IT assets

Investors, however, like companies that have large tangible assets, because they think they have a better chance of getting their money back should the company become bankrupt. The tangible assets are the undepreciated assets of the company. So if a company is interested in selling bonds, it looks better if it has depreciated its assets slowly. As a result, some companies keep dual books-one for the public and the other for the Internal Revenue Service. There is nothing illegal about this. The capitalized cost minus the amount that has been depreciated is called the book value of the asset. This may be above, below, or the same as its resale value. 

Threats to chemical facilities from radioactive contamination could involve two major scenarios. First, the facility or its assets could be contaminated, preventing workers from accessing and operating the facility/assets. Second, the feed water supply could be contaminated. These two scenarios require different threat reduction strategies. The first scenario requires that facilities monitor for radioactive substances as they are brought on-site the second requires that feed water assets be monitored for radioactive contamination. While the effects of radioactive contamination are basically the same under both threat types, each of these threats requires different types of radiation monitoring and different types of equipment. 

On a balance sheet, the sum of the total liabilities and the stockholders equity must equal the total assets, hence the term balance sheet. Comparing balance sheets for successive years, one can follow changes in various items that will indicate how well the company manages its assets and meets its obligations. 

Activity ratios are a measure of how effectively a firm manages its assets. There are two inventory/turnover ratios in common use today. The inventory/sales ratio is found by dividing the inventory by the sales. Another method is to divide the cost of sales by inventory. The average collection period measures the number of days that customers invoices remain unpaid. Fixed assets and total assets turnover indicate how well the fixed and total assets of the firm are being used. 

III. Alameda Savings Bank invested most of its assets in stocks and bonds. 

Whether Equation (12.6) is applicable for accurate predictions is not so important and certainly depends very much on the particular system. Its asset is its interpretative power. In particular, it elucidates the strong dependence of T on the final translational momentum Ptrans which we assessed above in qualitative terms. Equation (12.6) clearly explains why the lifetimes of excited van der Waals molecules can differ by orders of magnitudes. 

As of November 1, year 0, WHP had not yet started operations. However, WHP had acquired all the assets it needed to begin operations. When we examine WHP s balance sheet after 1 year of operations (year 1), we notice changes in assets, liabilities, and shareholders equity. WHP s goal, like that of most businesses, is to increase its assets through profitable operations throughout the fiscal year. Assuming that WHP is able to keep its liabilities unchanged, an increase in assets would result in an increase in shareholders equity, and that will make for one happy pharmacist owner ... 

Turnover ratios measure the efficiency with which an organization uses its assets. They are also referred to as efficiency ratios or asset utilization ratios. The two most commonly used turnover ratios are inventory turnover and receivables turnover. 

To a large extent a company is its assets, so the purchase of a company implies the purchase of its assets. This is apparently a very real figure -fixed assets of plant and buildings, technology, people, spare cash and so on. Asset value, however, is a little nebulous - people can easily leave, for example - and some companies make very large sales off very small assets. 

In the broadest sense, an asset may be defined as anything of value, such as cash, land, equipment, raw materials, finished products, or any type of property. At any given instant, a business concern has a certain monetary value because of its assets. At the same instant, many different persons may have a just claim, or equity, to ownership of the concern s assets. Certainly, any creditors would have a just claim to partial ownership, and the owners of the business would have some claim to ownership. Under these conditions, a fundamental relationship in accounting can be written as... 

The efficiency ratio, also called the activity ratio, measures the speed at which a company moves its assets through operations. The efficiency and solvency ratios can be used together to effectively assess fhe firm s solvency position. Two of the most common activity ratios are the accounts receivable turnover and inventory turnover ratios. 

Investment Company Act, Release No. 19105, [1992 Transfer Binder] Fed. Sec. L. Rep. (CCH) 1 85,062, at 83,500 (Nov. 19, 1992) (provided in connection with the issuance of Rule 3a-7 under the Investment Company Act of 1940). The terms "securitization," "asset secu-ritiMtion," and "structured finance" are used interchangeably. Each refers to a company s use of cash flows from its assets to raise funding. The term "securitization" specifically refers to the issuance Oi securities backed by such cash flows. 

One group comprised the hospital, diagnostic, blood therapeutic, and medical electronic equipment businesses. In 1975 the company reported that this group now accounts for 38 percent of average sales. The group s worldwide sales that year were 358 million, up 40 percent from 1974. By 1980 the group represented 52 percent of Abbott s sales, 34 percent of its profits, and 49 percent of its assets. ... 

Leverage ratios a measure of a company s overall debt burden Activity ratios a measure of how effectively a company manages its assets Profitability ratios an indication of a firm s total operating performance, which is a combination of asset and income management... 

The cash or quick ratio expresses the ability of a company to cover from its assets an emergency. It is the cash plus marketable securities divided by the current liabilities. Atypical figure is greater than 1.0. 

Activity ratios are measures of how effectively a company manages its assets. They are based on the assumption that there are proper relationships between a company s assets and the sales and income that the assets generate. Different methods are used to generate these ratios, and they depend on how a person wants to use the ratios. Most analysts compile average ratios from balance sheet data, which are end-of-year data. In this section and in the financial ratio example that follows, this method is used. 

The return on total assets ratio is the net profit after taxes divided by the total assets expressed as a percentage. It reflects the overall return that a company has earned on its assets. The average for all industries is 10%, but figures vary widely. 

The activity ratios are average for a company in the CPI, and the company manages its assets effectively. 

Financial ratios often used by analysts were introduced because they are indicators of how well the company uses its assets and how well management performs. An equation for determining the Z score was introduced. It measures how the position of a company with respect to the brink of bankruptcy. 

Europe s first fuel cell bus, the Eureka, made its much-delayed debut in Brussels near the end of 1994. First announced in 1988, the Eureka was an articulated 59-foot 80-passenger device whose fuel cell and other components were housed in a two-wheeled trailer almost as long as the bus itself. A hybrid with an 87-kilowatt alkaline fuel cell made by the Belgian Elenco company plus NiCad batteries from French battery maker SAFT, it had electrical traction equipment from Italy s Ansaldo and a liquid-hydrogen fuel system contributed by Air Products of the Netherlands. The bus itself came from Van Hool. In all, the partners and the member governments spent about 8 million to get the bus on the road before its demise a few months later. Elenco was forced into bankruptcy in the spring of 1995 when the shareholders refused to come up with additional cash its assets... 

Activity ratios measure how effectively a company manages its assets. 

The return-on-equity ratio is the net income after taxes and interest divided by the stockholders equity. It sometimes is called the return on net worth, and this ratio is probably the best measure of management s performance. Returns on equity vary depending on company performance, but a figure of 15% is not um-easonable. The return-on-total assets ratio is the net profit after taxes divided by the total assets expressed as a percentage. It reflects the overall return that a company has earned on its assets a reasonable value is about 10%. 

In 1973, the price explosion had a dramatic effect on the demand and the sales of British Petroleum. By 1978, sales were a little higher, but then came the Iranian revolution and another major rise in the price of oil. In 1979, BP suffered further blows when its assets in Nigeria were nationalized and its supplies from Kuwait cut back. By 1980, its sales dropped again. 

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