Common Themes in Poetry Essay -- Mid-Term Break Follower Poetry Poems

Common Themes in Poetry After reading and analysing numerous poems, I have chosen two examples of the famous Irish Poet, Seamus Heaney's work: 'Follower' and 'Mid-Term Break'. Both poems relate to the poet's past, and are certainly associated with a specific 'loss' of a loved one - one a literal loss, and the other a subconscious loss. 'Mid-Term Break', which I found to be a very touching and poignant poem, describes the loss of the poet's younger brother, Christopher when Heaney was a child, hence the poem is of a childhood tragedy as well as a loss. It's set in three places - the introduction is situated in the college sick bay; the main body of the poem is set in Heaney's brother's funeral, and the final setting is the small child's bedroom. The poet is awaiting his neighbours' car in the college sick bay, as they're going to escort him to the funeral. Evidence is given of 'death' in the second line: - "Counting bells knelling classes to a close" This metaphorical sentence creates a morbid atmosphere from the out-set, and the alliteration and hard consonants suggest that the 'wait' for his neighbours' car is excruciatingly long and daunting which underlines two things - childhood impatience and the fact that something is troubling him. 'Change' is sensed here also due to the fact that his neighbours are driving him home - as we know, the negative change is Christopher's death. Within the aspect of 'change', this is merely the 'tip of the iceberg', as many more unfamiliar experiences await him. The 'child's prospective' is cleverly brought into the second, third, fourth and fifth stanzas as a consequence of the poet's confusion and the contradictive scenes he witnesses as he walks into the fa... ...Seamus Heaney's childhood' is a fair summary of 'Mid-Term Break' and 'Follower', both linked to a specific loss - one, the death of the poet's four year old brother in a road accident; the other, the loss of the poet's father to old age. Both poems show the poet's use of transforming a situation from bad to good: in 'Mid-Term Break', 'the room' is not a deathly enclosure with a 'corpse' within, but a scene of tranquillity soothed by candles, with a little boy 'wearing a poppy bruise on his left temple' peacefully travelling to Heaven; in 'Follower', the setting is not a boring day in the fields ploughing, it's a small boy's idolisation of his father and attempt to follow in his footsteps. Whatever differences exist between both poems, the message is one: Losing is one of the hardest things a human being can witness, but we all have to lose in the end.

Graduation Speech -- Graduation Speech, Commencement Address

I did not get to know many of you. So, I cannot be certain of how you feel, but, as for me, this year has been, by far, the most enjoyable and eye opening one of my high school career. Enjoyable because of the new, interesting friends I've made and of the fun times I've had, and eye opening because of my being forced to look towards the future. Not just day dreaming and imagining about the rest of my life, but finally having to sit down and make some definite decisions concerning it. For me and many of you, colleges have had to be applied for and decided on and scholarships filled out. Some of you have been looking into vocational schools or the military, while others will be going straight into the work force. Whatever your case may be, we've all had one thing in common in that we've been planning for our futures. Since the decisions we make now or soon will impact the rest of our lives, I'd like to take this time to share some advice with you all. The most important advice I believe I can share is to do what you want to do. Don't be pressured into some life career because it's the most respectable or because it would make your family the proudest. Happiness is the greatest goal in life and is self-contained. The happiness of others will not satisfy you in the long run. If your fondest wish is to become an Atlantic Puffin breeder in northern Maine, then go for it. Don't allow anyone or anything to stop you. Also, many of you must fully realize how much time of your life a job will take up. Not just working, but preparing for it and the thought that will go towards it daily. In fact, for most of you, your life will revolve around your job. Where you live, who you see everyday, will mostly be dependent upon the job you choose... ... So, don't think that just because you're not starting college right away or not going to college at all, that you're bound to not get what you want out of life. It takes work, but, if you're determined enough, you can usually achieve your goals. Though you cannot expect to achieve all the goals you set for yourself, don't ever be afraid to at least try. Failure is one of the greatest ways to learn in that although you have failed, the new experiences you have gained while trying to achieve your goal will make you aware of new possibilities and allow you to form new goals for yourself. So remember, don't conform into exactly what society wants you to be. Do what you want to do. And if you don't know what that is already, find out. Don't be afraid to try different things. Be a risk taker. Live your lives for all they're worth because they won't last forever!

Table Tennis

Table Tennis Table tennis, also known as  ping-pong, is a  sport  in which two or four players hit a lightweight, hollow ball back and forth using  table tennis rackets. The game takes place on a hard table divided by a net. Except for the initial serve, players must allow a ball played toward them only one bounce on their side of the table and must return it so that it bounces on the opposite side. Points are scored when a player fails to return the ball within the rules. Play is fast and demands quick reactions.A skilled player can impart several varieties of  spinto the ball, altering its trajectory and limiting an opponent's options to great advantage. Table tennis is governed by the worldwide organization  International Table Tennis Federation  (ITTF), founded in 1926. ITTF currently includes 217 member associations. The table tennis official rules are specified in the ITTF handbook. Since 1988, table tennis has been an  Olympic sport  with several event catego ries. In particular, from 1988 until 2004, these were: men's singles, women's singles, men's doubles and women's doubles.Since 2008 a team event has been played instead of the doubles. In 2007, the governance for  table tennis for persons with a disability  was transferred from the  International Paralympic Committee  to the ITTF. History The game originated as a sport in England during the 1880s, where it was played among the upper-class as an after-dinner parlour game. It has been suggested that the game was first developed by British military officers in India or South Africa who brought it back with them.A row of books were stood up along the center of the table as a net, two more books served as rackets and were used to continuously hit a golf-ball from one end of the table to the other. Alternatively table tennis was played with paddles made of cigar box lids and balls made of champagne corks. The popularity of the game led game manufacturers to sell the equipment comm ercially. Early rackets were often pieces of parchment stretched upon a frame, and the sound generated in play gave the game its first nicknames of â€Å"wiff-waff† and â€Å"ping-pong†.A number of sources indicate that the game was first brought to the attention of Hamley's of Regent Street under the name â€Å"Gossima†. The name â€Å"ping-pong† was in wide use before British manufacturer J. Jaques & Son Ltd trademarked it in 1901. The name â€Å"ping-pong† then came to be used for the game played by the rather expensive Jaques's equipment, with other manufacturers calling it table tennis. A similar situation arose in the United States, where Jaques sold the rights to the â€Å"ping-pong† name to Parker Brothers.The next major innovation was by James W Gibb, a British enthusiast of table tennis, who discovered novelty celluloid balls on a trip to the US in 1901 and found them to be ideal for the game. This was followed by E. C. Goode who, in 1901, invented the modern version of the racket by fixing a sheet of pimpled, or stippled, rubber to the wooden blade. Table tennis was growing in popularity by 1901 to the extent that table tennis tournaments were being organized, books on table tennis were being written,[8] and an unofficial world championship was held in 1902.During the early 1900s, the game was banned in Russia because the rulers