Benel D. Lagua
The market for Filipino talents
April 10, 2024 12:35 pm
I picked up the following statistics from The Economist. America had 1.6 million accountants and auditors last year, according to US Bureau of Labor Statistics. That is down from nearly two million in 2019. Many veterans are retiring. Too few youngsters are interested in taking their place. Only 65,000 students completed an accounting degree in 2022, down from around 80,000 a year between 2012 and 2018.
Liquidity management in small businesses
March 26, 2024 2:08 am
In one classic finance case I took up in graduate school, an owner-manager of a small business was very pleased reviewing the positive results in the firm’s profitability metrics – net profit margin, gross profit margin, return on assets and return on equity. Noting the favorable results, the entrepreneur decided to go on his regular Lenten vacation break. While on travel, he received reports from back home that the company was in dire straits. The problem concerned a low cash position and inability to meet financial obligations becoming due. In short, the firm faced a liquidity crunch.
Responding to the access to finance concerns of SMEs
February 06, 2024 9:36 am
Small and medium enterprises (SMEs) represent an important part of the Philippine economy. However, official records lump SMEs and bundle it with micro enterprises. The Philippine SME law is known as the Magna Carta for Micro, Small and Medium Enterprises. While this considers the numbers in the micro sector, there must be policy recognition of the significant difference between the micros and the mainstream SMEs. Some of the positive practices in micro enterprise support do not necessarily apply to the SMEs.
Management style, the middle way
January 18, 2024 1:01 am
We recently visited the Fo Guang Shan Monastery located in Dashu District, Kaohsiung, Taiwan. This is the Buddhist center of South Taiwan, established by Venerable Master Hsing Yun. In an area sprawling 30 hectares, there are magnificent temples and structures. A huge golden statue of Buddha is a prominent landmark. The main square is surrounded by 480 standing Buddhas. The main structures consist of four temples. The site counts more than a thousand Buddha statues, large and small.
Risk and return trade offs
November 30, 2023 2:07 pm
Measurement plays an important role in our daily lives as they help in the performance of basic tasks. Measurement is the numerical quantification of attributes of an object or event which can be used to compare with others in the same category. Measurement tools are important in the finance field as it provides a scorecard to determine the success of an activity or event. And one critical area where finance has attempted to develop measurement metrics is in returns versus risk.