70
votes
Accepted
What does "gold reserves" on a gold mining company's balance sheet mean?
For gold mining companies, the amount of gold that the company has access to but has not yet been mined is accounted for in "reserves". The company can claim a percentage of those reserves as assets, ...
- 142k
35
votes
Can I see how a company is using its debt?
Money is 'fungible'. That means that any single dollar in circulation is identical to every other. If I pick up a lucky quarter on the street, and put it into my right pocket, then when I buy a candy ...
- 43k
13
votes
Accepted
What does negative Total Equity mean in McDonald's balance sheet?
what does negative Total Equity means in McDonald's balance sheet?
It means that their liabilities exceed their total assets. Usually it means that a company has accumulated losses over time, but ...
- 142k
8
votes
What does "gold reserves" on a gold mining company's balance sheet mean?
Gold reserves refers to gold in the ground that a mining company has an option to retrieve.
68 million ounces is a lot! And yes, a mining company's value is partially dependent on the size of their ...
- 367
7
votes
How will craftily increasing Goodwill (by decreasing Assets) make your Income Statement look better?
I think you misunderstand how goodwill works (or I'm not following your example). Goodwill is the amount paid for an asset over and above it's book (nor market) value. It's not something that gets "...
- 142k
5
votes
Accepted
Pass through entity’s year start balance
How can a pass through entity maintain savings from a previous year’s
profit?
This is the concept of retained earnings. A corporation can pay out after tax profits to shareholders or retain them ...
- 71.2k
5
votes
Accepted
UK companies house - what can I glean from an abbreviated balance sheet?
What this abbreviated balance sheet tells you is that this company has negative equity. The liabilities are greater than the value of the assets. The obvious problem for the company who wants to do ...
- 204
5
votes
Accepted
What happens to the Equity::Opening Balances account over time?
Yes, the Opening Balance will stay the same, even if you use the "Close Book" feature every last day of the year to move all Income and Expense into Equity:Retained Earnings.
The way to hide ...
- 10.5k
4
votes
Debt to asset ratio calculation
One is not "better" than the other. They measure different things. Debt is a measure of how a company is financed, and how solvent they are (how many assets they have that could be used to pay off ...
- 142k
4
votes
Accepted
How to find a public company's balance sheet and income statement?
The balance sheet and income statements are located in the 10-K and 10-Q filings for all publicly traded companies. It will be Item 8.
- 10.2k
4
votes
Why does Apple issue new common stock every year (even though it has enough cash)?
Apple offers share options as an incentive for its employees. When the employees exercise the options, the shares have to come from somewhere.
- 11k
4
votes
Can long-term assets ruin the balance in the balance-sheet?
Focusing on the balance sheet, as you requested, an orderly decrease in value of the asset (depreciation) is handled within the Assets section:
... accumulated depreciation is a contra-asset account, ...
4
votes
Accepted
Gnucash: Balance Sheet Shows Imbalance Amount
Step zero is to backup you GnuCash file before fussing with it. :)
First, make sure your balance sheet reports include all accounts, including hidden accounts. It's easy to open a saved report and ...
- 431
3
votes
Is a stock considered a "liquid asset"?
Two key components to consider in answering:
(1) How liquid is 'liquid'? Stock might be more liquid that property, but less liquid than bonds. The main reason stock is consider illiquid, is because ...
- 43k
3
votes
How do banks balance the books after a borrower defaults on loan repayment?
Ignoring the specifics of the scenario (transfer to estate, recovery of collateral), here's how basic Bad Debt is accounted for:
Bad Debt is an expense for the lender. It's a decrease in an asset ...
- 142k
3
votes
Accepted
What does "existing balance sheet cash" mean for a company, as compared to actual cash and cash equivalents?
It usually means just what it is, i.e. the readily available cash & securities on a company's balance sheet. In the case of Li-Cycle, the press release on 3Q21 results states that the company ...
- 871
3
votes
Accepted
High Yield Funds - How do they remain solvent when the balance sheet seems quite poor?
PFL is a high-yield fixed income ETF, which means it "owns" high-yield bonds on behalf of investors that buy units of the ETF, and passes on the interest (and capital gains) from those bonds ...
- 142k
3
votes
How can a company be losing money from year to year but have the same/increased cash and cash equivalents?
The best way to see the source of an increase in cash is to look at the Cash Flow Statement. Looking at Uber's Cash Flow Statement, the source of their cash is indeed from financing, from a ...
- 142k
2
votes
How to find a public company's balance sheet and income statement?
Filter by the filings when you look at the search results. The 10-K will include the annual report, which included fiscal year-end financial statements. Quarterly reports and statements are in the ...
- 142k
2
votes
Where to get balance sheet and income statement info for many companies?
Most of the financial data sources require a (hefty) subscription, but for a simple screener two simple (and free) options to look at are just using a Google Spreadsheet with the GOOGLEFINANCE ...
- 541
2
votes
How does a public company turn shares into cash?
how do they turn shares into cash that they can then use to grow their business?
Once a Company issues an IPO or Follow-On Public Offer, the company gets the Money.
Going over the list of question ...
- 57.2k
2
votes
Debt to asset ratio calculation
(If you're asking this in regards to your own situation... people have different needs from "the financial world". My answer is solely about personal finance.)
Compute both a debt ratio and a ...
- 50.8k
2
votes
Accepted
What does it mean on a 10-K balance sheet when a field is blank for a single year?
To be pedantic, it's not "blank", is it a hyphen (-), which it typical accounting notation for zero.
So it means that they had sold (or written off) all of their long term investments in 2017.
- 142k
2
votes
Accepted
What motivates Revlon's negative sharedholder's equity?
What motivates Revlon's negative stockholder equity?
Without digging into too much detail, they have had negative net income for the past two years, mostly driven by higher SG&A expenses (...
- 142k
2
votes
Accepted
Why do the balance sheets of some large firms not balance?
It appears to be a flaw in the normalized data set. For CHK, If you look at their raw 2017 annual report, you'll see that everything balances. The difference seems to be treasury stock (1,671,000) ...
- 142k
2
votes
Accounting Question - Combining Vertical Analysis with Horizontal Analysis of financial statements?
Basically, I am saying whether it will be considered correct if I firstly perform vertical analysis on the statements by turning line items into percentage of total asset or revenue, then perform ...
- 9,392
2
votes
Accepted
Video/Article of someone going through a company's balance sheet?
I recommend you look into a bank's Uniform Bank Performance Report (UBPR). It is a much more useful tool to analyze a bank's financial condition and overall health. You can access them at the link ...
- 36
2
votes
How to know when did company made its quarterly balance sheet public?
To answer the question, financial statements are usually made public between 6 to 8 weeks after the period ends. It takes some time to compile, audit, and release these statements, so you won't find ...
- 142k
2
votes
How do you find the earnings deficit? Is it on the balance sheet?
You can't, because balance sheets only show actual earnings. You's have to calculate projected earnings somehow (or use someone else's calculation) to determine if there was a deficit. Many companies ...
- 142k
2
votes
Accepted
Debt-equity Ratio & Current Ratio Relationship
Current ratio only looks at current assets and liabilities, meaning liabilities that are due in less than one year, and assets that are expected to be converted into cash in one year or less (like ...
- 142k
Only top scored, non community-wiki answers of a minimum length are eligible