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Title: Financial Metrics Analysis in Agribusiness: Unveiling Overlooked Indicators

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Abstract:
This research article explores the strategic evaluation of financial metrics in the agribusiness sector, shedding light on often-overlooked indicators crucial for a comprehensive assessment of the industry’s financial health.

 

By examining overlooked ratios, such as gearing ratio, interest cover, acid test ratio, cash conversion cycle, return on equity (ROE), and return on capital employed (ROCE), the study aims to provide a nuanced toolkit for investors and agribusiness owners.

 

The article concludes by illustrating the practical implications of these ratios through a hypothetical scenario, emphasizing their role in guiding strategic financial decisions for sustainable growth.

 

1. Introduction:
The agribusiness sector, often evaluated through conventional metrics like net profit and gross profit margin, requires a more comprehensive approach for an accurate financial assessment. This article aims to redirect attention to lesser-known but impactful financial indicators, offering investors and agribusiness owners an informed toolkit.

2. Gearing Ratio and Interest Cover:
2.1 Gearing Ratio:
The gearing ratio provides insights into a company’s financial leverage. By analyzing total debt in relation to shareholders’ equity, this ratio helps businesses strike a balance between debt and equity, ensuring a stable capital structure.

2.2 Interest Cover:
The interest cover, or times interest earned (TIE) ratio, measures a company’s ability to meet interest payments using operating profit. This ratio, alongside the gearing ratio, aids in managing debt levels and ensures financial stability.

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3. Acid Test Ratio and Cash Conversion Cycle:
3.1 Acid Test Ratio:
Examining a company’s liquidity, the acid test ratio excludes inventory from current assets. Particularly vital in agribusiness,

Title: Financial Metrics Analysis in Agribusiness: Unveiling Overlooked Indicators
Abstract:
This research article explores the strategic evaluation of financial metrics in the agribusiness sector, shedding light on often-overlooked indicators crucial for a comprehensive assessment of the industry’s financial health. By examining overlooked ratios, such as gearing ratio, interest cover, acid test ratio, cash conversion cycle, return on equity (ROE), and return on capital employed (ROCE), the study aims to provide a nuanced toolkit for investors and agribusiness owners. The article concludes by illustrating the practical implications of these ratios through a hypothetical scenario, emphasizing their role in guiding strategic financial decisions for sustainable growth.

1. Introduction:
The agribusiness sector, often evaluated through conventional metrics like net profit and gross profit margin, requires a more comprehensive approach for an accurate financial assessment. This article aims to redirect attention to lesser-known but impactful financial indicators, offering investors and agribusiness owners an informed toolkit.

2. Gearing Ratio and Interest Cover:
2.1 Gearing Ratio:
The gearing ratio provides insights into a company’s financial leverage. By analyzing total debt in relation to shareholders’ equity, this ratio helps businesses strike a balance between debt and equity, ensuring a stable capital structure.

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2.2 Interest Cover:
The interest cover, or times interest earned (TIE) ratio, measures a company’s ability to meet interest payments using operating profit. This ratio, alongside the gearing ratio, aids in managing debt levels and ensures financial stability.

 

3. Acid Test Ratio and Cash Conversion Cycle:
3.1 Acid Test Ratio:
Examining a company’s liquidity, the acid test ratio excludes inventory from current assets. Particularly vital in agribusiness,

2.1 Gearing Ratio:
The gearing ratio provides insights into a company’s financial leverage. By analyzing total debt in relation to shareholders’ equity, this ratio helps businesses strike a balance between debt and equity, ensuring a stable capital structure.

2.2 Interest Cover:
The interest cover, or times interest earned (TIE) ratio, measures a company’s ability to meet interest payments using operating profit. This ratio, alongside the gearing ratio, aids in managing debt levels and ensures financial stability.

 

3. Acid Test Ratio and Cash Conversion Cycle:
3.1 Acid Test Ratio:
Examining a company’s liquidity, the acid test ratio excludes inventory from current assets. Particularly vital in agribusiness, where inventory may not quickly convert to cash, this ratio offers insights into a company’s short-term obligation coverage.

