan the cash requirements of the firm. Managers need to monitor the ratio of total working capital to total company assets, as a relatively high figure can signal future strains on the operational financial health of the firm. 8) Kelleher, J. MacCormack, J. (2005) consider the complexity of considering the internal rate of return (IRR) on capital projects. A survey was conducted by the management consulting firm McKinsey Co. This study asked 30 executives about the risks of this practice, They were surprised to find that only six were aware of IRRs deficiencies. The article defines the risks IRR poses to capital budget management, considers the use of modified internal rate of return. IRR is a true indication of a projects annual return on investment only when the project generates no interim cash flows — or when those interim cash flows really can be invested at the actual IRR. 9) Etiennot, H. Preve, L. (2012) in their study, â€Å"Working Capital Management: An Exploratory Study.† found that Working capital management is an issue in which finance research is scarce. One possible reason behind this fact might relate to the relative ease with which efficient financial markets correct deviations from optimal working capital policies. However, in less efficient financial markets, pervasive among emerging economies, working capital management is critical for both firms performance and survival. The difference in the markets ability for providing immediate assistance to firms might explain the differential consequences on firms profitability and financial distress. This article explains the fundamentals of working capital management, the importance of its interaction with financial markets, and how this interaction might explain working capital patterns around the world and in the various successful organizations that use it. 10) Singh, J. Pandey, S. (2008) conducted a study, â€Å"Impact of Working Capital Management in the Profitability of Hindalco Industries Limited.† For any successful working of any business organization, fixed and current assets play a vital role. Management of working capital is essential as it has a direct impact on profitability and liquidity. This is a study of the working capital components and the impact of working capital management on profitability of Hindalco Industries Limited. The study is based on secondary data collected from annual reports of Hindalco for the study period 1990 to 2007. The ratio analysis, percentage method and coefficient of correlation have been used to analyze the data. The current assets of Hindalco witnessed a steady growth over the past years which were 40 times more in 2007 in comparison to that of 1990. Inventory and loans and advances mainly supported this increase. The study also shows that the contribution of long term source in working capital is below 30% in all the study period. This study effectively showed that working capital has a big impact on the profitability of the firm.

The Destruction of Willy Loman in Arthur Miller’s Death of a Salesman :: Death Salesman essays

The Destruction of Willy Loman in Arthur Miller’s Death of a Salesman    In the book Death of A Salesman, author Arthur Miller shows how cruel life can be through the life of Willy Loman, the main character. His feelings of guilt, failure, and sadness result in his demise.  Ã‚   Willy's sense of pride is a very big issue in his life; he doesn't like people to give him handouts, although he may need them. But the feeling of failure overrides him when he learns about the loss of his job. "But I got to be in 10-12 hours a day. Other men-I don't know-they do it easier. I don't know why-I can't stop myself I talk to much." (p.37) Willy being a hard working man that tries his best realizes times have changed. His youthfulness and life have begun to fade. A man his age working ten to twelve hours a day is very unlikely. "I don't want you to represent us. I've been meaning to tell you a long time now!" (p.83) When Willy first heard this from his boss, that is a man younger than him begins to cry. A man his age working in a company that long doesn't really deserve to be fired. It makes his life seem a waste, and makes him imagine himself as a failure. "I was fired and I am looking for a little good news to tell your mother, because the woman has waited and suffered." (p.107) Willy is clueless of what is to come of his family and feels he has let everyone down. He failed to support his wife along with his sons. His life was basically devoted to impressing others and the one job he had led him to failure. In Willy Loman's life, guilt played a big role. He lived many years feeling remorseful of what led and followed after cheating on his wife. "Now look Biff, when you grow up you'll understand about these things. You mustn't overemphasize a thing like this." (p.120) When Biff first caught his father cheating on his mother he reacted in a very harsh, way leaving his father feeling guilty. Biff began to realize his whole life was a fake. "You fake! You phony little fake! You fake! Overcome, Biff turns quickly and weeping fully goes out with his suitcase. Willy is left on the floor on his knees"(p. The Destruction of Willy Loman in Arthur Miller’s Death of a Salesman :: Death Salesman essays The Destruction of Willy Loman in Arthur Miller’s Death of a Salesman    In the book Death of A Salesman, author Arthur Miller shows how cruel life can be through the life of Willy Loman, the main character. His feelings of guilt, failure, and sadness result in his demise.  Ã‚   Willy's sense of pride is a very big issue in his life; he doesn't like people to give him handouts, although he may need them. But the feeling of failure overrides him when he learns about the loss of his job. "But I got to be in 10-12 hours a day. Other men-I don't know-they do it easier. I don't know why-I can't stop myself I talk to much." (p.37) Willy being a hard working man that tries his best realizes times have changed. His youthfulness and life have begun to fade. A man his age working ten to twelve hours a day is very unlikely. "I don't want you to represent us. I've been meaning to tell you a long time now!" (p.83) When Willy first heard this from his boss, that is a man younger than him begins to cry. A man his age working in a company that long doesn't really deserve to be fired. It makes his life seem a waste, and makes him imagine himself as a failure. "I was fired and I am looking for a little good news to tell your mother, because the woman has waited and suffered." (p.107) Willy is clueless of what is to come of his family and feels he has let everyone down. He failed to support his wife along with his sons. His life was basically devoted to impressing others and the one job he had led him to failure. In Willy Loman's life, guilt played a big role. He lived many years feeling remorseful of what led and followed after cheating on his wife. "Now look Biff, when you grow up you'll understand about these things. You mustn't overemphasize a thing like this." (p.120) When Biff first caught his father cheating on his mother he reacted in a very harsh, way leaving his father feeling guilty. Biff began to realize his whole life was a fake. "You fake! You phony little fake! You fake! Overcome, Biff turns quickly and weeping fully goes out with his suitcase. Willy is left on the floor on his knees"(p.

