By : Edmond F. La’lang
(economic and natural environment observer)
Let me add to give another way of some
new suggestion on perspectives to used of the biological and psychological ways
of thinking about the case of debt of a company. Life is a game with a lot of
risks in addition to benefits and advantages that can be gained from the
ability, achievement, creativity, innovation and business management
professionals better. Risk will always be an open market is a market in which
more and more competitors, the bigger share of the market, more and more
consumers to choose the product of a company and the various regulations made
by the government in which the company operates. And of course the dynamics of
natural law will always cause fluctuations in turmoil even to be prevented
before they occur with the Early Warning System, with a swift soon to
anticipate the problems and market risk and business risk.
Supposedly the
composition of corporate debt to
its capital structure to keep it safe from the risks
of macroeconomic volatility, fluctuations in the stock market index, foreign exchange rate, commodity market fluctuations
(and complement raw
materials for manufacturing
and mining corporations),
changes in the prime interest rate and
the commercial rate to cost of funds, inflation
rate (CPI and PPI),
profitability, prospective business enterprise, the
ability to compete and a variety of product excellence, marketing mix strategy, service, cost of
manufacturing and administration and so
on. Fatal error at most companies (banks,
manufacturing and services) is to assume that
the price level of the stock and assets
and also commodity prices from a mining company
can be a collateral to obtain
a bank loan that has multiple leveraging is the
very real risk of
a variety of market risks in the form of economic
turbulencies, crisis and recession.
Capital structure that makes sense and being cautious is the capital of 60-80% and accounts payable around 20-40%. If the ratio of debt to capital increase, the risk of default also will be bigger and should not be played with a variety of financial mathematical simulations, except by way of over-leveraging and reducing risk simply by mathematical and statistical calculations with a risk free way that it gives a sheer burden of risk debt naturally from the threat of external risks his company. For that we need a careful analysis and calculation of the various natural influences in the form of multi-variant calculations with non-linier regression as 2 – 3 dimension calculations by incorporating a variety of indicators of biological, psychological, tastes and interests of consumers (market driven and market driving) and fierce competition in its market share as well as the new products and new competitors to make a good, reasonable, prudently and rationally of “Natural Free Risk”.
Capital structure that makes sense and being cautious is the capital of 60-80% and accounts payable around 20-40%. If the ratio of debt to capital increase, the risk of default also will be bigger and should not be played with a variety of financial mathematical simulations, except by way of over-leveraging and reducing risk simply by mathematical and statistical calculations with a risk free way that it gives a sheer burden of risk debt naturally from the threat of external risks his company. For that we need a careful analysis and calculation of the various natural influences in the form of multi-variant calculations with non-linier regression as 2 – 3 dimension calculations by incorporating a variety of indicators of biological, psychological, tastes and interests of consumers (market driven and market driving) and fierce competition in its market share as well as the new products and new competitors to make a good, reasonable, prudently and rationally of “Natural Free Risk”.
Companies that take a lot of debt with a smaller capital structure will experience a greater risk of default, despite having supported by a variety of sophisticated financial mathematics and risk management on various Financial Ratios according to the rules Basel I to Basel III. The risk in this case is the inability to pay the debt, because the interest rate risk of debt, particularly of a commercial character in the form of a floating interest rate. Problems currently faced by the U.S. and European countries as well as various financial and manufacturing companies are leveraging the use of exaggeration to be bubble stock price and the value of its assets without taking into account the potential risk of economic turmoil that will occur in the future, only simulations using mathematical and statistical calculations alone. Many economic crisis since the Great Depression has killed millions of companies to experience huge losses and even bankruptcy both in banking, manufacturing, services and other financial services should experience a variety of internal and external risks, due to ignorance of the natural dynamics of the process that will always occur in a system of living organisms, either individually or range of human creation in the course of business of the company's life cycle.
Likewise experienced by developed
countries, the U.S. and Europe, as well as less appropriate in managing debt
for development, also to save thousands of corporate banking, manufacturing,
property and insurance back to health in the context of "Too Big to
Fail" by way of bailout, stimulus Quantitative Easing and the truth is not
an effective and efficient even add to the debt burden of the country itself.
It is different from the way the country is almost bankrupt Iceland but was
able to quickly get out of the debt crisis and economic recession, because of
not wearing liberal economic thinking but a way to let the Austrian economy
private companies fend for themselves as a result of a variety of their own
mistakes or are natural selection to survive. So of course this ease the burden
on the government budget Iceland to immediately help companies that are still
strong enough without having to provide facilities that pamper company that has
mismanaged the business and his own debt without providing helping for bailout
and QE policy.