3.2 Cash Conversion Cycle:
This financial metric measures the efficiency of converting investments into cash flow. By assessing inventory days, receivables days, and payable days, businesses can identify areas for improvement, leading to enhanced cash flow and operational efficiency.

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4. Return on Equity and Return on Capital Employed:
4.1 Return on Equity (ROE):
ROE gauges a company’s profitability in utilizing shareholders’ equity. This metric, when compared across industries, provides a benchmark for investors and analysts, showcasing the company’s efficient use of equity capital.

4.2 Return on Capital Employed (ROCE):
ROCE offers a holistic performance indicator by assessing a company’s efficiency in using both equity and debt for profit generation. Analyzing ROE and ROCE provides valuable insights into financial performance and aids in strategic decision-

5. Conclusion:

Business leaders must grasp the significance of understanding and connecting various financial ratios, as they serve as indispensable tools for formulating effective financial improvement plans. A hypothetical scenario illustrates the practical impact of judicious ratio analysis management, guiding strategic financial decisions for sustained growth and success.

Author: Agosile Akinjide

References:

Altman, E.I., 1968. Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The journal of finance, 23(4), pp.589-609.
Beaver, W.H., 1966. Financial ratios as predictors of failure. Journal of accounting research, pp.71-111.
Barnes, P., 1987. The analysis and use of financial ratios. Journal of Business Finance dan Accounting, 14(4), p.449.

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Opinion

Lawyer petitions police, DSS over alleged defamatory publications, threat to life

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A lawyer, Chief Yinka Oguntimehin of Yinka Oguntimehin & co, has petitioned the Nigeria Police Force and the Department of State Services (DSS) over alleged defamation publication and threat to his life and that of his client, Otunba Wole Ogunbayo.

 

In the multiple petitions, addressed to the Area Commader, Nigeria Police Force, Sagamu Area Command and the Director, Department of State Services (DSS), Ogun state command, and titled: Petition on Azeez Oladimeji Ashiru’s Criminal activities calculated at causing a breach of public peace, civil unrest and threat to the life of and properties of Otunba Wole Ogunbayo of Amba Properties Limited, Oguntimehin alleged that “Azeez Oladimeji Ashiru resorted to criminal acts, defamatory publication, cyber bullying and threats against our Chief Yinka Oguntimehin through numerous publications made by him on his mobile telephone number.”

 

The petition further stated: “We are Solicitors to Otunba Wole Ogunbayo and Amba Properties Limited hereinafter referred to as our Clients and on whose instruction we write.

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“Please be informed that Otunba Wole Ogunbayo is the alter ego of Amba Properties Limited.Whereas Otunba Wole Ogunbayo is a philanthropist, community and church leader, property consultant and business man of good repute; Amba Properties Limited is a reputable company well known for property management, real estate consultancy and facilities management for more than two decades.

 

“Our Clients have referred your false, malicious and defamatory content published through Azeez Ashiru on phone number 08034237237 via whatsapp medium on the 3rd of June, 2024 and via STV 24 television medium around 22.56 and 22:59 on the 3rd of June, 2024 to members of the general public and the whole world and accordingly sought our intervention.

 

“You maliciously published the said defamatory content to members of the general public and the whole world as follows: ‘Please save us from AMBA and Gani Onimale. He has stationed land grabbers on the farm land, They are after us.’

 

Oguntimehin expalined the said publications have damaged the reputation of his client, Otinba Wole Ogunbayo, who he described as a highly respected chief in Remoland and a devout christian.

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“This man published several damaging messages about my client. For the records, Otunba Wole Ogunbayo is the managing director/CEO of Amba Properties Limited, a company he established in February 2002. He is reputable well known for Property Management, Real Estate Consultant and Facilities Management in Nigeria.

 

“Beyond this, he is a well-decorated chief in Remoland. Among his titles are, Akile of Itori Land; Otunba Fiwagboye of Ijoku Land; Bashorun of Isara Remo; Diocesan Adviser to Remo Anglican Diocese on Property Matters; Baba Ewe of Emmanuel Anglican Church and an award of honour by the Nigeria Police Force, Sagamu Area Command among several others.”

