Questions tagged [balance-sheet]

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Are "contract assets" considered as quick asset? [closed]

Definition says: Amount, after allowance for credit loss, of right to consideration in exchange for good or service transferred to customer when right is conditioned on something other than passage of ...
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3 answers
60 views

The cost of capital Equity versus Debt

Trying to understand something basic about cost of capital that I can't seem to wrap my head around. When we talking about issuing debt to raise funds for a project, the cost of capital is the ...
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1 answer
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Understanding Days Sales Outstanding (DSO) Ratio

The definition of DSO is: Days Sales Outstanding (DSO) = Accounts Receivable (AR)/Total Credit Sales * (# of days) If you look at any finance website such as Investopedia, they will say the following: ...
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What happens to the Equity::Opening Balances account over time?

I took the advice of others here and the docs when I started my GNC instance a few years ago. For the first year of operation, I chucked everything I discovered I hadn't yet tracked into Equity::...
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Gnucash: Balance Sheet Shows Imbalance Amount

I've been running this GNC file for over two years now. I close the books each year so that I can get YTD totals out of expense & income accounts. (see here). I have one prior year closing for ...
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What is Preferred Securities Outside Stock Equity?

When reading a company balance sheet, there is a section on Preferred Securities Outside Stock Equity under the Non Current Liabilities section. What is Preferred Securities Outside Stock Equity?
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1 answer
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What does "existing balance sheet cash" mean for a company, as compared to actual cash and cash equivalents?

I read that Li-Cycle (LICY), a Li-ion battery recycling company, is increasing the size of a large recycling plant. To do this: The Company estimates that the Hub will require a total capital ...
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Gnucash: Why does the balance sheet report list positions with zero balances?

I am using GnuCash 4.8. I have opened the "Balance Sheet" report and in Options deselected "Include accounts with zero total balances". I have a brokerage account that hold some ...
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How does a balance sheet look when almost all income is immediately drawn?

I have a small business and I am being asked to produce a balance sheet. I have a very simple business model: I do hourly work and get paid on a 1099 basis. It is an LLC but I treat it kind of ...
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How should I classify a loan with less than 12 months left when constructing personal financial statements?

If I have a loan that I will finish repaying over the next 5 months (original tenure is 5 years so I've paid 55 monthly repayments already), if I'm constructing a financial statement today, does this ...
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1 answer
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Does a public company's tax comes from financial reports? [duplicate]

I'm studying financial reports. There is a section on Yahoo Finance that contains gross profit, net income, total revenue, etc.. How does a company know how much tax it should pay? Is it based only ...
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2 answers
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How do banks balance the books after a borrower defaults on loan repayment? [closed]

Buyer gets a 10k loan to buy a tractor from Seller. In the banks' books: Buyer Assets Liabilities 10k deposit 10k repayment later Bank Assets Liabilities 10k repayment later 10k deposit for Buyer ...
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Need of Equity share capital if one has sufficient reserves and surplus?

New to stock market correct me if i'm wrong. Reliance Industries balance sheet According to my understanding reserves and surplus keep account for profit that a company makes and this money is ...
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2 answers
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Can long-term assets ruin the balance in the balance-sheet?

I'm coming from non-accounting and non-finance backgrounds. I need help in form of understanding through a question. I want to ask about something related to the balance of a balance-sheet. ...
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-2 votes
1 answer
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Why did this company's net income significantly increase in 3rd quarter in 2020?

This is quarterly income statement for this company: I want to know why this company's 3rd quarterly income increased from -4 to 896. and how do I find out about the answer? Thank you in advance.
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1 answer
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Assets != Equity + Liabilities

could anyone explain to me, in this balance sheet, which items are assets, which items are liability, and which items are equity? Are funding debt and Notes issued liability? Is redeemable convertible ...
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1 answer
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How common stock equity related to number of share outstanding?

Recently, I check Facebook information about shares as below: Facebook balance sheet According to the definition, the common stock equation is represented as : Number of Outstanding Shares = Number of ...
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How is the percentage change 63% when Non-GAAP EPS in Q1 is 0.77 and the same in Q2 is 1.08 and the same in Q2 2019 is 0.66?