The Portrayal of Women in Art: 1962-2002

We have, more or less, as an audience become used to the idealized depiction of women. Often, particularly in classical styles, they were portrayed as reclining nudes who were there for the viewer’s pleasure. With averted eyes, they touched themselves sensually, typically innocent and oblivious that there is someone painting her for all to see. When they weren’t sexual-fantasy fodder, they were servile and obedient–particularly in the 1940?s and 1950?s after the end of the strong women era of World War II. They wore their hair in perfect curls, with their perfect dresses and worked merrily away in their perfect kitchens. In Jack Levine’s Girl with Red Hair there is a shift away from the perfect, care-free woman that came before. Rather, nudity is embraced as an aspect of the woman’s power rather than the viewer’s object. The subject confronts the viewer with her gaze. This portrait is not a portrait of a naked girl, but rather, a girl who happens to be naked. There is no trace of sexiness or sensuality–we are drawn to her face so that we may attempt to discern what this girl is thinking. Though her breasts are there, they are poorly rendered compared to the depth of her face and do not trap the eye like the neatly depicted flesh of the reclining nudes. Hotline for Troubled Teens, 1970. Joe DeMers (1910-1984). Acrylic on board, 22 ? x 18 ? in. New Britain Museum of American Art, Gift of Walt Reed, 2000. 45. Through both this artistic empowerment of women and the then energized Feminist Movement, women became less objects for a viewer’s pleasure and instead independent characters. In Joe DeMers’ Hotline for Troubled Teens, the gender is nearly removed from the girl. She is seen wearing an over-shirt that hides her breasts and her other feminine features are minimized. The girl is entered into a narrative–no longer is there a displaced nude body just lying around. Instead, we are shown a girl in her not-so-ideal life. Her face is concerned and the telephone cord is wrapped about her shoulders and wrist. She appears to be entirely dismissive of her viewers–be they out on the street around her, or elsewhere. She is self-serving and concerned with only her present situation. The title even suggests that this girl is reaching out (at the time, even that would have been taboo) in order to help herself–a principle that began to empower women during the Feminist Movement. Laneisha II, 1996. Dawoud Bey (b. 1953). Polacolor ER prints, 90 x 45 3/4 in. New Britain Museum of American Art, Members Purchase Fund, 2000. 34. This is one of my favorite pieces of the collection for many reasons. Predominantly, the depiction of women has centered around the â€Å"ideal woman†Ã¢â‚¬â€œwhich, if you haven’t picked up a magazine lately, is typically white, attractive, young, thin and perky. The woman here, however, is the antithesis. Though she is attractive, she does not have the â€Å"elegant† features that a painter might have looked for in the first half of the century. She is fragmented into six pieces and while they mostly match up–in that there are no huge gaps of information–there is a significant deformation of her figure. Her face is extra wide and left arm seems oddly long. A clear difference between the perfectly kept and rendered women of the past, this modern woman allows her flaws and her discord to be reflected in between each frame. She is a woman, not an object to behold. Untitled, 2000. Cindy Sherman (b. 1954). Color photograph, edition 1/6, 32 1/2 x 22 in. Members Purchase Fund, 2000. 88. I particularly enjoy this piece for several reasons: like the piece above, she is not typically â€Å"beautiful†Ã¢â‚¬â€œparticularly for the era in which it was taken. Rather, her appearance is outdated–thick, dark eyebrows, slicked back hair and that awful blue blouse she is wearing. Instead of dismissing the woman as ugly, we are able to see past her physicality. She bears a face that almost says â€Å"Yeah, so what? ’ to her audience. She isn’t hip, nor is she young and beautiful (as dictated by the standards of society) any more. There is a bluntness to this photograph that disempowers the sitter; it almost seems as if she’s the one judging and not vice-versa. Beauty I, 2002. Mark Catalina (b. 1965). Acrylic on canvas, 72 x 72 in. New Britain Museum of American Art, Gift of the Artist, 2003. 01 Lastly, this piece seems to me to be the most poignant out of the bunch. We are not privy to the â€Å"real† image, but only its negative. In form, we might recognize the person as a female. They have breasts, long flowing hair, jewelry†¦ some of the key indicators of what we may associate with being a woman. However, with the inverted colors, we are shown someone with manly features and thus, the lines of gender are blurred. Clearly, the makeup the subject is wearing is exaggerated–dark lips and cat-like eyeshadow–and further masks the individual’s gender. This piece is so inexorably tied to the way in which sex and gender are separated and defined. In this, the artist is redefining the appearance of women, in that women may not even be â€Å"feminine† at all. This piece broaches the subject of femininity and womanhood in an entirely new way, and is entirely appropriate in the evolving context of women in art. What do you think about the portrayal of women in art? How has it changed in the last 500 years? 50 years? 5 years? How can women gain power through representation in art? How does this compare to men in art?

