| Nominal Balance sheet wordings
|
----Ram Sharan Dangal |
 Dear investors unless
you are not capable to read the wording of balance sheet it
is almost not possible to understand their business. In the
first phase, you get chairman reports of company
there after you inter to the financials datas, where your
mind should effective a lot while
studying a company. Here in Nepal we do not get the full description
of the financials details, you know companies are of rupee
holder. It’s starter to look them in formative way.
For any activities to bring into balnce there
should be two opposite pole. So in company balance sheet we
could see liabilities and the assets part. |
| Liabilities |
Definition |
| Issued
Capital: |
Capital
which is issued in par value (this used to be fully paid
or may not) |
| Paid
up Capital: |
Capital,which is fully
paid by the investors. Its base is issued capital. |
| Equity:
|
It represents paid up
capital + general reserve including their retained earning. |
| Accounts
Payable - |
Money owed (payable)
to suppliers for goods or services purchased on credit
that must be paid within a year. |
| Short-Term
Debt - |
represents the amount
of borrowings (principal and interest) that must be paid
in the near future (usually within one year). |
| Other
Current Liabilities - |
includes all other
liabilities not assigned to Short-Term Debt or Accounts
Payable. |
| Total
Current Liabilities - |
equals Accounts Payable
+ Short-Term Debt + Other Current Liabilities. Total Current
Liabilities is the total amount of liabilities that are
considered to be due within a relatively short period
of time, usually a year. |
| Long-Term
Debt - |
represents the amount
of borrowings due more than one year from the date of
the balance sheet. |
| Other
Non current Liabilities - |
The liabilities that
are not assigned to Long-Term Debt or deferred Income
Taxes. |
| Total
Liabilities - |
equals Total Current
Liabilities + Total Non current Liabilities. |
| Total
Balance: |
Sum of all above particulars. |
| Note: Generally in Bank and
Finance we could see provision for loan loss or provision
for their investment includes in liabilities part. |
| |
|
| Assets |
Definition |
| Cash
- |
Cash consists of cash
and may include cash-like items such as short-term investments
that can be quickly converted to cash. |
| Net
Receivables - |
Net Receivables are
amounts owed to the company, net of any provisions for
bad debts. |
| Inventories
- |
is merchandised bought
for resale or supplies and raw materials purchased for
use in revenue producing operations. |
| Other
Current Assets - |
includes prepayments,
deferred charges, and amounts (other than trade accounts)
due from parents and subsidiaries. It also includes any
other current assets that are not assigned to cash and
cash equivalents, receivables, or inventories. |
| Total
Current Assets - |
equals Cash and Equivalents
+ Receivables + Inventories + Other Current Assets. Total
Current Assets is the total amount of assets that are
considered to be convertible into cash within a relatively
short period of time, usually a year. |
| Net
Fixed Assets - |
are the assets of a
company that are of a relatively permanent nature and
are not intended for resale, such as property, plants,
and equipment. The figure is stated as cost minus accumulated
depreciation and amortization. |
| Other
Non current Assets - |
Assets that are not
assigned to Net Fixed Assets or intangibles. |
| Total
Assets – |
sum of all above particulars. |
| |
|
Note: Balance of liabilities
and balance of assets should be same. While in Bank
and Finance you could see credit and investment these
are part of assets. Based on sector balance used to
be of different particulars but as whole above things
used to be mention. |
|
| |
| Profit and
Loss |
Definition |
| Revenue
- |
total sales from operations.
For bank and finance it’s interest income from their
usual investment. |
| Cost
of Goods Sold- |
includes all expenses
directly associated with the production of goods or services
the company sells (such as material, labor, overhead).