at the time believed that playing the game had an adverse effect on players' eyesight. In 1921, the Table Tennis Association was founded in Britain, and the International Table Tennis Federation followed in 1926. [5][10] London hosted the first official World Championships in 1926. In 1933, the United States Table Tennis Association, now called USA Table Tennis, was formed. In the 1950s, rackets that used a rubber sheet combined with an underlying sponge layer changed the game dramatically, introducing greater spin and speed.These were introduced to Britain by sports goods manufactur er S. W. Hancock Ltd. The use of speed glue increased the spin and speed even further, resulting in changes to the equipment to â€Å"slow the game down†. Table tennis was introduced as an Olympic sport at the Olympics in 1988. After the 2000 Summer Olympics in Sydney, the International Table Tennis Federation instituted several rules changes aimed at making table tennis more viable as a televised spectator sport. First, the older 38 mm balls were officially replaced by 40 mm balls in 2000.This increased the ball's air resistance and effectively slowed down the game. By that time, players had begun increasing the thickness of the fast sponge layer on their rackets, which made the game excessively fast and difficult to watch on television. Second, the ITTF changed from a 21-point to an 11-point scoring system in 2001. This was intended to make games more fast-paced and exciting. The ITTF also changed the rules on service to prevent a player from hiding the ball during service, in order to increase the average length of rallies and to reduce the server's advantage.Variants of the sport have recently emerged. â€Å"Large-ball† table tennis uses a 44 mm ball, which slows down the game significantly. This has seen some acceptance by players who have a hard time with the extreme spins and speeds of the 40 mm game. There is a move towards reviving the table tennis game that existed prior to the introduction of sponge rubber. â€Å"Hardbat† table tennis players reject the speed and spin of reversed sponge rubber, preferring the 1940–60s play style with no sponge and short-pimpled rubber. Defense is less difficult by decreasing the speed and eliminating any meaningful magnus effect of spin.Because hardbat killer shots are almost impossible to hit against a skilled player, hardbat matches focus on the strategic side of table tennis, requiring skillful maneuvering of the opponent before an attack can become successful. Equipment’s Ball The international rules specify that the game is played with a light 2. 7 gram, 40 mm diameter ball. [16] The rules say that the ball shall bounce up 24–26 cm when dropped from a height of 30. 5 cm on to a standard steel block thereby having a coefficient of restitution of 0. 89 to 0. 92. The 40 mm ball was introduced after the 2000 Olympic Games.However, this created some controversy as the Chinese National Team argued that this was merely to give non-Chinese players a better chance of winning since the new type of balls has a slower speed, while at that time most Chinese players were playing with fast attack and smashes. A 40 mm table tennis ball is slower and spins less than the original 38 mm (1. 5 inch) one. The ball is made of a high-bouncing air-filled celluloid or similar plastics material, colored white or orange, with a matte finish. The choice of ball color is made according to the table color and its surroundings.For example, a white ball is easier to see on a gre en or blue table than it is on a gray table. Stars on the ball indicate the quality of the ball. Three stars indicate that it is of the highest quality, and is used in official competition. Table The table is 2. 74 m (9 ft) long, 1. 52 m (5 ft) wide, and 76 cm (30 inch) high with a Masonite (a type of hardboard) or similarly manufactured timber, layered with a smooth, low-friction coating. The table or playing surface is divided into two halves by a 15. 25 cm (6 inch) high net.An ITTF approved table surface must be in a green or blue color. Concrete tables with a steel net are sometimes available in public parks. Racket Players are equipped with a laminated wooden racket covered with rubber on one or two sides depending on the grip of the player. The official ITTF term is â€Å"racket†, though â€Å"bat† is common in Britain, and â€Å"paddle† in the U. S. The wooden portion of the racket, often referred to as the â€Å"blade†, commonly features anywhere between one and seven plies of wood, though cork, glass fiber, carbon fiber, aluminum fiber, and Kevlar are sometimes used.According to the ITTF regulations, at least 85% of the blade by thickness shall be of natural wood. Common wood types include Balsa, Limba, and Cypress or â€Å"Hinoki,† which is popular in Japan. The average size of the blade is about 6. 5 inches (16. 5 cm) long and 6 inches (15 cm) wide. Although the official restrictions only focus on the flatness and rigidness of the blade itself, these dimensions are optimal for most play styles. Table tennis regulations allow different surfaces on each side of the racket.Various types of surfaces provide various levels of spin or speed, and in some cases they nullify spin. For example, a player may have a rubber that provides much spin on one side of his racket, and one that provides no spin on the other. By flipping the racket in play, different types of returns are possible. To help a player distinguish between th e rubber used by his opposing player, international rules specify that one side must be red while the other side must be black. The player has the right to inspect his opponent's racket before a match to see the type of rubber used and what color it is.Despite high speed play and rapid exchanges, a player can see clearly what side of the racket was used to hit the ball. Current rules state that, unless damaged in play, the racket cannot be exchanged for another racket at any time during a match. Rules Starting a game According to ITTF rule 2. 13. 1, the first service is decided by lot, normally a coin toss. It is also common for one player (or the umpire/scorer) to hide the ball in one or the other hand (usually hidden under the table), allowing the other player to guess which hand the ball is in.The correct or incorrect guess gives the â€Å"winner† the option to choose to serve, receive, or to choose which side of the table to use. (A common but non-sanctioned method is for the players to play the ball back and forth four times and then play out the point. This is commonly referred to as â€Å"play to serve† or â€Å"rally to serve†. ) Service and return In game play, the player serving the ball commences a play. The server first stands with the ball held on the open palm of the hand not carrying the racket, called the freehand, and tosses the ball directly upward without spin, at least 16 centimeters (approximately 6 inches) high.The server strikes the ball with the racket on the ball's descent so that it touches first his court and then touches directly the receiver's court without touching the net assembly. In casual games, many players do not toss the ball upward; however, this is technically illegal and can give the serving player an unfair advantage. The ball must remain behind the endline and above the upper surface of the table, known as the playing surface, at all times during the service. The server cannot use his body or cloth ing to obstruct sight of the ball; the opponent and the umpire must have a clear view of the ball at all times.If the umpire is doubtful of the legality of a service they may first interrupt play and give a warning to the server. If the serve is a clear failure or is doubted again by the umpire after the warning, receiver scores a point. If the service is â€Å"good†, then the receiver must make a â€Å"good† return by hitting the ball back before it bounces a second time on receiver's side of the table so that the ball passes the net and touches the opponent's court, either directly or after touching the net assembly.Thereafter, the server and receiver must alternately make a return until the rally is over. Returning the serve is one of the most difficult parts of the game, as the server's first move is often the least predictable and thus most advantageous shot due to the numerous spin and speed choices at his or her disposal. Let A let is a rally of which the result is not scored, and is called in the following circumstances: The ball touches the net in service, provided the service is otherwise correct or the ball is obstructed by the player on the receiving side.Obstruction means a player touches the ball when it is