What are other ratios used in financial reporting

The dividend yield ratio tells investors how much cash income they're receiving on their stock investment in a business. This is calculated by dividing the annual cash dividend per share by the current market price of the stock. This can be compared with the interest rate on high-grade debt securities that pay interest, such as Treasure bonds and Treasury notes, which are the safest.

Book value per share is calculated by dividing total owners' equity by the total number of stock shares that are outstanding. While EPS is more important to determine the market value of a stock, book value per share is the measure of the recorded value of the company's assets less its liabilities, the net assets backing up the business's stock shares. It's possible that the market value of a stock could be less than the book value per share.

The return on equity (ROE) ratio tells how much profit a bus8iness earned in comparison to the book value of its stockholders' equity. This ratio is especially useful for privately owned businesses, which have no way of determining the current value of owners' equity. ROE is also calculated for public corporations, but it plays a secondary role to other ratios. ROE is calculated by dividing net income by owners' equity.

The current ratio is a measure of a business's short-term solvency, in other words, its ability to pay it liabilities that come due in the near future. This ratio is a rough indicator of whether cash on hand plus the cash to be collected from accounts receivable and from selling inventory will be enough to pay off the liabilities that will come due in the next period. It is calculated by dividing the current assets by the current liabilities. Businesses are expected to maintain a minimum 2:1 current ratio, which means its current assets should be twice its current liabilities.

In this article, I want to explain why you should create systems for your online business. A system is a written description of what you do to create a product, write a sales page, or any other activity in your business. The most successful online business people have them, and you should, too. But why would you want to? Isn't is a lot of unnecessary work?

In a nutshell, you want to write a description of every process in your business that is so precise that someone with your knowledge of products, but who knew nothing about running the business could do so. Of course, it's unlikely that you'll ever need someone to run it for you; but if you've created a system that is as exact as that, then you'll have no trouble performing each process in the least amount of time.

Why, however, would you want to do it. I mean, given all of the other things you must do, why would you want to take time out of your already full days and make the effort to write everything down?

Well, there are three reasons.

First, it's easy to forget what to do. Sounds crazy. I know. But, some activities you'll only do every few weeks, such as search for and register a new domain name. Other activities you'll do every day, such as create your products.

No doubt, you've discovered already that you sometimes need to remind yourself of how to do something that you've done before. What a waste of time! It would be so much easier if you could just follow a checklist. Well, why not create one?

The next thing to remember is that all of the online services that you use - web host, autoresponders, shopping carts, forum and blog software, etc. - gets updated regularly. If you don't have a description of how your current version works, then it will be a lot harder to figure out how to alter your routine to allow for any changes.

Sometimes steps are combined or eliminated altogether. Without a description of what you normally do, you may not be able to understand how to change your process without spending a lot of time trying to figure it out.

And that's what systems are for: to substantially reduce the amount of time you spend accomplishing everything that you do in your online business.

The third reason is that when your services revise their programs, it will be harder to recognize what has changed if you don't have a description of how it works now.

Combining Email Marketing with Other Types of Marketing

Whether you choose to do your marketing online or offline, one thing does not change. This is the concept that no single marketing strategy will be as effective as a combination of two or more marketing strategies. This does not mean it is necessary for you to implement every known marketing strategy to promote your business but rather it implies that it is worthwhile to market from a few different perspectives to help you achieve your business related goals. This article will examine the importance of combining email marketing with other types of marketing to create a successful; multi tiered marketing strategy and will also offer some advice on managing more than one marketing strategy at once.

As the old saying goes, “Two heads are better than one,” and this is certainly true when it comes to marketing. You may enjoy a great deal of success with email marketing but this does not mean you should not try other types of online marketing such as website creation, participation in industry related message boards, placing banner ads, orchestrating an affiliate marketing campaign and generating inbound links to your website. While it is possible that not all of these strategies will be effective for your business, you are likely to find at least one other option which complements your email marketing and helps you to achieve your business related goals.

Alternately you may even wish to combine your email marketing campaign with more traditional marketing strategies such as radio ads, television ads and the print media. Just because these types of advertising do not take place online, does not mean they will not be able to help you generate more business. In fact advertising both online and offline can allow you to reach a larger target audience. This is because you will likely reach Internet users around the world but can also reach potential customers who do not utilize the Internet for purchasing or researching products or services similar to the ones you offer.

Popular marketing strategies to combine with email marketing include banner ads and message board participation. These are all online activities and each one individually is fairly simple. However, in combination these simple activities can create a powerful statement. You may send out emails offering useful information about your products or services, purchase banner ad space on websites which may be of interest to your potential customers and participate in industry related message boards where you can earn the respect and pique the interest of potential customers. Even if your potential customers are not currently in need of the products and services you offer, seeing your business name so often can have a branding effect. Branding is essentially a process in which consumers see a company name so often that they are more likely to select a product from this company when they are in need of an item the company offers.

If you are planning to combine multiple forms of advertising, you should be aware that this can make it difficult for you to evaluate the effectiveness of each marketing strategy. This is especially true of the marketing strategies are implemented concurrently. When you are only using one type of marketing strategy, you can generally attribute increases in sales or website traffic to changes in the marketing strategy. However, when more than one type of marketing strategy is in effect, determining which strategy is producing the desired effect can be quite difficult. This situation can be handled by not making changes to more than one marketing strategy at a time. This will help to pinpoint which changes produce an increase in sales or website traffic. It can also help you to determine when changes to your marketing strategy have a detrimental effect on your sales and website traffic. However, if you are having difficulty determining which marketing strategy is most effective you can consider asking customers to answer survey questions and provide information such as how they learned about the products or services your business offers.

Other Notable Common Affiliate Marketing Mistakes

It isn’t hard to set up a good website and start and affiliate marketing career. It isn’t hard at all to find affiliate marketing opportunities on the internet. However, it is a very simple thing to make deadly mistakes that will insure your failure to thrive at affiliate marketing.

One of the most notable affiliate marketing mistakes is to think that all you have to do is find the ones that pay the most, sign up, drive traffic to that site through your affiliate link and you’re all set right? Not exactly.

It’s great to choose an affiliate program that pays a high percentage, but that’s not most important thing to consider. It’s much more important to find a quality affiliate program that meets certain criteria. Here are three mistakes you don’t have to make:

1. You want to make sure the product is a proven seller. You don’t want to waste your time and money driving traffic to a site that doesn’t convert. Find one with a good conversion rate.

2. Make sure the site you become an affiliate for protects its affiliates, and has your best interest at heart. Look for one that provides banners, e-mails, and other tools you can use to promote the site. Also, make sure that there is only one payment option. As an affiliate marketer, you need to be sure that you will get credit for your referral. If there is more than one payment method, you can get shortchanged.

3. Do not choose an affiliate program that promotes an e-mail course. Nothing is worse than becoming an affiliate to a site that’s first goal is to capture e-mail addresses, and then tries to make the sale second. As an affiliate marketer, you need to capture e-mail addresses, then to convert that prospect into a sale. Stick with affiliate programs that aren’t focused on capturing leads because it’s simply not in your best interest. Build your own list, not someone else’s.