An analysis of major crisis of the banking situation

For Greece, where the percentage of self-employed was more than double the EU average ina well known pattern is followed, where tax evasion is correlated with the percentage of working population that is self-employed. One method of evasion that was continuing was the so-called "black market" or "grey economy" or "underground economy": The uncollected amount that year was about 4.

An analysis of major crisis of the banking situation

Some of the categories of ratios are described below: These ratios are discussed below. Current assets include cash and bank balances; inventory of raw materials, semi-finished and finished goods; marketable securities; debtors net of provision for bad and doubtful debts ; bills receivable; and prepaid expenses.

Current liabilities consist of trade creditors, bills payable, bank credit, provision for taxation, dividends payable and outstanding expenses.

Italy's problems — both political and economic — are rearing their heads once again, and could be the trigger of the next major financial crisis. The Greek government-debt crisis (also known as the Greek Depression) was the sovereign debt crisis faced by Greece in the aftermath of the financial crisis of –Widely known in the country as The Crisis (Greek: Η Κρίση), it reached the populace as a series of sudden reforms and austerity measures that led to impoverishment and loss of income and property, as well as a small. Real Estate Investment Banking: How You Break In, What You Do, Valuation Differences, The Top Groups, and Exit Opps.

This ratio measures the liquidity of the current assets and the ability of a company to meet its short-term debt obligation. The higher the current ratio, the greater the short-term solvency.

While interpreting the current ratio, the composition of current assets must not be overlooked. A firm with a high proportion of current assets in the form of cash and debtors is more liquid than one with a high proportion of current assets in the form of inventories, even though both the firms have the same current ratio.

Internationally, a current ratio of 2: QA refers to those current assets that can be converted into cash immediately without any value dilution. QA includes cash and bank balances, short-term marketable securities, and sundry debtors.

Global Financial Crisis — Global Issues

Inventory and prepaid expenses are excluded since these cannot be turned into cash as and when required. This is a fairly stringent measure of liquidity because it is based on those current assets which are highly liquid.

Inventories are excluded from the numerator of this ratio because they are deemed the least liquid component of current assets. Generally, a quick ratio of 1: One drawback of the quick ratio is that it ignores the timing of receipts and payments. The cash ratio is computed as follows: They are also called efficiency ratios or asset utilization ratios as they measure the efficiency of a firm in managing assets.

These ratios are based on the relationship between the level of activity represented by sales or cost of goods sold and levels of investment in various assets.

These are described below: Net credit sales are the gross credit sales minus returns, if any, from customers. Average debtors is the average of debtors at the beginning and at the end of the year. This ratio shows how rapidly debts are collected.

The higher the DTO, the better it is for the organization. It is computed as follows: It is calculated as follows: The higher the ratio, the more efficient is the management of inventories, and vice versa.

However, a high inventory turnover may also result from a low level of inventory which may lead to frequent stock outs and loss of sales and customer goodwill.

For calculating ITR, the average of inventories at the beginning and the end of the year is taken. In general, averages may be used when a flow figure in this case, cost of goods sold is related to a stock figure inventories.

It can be computed as follows: A high ratio indicates a high degree of efficiency in asset utilization while a low ratio reflects an inefficient use of assets. However, this ratio should be used with caution because when the fixed assets of a firm are old and substantially depreciated, the fixed assets turnover ratio tends to be high because the denominator of the ratio is very low.

Financial leverage refers to the use of debt finance. While debt capital is a cheaper source of finance, it is also a risky source.

Global Financial Crisis — Global Issues

Leverage ratios help us assess the risk arising from the use of debt capital. Two types of ratios are commonly used to analyze financial leverage - structural ratios and coverage ratios.

Structural ratios are based on the proportions of debt and equity in the financial structure of a firm. Coverage ratios show the relationship between the debt commitments and the sources for meeting them. The long-term creditors of a firm evaluate its financial strength on the basis of its ability to pay the interest on the loan regularly during the period of the loan and its ability to pay the principal on maturity.The Greek government-debt crisis (also known as the Greek Depression) was the sovereign debt crisis faced by Greece in the aftermath of the financial crisis of –Widely known in the country as The Crisis (Greek: Η Κρίση), it reached the populace as a series of sudden reforms and austerity measures that led to impoverishment and loss of income and property, as well as a small.

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Bank, bank promotions, banking, economics, RBI, IBPS. The long-term creditors of a firm evaluate its financial strength on the basis of its ability to pay the interest on the loan regularly during the period of the loan and its ability to pay the principal on maturity.

John Bird, John Fortune, Subprime Crisis, February 14, While there are many technical explanations of how the sub-prime mortgage crisis came about, the mainstream British comedians, John Bird and John Fortune, describe the mind set of the investment banking community in this satirical interview, explaining it in a way that sometimes only comedians can.

Deutsche Bank's annual Long-Term Asset Return Study focuses in on the potential cause of the next global financial crisis. Candidates include a Chinese slowdown, Brexit, and an excessively fast unwinding of the ultra loose central bank policy that has characterised the post-crisis years.

An analysis of major crisis of the banking situation

The Greek government-debt crisis (also known as the Greek Depression) was the sovereign debt crisis faced by Greece in the aftermath of the financial crisis of –Widely known in the country as The Crisis (Greek: Η Κρίση), it reached the populace as a series of sudden reforms and austerity measures that led to .

Italy could be the world's next financial crisis - Business Insider