 

 

Speaking on the possible cause of the crisis, Oguntimehin explained that Ashiru Azeez resorted to blackmails and threats after several failures to grab some land that was purchased by Amba Properties some years ago.

 

“The real reason behind all of this is Ashiru’s failure to grab some parcels of land that Otunba purchased Otunba Ogunbayo purchased some acres of land from the original owners some years ago. He has tried several tricks, but has failed. The latest of the criminal activities of Azeez Oladimeji Ashiru is the orchestration of false, malicious and defamatory content published on his phone number.”

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Oguntimehin stated that Ashiru Azeez, who he alleged started sponsoring frivolous petitions and campaign of calumny against them since the year 2019, has variously dodged efforts to serve him court summons, while he has also refused to answer invitations by the police and the DSS.

 

“The purpose of this is to alert the world to the desperation of this man. We have observed that he is getting more desperate as the days pass bye. All these acts of blackails and treats cannot work,” Oguntimehin maintained.

 

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Opinion

Edo 2024: POI sir, Ighodalo doesn’t need to be constantly spoon-fed

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By Thompson Eferakeya

The late British fiction writer, Edward Morgan Forster, once stated that “spoon-feeding in the long-run teaches us nothing but the shape of the spoon.” In other words, a person who is being constantly spoon-fed, in the long run, will never be capable of doing anything on his own.

 

Indeed, in a seminal article titled “Spoon-feeding is bad for students – and their countries” in 2022, jointly authored by Michael Antwi and Eric Fredua-Kwarteng, they argued that spoon-feeding has many negative consequences for students’ present and future learning and job performance. Hear them:

 

“Since the lecturer does everything, a sense of intellectual dependency is perpetuated among students. Eventually, such students develop a culture of intellectual laziness, making them vulnerable to manipulation, deception and media propaganda. This situation is very serious in this era of digital technology, with the multiplicity of information sources and information overload.

 

“Students who grow up in a spoon-feeding environment lack problem-solving, problem-identifying and problem-posing skills. This is in sharp contrast to students who are allowed to learn how to solve different problems, real or imagined, and to experience the intricacies of decision-making, analysis and synthesis of information and to engage in critical reflection.”

 

The above brings us to what happened few days ago when Pastor Osagie Ize-iyamu, a chieftain of the All Progressives Congress (APC) in Edo State, in a bid to portray his party as having an edge in the run up to the September 21 governorship election in the state, argued on a television programme that while leaders and elders of his party are always with their candidate, Monday Okpebholo, the case is different for the candidate of the Peoples Democratic Party (PDP), Dr Asue Ighodalo, because the State Governor, Godwin Obaseki, has not been seen campaigning with him.

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Unfortunately, it was an own goal for Pastor Osagie Ize- Iyamu, popularly called POI, because he only succeeded in exposing the soft underbelly of his candidate, Okpebholo.

 

 

The truth of the matter is that Governor Obaseki has performed well and everybody knows this. The problem is with POI’s candidate, who is not equipped with the requisite capacity or competence or the ordinary general knowledge needed to be able to stand alone. And the good people of Edo State know this for a fact that Okpebholo is not a governorship material.

 

What are we talking about? Call Okpebholo to address a gathering or a Town Hall meeting? Honour an invitation for interactive sessions physically or virtually? C’mmon, are you kidding me?

 

How many of such public addresses has he engaged in as a sitting senator in the last 12 months representing Edo Central Senatorial District? Nil. Nobody gives what he doesn’t have. So, it’s no wonder leaders and elders of APC in Edo are strapping him to their back everywhere like a mother would do a toddler so that he wouldn’t fall and be fatally injured.

 

 

It’s no wonder his contact with the microphone in any public engagement is jealously guided and regulated to avoid those involuntary gaffes and regrettable performances. But be that as it may, he still manages to disgrace himself and the party elders nearly always.

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His recent USA Diaspora engagement which ended in a spectacular fiasco is a case in point. He was tightly policed that day. But the only few minutes the microphone was in his hand, he did what he knows how to do best – displaying so much ignorance in everything. In this instance, he failed to differentiate between a Museum and a Zoo. It was such a disaster!

