When referring to assets, the term book value means the original cost of an asset minus accumulated depreciation.What Is the Book Value of a Company?
A cash flow statement (also referred to as the statement of cash flows) is a document that reports the inflows and outflows of cash within a business.It is one of three main financial statements that businesses use alongside the balance sheet and income statement. The simplest definition of a cash flow statement is that it’s a financial statement which measures the cash generated and used by a company within a given period.
Debt load is the total amount of debt that a company has on its balance sheet.All publicly traded companies must file financial statements, including balance sheets, every quarter.
An income statement is a financial statement detailing a company’s revenue, expenses, gains, and losses for a specific period of time that is submitted to the Securities and Exchange Commission (SEC).At the most basic level, it shows profit and loss.
Anyone who has ever worked in retail has heard the term inventory.For businesses, inventory is not only how stores keep customers happy, but it’s also how they keep supply chains moving (and ensure that supply is available to meet demand). Beyond the borders of a brick-and-mortar store, what is inventory?
Net book value is the net value of an asset carried on its balance sheet. Net book value results from the accounting technique of depreciating or amortizing the value of an asset: a company gradually “uses up” or expenses the cost of a fixed asset over the asset’s useful life.It’s one of several ways to derive a valuation for the asset but it may not equal the market price of the fixed asset. Net book value is an important metric to indicate a minimum/floor value of a company’s assets.
One key indicator of a business success is net operating profit after tax (NOPAT).Considered an “apples-to-apples” measure, NOPAT helps investors determine how well one company is performing versus another in the same industry, regardless of how much debt they use to buy and control assets. Although it may appear to be an arbitrary measurement, every investor searching for a long-term opportunity should look at net operating profit after tax. This comprehensive financial definition has compiled everything you want to know about NOPAT – and how it can help you become a smarter investor. Simply put, net operating profit after tax measures a company’s financial performance without considering the tax savings of debt, since it looks at operating profits exclusive of interest.
Also referred to as the bottom line, net income, and net earnings, net profit is easily summarized as the amount of money a company has after all expenses are paid.You can think of net profit like your paycheck: It’s the money left after all taxes and benefits are subtracted. Found on the last line of the income statement, net profit impacts the “take-home” profit of a company. This financial element is used to calculate net profit margin and is, therefore, a useful value metric for a company.