above or traveling towards the playing surface, not having touched the player's court since last being struck by the player. When the player on the receiving side is not ready and the service is delivered. Player's failure to make a service or a return or to comply with the Laws is due to a disturbance outside the control of the player. Play is interrupted by the umpire or assistant umpire. When time is an issue, some competitions only count a let if a player has over 10 points. If they have less, it counts as a fair shot. This can significantly increase the pace of game.Scoring A point is scored by the player for any of several results of the rally: Opponent fails to make a correct service or return. After making a service or a return, the ball touches anything other than the net assembly before being struck by the opponent. The ball passes over the player's court or beyond his end line without touching his court, after being struck by the opponent. The opponent obstructs the ball. The opponent strikes the ball twice successively. Note that the hand that is holding the racket counts as part of the racket and that making a good return off one's hand or fingers is allowed.It is not a fault if the ball accidentally hits one's hand or fingers and then subsequently hits the racket. The opponent strikes the ball with a side of the racket blade whose surface is not covered with rubber. The opponent moves the playing surface or touches the net assembly. The opponent's free hand touches the playing surface. As a receiver under the expedite system, completing 13 returns in a rally. The opponent has been warned by umpire commits a second offense in the same individual match or team match.If the third offence happens, 2 points will be given to the player. If the individual match or the team match has not ended, any unused penalty points can be transferred to the next game of that match. A game shall be won by the player first scoring 11 points unless both players score 10 points, when the game shall be won by the first player subsequently gaining a lead of 2 points. A match shall consist of the best of any odd number of games. In competition play, matches are typically best of five or seven games. Alternation of services and endsService alternates between opponents every two points (regardless of winner of the rally) until the end of the game, unless both players score 10 points or the expedite system is operated, when the sequences of serving and receiving stay the same but each player serves for only 1 point in turn. Player serving first in a game shall receive first in the next game of the match. After each game, players switch sides of the table. In the last possible game of a match, for exa mple the seventh game in a best of seven matches, players change ends when the first player scores 5 points, regardless of whose turn it is to serve.If the sequence of serving and receiving is out of turn or the ends is not changed, points scored in the wrong situation are still calculated and the game shall be resumed with the order at the score that has been reached. Doubles game Service zone in doubles game In addition to games between individual players, pairs may also play table tennis. In doubles, all the rules of single play are applied except for the following. A line painted along the long axis of the table to create doubles courts bisects the table.This line's only purpose is to facilitate the doubles service rule, which is that service, must originate from the right hand â€Å"box† in such a way that the first bounce of the serve bounces once in said right hand box and then must bounce at least once in the opponent side's right hand box (far left box for server), o r the receiving pair score a point. Players must alternate hitting the ball. For example, if A is paired with B, X is paired with Y, A is the server and X is the receiver. The order of play shall be A > X > B > Y. The rally proceeds this way until one side fails to make a legal return and the other side scores.At each change of service, the previous receiver shall become the server and the partner of the previous server shall become the receiver. For example, if the previous order of play is A > X > B > Y, the order becomes X > B > Y > A after the change of service. In each game of a doubles match, the pair having the right to serve first shall choose which of them will do so. The receiving pair, however, can only choose in the first game of the match. When the first server is chosen in the second or the latter games of the match, the first receiver of the game is the player who served to the first server of the game in the preceding game.For example, if the order of play is A > X > B > Y at beginning of the first game, the order begins with X > A > Y > B or Y > B > X > A in the second game depending on either X or Y being chosen as the first server of the game. When a pair reaches 5 points in the final game, the pairs must switch ends of the table and the team that receives the service must switch receiver. For example, when the last order of play before a pair score 5 points in the final game is A > X > B > Y, the order after change shall be A > Y > B > X if A still has the second serve.Otherwise, X is the next server and the order becomes X > A > Y > B. Singles and doubles are both played in international competition, including the Olympic Games since 1988 and the Commonwealth Games since 2002. In 2005, the ITTF announced that doubles table tennis only was featured as a part of team events in the 2008 Olympics. Expedite system If a game is unfinished after 10 minutes' play and fewer than 18 points have been scored, the expedite system is initiated. The umpi re interrupts the game, and the game resumes with players serving for 1 point in turn.If the expedite system is introduced while the ball is not in play, the previous receiver shall serve first. Under the expedite system, the server must win the point before the opponent makes 13 consecutive returns or the point goes to the opponent. The system can also be initiated at any time at the request of both players /or pairs. Once introduced, the expedite system remains in force until the end of the match. A rule to shorten the time of a match, it is mainly seen in defensive players' games.

Business Ethics Analysis

As permitted by Vietnamese law and labor regulations, Vietnamese subcontractors are permitted to employ hillier between the ages of 15 and 18 within their factories. This fact has infuriated children's rights activists in the united States (U. S. ) who feel that Nikkei is exploiting children in Vietnam to increase revenue. These activists protest the employment of children under the age of 18, and argue that children would have an opportunity to attend school and further their education if they are not forced to work.An opposing view of this argument is that children who accept employment within Vietnamese factories are doing so out of their own free will and feel fortunate o be earning an income to help contribute to the welfare of their family. Furthermore, secondary education in Vietnam Is not free as In the U. S. ; therefore, children who accept employment are most likely In a financial deficit and would likely not be able to afford to get a secondary education even If they had t he time to attend.Utilitarian model philosophy suggests that you should act in a way that generates the greatest benefit for the greatest number of people. Applying the utilitarian model to each of the prominent stakeholders from above gives a clear depiction of the pros and cons for both alternatives. A. Alternative #1: Continue to hire/employ underage workers For Alternative #1, in which Nikkei continues to hire and employ underage workers, there are more quantifiable positive outcomes than negative.Positive outcomes include increased income for Vietnamese workers and their families and reduced prices of Nikkei brand products, which is beneficial to both consumers and shareholders. There are several negative outcomes from continuing to employ children workers, which include Nikkei Corporation, Nine's CEO, and U. S. Global images remaining under scrutiny. Additionally, and most importantly, choosing to continue employing children in factories will likely to cause a consumer backlas h, reducing overall product sales.Alternative #1 : Continue to hire/employ underage workers Increased income for children's families Nine's public image suffers * Reduced prices for consumers U. S. Global image remains tarnished * Increased shareholder earnings* Reduced sales / consumer backlash *Increased revenue for Nikkei Increased scrutiny for CEO