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Profitability analysis In cost accounting, profitability analysis is an analysis of the profitability of an organisation's output. Output of an organisation can be grouped into products, customers, locations, channels and/or transactions.
Customer Profitability Analysis Customer Profitability Analysis (in short CPA) is a management accounting and a credit underwriting method, allowing businesses and lenders to determine the profitability of each customer or segments of customers, by attributing profits and costs to each customer separately. CPA can be applied at the individual customer level (more time consuming, but providing a better understanding of business situation) or at the level of customer aggregates / groups (e.g.
Customer profitability Customer profitability (CP) is the profit the firm makes from serving a customer or customer group over a specified period of time, specifically the difference between the revenues earned from and the costs associated with the customer relationship in a specified period. According to Philip Kotler,"a profitable customer is a person, household or a company that overtime, yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling and servicing the customer."\nCalculating customer profit is an important step in understanding which customer relationships are better than others.
Porter's five forces analysis Porter's Five Forces Framework is a method of analysing the operating environment of a competition of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof) of an industry in terms of its profitability.
Profit (economics) An economic profit is the difference between the revenue a commercial entity has received from its outputs and the opportunity costs of its inputs. It equals to total revenue minus total cost, including both explicit and implicit costs.
Berkshire Hathaway Berkshire Hathaway Inc. () is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States.
Industry average Industry averages (of financial ratios) are generally using as benchmarks or tools which helps business to make comparisons that helps to determine its position within the industry and evaluate financial performance of the business. It is a useful tool for business managers and investors, helps with decision making process.
Strategy dynamics The word ‘dynamics’ appears frequently in discussions and writing about strategy, and is used in two distinct, though equally important senses.\nThe dynamics of strategy and performance concerns the ‘content’ of strategy – initiatives, choices, policies and decisions adopted in an attempt to improve performance, and the results that arise from these managerial behaviors.
Money order A money order is a payment order for a pre-specified amount of money. As it is required that the funds be prepaid for the amount shown on it, it is a more trusted method of payment than a cheque.
Funds transfer pricing The Fund Transfer Pricing (FTP) measures the contribution by each source of funding to the overall profitability in a financial institution. Funds that go toward lending products are charged to asset-generating businesses whereas funds generated by deposit and other funding products are credited to liability-generating businesses.
Marketplace A marketplace or market place is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods. In different parts of the world, a marketplace may be described as a souk (from the Arabic), bazaar (from the Persian), a fixed mercado (Spanish), or itinerant tianguis (Mexico), or palengke (Philippines).
Profitable growth Profitable Growth is the combination of profitability and growth, more precisely the combination of Economic Profitability and Growth of Free cash flows. Profitable growth is aimed at seducing the financial community; it emerged in the early 80s when shareholder value creation became firms’ main objective.
Return on equity The return on equity (ROE) is a measure of the profitability of a business in relation to the equity. Because shareholder's equity can be calculated by taking all assets and subtracting all liabilities, ROE can also be thought of as a return on assets minus liabilities.
Online marketplace An online marketplace (or online e-commerce marketplace) is a type of e-commerce website where product or service information is provided by multiple third parties. Online marketplaces are the primary type of multichannel ecommerce and can be a way to streamline the production process.
Prosper Marketplace Prosper Marketplace, Inc. is a San Francisco, California-based company in the peer-to-peer lending industry.
Health insurance marketplace In the United States, health insurance marketplaces, also called health exchanges, are organizations in each state through which people can purchase health insurance. People can purchase health insurance that complies with the Patient Protection and Affordable Care Act (ACA, known colloquially as "Obamacare") at ACA health exchanges, where they can choose from a range of government-regulated and standardized health care plans offered by the insurers participating in the exchange.
Electronic Arts Electronic art is a form of art that makes use of electronic media. More broadly, it refers to technology and/or electronic media.
Electronic markets Electronic markets (or electronic marketplaces) are information systems (IS) which are used by multiple separate organizational entities within one or among multiple tiers in economic value chains. In analogy to the market concept which can be viewed from a macroeconomic (describing relationships among actors in an economic systems, e.g.
Intercontinental Exchange The Intercontinental Exchange (ICE) is an American company formed in 2000 that operates global financial exchanges, clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces.
Global Electronic Music Marketplace The Global Electronic Music Marketplace (GEMM) was an online music trading website established in 1994. It was founded by CEO/COO Roger Raffee and Jim Hall, and based in La Jolla, California, United States.
FTC fair information practice The United States Federal Trade Commission's fair information practice principles (FIPPs) are guidelines that represent widely accepted concepts concerning fair information practice in an electronic marketplace.\n\n\n== Introduction ==\nFTC Fair Information Practice Principles are the result of the Commission's inquiry into the way in which online entities collect and use personal information and safeguards to assure that practice is fair and provides adequate information privacy protection.
Corporate sourcing Corporate sourcing refers to a system where divisions of companies coordinate the procurement and distribution of materials, parts, equipment, and supplies for the organization. This is a supply chain, purchasing/procurement, and inventory function.
