Category: Business Financial News

Keypath Education International (ASX:KED) Is In A Strong Position To Grow Its Business

We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

Given this risk, we thought we’d take a look at whether Keypath Education International (ASX:KED) shareholders should be worried about its cash burn. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. Let’s start with an examination of the business’ cash, relative to its cash burn.

View our latest analysis for Keypath Education International

Does Keypath Education International Have A Long Cash Runway?

A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. As at December 2023, Keypath Education International had cash of US$42m and no debt. Looking at the last year, the company burnt through US$9.5m. So it had a cash runway of about 4.4 years from December 2023. Notably, however, analysts think that Keypath Education International will break even (at a free cash flow level) before then. If that happens, then the length of its cash runway, today, would become a moot point. Depicted below, you can see how its cash holdings have changed over time.

debt-equity-history-analysis

ASX:KED Debt to Equity History March 17th 2024

How Well Is Keypath Education International Growing?

It was fairly positive to see that Keypath Education International reduced its cash burn by 46% during the last year. And operating revenue was up by 10% too. On balance, we’d say the company is

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How To Write a Business Plan in 9 Steps (2024)

A great business plan can help you clarify your strategy, identify potential roadblocks, determine necessary resources, and evaluate the viability of your idea and growth plan before you start a business.

Not every successful business launches with a formal business plan, but many founders find value in taking time to step back, research their idea and the market they’re looking to enter, and understand the scope and the strategy behind their tactics. That’s where writing a business plan comes in.

Learn how to write a business plan with a step-by-step guide, get tips for getting the most of your plan, and see real business plan examples to inspire you.

What is a business plan?

A business plan is a strategic document that outlines a company’s goals, strategies for achieving them, and the time frame for their achievement. It covers aspects like market analysis, financial projections, and organizational structure, serving as a roadmap for business growth and a tool to secure funding.

Often, financial institutions and investors need to see a business plan before funding any project. Even if you don’t plan to seek outside funding, a well-crafted plan becomes the guidance for your business as it scales.

How to write a business plan in 9 steps

  1. Draft an executive summary
  2. Write a company description
  3. Perform a market analysis
  4. Outline the management and organization
  5. List your products and services
  6. Perform customer segmentation
  7. Define a marketing plan
  8. Provide a logistics and operations plan
  9. Make a financial plan

Few things are more intimidating than a blank page. Starting your business plan with a structured outline and key elements for what you’ll include in each section is the best first step you can take.

Since an outline is such an important step in the process of writing a business plan, we’ve put together a

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With 59% ownership of the shares, First Business Financial Services, Inc. (NASDAQ:FBIZ) is heavily dominated by institutional owners

Key Insights

  • Given the large stake in the stock by institutions, First Business Financial Services’ stock price might be vulnerable to their trading decisions

  • The top 16 shareholders own 50% of the company

  • Insiders have been buying lately

A look at the shareholders of First Business Financial Services, Inc. (NASDAQ:FBIZ) can tell us which group is most powerful. We can see that institutions own the lion’s share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let’s delve deeper into each type of owner of First Business Financial Services, beginning with the chart below.

See our latest analysis for First Business Financial Services

ownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About First Business Financial Services?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in First Business Financial Services. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of First Business Financial Services, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth

earnings-and-revenue-growth

Investors should

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20 Top Generative AI Companies Leading In 2024

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Generative AI companies are popping up everywhere and quickly. They range from established companies adding generative AI to their software products to new generative AI startups.

As generative AI rapidly develops, it can be difficult to distinguish between the leading generative AI companies and the hundreds of others that are beginning to tap into this AI technology and explore its vast potential.

To assist, this guide covers the top 20 generative AI companies, detailing their products and potential use cases. We’ll also provide analysis into how and why these generative AI companies are growing in popularity so quickly.


Top Generative AI Companies Compared

Each of these generative AI companies offers unique product portfolios and solutions that set them apart from their competition; therefore, instead of comparing them across the same core criteria, we’ll instead take a look at their key business stats, products, and market value.

In this table, we’ve covered the 10 best generative AI companies, while the rest of this guide will look at these organizations plus 10 additional generative AI leaders.

Headquarters Founded Company Size Key Products Market Cap (as of March 2024)
OpenAI San Francisco, CA, USA 2015 200-500 employees GPT-4, ChatGPT, DALL-E 3, Sora Private company valued at $80 billion+
Microsoft Redmond, WA, USA 1975 220,000+ employees Microsoft Copilot, Copilot for Microsoft 365, Microsoft Copilot Studio, Microsoft Copilot in Bing $3.01 trillion
Alphabet (Google) Mountain View, CA, USA 1998 180,000+ employees Gemini, Vertex AI, Gemini for Google Workspace $1.72 trillion
Amazon (AWS) Seattle, WA, USA 1994 1.5 million+ employees Amazon Bedrock, Amazon Q, Amazon CodeWhisperer, Amazon SageMaker $1.79 trillion
NVIDIA Santa Clara, CA, USA 1993 29,000+ employees NVIDIA AI, NVIDIA
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Insolvencies to remain high in Canada as economy plays catch-up: experts – National

Business insolvencies will likely remain elevated throughout 2024, experts said, as the economy plays catch-up after historically low levels during the pandemic.