 

Let it be said, and in very clear and unambiguous terms that it is not for lack of popularity or due to poor performance that Governor Obaseki hasn’t been seen campaigning with Ighodalo as claimed by POI. No. The demand of state duties may not have allowed the governor the luxury of time to feature in the kind of hectic and extensive engagements Ighodalo has been involved in recently.

 

In anyway, if Governor Obaseki has been everywhere with Ighodalo, POI would be the first to shout on mountain tops that Obaseki has abandoned governance for campaigns.

 

The truth is that Ighodalo’s competence and capacity for this office is beyond doubt. He doesn’t need to be constantly spoon-fed. He doesn’t need to be guided or tutored at critical moments on what to say and what not to say.

 

 

His ability to articulate, process and clearly communicate his thoughts and ideas is top notch and guaranteed. This has tremendously endeared him to Edo people across party lines. He doesn’t need to be policed to avoid committing blunders, no. That’s the difference between Ighodalo and Okpebholo. Whereas Ighodalo is unquestionably a gubernatorial material fit for purpose; Okpebholo is simply not ready and doesn’t have what it takes to aspire for this position.

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That Obaseki hasn’t been seen publicly campaigning for Ighodalo also establishes the fact that Ighodalo is his own man. It is instructive to note that APC keeps crying that Governor Obaseki is Ighodalo’s godfather, a claim that Ighodalo has debunked times without number. They keep shouting Governor Obaseki is working towards a Third Term, how can that be? Is he on the ballot. Must everything be the subject of lies, manipulation and propaganda?

 

The happy thing is that there’s nothing that is hidden to the good people of Edo State. They know that all these frenzied engagements by APC leaders and chieftains are designed to cover Okpebholo’s massive inadequacies and shortcomings.

 

 

The aim is to impose a puppet on the people while they go back and play the puppeteer. If they succeed, which Edo people will never allow, they would certainly become the de facto governor.

 

And in a situation where you have several people calling the shots, the ship of state will probably forever remain in the doldrums because of the pursuit of individual interests, personal agendas and different tendencies.

 

Edo state, however, cannot afford that situation because it would mean an unmitigated disaster and retrogression. Edo people are rather poised and determined to move forward and progress with Ighodalo from November 12, God willing.

Eferakeya writes from Benin City, Edo State

 

 

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Opinion

Edo 2024: Okpebholo And His Crumbling Sandcastle

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By George Etakibuebu

 

Though the September 21 governorship election in Edo State is 101 days or more than three months away, Senator Monday Okpebholo’s sandcastle has begun to disintegrate in earnest. This is not entirely surprising. Any structure built on a false and fraudulent foundation, no matter how beautifully designed, it is bound to collapse. Okpebholo’s edifice has started unraveling much sooner than expected.

 

In February, Okpebholo, the senator representing Edo Central, was declared the candidate of the All Progressives Congress (APC) for the coming governorship election in the state in a rather controversial circumstances that left political observers trying to understand the real meaning of the word ‘abracadabra’. Within a space of seven days or so, the APC managed to weave a stupendously entertaining political acrobatic display in a re-run primary election that overturned the result of the one held six or seven days earlier.

 

Bassey Otu, governor of Cross River and the chairman of the APC supplementary primary election, declared Okpebholo winner of the election on Friday, February 23, in Benin, the Edo State capital. Otu said the candidate polled 12,433 votes to defeat 11 other aspirants in the contest.

 

Earlier on February 17, Imo State Governor, Hope Uzodinma, who was the former chairman of the primary election committee, had announced Hon Dennis Idahosa, a member of the House of Representatives, as the winner of the primary election. Idahosa, who led in the first ballot with 4,483, ended the rerun with 6,541 votes.

 

In a quick reaction, one of the party’s stalwarts, Kassim Afegbua, a former commissioner for information in the state, declared that the governorship primary that produced Okpebholo “never took place”. Afegbua, who spoke in a chat with a popular online news medium, described Okpebholo’s election as a “gang-up by the national leadership” of the party. During the rescheduled primary, Okpebholo suddenly scored 12, 433 votes and was declared the winner ahead of 11 other aspirants.