b. Alternative #2: Ban underage employment Applying the utilitarian model to Alternative #2, banning underage employment in Nine's factories, produces a negative quantifiable outcome. If Nikkei announced that it would no longer hire children, the corporation's public image, as well as the image of the U.S. N general, would improve, and Nikkei is likely to increase and expand its and increased consumer product costs) outweigh the positives for Alternative #2. Alternative #2: Ban underage employment Nine's public image improves * Increased poverty in Vietnam U. S. Global image improves * Costs of products increases Customer base expands Vietnamese children subjected to more harsh work environments Alternative favored: The Utilitarian Model, as displayed in the balance sheets above, favors Alternative #1, which is that Nikkei should continue to hire and employ underage workers. . Golden Rule Model The Golden Rule Model reflects the alternative that each of the key stakeholders would choose if given the choice: Key Stakeholder Alternative #1 Alternative #2 Employed/eligible Vietnamese children Yes No Families of employed/eligible Vietnamese children Yes Nikkei Corporation Yes No Other outsourced companies Yes No Consumers Yes No Nikkei CEO yes NO No Alternative favored: Alternative #1 is the clear choice for all of the key stakeholders using the Golden Rule Model. 3. Kantian Model a.Children in Vietnam are often depended upon in their society to go to work and ran an income in order to provide food and shelter for themselves and their families; therefore, they would argue for their right to do so by choosing Alternat ive b. Nikkei Corporation and other multinational companies are entitled to run their in which they operate. Nikkei would prefer Alternative #1 . C. Children's rights activists would argue that these child workers have the right to education, and that are prevented from doing so by being â€Å"forced† to work.These advocates for the Vietnamese children would be in favor of Alternative #2, banning all child labor in Nikkei factories. Alternative favored: The Kantian Model illustrates three significant societal values or rights that would be affected, with the majority in favor of Alternative #1 . 4. Enlightened Self-Interest Model Nikkei Corporation would view Alternative #1 , continuing to employ children in their overseas factories, as the most economically beneficial option.This alternative will reduce prices for consumers, increase shareholder earnings, and increase revenue for Nikkei. These benefits exceed the risks associated with Alternative #1, which mostly involves ta rnished images of Nikkei and its CEO. Alternative favored: Since the benefits to the decision maker (Nikkei) outweigh the harm caused to all other stakeholders, the Enlightened Self-Interest Model favors Alternative #1 .Moral Models – Best Fit The Utilitarian and Golden Rule Models are the most effective in determining which alternative is the best choice: Utilitarian Model: Alternative #1 has three (3) quantifiable pros vs.. Only one (1) con, whereas Alternative #2 zero (O) quantifiable pros as opposed to one (1) con. Golden Rule Model: All six (6) of the key stakeholders in this decision would benefit from Alternative #1 .Moral Models – Not a Good Fit Whereas the Utilitarian & Golden Rule Models clearly demonstrate that Alternative #1 is the best choice for all key stakeholders, the Kantian and Enlightened Self-Interest Models are not as convincing because they reflect the views of only a small portion of all stakeholders: Kantian Model: Alternative #1 positively aff ects two (2) out of three (3) social values or rights, whereas Alternative #2 only positively affects one (1). Comparisons within such a small sample size are not as convincing as the Utilitarian and Golden Rule Models.Enlightened Self-Interest Model: Although the most prominent stakeholder, Nikkei, would be positively affected by Alternative #1 , and said benefit outweighs any harm caused to all other stakeholders by choosing this alternative, the model advocates for the benefit of a single entity. The Utilitarian and Golden Rule Models take into consider a larger portion of all stakeholders who would be affected by this decision. Nikkei has been employing children in overseas factories for decades, during which time it has enduring many years of ridicule and criticism for doing so.Nikkei should try to improve its image to the public by taking the initiative to educate opponents of child labor with regard to the cultural differences between third-world countries and the U. S. They should specifically address the issue that it is not only the norm for children in those locations to work, but also that it is often a crucial for their survival. Additionally, Nikkei should enlighten critics about the educational norms of these children, emphasizing that most children over the age of 1 5 are not able to attend school because it is extremely costly and not enforced.

Kingfisher Case Study

EISSN 2277-4955 THE KING WITHOUT FISHES†¦!!! [CASE ON CRISIS OF KINGFISHER AIRLINES] Prof. Bhavik M. Panchasara Marwadi Education Foundation’s Group of Institutions, RajKot, [email  protected] com ABSTRACT Indian Aviation Industry is one of the fastest growing markets in the world. But nowadays it is in the news due to different reason. And that is the failure of one of the leading aviation player – Kingfisher Airlines. The airline has been facing financial issues for many years. Till December 2011; Kingfisher Airlines had the second largest share in India's domestic air travel market.However due to the severe financial crisis faced by the airline, it has the fifth largest market share currently. Even the company have no funds to pay the salaries to the employees and is facing several other issues like fuel dues; aircraft lease rental dues, service tax dues and bank arrears. This case outlines the financial turmoil of the Kingfisher in detail. Keywords: Aviation industry, Kingfisher Airlines, financial turmoil, financial issues, crisis and debt restructuring INTRODUCTION: Kingfisher Airlines is an airline group based in India.Its head office is The Qube in Andheri (East), Mumbai; and Registered Office in UB City, Bangalore. Kingfisher Airlines was established in 2003. It is owned by the Bengaluru based United Breweries Group. Kingfisher Airlines, through its parent company United Breweries Group, has a 50% stake in low-cost carrier Kingfisher Red. The airline started commercial operations in 9 May 2005 with a fleet of four new Airbus A320-200s operating a flight from Mumbai to Delhi. It started its international operations on 3 September 2008 by connecting Bengaluru with London.The airline has been facing financial issues for many years. Till December 2011; Kingfisher Airlines had the second largest share in India's domestic air travel market. However due to the severe financial crisis faced by the airline, it has the fifth largest market s hare currently, only above Go Air. Kingfisher Airlines is one of the only seven airlines awarded 5star rating by Skytrax along with Cathay Pacific, Qatar Airways, Asiana Airlines, Malaysia Airlines, Singapore Airlines, and Hainan Airlines. Kingfisher operates 250 daily flights with regional and long-haul international services.In May 2009, Kingfisher Airlines carried more than 1 million passengers, giving it the highest market share among airlines in India. Kingfisher also owns the Skytrax award for India's best airline of the year 2011. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 84 EISSN 2277-4955 STARTING OF THE CRISES: Ever since the airline commenced operations in 2005, the company is reporting the losses. But the situation became more horrible after acquiring the Air Deccan in 2007. After acquiring the Air Deccan, the company suffered a loss of over Rs. 1,000 crore for three executive years. By early 2012, the airline accumulated the losses of over Rs. ,000 crore with half of it s fleet grounded and several members of its staff going on strike. Following table 1 highlights losses of the company since inception: Table 1: Net Reported Losses and debts since inception (Rs. In Crores) Year Loss Secured Loans Unsecured Loans Mar-11 -1027. 4 5,184. 53 1,872. 55 Mar-10 -1646. 22 4,842. 43 3,080. 17 Mar-09 -1608. 83 2,622. 52 3,043. 04 Mar-08 -188. 14 592. 38 342. 00 Jun-07 -419. 58 716. 71 200. 00 Jun-06 -340. 55 448. 16 3. 50 Mar-05 -16. 79 159. 42 125. 