Is return on sales (ROS) the same as profit margin?

July 9, 2024 No Comments

A: In accounting and finance, return on sales, or ROS, is almost always the same as profit margin. Each term refers to a financial profitability ratio that shows the average profit earned on the average dollar of revenue. While there could be small differences based

How should a company budget for capital expenditures?

July 9, 2024 No Comments

A: The process of budgeting for capital expenditures is essential for a business to operate and grow from a sound financial position. Capital expenditures are expenses a business makes to generate financial benefits over a period of years. Thus, a capital expense is the cost

Is there a downside to having a high liquidity ratio?

July 9, 2024 No Comments

A: In terms of corporate financing, liquidity ratios describe the ability of a firm to pay off short-term debt obligations with cash on hand or short-term assets. Common liquidity ratios include the current ratio and the acid test ratio, also known as the quick ratio.

I have lost my original Bills of Lading. Can I obtain a new set?

July 9, 2024 No Comments

A: If an original bill of lading is lost, destroyed or stolen, a new bill generally cannot be obtained unless the original has been found. Instead, the shipper must obtain an order by the court that directs the transport line or carrier to make delivery

Is there an easy way to do financial forecasting in Excel?

July 9, 2024 No Comments

A: There is no easy way to conduct financial forecasting. All forecasting involves the technically impossible act of predicting the future. Nonetheless, forecasting is essential for equity valuation and internal budgeting. The best financial forecasts are educated quantitative guesses founded on a very nuanced understanding

I lost my share certificate. Do I still own the stock?

July 9, 2024 No Comments

A: Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order to replace the physical certificate, the shareholder must contact the company’s stock transfer agent. The corporation should be able to provide the shareholder with

I need a telex release for a Bill of Lading. What must I do to obtain it?

July 9, 2024 No Comments

A: A telex release is typically issued by the freight carrier after all original copies of the bill of lading are surrendered. Some carriers require payment of all fees before the telex release is transmitted to the receiving agent. Shippers and forwarding agents can usually

If a company has a high debt to capital ratio, what else should I look at before investing?

July 9, 2024 No Comments

A: A variety of equity valuation metrics can be utilized to evaluate a company along with the debt to capital ratio to get a more complete picture of the company’s viability as an investment. The debt to equity ratio can be used as an alternative

How is it possible for a company to have a negative enterprise value?

July 9, 2024 No Comments

A: Enterprise value is the measure of a company’s total value, including its outstanding equity value, outstanding debt, and cash or cash equivalents. When calculating enterprise value, cash and cash equivalents are subtracted from the market capitalization plus debt, so it is possible for a

How is margin interest calculated?

July 9, 2024 No Comments

A: Before running a calculation you must first find out what rate your broker-dealer is charging to borrow money. The broker should be able to answer this question. Alternatively, the firm’s website may be a valuable source for this information, as should account confirmation statements

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