All book value tells you is how much
a company paid for its assets, minus the depreciation required by accounting standards, with no adjustment for subsequent inflation.
Not exact matches
More specifically, investors have sought the potential
for higher returns from riskier
assets like private
company stocks, as safer investments like T - bills and bonds
pay out next to nothing.
While the new law is expected to be a long - term positive
for most
companies, several announced they would have to take one - time charges because the lower rate reduced the value of their deferred tax
assets, which represent taxes already
paid.
Subtracting the
company's current liabilities from these current
assets shows how much working capital (your firm's truest measure of liquidity) is on hand and its ability to
pay for decisions in the short - term.
If you have no cash or
assets to put up against a
company, then some investors and most banks will ask
for a personal guarantee (PG), which is your promise to
pay back money against your personal
assets.
Element is an
asset - based financing
company; it helps firms
pay for equipment, airplanes and rail cars.
That's why Kaplan suggests that business owners looking
for appreciation beyond the growing value of their
companies speak to an investment advisor about assembling a portfolio composed of a combination of equities, real estate and hard
assets and generating current income through bonds and dividend -
paying stocks.
At close to half a billion dollars, it was well beyond the outer limits of what investors had ever
paid for a publishing
company of Wired's size — never mind one whose operations were on track to lose $ 11 million that year (not even counting a onetime $ 20.5 - million write - off to put the
company's disparate
assets under one corporate umbrella).
After that, the
company levies an administrative fee of $ 8 per month per participant, each of whom
pays on average 0.13 percent of
assets per year
for both investment - management and custodial services.
If your
company can avoid
paying that kind of premium on space, then you will have more
assets for innovation, perks to attract employees, and, of course, a lower overhead
for your business.
Britain's takeover regulator ruled that Walt Disney must make an offer
for the whole of European
pay - TV
company Sky if it succeeds in buying Twenty - First Century Fox
assets.
As explained, this trick works
for the cheat who
pays an excessive purchase price
for the acquired
company, then buries the excess as an intangible
asset such as goodwill in the financial statements.
Working capital ratio portrays a
company's ability to
pay for its current liabilities with its currents
assets.
Sports Authority had $ 1.3 billion in
assets at the time of its Chapter 11 filing — the same amount the private equity firm Leonard Green & Partners
paid for the
company back in 2006.
August 2015: Retrophin sues Shkreli
for $ 65 million, saying he used
company assets to
pay off hedge fund investors.
He is accused of repeatedly losing money
for investors and lying to them about it, illegally taking
assets from one of his
companies to
pay off debtors in another.
Coinbase is
paying for the
company with some cash, some stock, and interestingly, some crypto
assets.
First, the indemnity payments offered by the government may not be enough to avoid
companies from generating zero to negative EBIDTA, to offset investment and
asset impairments, and ultimately to generate enough cash
for future investments and net income to continue
paying dividends (which would be a severe blow particularly to preferred shareholders).
While the
company plans to sell some non-core
assets to
pay for these transactions, that strategy could prove problematic now that crude has fallen below $ 45, because it will likely drive down the value of those
assets.
For goodwill its more murky... Goodwill is a form of intangible assets that occur when a company acquires another and pays above book value for the compa
For goodwill its more murky... Goodwill is a form of intangible
assets that occur when a
company acquires another and
pays above book value
for the compa
for the
company.
In effect this means the
company pays extra in an acquisition
for the
companies operations so this is why goodwill is included in operating
assets.
The
companies that own hard
assets like pipeline master limited partnerships (MLPs) and real estate investment trusts (REITs) are a good addition
for inflation protection though they can
pay off in other ways as well.
LEGAL BATTLES The holding
company for Washington Mutual finally had its reorganization plan approved in February 2012, following three years of legal battles about the low price
paid for its banking
assets.
The
company was reported last month to be looking to raise as much as $ 10 billion through the sale of non-core
assets in order to help
pay down some of the $ 50 billion or so it has proposed to borrow to
pay for EMC.
Penfolds has always been the jewel in the crown
for Treasury Wine Estates and its value to the
company will only increase as the
company restructures and takes a further write - down on
assets it
paid too much
for when it was still owned by Foster's.
It reveals how much would be left
for a
company's stockholders if all
assets were sold and all debts
paid.
Working capital ratio portrays a
company's ability to
pay for its current liabilities with its currents
assets.
That is the rational answer, beyond that, one of the main reasons is that people like the feeling of receiving dividends - it might not be the answer you are looking
for, but many people prefer
companies that
pay dividends
for no rational reason over
companies which grow their
asset value.
