Robert Mellino
President, Chief Executive Officer | RAM Real Estate and Financial Services
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Robert Mellino, President, Chief Executive Officer | RAM Real Estate and Financial Services

Robert Mellino is the president and chief executive officer of RAM Real Estate and Financial Services, a real estate and financial company that assists consumers in buying both commercial and residential real estate. The company also offers services in property listings/sales and business consulting, residential, commercial, and business loans services, as well as RAM business consulting enterprise modeling and simulations system. This business analytics application supports modeling and simulation on an enterprise scale, and is provided by a top-down view of the client's company that supports strategic planning while simultaneously enabling a wide spectrum of individuals to apply modeling to individual projects.

Mr. Mellino is an industry veteran who has 30 years of professional experience and has been in his current position for the past 13 years. He is known throughout the industry for his expertise and knowledge of the real estate market, residential, SBA, and commercial loans, and securing the appropriate debt or equity funding. As the president and CEO of the company, Mr. Mellino is tasked with handling daily operations, managing transactions for both residential and commercial real estate, consulting, performing risk analysis, offering small business workshops for entrepreneurs, formulating business strategies, identifying options for businesses and suggesting recommendations for improvement, and providing resources to implement solutions to the business or individual. He attributes his success to his hard work and ability to understand his clients, treating them with respect, honesty, and the highest of integrity. He is also an avid reader of business periodicals that keep him up to date on what affects the small business investor in an effort to better serve his clients. Mr. Mellino thoroughly enjoys helping people fulfill their American dream by being instrumental in assisting with their business startups.

ANALYZING FINANCIAL STATEMENTS

Balance Sheet

The purpose of the balance sheet is to provide creditors, owners and investors with a picture of the financial position of a business as of the date it was prepared.

3 Main Categories of the Balance Sheet

Assets: Items of value, which are owned and are measurable in terms of money.

There are three types of assets:

1)   Current assets: Owned assets, which are easily convertible to cash within a short period.

2)   Fixed assets: Long-term assets that are not intended for sale or easily convertible to cash. Fixed asset examples include buildings and equipment.

3)   Other assets: Assets that are acquired for long-term rights and privileges or intangibles. Other assets have no physical existence. A common example of another asset is goodwill.

Liabilities: Obligations that are owed by the business.

There are two types of liabilities:

1)   Current liabilities: Debts that are due within one year or less. This would include the portion of long-term debt (e.g., mortgage debt) that is payable within one year.

2)   Long-term liabilities: Debts that are due over one year from the date of the balance sheet.

Stockholders’ Equity: Net worth or book value of the business. Net worth is equal to assets minus liabilities.

There are three major classifications of stockholders’ equity:

1)   Capital stock: An account showing the interest or ownership in a business by its stockholders.

2)   Capital surplus: Amount paid for stock above its par value.

For example:

  • Par value of stock                                 $1.00/share
  • Additional stock purchased at                $4.00/share
  • Capital surplus                                     $3.00/share

3)   Accumulated retained earnings: The after-tax earnings that are not distributed by the corporation to its stockholders. This money is put back into the business to conduct ongoing operations.

ANALYZING FINANCIAL STATEMENTS

Techniques for Analyzing Financial Statements

Leverage Ratio: This is the amount of money that is provided by creditors rather than by the owner of the business. Highly leveraged firms (those with heavy debt in relation to net worth) are more vulnerable to business downturns than those with lower debt worth positions. A lower ratio indicates greater flexibility to borrow in the future.

Total Debt

Total Assets

Current Ratio: This is a measure of the quality and adequacy of current assets to meet current obligations as they come due. The composition and quality of the current assets is a critical factor in analyzing liquidity. Generally, companies operating with smaller inventory levels and higher, easily collectible accounts receivable can operate at a lower current ratio than those companies operating with high inventory and selling their product/service on credit. Standard = 2:1

  Current Assets___

Current Liabilities

 

(Cash, accounts receivable, inventory + liquid assets

(Current liabilities + portion of long-term debt)

 Quick Asset Ratio: This ratio measures the company’s ability to meet immediate needs for cash. Anything less than a 1:1 ratio implies a dependency on inventory. Inventory is not included in this ratio because it is yet to be sold. Standard   = 1:1

 

     Quick Assets________

Total Current Liabilities

 (Cash + accounts receivable)_______

(Current liabilities + portion of long-term debt)

 

 ANALYZING FINANCIAL STATEMENTS

Inventory Ratios:  This ratio is a way to measure the adequacy and balance of inventory by comparing it to the sales for the year.

Cost of Sales    from P & L Statement

Inventory         from the Balance Sheet

For Example:    $306,500   =3.75 times

                        $81,650

This means that goods are bought and sold close to 4 times per year.

___ 365________

Inventory Turnover   =Days Stock is in Inventory

For example:   __365__    = 97 days

                        3.75

 

=   Inventory Turnover

 High inventory turnover can indicate superior liquidity or merchandising or shortage of needed inventory.

Low inventory turnover can indicate poor liquidity, overstocking, inventory obsolescence or a planned inventory buildup.

Trend Ratios: Trend ratios are a good way to measure and compare the growth of accounts listed on the financial statements.

Trend ratios are performed as follows:

1) Take the balance sheet figures of the current assets and current liabilities accounts for the past two years.

Example:

1991

1992

 

 

 

Current Assets:

$255,850

$274,849

Current Liabilities:

$173,973

$182,839

 Consider the earlier figures (1991) as the 100% figures:

Current Assets:

$255,850    = 100%

Current Liabilities:

$173,973    = 100%

 2) Calculate the difference between the 1991 and the 1992 sums, and divide the figures by the earlier year’s (1991’s) figures.

