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The financial internal DNA for any sector or industry—like size, cash reserves, leverage, and Profitability—is how those internal financial DNAs affect performance and sustainable growth. The determinants of performance and growth indicators of internal financial DNA

factors are critical issues in corporate Finance. Any sector or industry worldwide must plan, organize, and try to control them to operate and compete efficiently and

effectively in a dynamic and rapid business change. The Objectives Performance objectives are to avoid the expensive financing of investment opportunities through external sources, which leads to more Profitability through sales, and to have enough cash and equivalents through

Profits and streams of Revenues to cover their current Liabilities and Finance their current operations. It also aims to

prevent the liquidation costs of other important Assets in the sector or industry. Growth objectives are the market demand and increasing Revenue through increasing sales and a bigger market share. The Internal Financial DNA Factors Linkage The internal financial

DNA of any sector or industry linkage, like size, cash reserves, leverage, and Profitability, can affect performance and sustainable growth. Performance and growth are measured mainly by Profitability for performance and an increase in market share for the

company’s growth. Nevertheless, the internal financial DNAs of a sector or industry are interlinked and related in many ways in corporate and financial management. Therefore, as one of those internal financial factors and variables moves in either a positive or negative direction, the other will

do the same, and the movement of the other will be either in the same or opposite direction. In addition, they intersect; the cause and effect of one will cause and effect another. The correlation between them is the main belief that the sector or industry’s internal financial DNA factors and

variables will influence each other positively or negatively. The Main Internal Financial DNA Factors First: Sector or Industry Size. Size plays a positive role in performance and growth. The larger the sector or industry is, the more fixed Assets it has. Therefore,

Debt financing options for the sector or industry can be easier to obtain. However, the size factor assumes that large firms would have most of their Capital resources tied to fixed Assets other than cash. As a result, they are mostly short of

Liquidity of cash Assets. They can always opt for Debt financing to Finance their operations and take advantage of those

tax cuts that come with Debt financing. Nevertheless, the best proxy indicator would be the total fixed Assets ratio. Second: Cash and Cash Equivalent. The more cash and its equivalent, the more Profitable the sector or industry. This would play a

positive role in the performance and growth of any sector or industry and vice versa. The most relevant proxy can be measured by dividing cash and cash equivalent by total Assets to get the cash ratio. The higher the ratio, the better the Profit for any sector or

industry to perform better and grow. Third: Leverage. Leverage indicates that a sector or industry has higher Debt financing in both long and short terms, which will play a positive role in the case of increased growth and prospering economies and a negative role in the case of

recession. Recession is an indication of bad macroeconomic rates. The higher those rates, such as Inflation and unemployment, the higher the chances of a lower performance rate and growth factor that decreases sales and Revenues and fewer investment opportunities.

Those negative effects will increase the risk for any sector or industry to meet the obligation to repay their Debt-financing costs of higher Interest Rates. Therefore, the higher the leverage in recessionary times, the higher the risks with fewer

Revenues and Profits. However, the proxy that can be used here as a key indicator is the short-term Debt-to-total Assets ratios and the long-term Debt-to-total Assets. Fourth-

Profitability. This variable factor is key to performance and growth and indicates a positive relationship. The more Profitable the company is, the more effective and efficient it will be in terms of performance, and an increase in the market share will be in terms

of growth. Of course, less Profit will result in the opposite negative performance with fewer sales and less market share for the sector or industry in terms of growth. This variable factor is more straightforward than others. The best proxy to measure

Profitability is the return on Assets. Ending The internal financial DNA of any sector or industry, such as size, cash reserves, leverage, and Profitability, is how those internal financial factors and variables affect performance and sustainable

growth. Those interconnected webs of internal Finance factors and variables that influence operational effectiveness and strategic direction can be decoded as the

determinants of business success and help the ultimate understanding of the decision-making process to optimize performance and sustainable growth in today’s corporate none;">Finance. Integrating insights can help harness the key factor and indicator of Profitability for performance and market share for growth in today’s corporate text-decoration: none;">Finance to navigate challenges, seize opportunities, and achieve lasting success in the performance and sustainability of any sector or industry growth. I invite you to my YouTube channel the sole purpose of my articles and CashNews.cos in business is to educate

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