my first blog

Analysis of Capital Structure of Tecso In order to write this week's blog on capital structure, I searched Tesco's 2016 Annual Report and recorded some data to analyze its capital structure. First of all, here's the balance sheet: As we can see in the table, Tesco's current assets in 2016 was 14592m pounds, and the current liabilities was 19714m pounds, the current ratio can be calculated by 74.02%, the result in 2015is 59.68%. Current ratio is the ratio of current assets to current liabilities. It is used to measure the ability of an enterprise's current assets to change into cash to repay liabilities before the maturity of short-term debt. Generally speaking, the higher the ratio is, the stronger the liquidity of the enterprise assets is, the stronger the short-term solvency is; otherwise, it is weak. Although Tesco has been trying to increase the value of the current ratio, the ratio is still too small, so its short-teem solvency is very weak. I...

It is a sorrowful story about Lehman Brothers. The 158 year old Lehman Brothers Investment Bank came to the tragic end after the subprime mortgage crisis in the United States in 2007. Later in 2000 after the real estate credit and these non traditional business booming, like the Lehman Brothers and other Wall Street banks, began to get involved in such business, the rate of expansion of Lehman was fast although this was not to blame.  (Merrill Lynch, Bell Sten, Morgan Stanley, has had the same problem). In recent years, the Lehman Brothers have been the top sellers and Book managers of residential mortgage bonds and commercial real estate bonds. Despite the decline in the real estate market in 2007, Lehman Brothers commercial real estate bond business is still growing, therefore the systemic risk faced by Lehman Brothers was very large. In addition, Lehman's "king of bonds" is certainly a compliment, but it also implies that its business is too concentrated, focu...

Strengths and Weaknesses of Shareholder Wealth Maximization The maximization of shareholder wealth refers to the most wealth that can be brought to shareholders through the reasonable operation of finance.Scholars who hold this view believe that the purpose of shareholders to start businesses is to increase their wealth.They are the owners of the enterprise, the provider of corporate capital, and the value of its investment is that it can bring future rewards to the owner, including the acquisition of dividends and the sale of equity for cash.As a result, shareholder wealth maximization is also ultimately reflected in stock prices. I think, of course, there are somg obvious advantages to maximizing shareholder wealth. Firstly, shareholder wealth maximization to a certain extent can overcome the enterprise in the pursuit of profit on the short-term behavior, because not only the current profits will affect stock price, expected future profits to the enterprise also can produce im...

Digby Jones is a British businessman and politician, who has served as Minister of State for Trade and Investment. In those three documentary, he's helped transform some iconic British companies. In a new challenge,he would helped three ambition companies from would's of furniture, fashion and electronics to succeed. In the episode I watched, Digby would help a company called Hereford Furniture, which lost £80,000 for the previous year. After walking around the factory and talking to the employees,Digby found the issues. Each department works independently. There are three divisions within one company: import,manufacture and retail. Hereford runs so much that they can't take care of each part. "This range we do is slowly killing us."said by Mike Moxworthy, the boss of the Hereford Furniture. They know the systems in place are not conducive to productivity enhancement and greater efficiently.  Digby knows that tackling inefficiency is one thing vital to the compa...