Current Assets

$18,999__   =   7%

$255,850

 

 

Current Liabilities:

$8,866__    =    5%

$173,973

3) Add these percentages to 100% to come up with the second-year trend.

Current Assets:

100%

107%

Current Liabilities

100%

105%

If several years of balance sheets are available, include each year’s figures in your analysis.

ANALYZING FINANCIAL STATEMENTS

Income Statement: The purpose of the income statement is to determine what a business’s annual income or net profit is for a specific time period.

3 Main Categories of the Income Statement:

Revenue: Capital flowing into the business.

There are two types of revenue accounts:

1) Sales: This account item is the primary source of revenue received for goods sold or services offered by a business.

2) Other sources of income: This account represents income that the business receives that is not generated from normal business operations.

Expenses: The costs incurred in order for a business to operate.

There are typically five expense accounts:

1) Selling expenses: Costs incurred in the process of selling and marketing the goods and / or services of the business.

2) General administrative expenses: Costs of doing business that are not directly related to the selling process.

3) Other expenses: Miscellaneous costs that are not directly related to the main operation of business.

4) Federal income taxes: Amount that a business owes in federal income taxes.

5) Costs of goods sold: Cost of the inventory used to produce the goods of the company.

Net Profit: Net profit is the difference between revenue (capital flowing into the business) and expenses (capital flowing out of the business). 

Net profit is not the same thing as cash flow. Cash flow is the net profit plus any depreciation, depletion, and amortization.

ANALYZING FINANCIAL STATEMENTS

By making several comparisons between items on an income statement, it will tell you a lot more about the profitability of the business.

Gross Profit Margin:

              Gross Profit    =      Profit Margin

                Net Sales

For example:          $204,000      =       40%

                             $510,500

The resulting figure represents the margin of profit on goods sold. A declining profit margin may reflect price competition or weak marketing. This becomes more significant when compared to the previous year.

For example:          $211,640      =       44%

                             $481,000 

Net Profit Ratio:  Provides an indication of how satisfactory the year has been for the business.

                             Net Profit after Taxes        =       Net Profit Sales

For example:          $10,986       =       2.15% net profit (1991)

                           $510,500

This means that for every $1 of goods sold/services provided 2.15¢ went to profit of the company.

Calculating these ratios on the business will provide general information about the business and aid you in determining its prospects for the future.

ANALYZING FINANCIAL STATEMENTS

 Income Statement

Operating Expense Ratio:

Selling, General & Administrative Expenses           =       Operating Expense %

                   Net Sales

For example:           $158,457       =       31%

                             $510,000

A decreasing percentage will indicate more efficient management while a rising percentage indicates inefficient or wasteful management.

Trend Ratios: Trend ratios can be computed for accounts listed on the income statement. As explained in the balance sheet section, trend ratios are performed using the earliest year figure as your 100% figure and computing the increase or decrease for each year after.

                   Examples:    Determine the percentages.

 

1992

%

1991

%

 

 

 

 

 

Sales

$510,500

 

$481,000

 

Cost of Goods

$306,500

 

$269,360

 

Gross Income

$204,000

 

$211,640

 

Expenses

$192,837

 

$179,598

 

Depreciation

$ 29,397

 

$ 31,190

 

Net Profit

$ 10,986

 

$ 20,828

 

 

 Trends:  Indicate the trends.

 

 

 

 

 

Cost of Goods Sold

 

 

 

 

Gross Income

 

 

 

 

Expenses

 

 

 

 

Net Profit

 

 

 

 

Depreciation

 

 

 

 

 

OVER THE HILL GANG IS A GROUP OF ENTREPRENEURS AND EXECUTIVES WHO ARE 55 OR OLDER BUT STILL FEEL THEY HAVE LOTS TO CONTRIBUTE TO THE STABILIZATION AND GROWTH OF THIS COUNTRY AND THE WORLD

 

 IF YOU ARE 55 YEARS OLD OR OLDER AND DON’T FEEL LIKE RETIREMENT JUST YET AND STILL ENJOY THE BUSINESS SOLUTION GAME AS WELL AS HELPING KEEPING OUR COUNTRY STRONG AND THE LEADER IN THE WORLD ECONOMY THEN BY ALL MEANS CONTACT

BOB AT 831-233-2229.

 WE DO NOT WORK FOR FREE BUT MANY BUSINESSES COULD NOT AFFORD US AT OUR REGULAR FEES SO THIS CLUB MAKES IT MORE AFFORDABLE TO SMALL AND MEDIUM SIZE BUSINESSES

  IF YOU ARE LOOKING FOR TOP TALENT AT REASONABLE PRICES OR YOU CONSIDER YOUR SELF TOP TALENT AND NOT READY FOR RETIREMENT

 YOU CAN NOT AFFORD NOT TO MAKE THIS CALL

  BOB AT 831-233-2229



 
 
 
 
 
 


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Skills & Expertise

Most endorsed for...
Robert was also endorsed for his knowledge on the following by his peers:

7 Single Family Homes 7 Property 5 Real Estate Development 5 Strategic Planning

5Commercial Real Estate 5 REO 4 Small Business 3 Marketing 3 Relocation 2 Construction

2 Residential Homes 2 Listings 1 Real Property 1 Townhomes 1 HUD 1 Luxury 1 Selling

1 First Time Home Buyers

 

ROBERT A MELLINO

www.robertmellino.com

 

(831) 233.2229 (Cell) (PRIMARY)

 

(831) 659.1506 (VM)

 

(831) 659.2178 (VM)

 

(831) 659.2174 (Fax)

 

rafaelaann@sbcglobal.net



Robert Mellino
President, Chief Executive Officer
RAM Real Estate and Financial Services
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