search the articles directory
Powered by Google™
old Market and Finances articles
Balance Sheet Versus Income Statement - ... usually generated to show a snapshot of what an organization owns or owes on the last day of the period covered by the income statement. The balance ...
Keep its ratios of assets to liabilities above one - ...iquidity, ratio.
Lenders like to see more assets than liabilities because that means that the organization can find a way to repay its loans....
A balance sheet is where the organization tracks the amounts of assets - ...iliarity, comfort, and confidence with ratios and financial statements make all the difference in helping your audience understand your value.
...
Financial adjustments to meet the demands of their industry - ...ill also post copies of their SEC filings on their Websites. If you cannot find this information, try the SEC at www.sec.gov. If you are a consultant ...
Describe the concept - ... Contract for Deed
• Note
• Lien
• Seller Carry-Back Financing
• Carrying Paper
• Pri...
Monthly Payment - ...monthly payment includes the cost of
tax and insurance, the balance owed should decrease
with each payment.
Do not create a note that negatively am...
Amount of insurance coverage - ..., or other area at risk of a natural disaster, you
may be able to safeguard against loss from these
hazards by requiring that the property owner pur...
Written consent - ...o.
Better yet, stipulate the minimum down payment you
will accept, should you consent to a future assumption,
within your deed of trust. This...
Monetarily committed - ... of recovering
your investment through foreclosure. However,
it is our belief that an even greater benefit to a
large down payment is the cha...
Tax office - ...tax payment
status by dialing into the tax office via computer
modem. The “Tax ID” of the property in question is
used to access ...
Lender policy - ...st the purchaser, such
as mechanics’ liens, governmental liens, and child support
liens will show up in the report. A lien against the
...
Sale clause - ...revent this from happening. It is your best
protection because it protects you in obtaining the property
through foreclosure if you keep the sen...
The importance of the operating cycle and cash flows - ...rst step is to trace the rationale for each of the entries on the statement,
which could be everyday purchases, payment of a salary, automatic tran...
Financial resources and the investment cycle - ...esources is simple: they must cover the shortfalls
resulting from these timing differences by providing the company with sufficient
funds to bal...
The distinction between operating charges and fixed assets - ...ent, your wealth is not affected whether or not you buy it on
credit. Our experience as university lecturers has shown us that students often
co...
Capital employed and invested capital - ...changes in net debt over a period we also need to
analyse net debt at a given point in time. Likewise, we will study here the wealth
that has be...
Working and Nonoperating working capital - ...delivered (advance payments on orders).
The net balance of operating uses and sources of funds is called the working
capital.
If use...
What is the purpose of consolidated accounts - ...mpany belonging
to a group does not serve as a very accurate or useful guide to the economic
health of the whole group. The accounts of a compan...
How financial analysts should treat goodwill - ... exceeds the target’s book value.
What does this difference represent?
In other words, why should a company agree to pay out...
Deferred tax assets and liabilities - ...s and
liabilities.
On the income statement, certain revenues and charges are recognised in
different periods for the purpo...
What are inventories and items included - ...l take place in the
future (work in progress).
How are they accounted for?
Costs that should be included in invent...
Operating leases are not capitalised and are treated as rentals - ...
First, leases are used by companies to finance the assets. Even if those items are
not shown on the balance sheet, they may represen...
How to perform a financial analysis - ...e share. For lenders, financial analysis assesses the solvency and
liquidity of a company – i.e., its ability to honour its commitments and t...
A market is not an economic sector - ...ket. Competition
comes from cinema multiplexes, DVDs, live sporting events rather than from ITV,
RTL TV, Rai Uno or TF1 that mainly sell advertisi...
The competion and production - ... specialised in particular niches to have large rivals that will
not take the risk of attacking them because the potential gains would be too small...
The fundamental concept of cash flow from operating activities - ...e other hand. This breakdown will also be very useful to
you in valuing the company and in examining investment decisions.
The concept of cash f...
The functions of a financial system and debts - ...t repayment obligations without asking shareholders to reach into their
pockets. If the company must indeed solicit additional equity capital, you ...
Variable rate is based on the Bank Prime - ...nd market. As the bond market increases or decreases so does the 5 year fixed rate.