“We did have … so many years of artificially low filings. We’ve got a fair bit of catch-up to do,” said Natasha MacParland, a partner at Davies Ward Phillips & Vineberg LLP.

The pandemic saw a historically low level of insolvency filings — which include bankruptcy and restructuring procedures — as government supports kicked in but in 2023 things started to normalize, said MacParland. That trend is continuing into 2024.

Business insolvencies in 2023 were up 41.4 per cent compared with 2022, according to data from the Office of the Superintendent of Bankruptcy. Compared with 2019, they were up almost 31 per cent.


Click to play video: 'Canada’s inflation fell to 2.9% in January, Freeland says'


Canada’s inflation fell to 2.9% in January, Freeland says


At some point in the latter half of 2023, business insolvencies started surpassing pre-pandemic, or 2019, levels. But that’s not necessarily a worrying thing, MacParland said.

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“I would have been concerned if all of a sudden there was a deluge of filings. But this seems to me to be what I would have expected,” she said.

She also noted 2019 was a milder year for insolvency filings, and that a certain level of insolvencies is healthy for the economy.

Insolvency, which a business often faces when it’s unable to pay its debt and other expenses, includes both bankruptcies and proposals. Bankruptcies mean the business is closing down, while a proposal offers a way to restructure.

Government support and patient lenders kept business insolvency levels low for several years, longer than industry watchers had expected, said Dina Kovacevic, editor of trade publication Insolvency Insider.


Click to play video: 'Money Matters: Why personal insolvencies are surging and how to avoid debt trouble'


Money Matters: Why personal insolvencies are surging and how to avoid debt trouble


“In 2023, we saw

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World Kinect Corporation Highlights Growth Strategy and Financial Outlook During 2024 Investor Day

  • Focused on achieving a 30% adjusted operating margin and full-year adjusted EBITDA of $480 – 520 million by 2026.

  • Targeting aggregate Free Cash Flow generation of $900 million to $1.2 billion over the next five years, with approximately 40% allocated to buybacks and dividends.

MIAMI, March 13, 2024–(BUSINESS WIRE)–World Kinect Corporation (NYSE: WKC) (“World Kinect” or the “Company”) today hosted its 2024 Investor Day, during which the Company discussed its unique position in a large global market, its strategy to capture opportunities across its three business segments, and its financial targets to drive attractive long-term shareholder returns.

“As our team continues to deliver for our global customer base, we are focused on our strategy to accelerate growth by driving efficiencies in our core distribution platform, increasing the availability of renewable energy and lower-carbon fuels, and expanding our suite of energy-management solutions,” said Michael J. Kasbar, Chairman and Chief Executive Officer. “I am confident our clear strategy will drive greater value for our shareholders.”

Financial Outlook

  • The Company remains focused on driving greater operating efficiencies with a target of achieving a 30% adjusted operating margin by 2026.

  • Increased operating efficiencies and profitable growth are expected to contribute to annual adjusted EBITDA of $480 – 520 million by 2026.

  • The Company expects to generate between $900 million and $1.2 billion of total Free Cash Flow over the next five years, with approximately 40% of such amount expected to be allocated to buybacks and dividends.

“With a focus on generating improved shareholder returns, today we announced an updated financial outlook for increased operating efficiencies, profitability, and free cash flow,” stated Ira M. Birns, Executive Vice President and Chief Financial Officer. “We believe the achievement of these efficiency improvements, coupled with profitable growth, will enhance our ability to provide sustainable

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With Predictive Analytics, Companies Can Tap the Ultimate Opportunity: Customers’ Routines

If knowing what customers need is marketing gold, pinpointing exactly when they need it may just be platinum.

Services that become part of a customer’s routine may deliver advantages beyond repeat business for a company, Harvard Business School Associate Professor Eva Ascarza and colleagues find in a new working paper.

“We find that routine customers have higher value to the organization, even after controlling for their level of consumption,” Ascarza says.

These customers may also tolerate price increases better and even stay loyal longer when things go wrong compared with customers who haven’t made a service part of their routines, the authors find.

These findings come as companies such as Procter & Gamble, Adidas, and McDonald’s are trying to collect more consumer data to hone their marketing messages. With artificial intelligence (AI) opening new possibilities in the noisy world of digital marketing, companies are looking for new ways to gain an edge with fatigued customers. Harnessing customers’ routines may offer a compelling new opportunity.

When services such as ridesharing are part of a routine—even if that routine isn’t obvious to the user—firms may be able to pinpoint a customer’s motive more precisely than for people who use the service casually or merely as a preference. That may help companies carefully tailor both marketing and service for their most valuable customers, the authors find.

Ascarza teamed with Ryan Dew from the University of Pennsylvania’s Wharton School as well as Columbia Business School’s Oded Netzer and Nachum Sicherman to develop the model that identifies routine users and their value.