I was just reading the earnings call transcript of ebay. 2020 Q1 earnings call says Non-GAAP eps is 0.77. 2020 Q2 earnings call says Non-GAAP eps is 1.08. and it says that it is up by 63 %. I was ...
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1 answer
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Is it possible to have positive retained earnings despite having lost money since inception?

I'm looking at the balance sheet for a private company that has lost money every quarter since being founded several years ago. It shows +$228k in retained earnings. Management claims that their ...
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1 answer
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Calculating Dividends paid out and Div ratio from finance sheets

So I was trying to calculate the dividends a company paid out from the balance / income sheet and the retained earnings (the delta between this and last period). I thought the dividends paid could be ...
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2 answers
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How is minority interest accounted for when calculating net income

Reading around, I found that minority interest is defined as interest in a company controlled by a company other than the parent company. Does that mean that anytime a company A becomes a shareholder ...
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Is there public information indicating that a company is multinational?

I’m in transfer pricing and I’m wondering if there are any filings that indicate that a company is multinational? If so, is there any information on the number of subsidiaries the multinational ...
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What is the meaning of writing off loss as goodwill by an impairment charges?

AMC has released on June 3rd a preliminary report of their Q1 for 2020. In that report they outline: Net Loss for the first quarter of 2020 to be between $2,117.3 million and $2,417.3 million, based ...
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1 answer
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stockholders equity is higher than total liabilities but the stockholders equity has "()" indicating it is negative. why is that?

Right column of balance sheet full view of balance sheet.
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1 answer
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Does HSBC publish a balance sheet for each of its branch in US, UK and HK?

So HSBC is listed on the New York Stock Exchange, London Stock Exchange and the Stock Exchange of Hong Kong Limited. I can only find one report/balance sheet for every fiscal period (quarterly and ...
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What is period end basic number of $0.50 ordinary shares outstanding?

I was checking HSBC 2020 Q1 earnings release's balance sheet, and under share count, the first line says "period end basic number of $0.50 ordinary shares outstanding." I believe that the first line ...
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1 vote
1 answer
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Debt-equity Ratio & Current Ratio Relationship

I’m not understanding the current ratio and debt to equity ratio. I thought the current ratio is assets/liabilities And debt to equity is well, debt/equity. What doesn’t make sense is how can a ...
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2 answers
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How to find total equity from balance sheet of a company?

I was looking for balance sheet of a company to know about it's total assets, liabilities and equity price. I tried apply basic formula to get equity, which is 'Assets = Liabilities + Equity'. But, ...
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-1 votes
1 answer
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How will craftily increasing Goodwill (by decreasing Assets) make your Income Statement look better?

I try read Balance Sheets for investing, and I thought of this trick. What company directors can do is: they can say, you know, we need to write these assets down. We need to mark them down actually. ...
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0 votes
1 answer
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How do you find the earnings deficit? Is it on the balance sheet?

When evaluating a security using Graham's Defensive Investing Criteria he says that a company shouldn't have any earnings deficit for the last 10 years (reference, revenue deficit definition). That is ...
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1 vote
1 answer
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Why does Apple issue new common stock every year (even though it has enough cash)?

Apple has so much cash. It really doesn’t have to raise additional capital yet every single year it issues new common stock. Why is that?
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1 answer
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Is my HOA's balance sheet healthy?

I'm purchasing a condo and trying to evaluate if the association is financially healthy. Are there any red flags in this balance sheet or income statement? There are 200 units and utilities are ...
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How to know when did company made its quarterly balance sheet public?