Argument For Incompatibilism By Peter Van Inwagen - 854 Words

In his essay, â€Å"An Argument for Incompatibilism,† Peter van Inwagen concludes that free will and determinism cannot be compatible. The type of argument that van Inwagen uses, the Consequence Argument, has become the maxime popularis way for incompatibilists to assert that, determinism, and free will, are in conflict. The Consequence Argument attempts to display that, if there is an assumption that determinism is true, and then there is a further assumption that for any action that has taken place, up to a specific point, the agent never had a choice about the action taken. Then the consequence is there can be no free action of the agent. Therefore, no free will. It is my contention that van Inwagen s argument depends upon his definition of determinism, and its reliance on this description. Subsequently, van Inwagen s argument delivers no useful way to deduce that free will and determinism are incompatible. Arguing against van Inwagen s thesis, I will attempt to a nalyze the claims he makes, and then present my arguments against these claims. Further, I will attempt to offer potential counter-arguments against my claims and then offer a conclusion that clarifies the entirety of my argument. â€Å"The main contested question,† as van Inwagen words it, is not, as is assumed, whether or not we have free will, but rather, if it is compatible with determinism. From this position, van Inwagen continues to argue that determinism and free will areShow MoreRelatedComparing Compatibilism Vs Incompatibilism : A Compatibilist View1332 Words   |  6 PagesCompatibilism vs Incompatibilism: a compatibilist view Does determinism imply that there is no free will, as the incompatibilists argue, or does it allow for free will, as the compatibilists argue? Determinism is the doctrine, that every event, as well as human actions is determined by causes that are independent to the will. From determinism, two opposing views were identified. The incompatibilists view that determinism implies no free will, or the compatibilists view that determinism still allowsRead More The Free Will Debate Essay2989 Words   |  12 Pagesnormally on are those events, which leads us to believe that the opportunity of free action depends on the leeway of free will: to state that a person acted freely is simply to say that the individual was victorious in acting out of free choice (Van Inwagen 1983). Philosopher Thomas Hobbes asserted this theory by stating that all free will actions were based or influenced by external factors that compel a person to act. However, one might dispute this approach because they are conceptualized basedRead MoreThe Nature Of Free Will Essay2312 Words   |  10 Pagespsychological phenomena are causally determined by preceding events or natural laws.† Whether or not determinism is true is an empirical matter that can only be solved by scientific inquiry into how the world works and not through philosophical arguments. However, the implications of the truth of determinism would’ve have a significant effect on free will. There are two ways in which the world could turn out not to be deterministic. One would be if there are things in the universe that are not governedRead MoreThe Belief Of Evil And The Existence Of God1780 Words   |  8 Pagesa morally perfect being existing This paper will discuss the logical inconsistencies between God and the â€Å"problem of evil† as well as the theist s response to this argument through the free-will defense. In response, the atheist will address the problems evil that the free-will defense did not address, like natural evils. an argument that the thiests will attempt to dismiss using the â€Å"expanded free-will defense† which touches on humans primordial estrangement from God. Nonetheless, I feel the theist