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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

In the previous article , we looked at how banks make money and how they must meet capital requirements. In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. We will examine each in turn. All else being equal, a lower number is better.

Metrics 88
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Bank Profitability: Decoding the Income Statement

Tom Spencer

A bank’s income statement can be simplified into five main line items: Net interest income Non-interest income Operating expenses Provision for credit losses (PCL) Tax Image 1: Illustrative example of a bank’s income statement Source: CIBC’s 2022 Annual Report 1. The biggest swing in operating expenses is likely to be variable compensation.

Banking 88
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It’s Not “Time Management.” It’s Lean.

Markovitz Consulting

In the space of two weeks, the New York Times and the Wall Street Journal both ran articles on the productivity benefits of reduced work hours. Of course, software firm 37 Signals has been operating four-day work weeks over the summer since 2008. Overtime expense isn’t a major concern when many office workers are on salary.

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Unlocking Business Profit Potential

Business Consulting Agency

In this article, we’ll outline the essential steps to increase profits with the help of consulting services and emphasize the pivotal role of business consulting agencies in achieving financial success. Review income statements, balance sheets, and cash flow to identify areas that impact profitability.

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Boosting Business Profitability

Business Consulting Agency

In this article, we will delve into how business consultants can drive profitability for organizations of all sizes and industries. This includes scrutinizing income statements, balance sheets, and cash flow statements. These services offer a wealth of expertise, strategies, and solutions aimed at increasing profitability.

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Human Resources Management – How to Get Started

Tom Spencer

Human resource teams are critical to the growth of a company since employees typically represent both the biggest operating expense and largest off-balance sheet asset for most businesses. I hope that through this article you have been able to learn a bit more about the space!

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Overcoming Data Collection Challenges in Consulting

Tom Spencer

We repeated our request a week later, but they only provided a balance sheet from the previous year. For example, instead of asking for the average payroll for each department over time, ask for a representative current salary of an employee in each department: sales, operations, finance.

Data 78