06 DEBT RESTRUCTURING: In the situation of loss and tough financial condition, the company went for more loans.Table 1 shows the portion of secured and unsecured loans taken by the company. Due to heavy burden of debt and interest, in November 2010, the company adopted the way of debt restructuring and under that total 18 leading lenders, those have landed total Rs. 8,000 crores, agreed to cut interest rates and convert part of loans to equity. As per the contract, lenders have converted Rs. 650 crores debt into p reference shares which will be converted into equity when the company lists the on the Luxembourg Stock Exchange by selling global depositary receipts (GDR).Shares will be converted into ordinary equity at the price at which the GDRs are sold to investors. Besides the 1,400 crore debt which will be 800 crore converted into preference shares, another CRISIS TILL CONTINUE: Debt restructuring also couldn’t change the game. By restructuring, company had reduced the interest charges by Rs. 500 crores every year, but due to the high leverage condition and increase in cost, the company started to face the liquidity problem. The company had no funds in hand and it created the following payment problems.DELAYED SALARY: Kingfisher Airline has staff strength of 6,000 and spends 58 crore on salaries a month. According 173. 66 to the first quarter financial results, it has increased from crore under the employees cost head, which has 163. 40 crore during the same quarter last year. Kingfi sher Airlines delayed salaries of its employees in August 2011, and for four months in succession from October 2011 to January 2012. Kingfisher also defaulted on paying the Tax Deducted at Source from the employee income to the tax department. debt has been converted into redeemable shares for 12 years.Due to debt restructuring, the company able to down the average interest rate to 11% and to save Rs. 500 crores every year in interest cost. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 85 EISSN 2277-4955 FUEL DUES: In the past several years, Kingfisher airlines had trouble paying their fuel bills. Due non-payment, several Kingfisher's vendors had filed winding up petition with the High Court. As on Nov 2011, winding up petition of seven creditors was pending before the Bangalore High Court. In the past Lufthansa Technik & Bharat Petroleum Corporation Limited (BPCL) had also filed winding up petition against Kingfisher Airlines.Here are some cases: ? ? HPCL: In Jul 2011, Hindustan Petrol eum Corporation Limited (HPCL) stopped the fuel (ATF) supplies for about two hours to Kingfisher airlines owing to the non-payment of dues. Situation was later resolved. ? BPCL: Bharat Petroleum Corporation in 2009 had filed a case against Kingfisher airlines for non-payment of dues. High court in an order said that the entire amount 245 crore had to be paid by Nov 2010 and the airline paid it in instalments. AIRCRAFT LEASE RENTAL DUES: Since 2008, it has been reported that Kingfisher Airlines has been unable to pay the aircraft lease rentals on time.Due to that, the Kingfisher Airlines has grounded 15 out of 66 aircraft in its fleet as it was unable to meet the maintenance and overhaul expenses. Here are the some major issues with: ? GECAS: In Nov 2008, GE Commercial Aviation Services threatened to repossess 04 leased planes in lieu of default. Kingfisher Airlines initially BAUDDHIK On 9 December 2011, S. K. Goel, chairman, Central Board of Excise and Customs (CBEC) announced that CBEC is considering legal action against Kingfisher for not paying service tax. As on 10th Jan 2012, Kingfisher Airlines has service tax arrears of 70 crore.The Ministry of Finance has given a concession to Kingfisher and instructed them to pay the dues by 31st Mar 2012. In Jan 2012, SERVICE TAX: Kingfisher received a notice from the Airports Authority of India on February 2012 regarding accumulated dues of 255. 06 crore. The airline was operating on a cash and carry basis for the last six months, with daily payments amounting to 0. 8 crore. AAI REPORTS: DVB: In Jul 2010, DVB Aviation Finance Asia Ltd (a lessor from Singapore), sued Kingfisher Airlines for lease rental default.Case was filed in a UK court on Jul 16, 2010 after Kingfisher did not pay for three month lease rental for A320 aircraft it leased from DVB. denied that it missed the payments. GECAS had filed a complaint with DGCA saying Kingfisher had defaulted on rentals for four A320 aircraft, and sought repossession of th e planes. In Jan 2009, The Karnataka High Court rejected petition by Kingfisher Airlines to restrain GECAS from taking any step to deregister and repossess the 04 aircraft in dispute. As a result, Kingfisher had to return the A320 aircraft to GECAS. VOLUME 3, NO. -1, JAN-APRIL-2012 87EISSN 2277-4955 Kingfisher paid 20 crore towards its dues for operational by February 20. With this, Kingfisher's market share clearly dropped to 11. 3%. The cancellation of the flights was accompanied by a BANK ARREARS: Kingfisher Airlines had not paid some bankers (Lenders) as per the Debt Recast Package (DRP) with lending banks. Till the end of Dec 2011, the arrears were estimated to be 260 crore to 280 crore. Lenders hence had told Kingfisher Airlines to clear its dues before they can release any more money sought by the Airline. Ravi Nedungadi, chief financial officer of UB Group however said that the arrears were 180 crore.State Bank of India (SBI) on 5th Jan 2012 declared Kingfisher Airlines a NP A. SBI is largest creditor and the leader of the consortium of banks in the DRP (Debt Recast Package) and has an exposure of NPA by following banks: State Bank of India Bank of Baroda Punjab National Bank IDBI Central bank of India Bank of India Corporation Bank THE CRISIS CONTINUE: During late February, 2012, Kingfisher Airlines started to sink into a fresh crisis. Several flights were cancelled and aircraft were grounded. The airline shut down most international short-haul operations and also temporarily closed bookings.Out of the 64 aircraft, only 22 were known to be 1,457. 78 crore. Thus, by Feb 2012, Kingfisher has been declared 13. 5% drop in the stocks of the company on 20 February 2012. The CEO of the airlines, Sanjay Agarwal was summoned by the Directorate General of Civil Aviation to explain the disruptions of the operations. The State Bank of India, which is the lead lender to Kingfisher airlines said that they would not consider giving any more loans to Kingfisher unless and until it comes up with a new equity by itself. Political activists also claimed that bailing or helping a private airline would lead to problems within the Government.By February 27, Kingfisher operated only above 150 out of its 400 flights and only 28 aircraft were functional. Reuters reported that if Kingfisher were to shutdown, it would be the biggest failure in the History of Indian Aviation. It was announced that the direct flights to the smaller airports of Jaipur, Thiruvananthapuram, Nagpur and also to Hyderabad's Rajiv Gandhi International Airport were all shut down and only one/two-stop flights from its main hubs of Delhi and Mumbai would operate. In response to a situation as bad as bankruptcy, Vijay Mallya announced that he had organized funds to pay all the employees' overdue salaries.With bank accounts frozen and huge debts due, it is unknown so as from where he arranged the money. But he apologized to his workers and said that he would pay them immediately. By thi s time, kingfisher had accumulated losses of 444 crore during the third quarter of the fiscal year 2011-12. December 2011 and part of the arrears. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 88 EISSN 2277-4955 FROZEN BANK ACCOUNTS: On March 3, 2012, The Central Board of Excise & Customs of India froze many more Kingfisher accounts as it was unable to pay all the dues as per schedule. Kingfisher was meant to pay 1 crore per working day.Aviation minister Ajit Singh warned the airline about the temporary suspension of the license until the crisis was sorted out. He announced that the rest of the airline's fleet would be grounded and all flights cancelled until the crisis came to an end. This would be only one step from permanently closing the airline. IATA SUSPENSION: On March 7, 2012 IATA suspended ticket sales of Kingfisher airlines citing non-payment of dues as the primary reason, and they said that sales services will only be restored once Kingfisher settles ICH (IATA Clearing House) account.IATA also immediately directed all travel agents to stop booking tickets for Kingfisher. This would affect Kingfisher's business by around 30%. Kingfisher claimed that frozen bank accounts was the main cause of being unable to pay the IATA, and the airline started making alternate arrangements for the sale of tickets. Soon it became difficult for the airline to follow the much smaller schedule that it earlier released as even more pilots began to go on strike. UNCERTAINTY AHEAD: After analysing the entire scenario, there are strong possibilities of more difficult situation in the last month of fiscal year 2011-12.The company is in dilemma of finding help, but from where? 