Alisher Usmanov Alisher Burkhanovich Usmanov (Russian: Алишер Бурханович Усманов; born 9 September 1953) is an Uzbek-born Russian businessman and oligarch. By 2022, Usmanov had an estimated net worth of $19.5 billion and was among the world's 100 wealthiest people.Usmanov made his wealth after the collapse of the Soviet Union, through metal and mining operations, and investments.
2011 military intervention in Libya On 19 March 2011, a multi-state NATO-led coalition began a military intervention in Libya, to implement United Nations Security Council Resolution 1973, in response to events during the First Libyan Civil War. With ten votes in favour and five abstentions, the UN Security Council's intent was to have "an immediate ceasefire in Libya, including an end to the current attacks against civilians, which it said might constitute "crimes against humanity" ...
Tourism in Abkhazia Tourism in Abkhazia is possible under Georgian law for foreigners entering the occupied territory from Georgia, although Georgia cannot assure the safety inside disputed territory.\nHowever, the Abkazian beaches on the Black Sea continue to be accessible for tourists coming from the Russian side of the Abkhazia–Russia border which is not under Georgian control.
What's Your Raashee? What's Your Raashee? (lit. 'What's Your Zodiac Sign?') is a 2009 Indian Hindi-language romantic comedy film written and directed by Ashutosh Gowariker.
Synchroscope In AC electrical power systems, a synchroscope is a device that indicates the degree to which two systems (generators or power networks) are synchronized with each other.For two electrical systems to be synchronized, both systems must operate at the same frequency, and the phase angle between the systems must be zero (and two polyphase systems must have the same phase sequence). Synchroscopes measure and display the frequency difference and phase angle between two power systems.
Medical license A medical license is an occupational license that permits a person to legally practice medicine. In most countries, a person must have a medical license bestowed either by a specified government-approved professional association or a government agency before he or she can practice medicine.
TRIPS Agreement The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO). It establishes minimum standards for the regulation by national governments of different forms of intellectual property (IP) as applied to nationals of other WTO member nations.
Exhaustion of intellectual property rights The exhaustion of intellectual property rights constitutes one of the limits of intellectual property (IP) rights. Once a given product has been sold under the authorization of the IP owner, the reselling, rental, lending and other third party commercial uses of IP-protected goods in domestic and international markets is governed by the principle.After a product covered by an IP right, such as by a patent right, has been sold by the IP right owner or by others with the consent of the owner, the IP right is said to be exhausted.
Indigenous intellectual property Indigenous intellectual property is a term used in national and international forums to describe intellectual property that is "collectively owned" by various Indigenous peoples, and by extension, their legal rights to protect specific such property. This property includes cultural knowledge of their groups and many aspects of their cultural heritage and knowledge, including that held in oral history.
Outline of intellectual property The following outline is provided as an overview of and topical guide to intellectual property:\nIntellectual property – intangible assets such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights, trade dress, and in some jurisdictions trade secrets.
The Globalization of Intellectual Property Rights At its essence, intellectual property rights are described as “a legal framework for contractual agreements concerning technologies, which encourage the institution of ‘markets for technology’, making easier the international transfer of technology and its diffusion at the local level.” The discussion that has taken place, concerning intellectual property rights and the following agreements, centers around spreading global knowledge and technologies. Intellectual property has been largely discussed and gone through a series of changes.
Intellectual property in China Intellectual property rights (IPRs) have been acknowledged and protected in China since the 1980s. China has acceded to the major international conventions on protection of rights to intellectual property.
Libertarian perspectives on intellectual property Libertarians have differing opinions on the validity of intellectual property.\n\n\n== Political parties ==\nThe Libertarian Party of Canada takes "a moderate approach to patents and copyrights", calling for "a careful review of existing and proposed legislation".
