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1answer
61 views

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?
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16 views

Inferring a formula for growth from a Valuation Textbook

From a textbook on Valuation, we have that Growth (g) is the rate at which the company's NOPLAT and cash flow grow each year. From this I take it that $$ g = {\text{NOPLAT}_2 - \text{NOPLAT}_1 \...
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1answer
546 views

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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82 views

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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43 views

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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1answer
74 views

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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21 views

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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1answer
757 views

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 ...
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1answer
153 views

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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1answer
83 views

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 ...
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1answer
75 views

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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2answers
549 views

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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Enron - RhythmsNet hedge

I am reading "Power Failure: The Inside Story of The Collapse of Enron" By Mimi Swartz, Sherron Watkins. In the book, the following transaction is described: Enron had USD200mn worth of futures on ...
3
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1answer
249 views

Why is issued shares less than outstanding shares

We know that issued shares = outstanding shares + treasury shares. So issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K reports "Common ...
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2answers
65 views

Why debit and credit impact differently on different type of accounts?

Here is a table that I found in one of the accounting book: ...
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3answers
205 views

How are referenced asset gains routed in a credit derivative?

Lets assume for the sake of the example that we are talking about a Total Return Swap. The flow diagram is something like this. Lets assume the Payer in this instance is a Hedge Fund, and the ...
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2answers
616 views

Original Fundamental Accounting Data (Not Ratios)

Where do I get original fundamental accounting data from income statement, balance sheet and cash flow statement, like Sales/Revenue, Gross Income, EBIT, Operating Income, Cash & Short Term ...
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1answer
37 views

Compound Discounting(?)

I am a programmer interning at a small contract furniture company. This company receives multiple discounts from the manufacturers, and I am trying to calculate the end discount. For example, the ...
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2answers
2k views

Why is “Deferred revenue” a non-monetary liability?

Why is "Deferred revenue" treated as a non-monetary liability during temporal method FX translation while "Accrued Expenses" is treated as a monetary liability?
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1answer
545 views

Lease Accounting / FX Embedded Derivatives: How to Value Floor / Cap Optionality Features

Suppose you have a lease agreement where the functional/domestic currency is RUB and the currency on which the lease is written USD. Let $S$ be the USD/RUB exchange rate (# of rubles per 1 dollar). ...
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1answer
201 views

AT1 ratio, Core T1 ration and CET1 ratio

I would like to first know the precise definition of each one of those 3 ratios as well as there differences. On the web there is bit of a mess on the explanations. I could not find a simple and clear ...
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7answers
1k views

Do quants need to know Accounting?

Do quants need to know Accounting? In my school's undergrad Quant program, we had Financial Accounting and Managerial Accounting, which were listed as prerequisites for our undergrad Finance subjects....
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1answer
75 views

How to attribute income that incurs a double liability in a P&L?

I'm a developer writing a system for a startup. Without giving away too much of the business model, here are the basics of how it works: The web site has two forms of "currency": tickets and credits....
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2answers
2k views

Non-SQL methods for high-frequency accounting?

Does anyone know of any prior art for non-SQL data structures for high-frequency accounting, whether client, broker, or exchange-side? I'm thinking specifically of the problem of booking individual ...
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1answer
2k views

How would I value a perpetual bond with an embedded option?

I am trying to work out how to value the following transactions. It should be straight forward, since it breaks down into a series of well known instruments, yet I am not sure how to evaluate it: ...
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1answer
79 views

Who is in debt when a bank investments in commercial paper? [closed]

If a company issues commercial paper and the bookkeeper, bank A, receives a buy order from bank B, in which bank B creates credit to buy the commercial paper, does the company has a credit in bank B ...