Sentences with phrase «tangible capital»

Both approaches view savings as financing investment, which is assumed to take the form of tangible capital formation rather than a stock market or real estate bubble.

Unfortunately, this money has not found its counterpart in new tangible capital investment.

The effect is to divert investment away from tangible capital formation into financial speculation.

The effect will be to limit real estate lending to loans for the actual construction or purchase of buildings and other capital improvements, i.e., for tangible capital formation.

It is a far cry from tangible capital formation.

Profits were a return on tangible capital investment and current expenses on labor, raw materials and other inputs.

Need a simple tangible capital ratio #CMC30 $ $ Nov 15, 2012

The depreciated cost of these fixed assets is added to the net working capital requirements to derive the estimate for tangible capital employed.

Capital cost recovery: Income tax features intended to allow businesses to deduct over time the costs of tangible capital assets that are used to produce income.

Its statistics would show how much of the rise in wealth (and expenditure) in China — or any other nation — is a result of new tangible capital formation as compared to higher rents, lending and interest, or the stock market.

Need a simple tangible capital ratio.

Depreciation An accounting procedure that aims to distribute the cost of tangible capital assets, less any expected salvage value, over the estimated useful life of the asset in a rational and systematic manner.

Savers / creditors load tangible capital assets and real estate down with debts that in many cases are not repayable except by transferring ownership to creditors.

If 20 % of the uninsured underwater residential loans are losses, the impact on tangible capital levels becomes meaningful with a 30 % -40 % reduction in pricing.

Heuristics of having a high tangible capital ratio would aid regulation.

It has averaged over 60 % return on tangible capital over its history, and trades at 11.5 x earnings, as it manages through what we see as temporary issues.

Outerwall has historically produced high returns on capital, and it's a business that doesn't need much tangible capital to produce huge amounts of cash flow (an attractive business), but it has been run similar to companies that get purchased by private equity firms — leverage up the balance sheet, issue a dividend (or buyout some shareholders), thus keeping very little equity «at risk».

Here, ROC is the ratio of the pre-tax operating earnings (EBIT) to tangible capital employed (Net working capital + Net fixed capital).

The most valuable resources have been sold to officials, former managers and bankers who in turn have sold (or are selling) their shares to foreigners and moving the proceeds abroad rather than investing them in new tangible capital formation.

An economy either is in trouble or has lost its sense of balance when investors shy away from tangible capital formation in favor of buying postage stamps and similar collectibles.

Tangible capital asset programs are in place for municipalities for exactly this reason.

They have not used their financial power to mobilize savings to fund new tangible capital formation.

But in the end the economy shrinks precisely because this «faux wealth» serves as a distraction, drawing savings away from direct investment in tangible capital formation.

This is despite virtually infinite returns on tangible capital, monopolistic strongholds on their respective industries, large addressable markets, and huge growth — FB recently traded at around 20 times what it will earn this year, despite growing its sales at 49 % and its profits at 63 % last year.

On an accrual basis, tangible capital assets are based on the amortization of the stock over its «economic» life.

HSNI also generates returns on tangible capital (Joel Greenblatt's metric) over 50 % and cash returns on invested capital over 24 %.

Need to negotiate a tangible capital ratio, and a transition period.

They are valued at 22.0 x and 26.1 x earnings, respectively, with high return on tangible capital but low growth.

China Mobile is another example - high returns on tangible capital and reasonable growth at a 14.3 x multiple of earnings.

Joel Greenblatt develops a «magic formula» that uses return on capital (ROC)(namely, EBIT / Tangible Capital) as a key metric to select quality value stocks.

Or a business may have low FCF because it has low owner earnings in relation to tangible capital employed and the business has to spend a lot of money to replace obsolete plant and machinery.

Instead of comparing EBIT to total assets, we compare it to the cost of the assets used to produce those earnings (tangible capital employed).

Insured commercial banks had high capital levels at the time of the crisis — 10 % (DM: but look at the tangible capital ratios)

Tangible capital employed is defined as the Net Working Capital + Net Fixed Assets.

It is the ratio of pre-tax operating earnings to tangible capital employed.