2. TEACHING NOTES 1. The purpose of the case is to make the students aware about the situation of financial crisis in any organisation. The issues involved in the case are about the financial turmoil and its effects on the business and market share of the company. 3. 4. 2. 1. Is the Problem of Kingfisher Ai rlines Industry Specific or Company Specific? What is the Impact of High Level of Debt on the operating performance of company? Should Government bailout Kingfisher Airlines? According to you, what are the possible ways for the company to overcome this situation?QUESTION FOR DISCUSSION: Government has refused for bailing and all the lenders and bankers have no more trust. The employees are also not able to tolerate the salary crisis and the slipping market share leads the more difficulties. Promoter Vijay Malya has to decide the way ahead. Whether is it possible to save the company? There are very few alternatives. As per the previous news, Etihad Airways was interested in investing in Kingfisher by providing equity in exchange for a stake in the airline. Also involved in the talks was the International Airlines Group, owner of British flag carrier British Airways and Spanish flag carrier Iberia.But the question is the permission by Government. So at present there is very tough situ ation for Vijay Malya and for the company. Will new fiscal year bring any solution for the company? Let’s wait and watch. BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 89 EISSN 2277-4955 3. The case would be first given for individual reading for 15 min and then for 15 min the case can be discussed in groups of 4-5 students. 4. The case can be taught along with the concepts like ways to overcome the crisis and surviving strategies required to save the organisation keeping in mind the possible different options available. 5.The students can come prepared with topics of prevailing crisis in Indian aviation industry and REFERENCES: 6. other factors related to the aviation industry in detail. Cross reference can be made taking into account the strategies used by the local, market of the falling organisation. national and international players to capture the slipping http://www. flykingfisher. com/mediacenter/press-releases/kingfisher-airlinesannouncement. aspx http://in. finance. yah oo. com/news/kingfisherairlines-q3-loss-widens-033419822. html http://timesofindia. indiatimes. com/india/Kingfi sher†¦ /12258986. cms http://articles. economictimes. ndiatimes. com/2 011-12-08/news/30490358_1_pilots-industrialaction-kingfisher airlines http://profit. ndtv. com/News/Article/aai-warnskingfisher-airlines-to-settle-dues-297284 http://articles. economictimes. indiatimes. com/2 010-09-26/news/27585421_1_cash-and-carrymode-bpcl-s chairman-kingfisher-airlines http://timesofindia. indiatimes. com/business/indiabusiness/Kingfisher-may-have-to-weather-pilotstorm-next/articleshow/12214372. cms Annexure 1: Market share of Kingfisher Airlines as on January 2012 in the domestic Aviation Airline/Company Jet Airways (Including Jet Lite) Indigo Air India Spice Jet Kingfisher Go Air Share 28. 8% 20. 8% 17. 1% 16. 3% 11. 3% 5. 8% Source: http://in. finance. yahoo. com/news/kingfisher-airlines-q3-loss-widens-033419822. html BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 90 EISSN 2277-4 955 Annexure 2: Price Movement and Performance Charts of Kingfisher Airlines Annexure 3: Index Comparison and Ownership Pattern of Kingfisher Airlines Source:http://www. bseindia. com/bseplus/StockReach/AdvanceStockReach. aspx? scripcode=532747 Annexure 4: Comparative Balance Sheet of Kingfisher Airlines [Rs. In crores] Sources Of Funds Total Share Capital Equity Share Capital Share Appl.Money Pref. Share Capital Reserves Net worth Mar '11 1,050. 88 497. 78 2. 95 553. 10 -4,005. 02 -2,951. 19 Mar '10 362. 91 265. 91 7. 48 97. 00 -4,268. 84 -3,898. 45 Mar '09 362. 91 265. 91 8. 11 97. 00 -2,496. 36 -2,125. 34 Mar '08 135. 80 135. 80 10. 09 0. 00 52. 99 198. 88 Jun '07 135. 47 135. 47 0. 00 0. 00 249. 23 384. 70 Jun '06 98. 18 98. 18 0. 00 0. 00 125. 95 224. 13 Mar’05 16. 20 16. 20 0. 00 0. 00 -2. 54 13. 66 BAUDDHIK VOLUME 3, NO. -1, JAN-APRIL-2012 85 EISSN 2277-4955 Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum.Dep. Net Block Capital WIP Investments Inventories Sundry Debtors Cash & Bank Bal. Total CA Loans & Adv. FDs CA, Loans & Adv. Current Liabilities Provisions Total CL & Prov. Net Current Assets Misc. Expenses Total Assets 2,254. 26 682. 37 1,571. 89 673. 35 0. 05 187. 65 440. 53 88. 18 716. 36 5,380. 19 164. 18 6,260. 73 4,463. 86 62. 11 4,525. 97 1,734. 76 125. 84 4,105. 89 2,048. 14 493. 62 1,554. 52 980. 61 0. 05 164. 88 322. 49 50. 91 538. 28 4,604. 31 155. 56 5,298. 15 3,908. 03 46. 77 3,954. 80 1,343. 35 145. 64 4,024. 17 1,891. 80 316. 29 1,575. 51 1,630. 95 0. 05 147. 5 229. 84 49. 41 426. 50 3,640. 42 122. 45 4,189. 37 3,814. 63 45. 55 3,860. 18 329. 19 4. 51 3,540. 21 322. 33 43. 55 278. 78 346. 25 0. 00 48. 64 27. 16 5. 84 81. 64 832. 49 274. 29 1,188. 42 687. 31 9. 52 696. 83 491. 59 16. 64 1,133. 26 340. 77 33. 74 307. 03 357. 62 0. 41 61. 62 35. 24 422. 05 518. 91 149. 77 395. 00 1,063. 68 449. 15 6. 94 456. 09 607. 59 28. 75 1,301. 40 247. 33 16. 40 230. 93 286. 53 0. 41 57. 2 6 13. 06 181. 17 251. 49 232. 03 75. 31 558. 83 434. 05 5. 93 439. 98 118. 85 39. 08 675. 80 55. 25 4. 52 50. 73 153. 09 0. 45 36. 40 8. 27 47. 08 91. 75 47. 8 35. 85 174. 88 108. 77 1. 07 109. 84 65. 04 28. 83 298. 14 5,184. 53 1,872. 55 7,057. 08 4,105. 89 4,842. 43 3,080. 17 7,922. 60 4,024. 15 2,622. 52 3,043. 04 5,665. 56 3,540. 22 592. 38 342. 00 934. 38 1,133. 26 716. 71 200. 00 916. 71 1,301. 41 448. 16 3. 50 451. 66 657. 79 159. 42 125. 06 284. 48 298. 14 Source:http://www. moneycontrol. com/financials/kingfisherairlines/balancesheet/KA02#KA02 Annexure 5: Comparative P A/c of Kingfisher Airlines [Rs. In crores] Income Net Sales Other Income Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manu.Exp. Sell. & Admn Exp. 56. 69 2,274. 03 680. 54 1,192. 80 997. 34 40. 89 1,802. 99 689. 38 1,108. 82 996. 85 51. 19 2,602. 62 825. 42 1,112. 85 1,062. 74 43. 79 889. 30 244. 96 408. 21 180. 39 45. 94 979. 50 247. 72 617. 56 146. 78 36. 73 625. 45 163. 04 42 5. 48 114. 38 5. 77 92. 98 31. 76 104. 78 29. 13 Mar '11 6,233. 38 81. 58 6,314. 96 Mar '10 5,067. 92 -333. 30 4,734. 62 Mar '09 5,269. 17 598. 90 5,868. 07 Mar '08 1,456. 28 113. 62 1,569. 90 Jun '07 1,800. 21 342. 10 2,142. 31 Jun’06 1285. 42 59. 64 1345. 06 Mar’05 305. 55 14. 73 320. 28 BAUDDHIK VOLUME 3, NO. 1, JAN-APRIL-2012 86 EISSN 2277-4955 Misc. Exp. Total Expenses PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items Tax Reported Net Profit Shares in issue (lakhs) EPS (Rs) Equity Dividend (%) Book Value (Rs) Per share data (annualised) 4,977. 79 -20. 64 0. 00 -70. 46 2,659. 09 -61. 95 0. 00 -150. 54 2,659. 09 -60. 50 0. 00 -83. 88 1,357. 99 -13. 85 0. 00 13. 90 1,354. 70 -30. 97 0. 00 28. 40 981. 82 -34. 69 0. 00 22. 83 31. 06 -54. 05 0. 00 43. 96 87. 94 5,289. 34 1,025. 62 2,340. 32 -1,314. 70 203. 02 38. 01 -1,555. 73 72. 99 -455. 35

Paper Ratio and Financial Statement Analysis Essay