If Bank Prime increases, that doesn’t mean that the fixed...
latest articles under "Market and Finances"
Navigation: Categories » Legal and finance » Market and Finances
Below is a list of all Market and Finances articles. If you want to find a tutorial by keywords, all you have to do is a quick search in our directory. Just use the search option available at the top-right side of the page. The website search is powered by web-articles. Or, if you want to read specific Market and Finances tutorial, just point to it. The newest articles and tutorials are shown first in the list. To access the last ones, browse the pages 2, 3, 4... at the bottom. Also, you may browse articles alphabetically ordered.
Page# 1 (last added articles shown first)
Enter page# 1 (last added articles shown first)
Below is a list of all Market and Finances articles. If you want to find a tutorial by keywords, all you have to do is a quick search in our directory. Just use the search option available at the top-right side of the page. The website search is powered by web-articles. Or, if you want to read specific Market and Finances tutorial, just point to it. The newest articles and tutorials are shown first in the list. To access the last ones, browse the pages 2, 3, 4... at the bottom. Also, you may browse articles alphabetically ordered.
Page# 1 (last added articles shown first)
Variable rate is based on the Bank Prime (10/06/2009)
(...) 89% during the same time period. Just a few years ago, it was clear that going with a variable rate mortgage would save consumers money. But heavy discounts on fixed rate mortgages and the narrowing spread between short-term and long- term interest rates have made the choice today less obvious. (...)
(...) 89% during the same time period. Just a few years ago, it was clear that going with a variable rate mortgage would save consumers money. But heavy discounts on fixed rate mortgages and the narrowing spread between short-term and long- term interest rates have made the choice today less obvious. (...)
The importance of the operating cycle and cash flows (09/16/2008)
(...) Unfortunately, things are usually more complicated in practice. Rarely is all the produce bought in the morning sold by the evening, especially in the case of a manufacturing business. A company processes raw materials as part of an operating cycle, the length of which varies tremendously, from a day in the newspaper sector to 7 years in the cognac sector. (...)
(...) Unfortunately, things are usually more complicated in practice. Rarely is all the produce bought in the morning sold by the evening, especially in the case of a manufacturing business. A company processes raw materials as part of an operating cycle, the length of which varies tremendously, from a day in the newspaper sector to 7 years in the cognac sector. (...)
Financial resources and the investment cycle (09/16/2008)
(...) This can happen only if the operating and investment cycles generate positive cash flows. To the extent that the financial investors have made the investment and operating activities possible, they expect to receive, in various different forms, their fair share of the surplus cash flows generated by these cycles. The financing cycle is therefore the ‘‘flip side’’ of the investment and operating cycles. (...)
(...) This can happen only if the operating and investment cycles generate positive cash flows. To the extent that the financial investors have made the investment and operating activities possible, they expect to receive, in various different forms, their fair share of the surplus cash flows generated by these cycles. The financing cycle is therefore the ‘‘flip side’’ of the investment and operating cycles. (...)
The distinction between operating charges and fixed assets (09/16/2008)
(...) If a fire destroys your house and it was not insured, you are worse off, but your cash position has not changed, since you have not spent any money. Raising debt is tantamount to increasing your financial resources and commitments at the same time. As a result, it has no impact on your net worth. (...)
(...) If a fire destroys your house and it was not insured, you are worse off, but your cash position has not changed, since you have not spent any money. Raising debt is tantamount to increasing your financial resources and commitments at the same time. As a result, it has no impact on your net worth. (...)
Capital employed and invested capital (09/16/2008)
(...) Main items on a balance sheet Assets on the balance sheet comprise: fixed assets; i.e., everything required for the operating cycle that is not destroyed as part of it. (...)
(...) Main items on a balance sheet Assets on the balance sheet comprise: fixed assets; i.e., everything required for the operating cycle that is not destroyed as part of it. (...)
Working and Nonoperating working capital (09/16/2008)
(...) Sometimes working capital is defined as current assets less current liabilities. This definition corresponds to our working capital definitionþmarketable securities and net cashshort-term borrowings. We think that this is an improper definition of working capital as it mixes items from the operating cycle (inventories, receivables, payables) and items from the financing cycle (marketable securities, net cash and short-term bank and financial borrowings). (...)
(...) Sometimes working capital is defined as current assets less current liabilities. This definition corresponds to our working capital definitionþmarketable securities and net cashshort-term borrowings. We think that this is an improper definition of working capital as it mixes items from the operating cycle (inventories, receivables, payables) and items from the financing cycle (marketable securities, net cash and short-term bank and financial borrowings). (...)
