Financial Storytelling

Hello, everyone. Are financial terms a mystery to you? What can you read from this? How many people like it? Please switch to your partner. Beside you is someone who says, That sounds great. Really? Before I begin my topic, Let me share a little about my background. if you could have a better context In our learning today. So, that's me. So, people know me as James. Let me share my Chinese name with you. So, this is my family name, Leon. I am a Cantonese person. My middle name is the letter C. and my last name is called F-O-O, called Foo. So, a few days ago, I gave out my business card to an Australian woman. Humble as ever, he called my name. Master Leon You have watched Kung Fu Panda. You know, Master Sifu. Now, J-A-M-E-S actually means several things. J means joy, Joy. Therefore, I hope you enjoy delivery today as much as I will enjoy Sharing with you. A bermakna profesi saya. So, I am a lawyer with a legal background, He is also a professional lawyer. M means getting married with three children. Therefore, as you know, It makes me more than usual in the context of productivity in Singapore. And it means my joy, It was during the training. And what am I going to do today It is I who will go to the company. And I will carry out the educational training. corporate executive Teaching people about finance and accounting. Are there businessmen who are not wealthy? People help them make better business decisions. And when I work more with corporate executives like yourself, I also teach at NUS. I am a faculty teaching expert. And I also teach accounting. And I make it easy for people to learn. Dan S also holds significance for the story. Therefore, we will learn How to tell the story of a business today. With pleasure. There are many people working in business. Whether working for someone else or work with others. How many people are in self-employment? How many people work for someone else? Alright. How many people borrow illegal money themselves in the business market? Yeah. So whether you are in one of these categories, the ability to make business decisions using numbers and understanding business concepts It is a very important skill. But there is a problem. What's the problem? The problem is Most of the time, Business information or general reports provided to you produced by businesspeople It is usually difficult to understand. and full of technical infections. Really? Yeah. So, My goal for this afternoon, In the limited time I have to share with you It is an easy way to appreciate the reality of business. and also be able to take something you can use Immediately. Dan The first difference we will learn here is What is a business statement? A business statement is merely a story about business. written in numbers. So, what is a business fact? They are merely stories about business written in number That's all. And you will learn how to tell those stories. Now please fully participate because I intend to make it as much as possible so that you can interact. So, let's start with a simple story. Let us say that you want to buy a business. Maybe not in Singapore. Perhaps you would like to buy a recovery house abroad. Maybe you want to buy it; go to Batam and purchase it there. What you mean is that you want to buy some land. This land will be worth $100,000. And if you look inside your piggy bank, And this is what you will encounter. You have $80,000. Question: Are you able to purchase this land or not? You need $100,000 but you are short by $20,000, right? How can you buy land? Only if you are using something called O.P.M. what is meant Don't look at other people. So, perhaps, they say you can buy money than four different people. They call it the Four F's. Is F the first? Family Second? Friends. The third one? Financial institutions. And they said, F is the most important one in the end. I said, what is it? They said, foolish people. A person who is quite foolish gives you money. So, $80,000 and $20,000 will allow you to purchase Land worth $100,000. Psychological description. There is no correct or incorrect answer. Therefore, I will ask you to help and participate. I believe you all have lawyers. So, do you know how they differ? Their way of thinking, their way of behaving. They are different from ordinary people. Thank you. If I were to ask you to choose the best form to explain the lawyer. The way they speak, the way they think, the way they feel. We will do it in one form at a time. How many people think the shape of each star represents the best lawyer? How many people? Many aids. Some people choose the shape of each star and ask why. They said, oh, because their lawyer was very firm with the figures. They said, "Thank you; that is an honor." How many people chose the circle? Is anyone there? Circle? Then some help above. I'm asking, why did you choose the circle? They say that when lawyers speak, they go on and on. I don't know what they said. I hope you're still with me. How many people chose Z? So many aids above, and I ask you, why did you choose Z? They say that when lawyers speak, people drift away. I hope you're still with me. Can you pull your left hand? Left hand. Pull the left hand. Left hand. Good. The equipment for both of you is definitely working. You haven't chosen yet. How many people chose each star's shape? Many helps. Why? Because lawyers are? The shape of each star. Thank you. Applause. The perfect answer, isn't it? So, whether you're lucky or not, I am also one of those people. So, to tell you the same story as the lawyer did, This is what I will do. I will use stars. Or a box. And this is what I will say. What you bought here is a set form. worth $100,000. Now, how do you make a purchase? How do you pay for that set? You borrowed $20,000 and whatever you borrowed, you need to repay We call it profit. $80,000 came from your own money and the account became somewhat complicated with language Because E means profit. So, a set is what you have. Profit is what you have. and the profit is your investment or capital in set form. So, let's quickly share. What is A? The set you have is what you possess. And the profit is what you have And the profit is what you have. Give a great hit! Look, the numbers on both sides What did you notice? Same here. Because it is the same on both sides, The account stated that it was profitable. and I wrote it on a type of paper. I described it as a kind of profit. Isn't