Questions tagged [accounting]
The accounting tag has no usage guidance.
64 questions
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Caculating total debt from the SEC edgar API company facts us-gaap data
Is it possible to use a standardized formula for computing the "total debt" using data from the SEC Edgar company facts API?
The problem is all of the fields returned are different for every ...
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Can Adjusted Profit Margin be used to do a future projection
I know there is a difference between adjusted profit margin and standard/normal profit margin. However, if a company is reporting only their adjusted profit and also has declared publicly their goal ...
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10
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Confusion with SEC filling tags of operating cash flow
I try to scrape fundamentals from the oficial SEC homepage for example for AAPL (url: https://data.sec.gov/api/xbrl/companyfacts/CIK0000320193.json). I noticed that in the time series for '...
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2
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300
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How is an equity TRS reflected on a balance sheet?
Suppose there is a hedge fund with with USD 50M cash and the balance sheet is below.
Asset: 50M Liability: 0 Partner's Capital: 50M
If the hedge fund executed a USD 100M notional TRS with 25% IA (USD ...
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47
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Cost of receivable on bank balance sheet
Consider the derivatives trading activities of a bank and the trading of a derivative contract where the cash settles at some future point in time - 'buying' the derivative is a promise to pay some ...
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1
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577
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Invested Capital: operating approach vs financing approach
I've googled and read many articles about "ROIC" and "Invested Capital", but I'm still confused about how to calculate them.
The best explanation I've seen so far is:
Invested ...
- 103
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2
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140
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Why do we need an ex-dividend date? [closed]
Why do we need an ex-dividend date? What is the problem with the ex-dividend date being the same as the payment date? Why are they separate? What problem does having a separate ex-dividend date solve?
...
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1k
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What is Day One Profit and why is it a matter/important? [closed]
I am aware that Day One Profit is something that all banks calculate and report etc. I have not managed to find a free comprehensive review of it, what is it, how it's calculated, who and why requests ...
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200
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Is interest income added to EBIT to calculate EBT? [closed]
I am preparing a financing model and in the template the EBT calculation is:
EBT=EBIT - Interest Expense.
However, I wonder if interest income (from keeping the money on the bank) should be added, i.e....
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55
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Derivative Trade, Reserves and Profit and Loss Accounting
I am interested to know what the current market practice is around putting aside reserves around derivatives trades. If for example a trader sells a large derivative trade and the difference between ...
- 2,197
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28
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Does differential analysis include the cost of initial investment? [closed]
Not sure where to ask this, but I had this question that asked to do a differential analysis (pretty sure that's the english term, the class is in French) where a company currently sells 60k units a ...
- 111
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401
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Business day convention in fixed income
I have a question regarding the business day convention. Suppose I have a bond that matures on the 17th of September 2023 and pays an annual coupon of $1%$. It has a $30/360$ day-count convention and ...
- 119
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220
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Balance Sheet Value of a Repo
I am relatively new to repos and I am trying to find out whether there is a standard practice for calculating balance sheet value of a repo. Are there any regulations that prescribe how banks shall ...
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1
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179
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Balance sheet offset to a Prepaid expense amortization
The generally accepted accounting equation is
Assets = Liabilities + Equity,
or, put simply, stuff owned = stuff owed. I can see how Prepaid expenses are zero-sum assets initially because the credit ...
- 21
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121
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Tesla Inc. Cash Flow Statement
Could someone with US GAAP accounting background explain to me the difference between 2018 10-K and 2016 10-K form concerning 'Business combinations, net of cash acquired' for year 2016. I have been ...
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65
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Can we construct a complete classification of the ways that the shareholders' equity of a company can change?
One of the most straightforward approaches to investing involves predicting how the book value, or shareholders' equity, of a company will change over time. This in turn requires that we know the ...
- 121
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933
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How to compare financial statements of two companies working in two different currencies?
So I am conducting a research on applying Data Envelopment Analysis (DEA) for comparing efficiencies of different companies working in different countries and thereby publishing their financial ...
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90
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Why do researchers exclude firms with total asset less than £1 million?
Chaney, Jeter, and Shivakumar (2004, page 58) exclude firms with less than 1 million pound in total assets
Further, we exclude firms with less than £1 million in total assets
I am wondering why they ...
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95
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Does a bank borrow money to post the market to market valuation of assets to its ledger?
If a bank owns an unmargined OTC derivative contract with mark to market valuation of \$X, is it required to borrow \$X from money markets in order to post that asset's value to its balance sheet? If ...
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2
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92
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How to compute EPS?
https://www.zacks.com/stock/research/DOCN/earnings-calendar
The above source says the EPSs are the following
- 8/5/2021 $0.07
- 5/6/2021 $0.00
https://...
- 107
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1
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194
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How to handle cash from financing in a DCF model? [closed]
I am building a valuation model for a public pre-revenue company (biotech). The company is going to have ~$600M in R&D and SG&A expenses over the next 4 years, which it is going to finance ...
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Is there any relationship between General Electric's after-tax charge and their reserve deficit?
I posted a question last year trying to understand what a "Charge" is:
What exactly does after tax "charge" mean?
But I came back to this GE story and realized I still don't quite ...
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151
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Structured Trade / Hedge consistency
I have a question regarding the marking consistency (from an accounting point of view) between bespoke structured trades and the listed instruments that may be used for their hedging purpose:
Since ...
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1k
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IFRS9 hedge accounting - fx risk hedge with Cross currency swap with notional reset
My understanding is that notional resetable cross currency swaps (MTM CCS) are very common amoung interbank markets, and MTM CCS are often used to hedge fx exposure.
However, the notional resettable ...