What is the purpose of consolidated accounts (09/16/2008)
(...) 1 That said, for various reasons financial analysts may need to know, albeit only approximately, some of the key consolidated figures, such as earnings and shareholders’ equity. Consolidation methods Any firm that controls other companies exclusively or that exercises significant influence over them should prepare consolidated accounts and a management report for the group. Full consolidation The accounts of a subsidiary are fully consolidated if it is controlled by its parent. (...)
(...) 1 That said, for various reasons financial analysts may need to know, albeit only approximately, some of the key consolidated figures, such as earnings and shareholders’ equity. Consolidation methods Any firm that controls other companies exclusively or that exercises significant influence over them should prepare consolidated accounts and a management report for the group. Full consolidation The accounts of a subsidiary are fully consolidated if it is controlled by its parent. (...)
How financial analysts should treat goodwill (09/16/2008)
(...) In this case, the intangible assets acquired are recorded on the group’s balance sheet even if they did not originally appear on the acquired company’s balance sheet; i.e., brands, patents, licences, landing slots, data bases, etc. (...)
(...) In this case, the intangible assets acquired are recorded on the group’s balance sheet even if they did not originally appear on the acquired company’s balance sheet; i.e., brands, patents, licences, landing slots, data bases, etc. (...)
Deferred tax assets and liabilities (09/16/2008)
(...) In other circumstances, the differences may be definitive or permanent; i.e., for revenue or charges that will never be taken into account in the computation of taxable profit (e. (...)
(...) In other circumstances, the differences may be definitive or permanent; i.e., for revenue or charges that will never be taken into account in the computation of taxable profit (e. (...)
What are inventories and items included (09/16/2008)
(...) Valuation methods Under IAS, there are three main methods for valuing inventories: the weighted average cost method; the FIFO (First In, First Out) method; the identified purchase cost method. Weighted average cost consists in valuing items withdrawn from the inventory at their weighted average cost, which is equal to the total purchase cost divided by quantities purchased. The FIFO method values inventory withdrawals at the cost of the item that has been held in inventory for the longest. (...)
(...) Valuation methods Under IAS, there are three main methods for valuing inventories: the weighted average cost method; the FIFO (First In, First Out) method; the identified purchase cost method. Weighted average cost consists in valuing items withdrawn from the inventory at their weighted average cost, which is equal to the total purchase cost divided by quantities purchased. The FIFO method values inventory withdrawals at the cost of the item that has been held in inventory for the longest. (...)
Operating leases are not capitalised and are treated as rentals (09/16/2008)
(...) A finance lease5 according to the IASB is ‘‘a lease that transfers substantially all the risk and rewards incident to ownership of an asset. Title may or may not eventually be transferred.’’ An operating lease is a lease that is not a finance lease. (...)
(...) A finance lease5 according to the IASB is ‘‘a lease that transfers substantially all the risk and rewards incident to ownership of an asset. Title may or may not eventually be transferred.’’ An operating lease is a lease that is not a finance lease. (...)
How to perform a financial analysis (09/16/2008)
(...) Financial analysis is more of a practice than a theory The purpose of financial analysis, which primarily involves dealing with economic and accounting data, is to provide insight into the reality of a company’s situation on the basis of figures. Naturally, knowledge of an economic sector and a company and, more simply, some common sense may easily replace some of the techniques of financial analysis. Very precise conclusions may be made without sophisticated analytical techniques. (...)
(...) Financial analysis is more of a practice than a theory The purpose of financial analysis, which primarily involves dealing with economic and accounting data, is to provide insight into the reality of a company’s situation on the basis of figures. Naturally, knowledge of an economic sector and a company and, more simply, some common sense may easily replace some of the techniques of financial analysis. Very precise conclusions may be made without sophisticated analytical techniques. (...)
A market is not an economic sector (09/16/2008)
(...) It is the arena in which it competes. Once a market has been defined, it can then be segmented using geographical (i.e. (...)
(...) It is the arena in which it competes. Once a market has been defined, it can then be segmented using geographical (i.e. (...)
The competion and production (09/16/2008)
(...) So, how can a company achieve profitability when its main rivals – e.g., farming cooperatives in the canned vegetables sector – are not profit-driven? It is very hard indeed because it will struggle to develop since it will generate weak profits and thus have few resources at its disposal. (...)
(...) So, how can a company achieve profitability when its main rivals – e.g., farming cooperatives in the canned vegetables sector – are not profit-driven? It is very hard indeed because it will struggle to develop since it will generate weak profits and thus have few resources at its disposal. (...)