that amazing? So, what haven't you learned yet? It is a type of profit. This is the first story you will learn, the story of finance. One story told by the financial stimulus is a financial story. It is a funding story. I'm informing you that your assets are managed by Investments Owners AT. and taking the 20 dollars. Question. One of the best reasons why a company fails? Thank you. One of the best reasons I will share with you is this. Could you please tell me, Which company do you consider to be financially stronger? First company or second company? First company. Why is that so? Because it has approximately the same amount of loans or liabilities, And this company has more loans and liabilities. Why is this important? Because this is very important. This company is called a low-deficiency company. The company is understaffed. This is a company called a high-deficit company. The company is highly indebted. So, tell me, What risks will you face? Regarding the ability to pay? First company or second company? Second company. So, if you have a high deficiency, It means you have a high loan. It would be meaningful to say that if there is a decline, for example, It will be harder for you to repay your loan, and perhaps the bank comes to you and says, I will return everything. and if not, I will make you tall. So, this will tell us something. And what did he tell us? This is what we call, everyone Should we mention it? A strong condition. And this is what we call, a condition of low deficiency Therefore, companies with low deficiency criteria, High probability of experiencing a shortage. So, for example, Are you aware of this company called Hiflux? That's our latest corporate casual day today. Thus, the company Hiflux has been closed. If you are the owner of the bond, company owner You cannot sell your company, You cannot collect your money. So, you're thinking about how they could pay all that money. So, do you think this company is strong or weak? Right. Company that is less. So, if you see it, What is happening here, Now let's compare. Apple. Everyone knows Apple. The most valuable company in the world, $943 billion in the market almost $1,000,000,000. Look here, Apple. An apple looks like this. 30% What do we call it Hiflux For many years, they began with, They look like this, and finally, It becomes the same. and finally, They look like this. And then we know what happened to Apple, And we know what happened to Hiflux. Is this image clear to you? Could you tell me the story of the balance sheet? Yeah. Therefore, Conclusion regarding the balance sheet story, saying that We want a strong or weak balance sheet. Kuat. Therefore, please change to your friend. and he said, A strong balance sheet is good. Alright. Also remember to thank your friend. Say goodbye And he said, you are great. Alright. Ready for the next story? Yeah. Thank you. So, what is this? Pokémon Okay. It is behind something. It is behind. cat Okay. So, it's very important. Now, What is happening here is this. If you have cat What did he do for you? Susu. You are selling, Making money, huh? What happens if your cat does not do this for you? And all he did was give you this? No. That's not good, right? No. You are very optimistic. Yeah. So, what we want is The cat that made it for us. In other words, what we want is the cat that gives us what is called everyone Iaito offering Alright. So, what we want to do is for the company not only strong but also succeeded. What do you mean? offering? Easily, This is your profit, Your sales. This is your shopping, What are your strengths? So, Which one do you want? Do you want High returns or high spending? High profit. That is the second reason. Why companies fail is if shopping or their purchases higher than their profit So, what we want is for I more than X and the difference is What do we call it profit So, for example, If we look at the high profits, Over the past three years, They created a deficit. On the other hand, If we take Apple, Apple has consistently if we take their profit divided by their sales, they have Margin of more than 20% consistently So, it's very Beneficial to them. So, that's it Financial story two. So, I want you to Back to your friend and said this Please return and say benefit is offering Please return. That is why We need to take a look What do we call it This is P&L or we also call it profit segment P&L means Benefits and losses. Dan What will I do here? It is to install it together For you so that you may see How is the business? create value or create profit. The same matter You can do it For your business as well. So, how's the business? create profit? They started with investors' money which is shared capital. They borrowed some loans. They bought the assets. And then during their time using their assets in the process their business What are they doing? So, cash money can become shopping Wang Tunai can become value Or, the machine Can be used as a reduction in spending. And when using All these purchases What did they do? It is generating profit. And if the profit is yours more than your expenses You will have a profit. You can start now The next movement again investing in business. So, this is what is called profit-making activities And if you take This benefit and you divide with profit This is what you will get. She was called ROE what is meant Back to profits. Everyone calls Back to profit. And if you look Apple back to profit 35% Profit $1 $0.35 profit for each dollar what they invested in the company. So, you can imagine You insert $1 the following year The company will offer $0.35 profit. In the following year, $0.35 In the following year, $0.35. So, how long did it take him? To recover your profit? Three years. That is the shopping period. Three years. If you invest in Apple Shares. That is why they are profit-making machine the worldly investor. They are a company. The most valuable thing in the world. So, I will Give me your hand here. So, first of all, I will write it down For you. So, let's call it At the appropriate time. So, what is A? It is doing this to reach $1. What is L? Benefits. What is E? Benefits. Let's estimate. X for? Spending. Me for? Now, what I want you to do turn against your friends and said, I have left calculation Alright. So, did you study? Something useful? Yeah. Thank you. So, let me get this across. So, is James always Making it easy and convenient for you? Yeah. Thank you.