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Afegbua, who was also a governorship aspirant, insisted that Okpebholo and his allies were nowhere to be found on the day of the primary which produced him as winner. “That is how they wanted it and we say good luck to them. The national headquarters of the party should go and deliver the candidate they have ganged up to produce. We will just sit down here and watch.

 

“Since they say Oshiomhole is their problem, they should leave him out of this and go and deliver the man (Okpebholo) during the election. We all knew that there was no primary conducted on Thursday by Okpebholo and others. We never saw the representative of Okpebholo and the others on the field,” he had argued.

 

Observers started getting a bit concerned and skeptical about the suitability, competence, capacity and preparedness of Okpebholo for the task of leading one of the most sophisticated states in Nigeria after the party pulled another ‘master-stroke’ that made Idahosa the running mate to Okpebholo. The senator started displaying ‘absconditus’ tendencies. Avoiding any engagement during the day and only managing to crawl out at night once in a while; almost becoming a recluse or hermit. He would however, never fail to cause a public commotion whenever he manages to come to the open through series of gaffes, palpable display of a lack of self-confidence, incoherent and unsynchronized deliveries and his annoyingly lack of basic knowledge needed for a high profile office like the Governor of Edo State.

 

 

In May, for whatever reason, his handlers packaged for him a tour of the USA with a view to engaging Edo citizens in the Diaspora. The result was a colossal failure. There, he displayed such naivety, ignorance, palpable inferiority and an unambiguous verdict that he is not a governorship material. He could not differentiate between a museum and a zoo. At best, those who had hoped to burnish his image, succeeded in portraying him as less than suitable for even a counsellorship position, politically.

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The US trip was followed by another engagement with the Akoko-Edo Development Association. The result was a spectacular fiasco. It left an indelible conclusion that the APC has only manage to present, most possibly imposed, the least candidate with the requisite competencies, capacity, vision, self-assuredness, the basic and general knowledge, social-awareness and the presence of mind to be the governor of a 21st Century Edo State out of the 18 political parties.

 

Disturbed by the discovery, many well informed citizens of Edo State began wondering why a big party like the APC peopled with brilliant minds and controlling the federal government would saddle the voters in Edo with an impossible choice of a vacuous, dour and completely incoherent and unconvincing candidate for the election?

 

In the last two weeks, those who feel they could no longer bear the shame of being led by the nose are voting with their feet, leaving the Monday Okpebhole sandcastle and fleeing to safety in the Peoples Democratic Party (PDP) which parades Dr Asue Ighodalo, the best candidate by far for the coming election.

 

In Uromi, the administrative headquarters of Esan North East Local Government Council, a chieftain of the party, Alhaji Musa Isiwele, a former National President of Road Transport Employers Association of Nigeria (RTEAN), led over 3000 members to dump the APC. In Uwessan, the community of Okpebholo, defectors from the APC numbering over a 1000, in a carnival-like reception, embraced the PDP. The crowd was described as “a massive, organic, spontaneous and unprecedented.”

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Chief Francis Inegbeniki, the APC state vice chairman, has also dumped the party. He insisted in a video that has gone viral that APC is not ready for the September election.

 

Okpebholo’s media team also suffered a major setback as its arrowhead, John Mayaki refused the position of Director of New Media. Earlier, a media entrepreneur sympathetic to the APC, Chris Osa of the Chris Osa Media fame, had also dumped the party. There is also Saint Moses Eromosele, popularly known as SME. Three days ago, Akim Zibiri, a close associate of the State Acting Chairman of the APC, Jarret Tenebe, also dumped the party. The list is endless. There are indications that those few members who recently left PDP are on their way out of the APC to rejoin their former party.

 

Political observers are predicting that this may just be the beginning of a coming Tsunami and exodus from the Okpebholo sandcastle and that many more will vote with their feet the moment he is further exposed to the public. And for this, they also predict that the leadership of the party will do everything humanly possible to shield and hide him away from any forms of public engagement.

 

It is therefore the duty of the Edo people to demand a public scrutiny via public engagement and interaction with the people by Okpebholo to avoid buying a black-market commodity with potentials regrets for the next four years

 

Etakibuebu writes from Benin City

 

 

 

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