I want to analyze historical P/E ratio of companies. I can get balance sheets from sites like moneycontrol, but from which date should I use the data from a particular balance sheet? Like if Sept'19 ...
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1 vote
2 answers
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Video/Article of someone going through a company's balance sheet? [closed]

I'm basically looking for a (rough) financial analysis of a company. I'd prefer a bank, but if it's an insurance company or a corporate it's fine, too. I know I can read up on the different ...
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3 votes
1 answer
203 views

Depreciation question from Benjamin Graham book

I am reading The Interpretation of Financial Statements by Benjamin Graham. Ch. VI, Depreciation and Depletion contains the following wording: When property is retired its gross value is deducted ...
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1 vote
1 answer
126 views

Should Balance Sheet short term notes payable include interest

Super simple example: You take a loan out in January of $50,000. $10,000 principal + $1,000 interest of the loan will be due back over the course of the 12 months ending the year If you were making ...
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1 vote
1 answer
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Where on the balance sheet do I find these items? [closed]

I am preparing for an interview for a banking role (on the tech side, but with exposure to business aspects), and have found out some questions I might be asked, wrt to where on the balance sheet the ...
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1 vote
1 answer
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Accounting Question - Combining Vertical Analysis with Horizontal Analysis of financial statements?

Firstly I understand the concept of vertical analysis (representing line items as percentage of either total asset or revenue), and horizontal analysis (calculating the year-on-year changes or %...
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2 votes
2 answers
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Pass through entity’s year start balance

I am the owner of a single-member LLC and am taxed as a pass through entity. At the beginning of the year is a pass through entity’s cash balance always considered $0 with respect to a balance sheet? ...
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0 votes
2 answers
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Is a stock considered a "liquid asset"?

Is stock on the NYSE or NASDAQ normally considered a "liquid asset" on a balance sheet?
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3 votes
1 answer
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What motivates Revlon's negative sharedholder's equity?

I am looking at Revlon's 10K and see stockholder's equity is negative.What motivates Revlon's negative stockholder equity? Why does it make sense for them to operate like this?
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1 vote
3 answers
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Why do the balance sheets of some large firms not balance?

I'm working my way through some accounting textbook and struggling to understand why some balance sheets on Yahoo Finance don't balance, as in: total assets - total liabilities != total shareholders ...
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1 vote
1 answer
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What does it mean on a 10-K balance sheet when a field is blank for a single year?

I am looking at a corporate balance sheet in a 10-K for Chipotle and the line for Long term investments is $125b for 2016, but blank for 2017. What does it mean when a company doesn't list this info ...
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1 vote
1 answer
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Is there any resource that provides a list of the most used/common components of the different statements (e.g. balance sheet) of an annual report? [closed]

I am looking for a resource that provides a list of a "perfect": statement of financial position (balance sheet) statement of earnings statement of cash flow containing components (e.g. for the ...
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1 vote
1 answer
161 views

Terminology question about chart of accounts, general ledger [closed]

I'm trying to learn the correct terminology for the place where I see ALL the "accounts" AND their balances in an accounting app. I use QuickBooks and if I want to see all of this, I click "Chart of ...
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2 votes
1 answer
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GnuCash Loan and Credit Card showing as debits

Setup GnuCash 2.6.12 Ubuntu 16 $10,000 loan from external party (Brandon) In the official GnuCash documentation, it states that: GnuCash treats account types Credit Card and Liability the same. ...
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37 votes
2 answers
7k views

What does "gold reserves" on a gold mining company's balance sheet mean?

From a Reuters article: On Wednesday, [Newmont Mining Corp] reported gold reserves of 68.5 million ounces for 2017, unchanged from 2016, as it replaced reserves through exploration, projects, ...
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0 votes
1 answer
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Bank - bad loan provision & bad debt written off [closed]

I am doing financial health analysis for banks. The health checks involved are: Bad Loan provisions > actual Bad Debts written off ? I check across financial statements, there are 3 related fields: ...
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1 vote
0 answers
57 views

Meaning of negative stockholder equity [duplicate]

In McDonald's 2016 annual report Balance Sheet, it shows Total Liabilities is greater than Total Assets. So it's Total Stockholder's Equity appears to be negative, with these fields reported as ...
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2 votes
2 answers
399 views

Debt to asset ratio calculation

When try to calculate debt-to-asset ratio, I came across different formulas. There are: Total debt divided by total asset, where Total debt = short-term debt + long-term debt from Balance Sheet. ...
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