Category: Bookkeeping

For example, consider a manufacturing company facing challenges in collecting receivables from customers, leading to a significant increase in A/R. Meanwhile, the company experiences rapid growth in production, requiring increased inventory levels and faster payments to suppliers, causing a surge in A/P. In this scenario, the company’s net working capital decreases, signaling potential cash flow...

It is perfect for comparing a company’s performance over time using their as-reported line items and footnotes. It is also available in the TagniFi Excel Add-In (Pro plans only) For example, you can model a company’s revenue by business or geographic segment over time. Another popular use case for this data is to analyze lease...

Equity overpricing is a phenomenon that occurs when the market price of a company’s shares exceeds… Where P-, P+, and P are the bond’s prices at the lower, higher, and current YTM values, respectively, and ΔYTM is the difference between the two YTM values. Where P- and P+ are the bond’s prices at the lower...

Focusing on net income without looking at the real cash inflows and outflows can be misleading, because accrual-basis profits are easier to manipulate than cash-basis profits. In fact, a company with consistent net profits could potentially even go bankrupt. The net income as shown on the income statement – i.e. the accrual-based “bottom line” –...

Although this might not be the most important metric in every scenario, it’s certainly one that should always be considered. Here’s what you need to know about investing in this immensely profitable small-box discount supermarket. With independent projects that do not suffer from the crossover (multiple IRR) problem, will the IRR and NPV always give...

This year’s virtual event provides attendees with trends, skills and inspiration to navigate an evolving world. This award highlights an organization that deploys programs that drive sustained employee engagement through a dynamic, best-in-class workplace culture. One of the top cabinet manufacturers in the U.S., American Woodmark designs and installs cabinetry that reflects the uniqueness of...

If the useful life of a patent is five years and the cost of it is $100,000, then you’d be able to expense it across five years at $20,000 per year. A cumulative amount of all the amortization expenses made for an intangible asset is called accumulated amortization. It gets placed in the balance sheet...