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193
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When you are delta-hedging by using shares, what is used? FIFO or LIFO? (Natenberg example)
When delta-hedging and using shares to do so, which "accounting" method should one use via their brokerage when they are executing the said delta-hedging adjustments? FIFO (first-in-first-...
user46424
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94
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Modeling short-selling accounts
I am having trouble modeling short selling mechanics in my backtesting system.
When I sell stock short, I make the following changed to account variables:
Credit Balance += 200% of the stock value ...
- 11
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1
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110
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Balance Sheet and income statement inconsistency across tickers
I assumed the SEC filings for balance sheet or income statement should follow a standard format across companies. If that is the case, why is some important fields absent for certain companies? For ...
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2
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1k
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How to Calculate ROIC (Return on Invested Capital)
I am trying to calculate ROIC based on data I receive from Yahoo Financials. A comprehensive output of what I receive from the site is below, which elements of this can I put together to get ROIC?
<...
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56
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Accounting profitability [closed]
Can anyone please help me how to solve this problem?
Grocery Freshly want to open a new store. They expect an initial cost
of 30,000 to buy the property in which the store will be. After
...
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2
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986
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What is the difference between volatility and dispersion in finance?
I am confuse whether the volatility and dispersion is same or not because are use
to measure the risk associated with asset. Even if they are different than what is the relationship between, if exist.
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Why does the SEC occasionally omit ticker information for a company?
My question is fairly simple: Why does the SEC occasionally omit ticker information for a company?
For example, a well behaved company like Darden Restaurants (DRI) looks like this. The ticker is ...
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39
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How can I determine whether a UK company trades internationally
Can anyone think of ways to determine whether a UK company trades internationally?
I have seen that possibly if the have 'GB' at the start of their VAT number.
Can any financial ratios signal this?
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5k
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International Baccalaureate - Balance Sheet Format [closed]
I would like to transform Tesla's balance sheet (https://www.nasdaq.com/symbol/tsla/financials?query=balance-sheet) into the IB-balance sheet format (see below).
In the current assets section, is it,...
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How do I know what my portfolio weight constraints are given to me by my broker?
I have started exploring portfolio optimization results that pop out when I don’t constrain the weights to sum to 1. For instance, in a dollar-neutral portfolio, the weights sum to 0. Also, some ...
- 554
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56
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How to calculate a weighted payback rate and period?
I have a client who borrows and repays money at different times. Assume the following example
What is the correct way to calculate the repayment rate and more importantly, the time until repayment (i....
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427
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Cash Flow Hedge Accounting
In the context of hedging a fixed rate foreign currency liability with a receive-fixed pay-fixed CCS is known that in order to assess the effectiveness of a cash flow hedge the ratio of the change in ...
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What exactly does after tax "charge" mean?
My question isnt about the after tax part, but what is meant by "charge" as in "GE took a $6.2 billion after-tax charge".
I get that GE would like to get rid of their LTC (Long Term Care Insurance) ...
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5k
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Question on earning per share
For 2009, Flamingo Products had net income \$ 1,000,000. At 1 January 2009 there were 1,000,000 outstanding. On 1 July 2009,the company issued 100,000 new shares for \$ 20 per share. The company paid \...
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Estimate the off balance sheet exposures of a banking book, based on limited data
I am doing an analysis on Off Balance sheet items on a bank. Only data I have is authorized amount and outstanding balance for all the loans the bank currently has.
Can I simply take the difference ...
- 1,404
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3k
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Exclusion of Utilites and Financials in Magic Formula
In Joel Greenblatt's magic formula, see https://en.wikipedia.org/wiki/Magic_formula_investing, why are utilities and financials excluded? What is the reasoning behind this?
- 2,662
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Why subtract increase in net working capital to get Free Cash Flows?
Here's the formula for free cash flows I'll be referring to:
FCF = EBIT*(1-Tax Rate) + Depreciation and Amortization – Capital Expenditures – Increases in Net Working Capital (NWC)
If you have an ...
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Question on EBIT Calculation [closed]
I am trying to calculate the EBIT and a few other financial calculations from the following Income Statement. What numbers would I have to correspond in order to calculate EBIT or EBITDA here?
...
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How do analyst on Wall Street forecast whole balance sheet
I am always curious as to how people on wall street forecast every single item on a company's balance out up to 3 years. It seems to me just pure false accuracy in order to come up with a price target....
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611
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How does a Short position impact the PnL?
I have several activity records which include several transaction types: buy, sell, short, <...
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33
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Why does the difference between two year's retained earnings not add up?
I am looking at a company's 10-k filing history for my valuation. I have collected figures for retained earnings, net income and ...
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9k
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Why does depreciation not show up in my income statement?
I'm looking at a company's 10-K which gives me the following line items:
Income statement
Net sales
Cost of goods sold
Gross profit
Selling, general and administrative expenses
Operating income
...
- 226
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254
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Time-Value of money exercise problem. Any advice on how to solve?
Problem
An investor will receive $365 at the end of each year for thirteen years. The first payment will be received four years from now. Given that the interest rate is 3%, the present value of this ...
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118
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Financial statement and stock market data [duplicate]
How is it possible to have access to Datastream, Bloomberg, Wrds database? Is there another free database with long historical data? In fact, I need long time series data belonging to NYSE and NASADAQ ...
- 115
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454
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short selling with collateral accounting
I don't know how the accounting works for short selling with collateral:
For example if a stock is \$10 a share and turn out to be $15 a share a week later.
At time 0, you borrow and sell 10 shares ...
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what data sources are useful for obtaining financial statement data of listed companies NYSE and NASDAQ?
Exactly, I need balance sheet, income statement, cash flow statement, stock market, bankruptcy situation, fraud situation and corporate governance data of companies in USA.
Thanks beforehand,
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