Risk Factors
ESPEED INC ITEM 1A RISK FACTORS In addition to the other information in this Report, the following risk factors should be considered carefully in evaluating us and our business: RISKS RELATED TO OUR BUSINESS We may incur losses in the future
While we were profitable in 2005, as we continue to develop our systems and infrastructure and expand our brand recognition and client base through increased hiring of sales and other personnel, we may incur losses in the future
Our revenues and profitability may be adversely affected by changes in the US Treasury markets and a reduction in our market position in the US Treasury markets
Our business is highly dependent upon the volume of bonds being traded through our eSpeed system
We believe that we have historically been a leader in the US Treasury benchmark market, and our revenues are concentrated in this business
Because our business is highly concentrated in the government bond markets of the world, particularly US Treasuries, our business, revenues and profitability could be adversely impacted by various factors, including US Treasury market position declines and interest rate volatility, as well as competition within the marketplace
During 2004 and the beginning of 2005, our market position in the US Treasury market declined, resulting in a material adverse impact on our revenues and profitability
Although our position in the US Treasury market has improved in recent quarters relative to 2005 lows, market position declines from current levels would adversely affect our business revenues and profitability
If we do not expand the use of our electronic systems, or if our clients do not use our marketplaces or services, our revenues and profitability could be adversely affected
The success of our business plan depends, in part, on our ability to maintain and expand the network of trading firms, dealers, banks and other financial institutions that use our interactive electronic marketplaces
This is particularly important in the early years of a new marketplace where we attempt to attract a critical mass of participants or in a mature marketplace where certain revenues are concentrated from key clients
We cannot assure you that we will be able to continue to expand our marketplaces, or that we will be able to retain the current participants in our marketplaces
Although some of our agreements with market participants require certain minimum payments, none of our agreements with market participants require them to use our electronic marketplaces and from time to time, we may experience departures of key clients or reduction in volumes from such clients which 18 _________________________________________________________________ may adversely affect our revenues
Additionally, we currently expect to enter into strategic alliances with other market participants, such as retail brokers, exchanges, market makers, consortia, clearinghouses, major market participants and technology companies, in order to increase client access to and use of our electronic marketplaces
We cannot assure you that we will be able to continue to enter into these strategic alliances on terms that are favorable to us, or at all
In addition, we cannot assure you that our current or future strategic alliances will be successful
If we experience low trading volume in products or if we are unable to capture demand for new products, our revenues and profitability could suffer
From time to time, we have experienced significant fluctuations in the aggregate trading volume of products being traded in our marketplaces
We believe that fluctuations in the trading volume of products traded in our marketplaces could occur in the future from time to time and in such event, could have a direct impact on our future operating results
This could cause significant fluctuations in our revenues and profitability when the trading volumes are low
In addition, we may experience difficultly in creating demand for new fully-electronic products or in attracting customers or market makers on a large scale with respect to certain new products
Failure to capture customers for such products may have an adverse impact on our revenues or profitability
Our revenues and profitability could be limited or otherwise adversely affected by pricing plans relating to commissions and fees on our trading platform
We negotiate from time to time with certain of our customers (including many of our largest customers) to enter into customized pricing plans
In many of these pricing plans, the aggregate amount of transaction fees payable by a client for certain products is capped on a monthly, quarterly or other basis
While the fee cap is designed to encourage our clients to be more active on our electronic trading platform, the fee cap limits the maximum amount of commissions payable to us by certain of our most active clients, which could limit our revenues and constrain our profitability
If we are unable to enter into additional marketing and strategic alliances or our current or future strategic alliances are not successful, we may not generate increased trading in our integrated hybrid voice-assisted and our fully electronic marketplaces
We expect to continue to enter into strategic alliances with other market participants, such as retail brokers, exchanges, market makers, consortia, clearinghouses, major market participants and technology companies, in order to increase client access to and use of our electronic marketplaces
We cannot assure you that we will be able to continue to enter into these strategic alliances on terms that are favorable to us, or at all
In addition, we cannot assure you that our current or future strategic alliances will be successful
The success of our current and future relationships will depend on the amount of increased trading in our integrated hybrid voice-assisted and our fully electronic marketplaces and the liquidity generated therein
These arrangements may not generate the expected number of new clients or increased trading volume we are seeking
If Cantor or we are unable to protect the intellectual property rights we own or license from Cantor, our ability to operate electronic marketplaces may be materially adversely affected
Our business is highly dependent on proprietary technology and other intellectual property rights
We license some of our patented technology from Cantor
The license arrangement is exclusive, except in the event that (i) we are unwilling to provide to Cantor any requested services covered by the patents with respect to a marketplace and Cantor elects not to require us to do so, or we are unable to provide such services or (ii) we do not exercise our right of first refusal to provide to Cantor or its affiliates electronic brokerage services with respect to a marketplace, in which case Cantor retains a limited right to use the patents and patent applications solely in connection with the operation of that marketplace
We cannot guarantee that the concepts which are the subject of the patents and patent applications covered by the license from Cantor or that we own are patentable or that issued patents are or will be valid and enforceable or that such concepts will be marketable or profitable for our 19 _________________________________________________________________ business
Where patents are granted in the US, we can give no assurance that equivalent patents will be granted in Europe or elsewhere, as a result of differences in local laws affecting patentability and validity
Moreover, we cannot guarantee that Cantor’s issued patents or our issued patents are valid and enforceable, or that third parties competing or intending to compete with us will not infringe any of these patents
Despite precautions we or Cantor has taken or may take to protect our intellectual property rights, it is possible that third parties may copy or otherwise obtain and use our proprietary technology without authorization
It is also possible that third parties may independently develop technologies similar to ours
It may be difficult for us to monitor unauthorized use of our proprietary technology and intellectual property rights
We cannot assure you that the steps we have taken will prevent misappropriation of our technology or intellectual property rights
We have had to resort to costly litigation to protect and defend certain of our intellectual property rights; some rulings to date have not been in our favor
We are currently involved in costly litigation to protect and defend certain of our intellectual property rights and may be subject to such litigation in