See Also: Capitalization Capitalized Interest Operating Capital Lease Agreements Capital Lease Agreement Capitalize Definition The Capitalize Definition is the act of classifying an expense or charge as a long term investment. This usually occurs for the purchase of long term assets like equipment. Capitalize Meaning Look further into the capitalize meaning… If a company capitalizes
See Also: Fixed Assets Current Liabilities Long Term Debt Sale and Leaseback Working Capital Secured Claim Capital Lease Agreement A capital lease is a type of long-term lease agreement. A capital lease is recorded on the lessee’s balance sheet. This type of lease typically spans most of the useful life of the asset. In a
See Also: EBITDA Definition EBITDA Valuation Operating Income (EBIT) Operating Profit Margin Ratio Analysis Net Income Adjusted EBITDA Calculate EBITDA Calculate EBITDA (Earnings before Interest, Tax, Depreciation, and Amortization) in three easy steps. For an EBITDA meaning and use in valuation, click the above links for a better description. EBITDA Calculation Formula Step 1) The
See Also: Accounting Principles 1, 2, & 3 Accounting Principles 5, 6, & 7 Probable Losses Subsequent Events Accounting Changes Business Segment Definition Define a business segment as an area of operation in which a company has an established separate product line or industry in which the company operates. For example, General Electric operates in
In accounting, amortization refers to the periodic expensing of the value of an intangible asset. Similar to depreciation of tangible assets, intangible assets are typically expensed over the course of the asset’s useful life. It represents reduction in value of the intangible asset due to usage or obsolescence. Basically, intangible assets decrease in value over time, and amortization
Administration Expenses Definition In accounting, administration expenses are listed on the income statement as operating expenses. Administrative expenses are often included in an expense category called selling, general and administrative expenses, or SG&A. Administrative expenses include items such as administrative personnel wages, rent expenses, and utilities. The most effective ways to manage administrative expenses down
See Also: Balance Sheet Definition Income Statement Cash Flow Statement 10 Q Statement of Financial Accounting Standards (SFAS) Fiscal Period 10 K Definition What does 10 K mean? A 10K is an annual cumulative financial statement required by the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934 for all publicly traded
See Also: Balance Sheet Definition Income Statement Cash Flow Statement Pro-Forma Financial Statements Statement of Financial Accounting Standards (SFAS) Fiscal Period 10K 10 Q Definition What does 10 Q mean? The 10 Q definition is a quarterly cumulative financial statement required by the Securities and Exchange Commission (SEC) under the Securities and Exchange Act of
Does your business model drive your incentive comp plans? Incentive Comp Plans Driven by Business Model The traditional thought process is to decide how your business will make money and then develop incentive comp plans to encourage employees to act in a way that supports the business model. But that is not always the way things
Capital Budgeting Methods “Most small to medium sized companies have no idea how to approach capital investments. They treat it as if it were an operating budget decision rather than a long-term, strategic decision that will impact their cash flow, efficiency of their daily operations, income statement, and taxable income for years to come. They
Monitoring a company’s performance using ratio analysis and comparing those measures to industry benchmarks often leads to improvements in company performance. Not to mention these ratios are often part of loan covenants. The following article provides an overview of the 5 categories of financial ratios and links to their description and calculation. Use the following
When considering an acquisition of, investment in, or employment with a company it is best for your peace of mind, as well as, financially to be aware of indications that the company’s true picture may not be what management would lead you to believe. Warning Signs of a Company in Trouble The surest sign that
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