Not all rides are routines

To track how targeting routines may work, the authors teamed up with a rideshare company in New York City and tracked some 2,000 users, homing in on passenger usage data between January and November in 2018. After

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15 Most Honest Cities in the World

In this article, we will look at the 15 most honest cities in the world.  We have also discussed the importance of honesty in businesses. If you want to skip our detailed analysis, head straight to the 5 Most Honest Cities in the World

Why is Honesty Important in Business?

Honesty and trust are critical pillars for any business, impacting its bottom line and overall success. According to PwC’s 2023 Trust Survey, 91% of business executives acknowledge that building and maintaining trust largely improves profitability. Conversely, a lack of trust can lead to erosion in brand value, financial performance, and hinder talent retention. In today’s competitive landscape, where consumer expectations are continuously evolving, trust has become even more indispensable for businesses across all industries.

Consumers, employees, and executives universally recognize the importance of trust in business operations. Recommendations and referrals, which stem from trust, significantly impact business performance. Fifty-eight percent of consumers have recommended a trusted company to friends and family, while 64% of employees have recommended their workplace because of trust. 

Despite the consensus on the importance of trust, there’s a considerable gap between how much trust executives perceive their organizations to have and how much trust stakeholders actually place in them. This trust gap poses a major challenge for businesses, especially in an environment where trust is increasingly fragile. Consumer and employee trust levels have seen a slight decline since June 2022, emphasizing the need for businesses to prioritize trust-building efforts. To bridge this gap, businesses must actively listen to their employees, who often serve as frontline witnesses to customer interactions and operational issues, thereby helping to identify potential trust blind spots. 

Most Trusted Companies in the US

In terms of company trust, Costco Wholesale Corporation (NASDAQ:COST) stands out with a strong reputation

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An Important Investment For Long-Term Viability

Rick Kelly is the Chief Strategy Officer at Fuel Cycle. His passion is helping brands unlock the power of customer intelligence.

Businesses must future-proof themselves to endure an ever-changing economic landscape. Focusing on creating value both internally and externally through strategic planning is crucial for a brand’s long-term success. Companies that prioritize market research as a fundamental function, rather than a mere expense, have a higher likelihood of thriving amid economic uncertainty.

Traditional market research, however, is often neither scalable nor fast and is often detached from decision-making processes. To stay competitive and gather relevant insights, organizations should consider embracing cutting-edge approaches and technological advancements in the market research sector.

The Future Of Market Research And The Role Of Data

Data has transformed the way companies approach future-proofing. Employing the right tools to collect valuable insights is crucial for businesses seeking long-term viability and brand success.

Market research enables businesses to:

1. Better comprehend their target audience’s demographics and segment customers effectively.

2. Study competition and recognize market trends.

3. Guide product development and collect feedback from usability testing.

4. Assess the effectiveness of current marketing campaigns.

5. Develop powerful future marketing campaigns.

However, the life cycle of data’s value has dramatically decreased. The driving force behind the speed of insights is the realization that if they take too long to generate, they may already be outdated upon arrival. It’s essential for organizations to comprehend the context in which data exists, as context helps to inform the adjustments necessary for effective audience engagement.

Companies skimping on insight investment may suffer serious blows to brand perception. In fact, companies that embrace a customer-centric approach are 60% more profitable than companies that don’t (pg. 5).

A lack of insights investment creates conflicts between consumer and brand alignment. Customer loyalty plummets—

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Small business owners report growing optimism about the U.S. economy

Small business owners are feeling better about the U.S. economy as inflation cools and recession fears subside, according to a new survey. Indeed, economic optimism among smaller employers is at a 22-year high, PNC Financial Services Group found in polling small and midsize business owners. 

A majority of respondents – 55% – said they are “highly optimistic” about the national economy this year. That’s up sharply from 34% last fall and 26% a year ago, according to the Pittsburgh-based bank. Roughly eight in 10 owners also expressed confidence about their own businesses’ financial prospects. Over the next six months, just over half of the business owners who were surveyed think their profits will rise, while only 5% expect earnings to fall. 

“The U.S. economy is doing quite well. We had strong economic growth in the second half of 2023, with consumers spending more and businesses investing. That strength is persisting into 2024,” PNC Chief Economist Gus Faucher told CBS MoneyWatch. 

The findings are based on a randomized phone survey of 500 small and midsize businesses, which PNC defines as having annual revenue ranging from $100,000 to $250 million, from January 2 to February 1.

As inflation slows, fewer small business owners also see a need to raise their own prices in the near term. According to PNC, 47% of the enterprises that were surveyed said they expect to increase prices over the next six months, down from 55% last fall. Of those businesses that plan to raise prices, just over 1 in 10 say they’ll do so by at least 5%. 

The economic fortunes of small businesses are critical to the U.S., with nearly 62 million Americans employed by such firms, or roughly 46% of workers, according to the Small Business Administration. Overall, the U.S. has more than 33

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