So if you're going into a hyper - growth period
for a long period of time... buying
companies with high growth and
paying for that growth versus
paying for assets would obviously outperform if the next few years the economy was booming.
Many firms adopt a value approach to investing in equities, which emphasizes
paying a good price
for a
company's net
assets and earnings potential.
If the issuer has enough cash
for paying off its creditors, rather than selling the underlying
assets, the
company uses the cash
for paying the first mortgage bondholders before others.
A good rating here implies that the
company will probably have the funds to
pay out
for the
assets they insure.
Obviously, this makes sense, because there are only two methods that a
company can use to raise cash
for operations (i.e. to
pay for their
assets).
P / B ratio is an indication of how much shareholders are
paying for the net
assets of a
company.
The expense ratio is the percentage of your
assets that are withdrawn by the mutual fund
company to
pay for management and administrative costs.
Analysts, however, don't
pay much attention to the absolute number, because the replacement values are likely overstated (or, to put it another way,
companies could replace their current
assets with
assets of comparable condition
for less than the stated replacement cost).
The legal status of an individual or
company that is unable to
pay its creditors and whose
assets are therefore administered
for its creditors by a Trustee in Bankruptcy.
If I transfer
assets out of the Plan and into an IRA I understand that: (i) those
assets will no longer be subject to the protections of ERISA, (ii) I alone will be making investment decisions about those
assets and will not be able to rely on the plan sponsor or any other person with ERISA fiduciary responsibilities, (iii) depending on the investments and services selected
for the IRA, I may
pay more in transaction costs than when the
assets are in the Plan, and (iv) if I am between the age of 55 and 59.5, I would lose the ability to potentially take penalty - free withdrawals from the plan, (v) if I continue working past age 70.5 and transferred my plan
assets to my new employer's plan, I would not be subject to required minimum distribution, and (iv) if I hold appreciated
company stock, I understand any potential tax benefits that may have been available to me (e.g. net unrealized appreciation).
In terms of investments, I'm
paid by mutual fund
companies for moving
assets.
In 2014, it
paid $ 1.3 billion
for U.K. - based wealth management firm F&C
Asset Management, which sells investment services to individuals and institutional clients, such as pension plans and insurance
companies.
Although the tenant doesn't own the building, the leasehold improvements it
pays for are a noncurrent
asset of the
company.
I'm still hoping that the reason
for the delay in liquidating the
company is to avoid the convertible note dilution; management first
pays off the convertible note in June before announcing a sale of the remaining
assets.
Illegal phoenix activity occurs when a director of a
company that can't
pay its debts transfers the
company's
assets to a new
company for little or no payment.
For example, if a
company required a customer with a poor credit rating to
pay $ 1,300 before beginning any work, the
company increases its
asset Cash by $ 1,300 and it should increase its liability Unearned Revenues by $ 1,300.
When a buyer purchases a
company in the private market, he has to
pay for the
company equity (including common stock, preferred shares, minority interest, etc), he has to
pay off all the debt, but in return the buyer gets the cash the
company has in its bank accounts and other cash equivalents in form of securities and other liquid
assets.
This screen looks
for unpopular dividend -
paying companies with low price - earnings and price - to - book ratios that are exhibiting positive earnings and have a reasonable amount of long - term debt relative to net working capital (current
assets less current liabilities).
Pursuant to the Plan, the
Company is also authorized to dispose of its remaining non-cash
assets, on such terms and at such prices as the
Company's board of directors, without further shareholder approval, may determine to be in the best interests of the
Company and its shareholders, to
pay or make reasonable provision to
pay all claims against and obligations of the
Company, to make such provisions as will be reasonably likely to be sufficient to provide compensation
for any claim against the
Company which is the subject of a pending action, suit or proceeding to which the
Company is a party, to distribute on a pro rata basis to the shareholders of the
Company the remaining
assets of the
Company, and, subject to statutory limitations, to take all other actions necessary to wind up and liquidate the
Company's business and affairs.
The credit crisis and market collapse we have witnessed since July have made investors and
companies much less willing to
pay for all but the most valued of strategic
assets.
Aiding the financing of marginal
companies can
pay off if the
companies will be profitable within a reasonable window of time, or, if you are trying to buy
assets cheap
for a reorganization.
The opportunity to avoid double taxation, at the corporate and individual level
for other
companies, is a huge advantage and many oil & gas conglomerates spin off their infrastructure
assets and
pay a transaction fee to the partnership
for pipeline or storage needs.