Hei … i was just wondering … being a short term investor may be for the period of 1 year or less (the period i want to hold my investment) , If i check the Balance sheet of the company and they have high short term debt … so it gives me an indication that in near future company will pay atleast some part of its earning to its short term debt (if its high) so it will affect my short term returns esp dividends ?? May be i can clearifyy in a statment to what extent the short term payables affect the … returns of a short term investor … thankyou !!
Well, you could be looking at a company that exhibits seasonality, so their WC fluctuates a lot. Or they prefer floating to fixed (termed) debt. Or they’re growing rapidly. Or they’re getting to ready to term out part of their STD. Or they’ve suffered a demand shock and are going down the tubes. Which is it?
no WC is ok consistent … this is a company which has problem with internationalization i just wanted to analyse from its balance sheet that wether it could attract more investors if they could change their financial statement Exhibit IV: Balance Sheet 2005, December 31. Current Assets: Current Liabilities: Cash 1.7 Bank 3.8 Bank 1.5 Suppliers 4.8 8.4 Stock 2.2 Customers 3.1 8.5 Long-term Debt: Bank 13.6 SBA 2.0 15.6 FixedAssets: Equity: Building 8.0 Shares 9.0 Equipment 17.5 Funds 2.3 11.3 Know how 1.3 26.8 Total Assets 35.3 Total liabilities 35.3 It would be great if u would give me some potential comments coz i will have to attend a quiz and for every comment i will get a point
oohh sorry i think i cant paste it right here
Never seen know-how on a balance sheet before…
Just wait 'til you get to the 3.1 customers.