Executive Summary In corporate finance, both ratio and financial statement analysis are important tools that can be used in order to assess a company’s strength financially. They can be used in order to forecast a business’ prospective cash flow and ability to grow in the future, as well as a company’s strengths and weaknesses. Income statements, balance sheets, the statement of retained earnings, and the statement of cash flows are the four primary types of financial statements used in corporate finance. All of these financial statements serve to analyze a firm’s cash flows from different perspectives and are all interrelated. Ratio analysis, another important tool in financial analysis, analyzes the probability that a firm will be profitable or not. The different kinds of ratios used are liquidity ratios, efficiency ratios, leverage ratios, profitability ratios, and market-value indicators, with each type including various different specific ratios that one can calculate when examining a firm’s operability. Both the financial statements and ratio analysis offer an analysis of a firm’s finances at a particular point in time, while also forecasting its financial stability in the future. Another advantage is that they allow a firm’s finance team to compare its finances to that of other similar companies, known as benchmarks, in order to value the strength of their firm in the marketplace. However, financial statements and ratio analysis can also lack in their accuracy since financial analysis is often based on historical figures from the past several years and thus only offer the prospective financial future rather than concrete data since often a firm’s finances are based on the ever-changing marketplace or other factors not in control of the firm’s managers, such as economic conditions. Despite such disadvantages, financial statements and ratio analysis is a very important aspect in the corporate environment and essential to examining a firm’s viability. Overview In business, financial statements are important tools, which allow a firm to clearly state its financials in terms of figures, such as revenues, expenses, net incomes, etc. and analyze strengths and shortcomings of the firm. This allows the firm’s managers to clearly see what is and is not working for the firm. Ratio analysis is used when identifying and analyzing multiple variables in the firm’s operations, such as inventory, accounts receivable, net sales, etc. When completing financial statement and ratio analysis, it is beneficial for the firm to examine its financial figures over several previous consecutive years, so that any and all patterns in its operability can be observed and analyzed. Such patterns can reveal aspects of the company where efficiency is not at its finest and thus there is a financial loss. As a result, the company can implement changes in order to improve upon these shortcomings and increase its profits. Ratio analysis is both a qualitative and quantitative way of looking at the data in order to analyze how a company functions and ways to improve it by looking at present and previous functioning and forecasting the future of the company. Both financial statement and ratio analysis can provide insight into the success or failures of specific product lines, allowing managers to make intelligent decisions regarding what their firm should offer in the future to consumers. Financial statement analysis is also a way to assess and validate a company’s viability in the marketplace to outside investors/creditors. Financial statements assist managers in understanding how profitable their firm is. It is often used to make comparisons of one firm to another or of a specific time period to another time period for the same firm. The main aspects of a financial statement are revenues, expenses, and net income. Revenues are sales numbers that come from products or services a firm creates through its business operations (Parrino, 2011). For a firm, such as Microsoft, its revenue would come from products such as the computers, phones, tablets, and software it sells to consumers. On the other hand, for a consulting firm, such as Accenture, revenues would stem from the fees it charges for its consulting services contracts with various government agencies around the world. Both companies are providing a product to a consumer, one simply happens to be a tangible product that people buy, while the other is a service product that agencies need for their functionality. Expenses are the costs a firm incurs while generating its revenues (Parrino, 2011). For Microsoft, expenses would stem from the costs of building its products, marketing them, developing new products, shipping them around the world, etc. For Accenture, expenses would stem from the cost of all of its consultants, which includes their wages, insurance, company laptops it provides to each of them, travel costs for sending consultants around the world on projects, etc. Again both types of firms exhibit expenses; some of them are just different. Net income shows the company’s revenue relative to its expenses. If revenues exceeds expenses then the company has a net profit and is â€Å"in the black† for that time period (Parrino, 2011). On the other hand, if expenses exceed revenues then the company has a net loss and is â€Å"in the red† for that time period (Parrino, 2011). By looking at financial statements from one fiscal period to the next or annually, managers can observe how their firm is progressing. If the numbers show that the firm is not operating at an optimal level or there is a sudden decline in profit, managers can delve further into the firm’s operations using ratio analysis to look for problem areas and address them accordingly. For instance, ratio analysis can allow analysts to view the rate turnover of a specific product line and examine whether something is lacking in that product line that is hindering the firm’s ability to get rid of that inventory to consumers. Such ratio analysis will be elaborated upon later in this paper. There are four types of financial statements; income statements, balance sheets, the statement of retained earnings, and the statement of cash flows, which are all vital and interrelated. The income statement calculates the firm’s net income or its earnings after expenses have been deducted and is used to calculate retained earnings at the end of the year (Parrino, 2011). Net income is calculated as followed: Net Income = Revenues – Expenses The balance sheet summarizes what assets the firm has at a specific point in time, as well as how the firm has financed such assets (Parrino, 2011). Total assets is calculated as followed: Total Assets = Total Liabilities + Total Stockholders’ Equity The value of assets will change annually since firms often buy and sell assets, thus altering the firm’s value and financing. Such changes are indicated in the  statement of cash flows, which gives a summary of changes in the firm’s balance sheet from the beginning of a period to the end (Parrino, 2011). The statement of retained earnings summarizes changes in the retained earnings in a simpler manner for managers than the statement of cash flows and basically shows the firm’s expenses and loss from one period to the next (Parrino, 2011). These financial statements can provide a lot of information to managers regarding the operations of the company. If Microsoft sees a decrease in its net income or total assets from one year to the next, this can indicate many things. A decrease in net income can indicate maybe some products are not selling as well as they have in the past, meaning Microsoft may need to change its marketing strategy or release a new product. A decrease in total assets can mean several things. Perhaps the company’s products are of less value than before or perhaps they have fewer liabilities. Deciding what specifically financial statements mean for the future of a firm often requires more in depth analysis through ratio analysis. Ratio analysis is the use of financial figures to analyze a firm’s overall operability and evaluate its strengths and weaknesses (Parrino, 2011). It can be used from various perspectives including stockholders, managers, and creditors, in order to evaluate the profitability of a firm. Specifically, a financial ratio is a â€Å"number from a financial statement that has been scaled by dividing by another financial number† in order to show something about the company’s operations (Parrino, 2011). There are several types of financial ratios; liquidity ratios, efficiency ratios, leverage ratios, profitability ratios, and market-value indicators. Liquidity ratios focus on whether â€Å"a firm has the ability to convert current assets into cash quickly without loss of value† (Parrino, 2011). Two liquidity ratios are as followed: Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Current Assets – Inventory) / Current Liabilities Liquidity ratios indicate a firm’s ability to pay short-term obligations, such as interest payments for debt. This is very important because every firm has creditors, whether its investors, banks, or even tax collectors and even the most profitable company can go under if it is unable to pay all of its obligations for any reason. Efficiency ratios measure â€Å"how efficiently a firm uses its assets† and include the following: Inventory Turnover = Cost of Goods Sold / Inventory Days Sales in Inventory = 365 Days / Inventory Turnover Accounts Receivable Turnover = Net Sales / Accounts Receivable Days Sales Outstanding = 365 Days / Accounts Receivable Turnover Total Asset Turnover = Net Sales / Total Assets Fixed Asset Turnover = Net Sales / Net Fixed Assets Efficiency ratios are a useful tool in financial analysis because they can examine and identify inefficient use of any kind of asset. For instance, in our case of a decrease net income for