The fundamental concept of cash flow from operating activities (09/16/2008)
(...) There is no way round the following basic truth: to be profitable, a company must sooner or later generate cash in excess of what it spends. In other words, it must generate a net positive cash flow from operating activities. Analysing the cash flow statement means analysing the profitability of the company from the point of view of its operating dynamics, rather than the value of its assets. (...)
(...) There is no way round the following basic truth: to be profitable, a company must sooner or later generate cash in excess of what it spends. In other words, it must generate a net positive cash flow from operating activities. Analysing the cash flow statement means analysing the profitability of the company from the point of view of its operating dynamics, rather than the value of its assets. (...)
The functions of a financial system and debts (09/16/2008)
(...) A value of 4 is considered a critical level, below which the company should generally be able to meet its repayment obligations. If we were to oversimplify, we would say that a value of 3 signifies that the debt could be repaid in 3 years provided the company halted all capital expenditure and didn’t pay corporate income tax during that period. Of course, no one would ask the company to pay off all its debt in the span of 3 years, but the idea is that if it had to, it could. (...)
(...) A value of 4 is considered a critical level, below which the company should generally be able to meet its repayment obligations. If we were to oversimplify, we would say that a value of 3 signifies that the debt could be repaid in 3 years provided the company halted all capital expenditure and didn’t pay corporate income tax during that period. Of course, no one would ask the company to pay off all its debt in the span of 3 years, but the idea is that if it had to, it could. (...)
Describe the concept (02/17/2008)
(...) No. The most common security instrument in which title is not passed to the property buyer is the land contract. Installment land contracts do not pass title of the property to the new property owner until the lien has been paid in full. (...)
(...) No. The most common security instrument in which title is not passed to the property buyer is the land contract. Installment land contracts do not pass title of the property to the new property owner until the lien has been paid in full. (...)
Monthly Payment (02/17/2008)
(...) Such notes usually will need to be restructured before an investor will purchase them. Keeping track of monthly payments can be tiresome. This is the date when the first payment is due. (...)
(...) Such notes usually will need to be restructured before an investor will purchase them. Keeping track of monthly payments can be tiresome. This is the date when the first payment is due. (...)
Amount of insurance coverage (02/17/2008)
(...) Protecting the value of the property is an important issue, because property value is an incentive for the payer to continue to make payments. The greater the property value, the greater the incentive. Property value also is a key issue for you as lienholder. (...)
(...) Protecting the value of the property is an important issue, because property value is an incentive for the payer to continue to make payments. The greater the property value, the greater the incentive. Property value also is a key issue for you as lienholder. (...)
Written consent (02/17/2008)
(...) As a result, most investors are reluctant to use the appraised value of a property when determining how much to pay for a note, within 12 to 18 months after a sale. Therefore the value of your note may be based on the sales price, not actual worth, if sold within 12 to 18 months of the assumption. However, after 12 to 18 months the value of your note often is based on an independent appraisal rather than the sales price. (...)
(...) As a result, most investors are reluctant to use the appraised value of a property when determining how much to pay for a note, within 12 to 18 months after a sale. Therefore the value of your note may be based on the sales price, not actual worth, if sold within 12 to 18 months of the assumption. However, after 12 to 18 months the value of your note often is based on an independent appraisal rather than the sales price. (...)
Monetarily committed (02/17/2008)
(...) Foreclosures can be very expensive; therefore, many conventional lenders will not make loans for more than 80 percent of the value of the property. Sometimes even 20 percent equity is not enough for the lender to recover the amount owed should he or she foreclose. Since you are playing the role of the lender, you, too, would be wise to accept no less than a 20 percent down payment. (...)
(...) Foreclosures can be very expensive; therefore, many conventional lenders will not make loans for more than 80 percent of the value of the property. Sometimes even 20 percent equity is not enough for the lender to recover the amount owed should he or she foreclose. Since you are playing the role of the lender, you, too, would be wise to accept no less than a 20 percent down payment. (...)
Tax office (02/17/2008)
(...) In other words, if you subscribe to First American’s tax service and you later sell your lien to a third party, that third party would have to set up a new contract with First American. (This onetime fee is around $60.00. (...)
(...) In other words, if you subscribe to First American’s tax service and you later sell your lien to a third party, that third party would have to set up a new contract with First American. (This onetime fee is around $60.00. (...)
