Net fixed assets

After considering the valuation of different categories of assets, it is important to understand aggregating fixed assets. Net fixed assets is 

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Fixed Assets. A company s fixed assets include the land, buildings, manufacturing equipment, office equipment, automobiles, trucks, and so on that the company owns. These items are carried on the books at cost less the accumulated depreciation. Land value is entered at the same value year to year. The sum of these items is called net fixed assets. 

Fixed Assets Land Buildings Machinery Office Equipment Total Fixed Assets Less Accumulated Depreciation Net Fixed Assets Intangibles... 

Fixed assets turnover = sales/net fixed assets... 

Fixed asset turnover = Sales revenue/Net fixed assets = 66,415/ 18,575 = 3.58 times... 

Under the most recent revision of the PPRS, the DoH will allocate 7.5% of the net value of each compan)r s non-research and development fixed assets and its manufacturing infrastructure costs to its NHS sales before the balance is apportioned between home and export sales. ... 

C. Balance sheet current and fixed assets, current and long-term liabilities, net worth... 

Fixed assets are items that have a relatively long life such as land, buildings, and manufacturing equipment. The sum of these items is the total proper, plant, and equipment. From this total, accumulated depreciation is subtracted and the result is net property and equipment. Last, an item referred to as intangibles includes a variety of items such as patents, hcenses, intellectual capital, and goodwill. Intangibles are difficult to evaluate since they have no physicm existence e.g., goodwill is the value of the company s name and reputation. The sum of the total current assets, net proper, and intan tes is the total assets. 

The GFCF is the amount of purchases and own-account production of industries, producers and government services and producers of private non-profit services to households on additions of new and imported durable goods to their stocks of fixed assets, reduced by the proceeds of their net sales of similar second-hand and scrapped goods. 

Rate of return on capital (X4) = total profit/net value of fixed assets 100%... 

The rules for valuing current assets are very different from those for valuing fixed assets. Current assets must be valued at the lower of cost and net realizable value (the money... 

With the revised DuPont model, notice that ROA is 2.03% and ROE is 4.65%, both of which are improvements over the current distribution network. Furthermore, EBIT and net profit margin both improve (Table 8.10). While fixed asset turnover declined slightly, the overall improvements outweigh any slight decline in this ratio. Moreover, since earnings per share (EPS) is important to Wall Street and executives alike, seeing that EPS improves since net profit increased to 8.33M and provided the number of shares has not increased. However, if the company increased the number of shares to raise capital for this project instead of using their own cash, then EPS may decline. 

The net investment at each period t represents the monetary value of the fixed assets acquired in that period minus the depreciation. As mentioned before, the depreciation term should be computed according to the specific applicable rules (e.g., Straight Line, Sum-of-years Digits, Declining Balance)... 

The net investment at each period t represents the monetary value of the fixed assets acquired in that period minus depreciation (Eq.7.47). 

Whether the assets of a company are financed largely by stockholders equity (also called net worth), or largely by debt, or by some combination of the two depends on a number of factors. If sales do not fluctuate, a company is in a good position to pay the fixed interest charges on debt. This is also the case if the revenue from sales is steadily increasing. In this case, any new common stock issued by the company is likely to command a good price, and it also increases the attractiveness of equity financing. 

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