Microsoft, financial analysts can look at the inventory turnover for each of its products and analyze whether one is too low indicating that the rate at which they are selling that specific product line is not efficient compared to the cost of producing that product line. Based on this managers can decide whether they should decrease the amount of inventory they produce or cut the product line all together. Leverage ratios are used to examine a firm’s financing or ability to meet long-term financial obligations. Leverage ratios are as followed: Total Debt Ratio = Total Debt / Total Assets Debt-to-Equity Ratio = Total Debt / Total Equity Equity Multiplier = Total Assets / Total Equity Leverage ratios are important because every firm uses debt or equity and often both for its financing, but the more debt a firm uses, the greater the risk it will default on those debt payments. So, for instance, the total debt ratio can tell you how much debt a firm uses in its capital structure and thus how volatile its earnings are (Parrino, 2011). Profitability ratios â€Å"measure management’s ability to efficiently use the firm’s assets to generate sales and manage the firm’s operations† (Parrino, 2011) and include the following: Gross Profit Margin = (Net Sales – Cost of Goods Sold) / Net Sales Operating Profit Margin = EBIT / Net Sales Net Profit Margin = Net Income / Net Sales Return on Assets(ROA) = Net Income / Total Assets EBIT ROA = EBIT / Total Assets Return on Equity(ROE) = Net Income / Total Equity Profitability ratios are important because they indicate a company’s ability to be profitable relative to its expenses. Market-value indicators predict the future of a firm’s finances using market value trends and financial statements. They include: Earnings Per Share(EPS) = Net Income / Shares Outstanding Price-Earnings Ratio(P/E) = Price Per Share / Earnings Per Share Market-to-Book Ratio = Market Value of Equity Per Share / Book Value of Equity per share Market-value indicators are important because they can assist in predicting the future for a firm. Whether the firm will be profitable using its current strategy or should it maybe switch to a different strategy to keep up with competing companies. All of these financial ratios are crucial to financial analysis in corporations and used very often by analysts, managers, creditors, stockholders, etc. Advantages and Disadvantages of Ratio Analysis Ratio analysis has several benefits. First, it offers various methods of analyzing a company’s financial wellbeing, going beyond just the financial statements by looking at specific aspects of operations. This can indicate strengths and shortcomings that managers should be aware of. Improvements can be made in order to increase profitability as a result. For instance, if a Microsoft notices that one product line has a higher days sales in inventory than another, this indicates that the specific product stays on the shelf longer and perhaps the firm should focus more on the product line with the lower days sales in inventory as it sells better. Secondly, ratio analysis can assist in predicting earnings or showing a pattern, which managers can use to find the best way to maintain financial profitability. While financial statements provide numbers such as revenues or expenses, ratio analysis can offer a concrete number describing revenues relative to the cost of the goods sold, such as with the gross profit margin. Such a ratio can indicate how profitable a firm’s operations were in a specific  period of time and if very profitable a concrete method of recreating such success. Essentially, ratio analysis simplifies the information provided in financial statements by compartmentalizing them to show patters and trends, which are very useful. Thirdly, ratio analysis can also be used in order to compare the firm’s operations to that of its competitors. Often, how well a company is doing depends on the market and how well other companies are doing, so ratio analysis provides a very useful tool to companies in making such comparisons. There are some disadvantages to ratio analysis. Predictions based on ratio analysis can be inaccurate from time to time. This is because ratio analysis is mostly based on historical data from previous time periods, which only offers so much information about the future. Yes, analysts can predict that the market will behave a certain way through market value indicators, but such predictions are only so accurate. The market can be affected by a variety of aspects, such as volatile economic conditions or even a natural disaster. For example following Hurricane Katrina, at â€Å"the end of the first week following†¦U.S. commercial crude oil inventories fell by 6.4 million barrels from the previous week,† indicating a strong market effect on petroleum due to the disaster (â€Å"Hurricane Katrina’s impact,† 2011). Businesses cannot control environmental disasters or economic conditions, which is why while ratio analysis is a very useful tool, it cannot always be relied on 100%. The use of market-value indicators is increasingly used in order to better forecast the future of a firm as it takes into account the economic climate at a specific point in time in order to predict the trend of future financial entities (Niazi, 2011) but again sometimes something like a natural disaster can negatively affect business. This is why having a high operating income and total assets is important to be prepared for such events. While not a perfect model as random economic turbulence can skew results, market-value indicators do still provide some insight into the future. Furthermore, when using ratio analysis to compare to another similar benchmark firm, there can also be pitfalls. Often it is impossible to find a company similar enough in size, corporate structure, and operations to properly compare to and gauge a market comparison. Thus, often ratio analysis when benchmarking can provide a skewed impression of where the firm stands against its competitors in the market. Financial statement and ratio analysis are very useful in corporate finance that provide much information to analysts, managers, stockholders, and creditors about the financial state of a firm. While there are some shortcomings to ratio analysis, its advantages in practice surely outweigh its disadvantages and offer valuable tools to cultivate a thriving company. References Hurricane Katrina’s impact on the U.S. oil and natural gas markets. (2011, September 12). Retrieved from http://www.eia.gov/oog/special/eia1_katrina_091205.html Niazi, G. S. K., Hunjra, A. I., Rashid , M., Akbar, S. W., & Akhtar, M. N. (2011). Practices of working capital policy and performance assessment financial ratios and their relationship with organization performance. World Applied Sciences Journal, 12(11), 1967-1973. Parino, R., Kidwell, D. S. & Bates, T. W. (2012). Fundamentals of Corporate Finance: Second edition. John Wiley & Sons; Hoboken, NJ.

Analysis of Martin Luther King’s “I Have a Dream” Essay

The Speech I have chosen to do is â€Å"I have a dream† by Martin Luther King. â€Å"I have a dream that one day this nation will rise up and live out the true meaning of its creed: â€Å"We hold these truths to be self-evident: that all men are created equal.† I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice. I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character. I have a dream today.† This is a particularly inspirational speech because he was saying exactly what he felt and it came straight from his heart, and it was exactly what the people that were listening were thinking about the how they were being treated. The speech shows how angry he is with all the racism in the United States of America, and he tells everyone how things should be, this worked particularly well because all the black people in America were treated poorer than white people and it summed up all the hatred and anger that was inside them. Martin Luther king used very cleverly thought out sentence structure to make more impact on the listeners. He used the quick and snappy sentences to grab their attention and then he would use the longer sentences to explain his deeper feelings. Luther king also uses the word freedom a lot because it shows that is what they didn’t have, which also again makes the listeners feel that they don’t have a lot of freedom. The definition of inspiration is â€Å"the process of being mentally stimulated to do or feel something, especially to do something creative.† This is exactly what Dr King got people that listened to his speech to feel, inspired to do something to help themselves. Thank you for listening.