Lender policy (02/17/2008)
(...) That child support lien could be attached to the property, making your lien subordinate to it. If this occurred and the payer went into default, you would not be able to foreclose and regain title to the property until that lien was paid in full. You would have to pay that child support lien yourself in order to regain title to the property, adding considerable cost to the foreclosure. (...)
(...) That child support lien could be attached to the property, making your lien subordinate to it. If this occurred and the payer went into default, you would not be able to foreclose and regain title to the property until that lien was paid in full. You would have to pay that child support lien yourself in order to regain title to the property, adding considerable cost to the foreclosure. (...)
Sale clause (02/17/2008)
(...) Senior liens that contain a “future advances” clause should be approached with great caution. This clause allows the lender to advance more money to the purchaser. If this occurs, your junior lien could be positioned behind a much larger amount of debt than previously thought, thus increasing your risk. (...)
(...) Senior liens that contain a “future advances” clause should be approached with great caution. This clause allows the lender to advance more money to the purchaser. If this occurs, your junior lien could be positioned behind a much larger amount of debt than previously thought, thus increasing your risk. (...)
Balance Sheet Versus Income Statement (11/18/2007)
(...) The second person’s expenses went to into buying the latest fashions and taking lavish vacations. At the end of the year, the first person’s investments paid off, consequently, he or she has much more in personal assets than in debts. The second person has less in assets and much more in debt. (...)
(...) The second person’s expenses went to into buying the latest fashions and taking lavish vacations. At the end of the year, the first person’s investments paid off, consequently, he or she has much more in personal assets than in debts. The second person has less in assets and much more in debt. (...)
Keep its ratios of assets to liabilities above one (11/18/2007)
(...) To see how this works out, let’s look at some financial ratios. Ratios are important to understand because they offer a shortcut to knowing what your Senior executives will value. Sometimes your executives will align management incentives and performance programs to improve a specific ratio. (...)
(...) To see how this works out, let’s look at some financial ratios. Ratios are important to understand because they offer a shortcut to knowing what your Senior executives will value. Sometimes your executives will align management incentives and performance programs to improve a specific ratio. (...)
A balance sheet is where the organization tracks the amounts of assets (11/18/2007)
(...) Too many liabilities versus assets can be a very risky and high-cost situation for the executives of an organization to manage. Likewise, lack of attention to assets such as accounts receivable or inventory can cause serious cash flow problems for the organization. Operating ratios (such as days inventory outstanding) or financial ratios (such as return-on-assets) can give the WLP professional a quick idea of problems in the organization and, therefore, what executives will value from WLP interventions. (...)
(...) Too many liabilities versus assets can be a very risky and high-cost situation for the executives of an organization to manage. Likewise, lack of attention to assets such as accounts receivable or inventory can cause serious cash flow problems for the organization. Operating ratios (such as days inventory outstanding) or financial ratios (such as return-on-assets) can give the WLP professional a quick idea of problems in the organization and, therefore, what executives will value from WLP interventions. (...)
Financial adjustments to meet the demands of their industry (11/18/2007)
(...) forbes.com. Keep in mind that private companies are not required to publish financial information; therefore, the information you will find at this site will be more general in nature. (...)
(...) forbes.com. Keep in mind that private companies are not required to publish financial information; therefore, the information you will find at this site will be more general in nature. (...)
Trend following works (00/00/0000)
(...) If there is no trend in the market, a trend follower cannot make money. However, many markets do have a tendency to trend, and trend following can be employed as a process for extracting thedirection of markets over many time frames. Well, There Is a Holy Grail: Having a Good Decision-Making Process So why spend time on developing a disciplined systematic trend-following approach relative to other approaches? Because more important than the attempt to find the magic formula, trend following is an effective method for making good investment decisions. (...)
(...) If there is no trend in the market, a trend follower cannot make money. However, many markets do have a tendency to trend, and trend following can be employed as a process for extracting thedirection of markets over many time frames. Well, There Is a Holy Grail: Having a Good Decision-Making Process So why spend time on developing a disciplined systematic trend-following approach relative to other approaches? Because more important than the attempt to find the magic formula, trend following is an effective method for making good investment decisions. (...)
Trade management (00/00/0000)
(...) The most partisan among these enthusiasts claim that money management is more vital to trading success than timely entry and exit signals. I once dismissed this claim as the messianic message of an eccentric sect. No longer. (...)
(...) The most partisan among these enthusiasts claim that money management is more vital to trading success than timely entry and exit signals. I once dismissed this claim as the messianic message of an eccentric sect. No longer. (...)
Enter page# 1 (last added articles shown first)