In most studies people has been made to understand that yield value is used for yield value per share, the bonus and dividend and yet this is all for the financial accounting purposes.
A friend of mine came and require an assistance to advice ‘why is his company making profits but it is too slow on the development’. On other word it is not expanding despite good business turnovers.
I then start asking questions and I realize that he is only looking at Profit and Loss account. Despite of seriously calculating and monitoring his P&L I told him to add a tool that is ‘Yield Value per kg’, since his business is Tuna Fishing Business.
I start guiding him how to use the “Kg Yield Value’ and it has been running good for the past months. It seems that most business are only using financial accounting to manage the company and forgotten the financial management section.
Hence the yield value, if we use it in the perspective of sales, marketing and operation even, we are able to determine the profitability of the business at the most sensitive level. This is very important and business owners or entrepreneur would be able to use it as an important indicator. As an example of my friend, he is selling his Tuna fish at USD 3.15 per kg and he says he had a profit of 18%. When I calculated with yield value per kg., he is actually incurring a loss of USD 2.8 per kg. Can you just imagine how much is the variance from his calculation and yield value per kg calculation?
This yield value/n is very important as a tool and it could be used for any business but we have to understand the concept of it before using this particular tool.
A friend of mine came and require an assistance to advice ‘why is his company making profits but it is too slow on the development’. On other word it is not expanding despite good business turnovers.
I then start asking questions and I realize that he is only looking at Profit and Loss account. Despite of seriously calculating and monitoring his P&L I told him to add a tool that is ‘Yield Value per kg’, since his business is Tuna Fishing Business.
I start guiding him how to use the “Kg Yield Value’ and it has been running good for the past months. It seems that most business are only using financial accounting to manage the company and forgotten the financial management section.
Hence the yield value, if we use it in the perspective of sales, marketing and operation even, we are able to determine the profitability of the business at the most sensitive level. This is very important and business owners or entrepreneur would be able to use it as an important indicator. As an example of my friend, he is selling his Tuna fish at USD 3.15 per kg and he says he had a profit of 18%. When I calculated with yield value per kg., he is actually incurring a loss of USD 2.8 per kg. Can you just imagine how much is the variance from his calculation and yield value per kg calculation?
This yield value/n is very important as a tool and it could be used for any business but we have to understand the concept of it before using this particular tool.
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