It does not include SG&A or depreciation. While in
Bank and Finance we could see interest expenses for deposit
and borrowing. |
| Gross
Profit - |
equals Revenue minus
Cost of Goods Sold. It identifies the amount available
to cover other operating expenses. |
| Gross
Profit Margin- |
equals Gross Profit
divided by Revenue, expressed as a percentage. The percentage
represents the amount of each dollar of Revenue that results
in Gross Profit. |
| Non
operating Income – |
is a residual category
into which miscellaneous Non operating revenues and expenses
are netted. |
| Total
operating Income - |
the sum of gross profit+
non operating income is taken as total operating income. |
| SG&A
Expenses - |
Selling, General, and Administrative Expenses include
all salaries, indirect production, marketing, and general
corporate expenses. |
| Depreciation
and Amortization - |
is a non-cash charge
that represents a reduction in the value of fixed assets
due to wear, age, or obsolescence. This figure also includes
amortization of leased property, intangibles, and goodwill,
and depletion. |
| Non
operating Expenses – |
is the combination
of "Other Taxes" and "Interest Expense."
"Other Taxes," also known as other operating
expenses, for most companies includes taxes other than
income taxes (except excise taxes, which the company does
not actually pay, but only collects on behalf of the government).
For financial companies, all expenses other than interest
expense and income taxes are included in Other Taxes.
"Interest Expense" is all fixed interest expenses
net of capitalized interest. This category also includes
dividends on preferred stock of unconsolidated subsidiaries.
|
| Total
operating expenses- |
staff expenses+ depreciation
and the non operating expenses are taken as operating
expenses.
|
Operating Income – |
Total operating Income
minus total operating expenses. It is the income from
current operations. |
| Operating
Margin - |
Operating Margin equals
Operating Income divided by Revenue, expressed as a percentage.
|
| Income
Before Taxes - |
Income Before Taxes
is the income from total operations (continuing + discontinued
operations). |
| Net
profit- |
is taken as profit after
provisions, staff bonus and tax deducted from income before
tax. |
| |
|
| Earning
per share (EPS) |
Net profit to the shares. |
| |
|
| Dividends
per Share - |
The cash payment, per
share, made by the company to its shareholders. Payment
is usually made quarterly, but can be paid biannually
|
|
| |
| Cash flow |
Definition |
Net Operating Cash Flow - |
Net Cash
Flow from Operating Activities is taken directly from
the Statement of Cash Flows. |
Net Investing Cash Flow - |
Net Cash Flow from Investing
Activities is taken directly from the Statement of Cash
Flows. |
Net Financing Cash Flow - |
Net Cash Flow from Financing
Activities is taken directly from the Statement of Cash
Flows. |
| Net
Change in Cash - |
is the difference between the Cash and Cash Equivalents
at the beginning of the reporting period minus the amount
at the end of the reporting period. |
| Depreciation
& Amortization |
is a non-cash charge
that represents a reduction in the value of fixed assets
due to wear, age, or obsolescence. This figure also includes
amortization of leased property, intangibles, and goodwill,
and depletion. This number is an add-back to the Statement
of Cash Flows. |
Capital Expenditures - |
s are capital outlays
undertaken by the firm - - this number is the "Purchase
of Property Plant and Equipment" figure from the
Statement of Cash Flows. |
| Cash
Dividends Paid - |
The cash payment made
by the company to its shareholders. Payment is usually
made quarterly, but can be paid biannually |
|
| |
Conclusion
Dear readers movement you will
be inclined to read in formative way the next you will be touchy
with ratios. Ratio’s help you to identify the management
of company and the company it self. But for the timing understand
above topic and bring into calculation your own while reading
companies. After all anything requires aske RAM. |
Fashion Clothing
Nepal Art Shop offer Fashion clothing like Fashion, shirts, skirts, dresses, clothing, accessories, gifts, tops, shoes, jeans, pants, trends, footwear, outerwear, hats, women, shorts, apparel, jackets, blouses, sweaters, shop online, buy clothes online.
http://www.nepalartshop.com/fashionclothing.htm
Follow up "Fashion Clothing" specific products to buy:
* Fashion Pants
* Womens Wear
* Womens Winter Clothing
* Mens Wear
* Mens Fashion
* Fashion Skirts
* Fashion Wear
|
|
|
|
|
