Debt to equity ratio (solvency) HELP MEEEEEEEEEEEEEE (1 Viewer)

Power Rangers

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MC is right up there with IB as it pays reasonably well and is very intellectually stimulating. Lots of competition for not many jobs compared to say accounting or the other less glamorous roles in finance.



You realise that $60k is like the average income right which isn't bad for a fresh graduate. AFAIK graduate jobs are in the high $40's to low $70's for most roles (outside of IB/trading/equities which are circa $100k... if you can find one). Realistically if you are joining a graduate program, you do so because it's something which will give you progression and development opportunities rather than outright salary.



I'll put it in perspective then- I'm 24, I have no HECS debt as I repaid it in full, and I bought myself a decent car without using any financing/loans. I'd say commerce has better prospects than pharmacy by a long shot but like you said, there are risks with any industry and commerce is one of those areas which is really not a production business and hence is dependent on other industries to have prosper.
60k is average income? I find that really hard to believe. Isn't the average income 80-90k?

WHUT. You're doing extremely well, man o_O
24 and you've paid off your hecs. How old were you when you finished uni?


The exam. I'm actually really pissed.
You know how on balance sheets and income statements there are too sides? I FORGOT TO CHECK THE YEAR, and had to redo the entire thing again.
So I basically had half the time everyone did after redoing it (I realised really late, and just noticed before I started my report).


I finished it, but i'm not sure if it's correct. I would have killed the exam if I didn't screw up originally. Never making such a noob mistake again, NEVER.
Anyways, I calculated the 7 ratios for each business and compared it to the industry average and wrote a report that was only three pages long, and a page of dot points on how to improve business performance :(


Really unhappy about realising midway during the exam, and not earlier. Seriously though, that's the first thing I should've checked. Oh well :/
I'm just hoping I did the ratios right, because if I didn't, the report is entirely wrong too :p

one is expressed as a decimal and the other expresses it as a percentage. How hard is it?
what are you talking about?
 
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MC is right up there with IB as it pays reasonably well and is very intellectually stimulating. Lots of competition for not many jobs compared to say accounting or the other less glamorous roles in finance.



You realise that $60k is like the average income right which isn't bad for a fresh graduate. AFAIK graduate jobs are in the high $40's to low $70's for most roles (outside of IB/trading/equities which are circa $100k... if you can find one). Realistically if you are joining a graduate program, you do so because it's something which will give you progression and development opportunities rather than outright salary.



I'll put it in perspective then- I'm 24, I have no HECS debt as I repaid it in full, and I bought myself a decent car without using any financing/loans. I'd say commerce has better prospects than pharmacy by a long shot but like you said, there are risks with any industry and commerce is one of those areas which is really not a production business and hence is dependent on other industries to have prosper.
lol, you did accounting/finance. You know how many people do that? Accountants are a dime a dozen. Basic economics: Increase supply of accountants, wage of accountant goes down.

Accounting is just "Debit" and "Credit". Nothing really hard (thus why so many people do majors in it) just boring as shit.

If people continue thinking that Accounting/Finance are the "safe" majors for a commerce degree, then the job market will just become saturated with accounting grads and you will all be screwed. One day accountants will be paided less than cleaners.
 
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60k is average income? I find that really hard to believe. Isn't the average income 80-90k?

WHUT. You're doing extremely well, man o_O
24 and you've paid off your hecs. How old were you when you finished uni?


The exam. I'm actually really pissed.
You know how on balance sheets and income statements there are too sides? I FORGOT TO CHECK THE YEAR, and had to redo the entire thing again.
So I basically had half the time everyone did after redoing it (I realised really late, and just noticed before I started my report).


I finished it, but i'm not sure if it's correct. I would have killed the exam if I didn't screw up originally. Never making such a noob mistake again, NEVER.
Anyways, I calculated the 7 ratios for each business and compared it to the industry average and wrote a report that was only three pages long, and a page of dot points on how to improve business performance :(


Really unhappy about realising midway during the exam, and not earlier. Seriously though, that's the first thing I should've checked. Oh well :/
I'm just hoping I did the ratios right, because if I didn't, the report is entirely wrong too :p



what are you talking about?
Most likely the average for an accountant. Seriously, accounting doesn't take very much smarts at all and the job market is saturated. Companies could easily pay accountants $40 000/year.

If you want to differentiate yourself from others then you need to specialise in the more heavily quantative side of business (Insurance and Fund Management).

Note: Accounting is not a quantative side of business at all. All it requires is use of a calculator and year 10 maths.
 
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seremify007

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Internet Police- I think you are mistaking book keeping (the stereotype of what an accountant is) and what a real accountant actually does particularly one who is a specialist.

As for average salary I don't have a link or a source but I vaguely recall hearing the average Australian earns $60k a year. I don't know how accurate that is but either way, a grad job in either a decent firm or bank will net something thereabouts with plenty of upward potential.


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seremify007

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Ps from memory you are a UNSW commerce student- if all you are basing your views on is acct 1a/1b then I can see how you reached your point of view. Thankfully in practice its a lot more challenging than that.


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Dale09

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In my textbook, the ratio is total liabilities (Debt): total equity (assets)

but in another book, it's written as total debt/owner's equity x100



What is this? WHICH ONE DO I USE?
They're COMPLETELY different. One is just a measure of the capability of a business to pay off their debt, and the other is the level of debt in comparison with the contribution of the owners/shareholders.

ALSO. The textbook has it in ratio form, and the other book has it as a percentage.


please respond (lol)
total det/ total equity is mostly used ratio
 
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