So that, maybe there is another
approach to really know how the risk will be come and influence your business,
investment and trading activities time by time that always human can not know
and realized exactly what really happen in the future. Let visit my blog to
know and maybe useful for your business strategic planning for 1 - 25 years. Or
like George Soros says, he walk 6 months in the front of the curve that he
really know what happen in financial market and real sector long before.
Visit some of interesting blog :
1.
Opportunities and Risks in Corporate Business
By:
Edmond F. La'lang (economic and environmental observers)
In
terms of financial market that contained human nature in the face of risks that
will arise in every activity of life is Risk Averse, people who always avoid
risk and Risk Taker, people who are happy at risk and those who take care in
the face of risk.
http://bioeconomicnatural.blogspot.com/2012/03/opportunity-and-risk-in-business.html
2. Bio-Risk Management : how to managed your economic and business risks to avoid many losses and failures http://bioeco-ronmentblogspotcom.blogspot.com/2013/04/how-to-managed-your-economic-and.html
2. Bio-Risk Management : how to managed your economic and business risks to avoid many losses and failures http://bioeco-ronmentblogspotcom.blogspot.com/2013/04/how-to-managed-your-economic-and.html
3.
Comments to Caveat on investment : model risk creates liability towards extreme
By Chitro Majumdar on May 29, 2012 8:12 AM http://bioeco-ronmentblogspotcom.blogspot.com/2012/07/comments-on-caveat-on-investment-model.html
4. Mathematic knowledge is not really know about how the Economic and Business Life Cycle Mechanism will be work in reality world http://bioeco-ronmentblogspotcom.blogspot.com/2012/07/mathematic-knowledge-is-not-really-know.html
5. Bio Risk Management : How can Corporate Strategic Planning that able to prevent or avoid the Market Risk, Business Risk and another Risks on Competition, Turbulencies, Crisis and Recession http://bioeconomicnatural.blogspot.com/2013/05/how-can-corporate-strategic-planning.html
By Chitro Majumdar on May 29, 2012 8:12 AM http://bioeco-ronmentblogspotcom.blogspot.com/2012/07/comments-on-caveat-on-investment-model.html
4. Mathematic knowledge is not really know about how the Economic and Business Life Cycle Mechanism will be work in reality world http://bioeco-ronmentblogspotcom.blogspot.com/2012/07/mathematic-knowledge-is-not-really-know.html
5. Bio Risk Management : How can Corporate Strategic Planning that able to prevent or avoid the Market Risk, Business Risk and another Risks on Competition, Turbulencies, Crisis and Recession http://bioeconomicnatural.blogspot.com/2013/05/how-can-corporate-strategic-planning.html
6. Implications of
Financial Tsunami (subprime mortgages) as trigger to the World Recession http://econobusinessdynamic.blogspot.com/
7. This blog purpose is to provide an insight and understanding of the importance of the role and application of Science Biology on various aspects of human activity, including Economics - Business, Green Technology, Social, Political and Environment for the Future of Human Life http://bioeconomica.blogspot.com/
Foot note :
Fluctuations in short-term (daily and weekly) will occur naturally
influenced by state of mentality, passion, taste, motivation of global mass
psychology to take trading positions in a market that is crowded and often
chaotic. If there is data or news that very fundamental economic conditions,
business and politics, fluctuations in stock price movements will occur
dynamically and both meteoric and volatile free fall in excess of the daily forecast.
But in the medium and long-term investment will be influenced dynamically by
biocycle and biorhytmic of legal and natural forces are always moving up and
down dynamically. So you not only have to Globalization with Globalnet (internet system)
but also now should have a vision in a way Galaxization with Galaxinet * *
(Astronomical).
Where we can know the strains and the condition of the Universe Kingdom in the short term (10 years), medium term of 50 years and long term 100-200 years), which will also be evident in a "Certainty of Life rather than Uncertainty Life " who always complained of many parties, including the leaders of the state policy makers, leaders of business policy (industrialists and traders) as well as experts in various fields of life. The power and influence of Natural, Galaxy and Universe Law (Universe Kingdom / Source One in Central Sun Universe) this will always affect every aspect of our lives on this planet, either consciously or unconsciously to anticipate properly.
Where we can know the strains and the condition of the Universe Kingdom in the short term (10 years), medium term of 50 years and long term 100-200 years), which will also be evident in a "Certainty of Life rather than Uncertainty Life " who always complained of many parties, including the leaders of the state policy makers, leaders of business policy (industrialists and traders) as well as experts in various fields of life. The power and influence of Natural, Galaxy and Universe Law (Universe Kingdom / Source One in Central Sun Universe) this will always affect every aspect of our lives on this planet, either consciously or unconsciously to anticipate properly.
Contact :
Edmond F. La'lang
Email : edmond.lalang@gmail.com
Telp. : +62031-3538606
HP : +62081-553089521
Linkedin :
http://www.linkedin.com/home?trk=hb_tab_home_top
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