Bishara

http://z06.zupload.com/download.php?file=getfile&filepath=133 وهذا كتاب هدية لكم بس حقيق مهم جدا

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Financial Statement are like fine perfume: to be sniffed not to swallowed يقول أبراهام بريلوف أن القوائم المالية مثل العطر :يتوجب شمها لا بلعها هل يستطيع أحدكم التعليق على هذا العبارة ومن اي منظور طرحها الكاتب

ولله الحمد لم يجب احد او يشارك في هذه العبارة أن هدف الأدارة المالية هو زيادة قيمة السهم الحالي يعني رفع قيمة السهم الحالي المتداول لو سألنا أنفسنا كيفية زيادة قيمة السهم الحالي ببساطة يتم ذلك عن طريق زيادة قيمة الشركة وربحيتها في المركز المالي للشركة وتحقيق أرباح كبيرة - حيث عندما تظهر القوائم المالية لشركة في حالة كانت المعلومات والبيانات المالية المقدمة صحيحة وعادلة فان هذا سوف يرفع قيمة السهم المتداول في السوق وذلك عن طريق رغبة المستثمرين في شراء هذه الأسهم . يعني يتوجب أن يكون إداء الشركة ربحي لرفع قيمة السهم - لذلك الأدارة المالية بسياستها بالمتابعة ومقارنة المصاريف مع الموازنة التي تم إعدادها وتخفيض المصاريف زيادة المبيعات التحكم بالفائض في الأستمرار إيجاد التمويل المناسب لتمويل العمليات او الأنتاج - السعي للحصول على مواد خام بنفس الجودة بأسعار أقل لتخفيض تلكفة البضاعة المباعة أستعمال كل الطرق التي تؤدي لزيادة الربحية مما يؤدي لزيادة الربح في نهاية السنة - كذلك يتوجب الرقابة والسيطرة على التدفقات النقدية للشركة هذه المهام في حالة إدائها بالصورة المطلوبة وتحقيق الهدف المنشود في الموازنة يعني نجاح الإدارة المالية في رفع قيمة السهم طبعا هذا مختصر مفيد كنت اود ان نتعمق في النقاش ولكن كون أحد لم يشارك اختصرنا الرد

الفوائد الدائنة والمحصلة مقدما : لا يجوز تلبية طلب الإدارة والأعتراف بالفوائد الدائنة المقبوضة سلفا في قائمة دخل الدورة الحالية ، فالأساس المقبول عموما في إعداد القوائم الماليه هي أساس الاستحقاق Accrual Basis وليس الأساس النقدي Cash Basis كما تطلب الأدارة لا يمكن اعتبار الفائدة مقدما إيرادا مكتسبا يقفل في قائمة الدخل فهي ايراد غير مكتسب Unerarned Revenue يمثل التزاما على الشركة يجب أن يظهر في قائمة مركزها المالي أن تطبيق أساس الاستحقاق يتطلب إجراء تسوية جردية بالفوائد غير المكتسبية ( المحصلة مقدما) 40000 من ح/ إيراد فوائد دائنة 40000 إلى ح/ إيراد فوائد دائنة غير مكتسب إما الرصيد الباقي من إيراد الفوائد الدائنة /5100/ دينار ، ويجب إقفاله في قائمة الدخل في المرحلة الثانية ( نشاط ثانوي )

تقويم المخزون السلعي أخر المدة لقد اخطا المحاسب بإعتماده تكلفة الآستبدال ( سعر سوق إعادة الشراء ) في تقويم المزون السلعي في اخر الفترة وقومها بمبلغ / 16250 / دينار بدلا من الأستمرارية في تطبيق أسلوب الوارد أولا صادر أولا FIFO حيث ستبلغ التكلفة التاريخية /10900/ دينار 150× 16 = 2400 دينار 500× 17= 8500 دينار التكلفة التاريخية للمخزون السلعي = 10900 دينار وهكذا يتضخ أن مخالفة المبادي المحاسبية المقبولة عموما في تقويم المخزون السلعي بأعتماده تكلفة الاستبدال الأعلى قد أدت غلى تضخيم الأرباح بمبلغ /5350/ دينار ولا يمكن قبول التبرير لهذه المخالفة بأن تكلفة الأستبدال ستقدم معلومات أكثر ملاءمة (حديثه تمثل الواقع بصورة أفضل ) ، فمثل تلك المعلومات تعاني من ظاهرة عدم التأكد في التقويم وبالتالي ضعفا في الموثوقية ويخفي مثل هذا الأجراء المخالف رغبة الأدارة في زيادة دخل الشركة بصورة أنتقائية في تقويم بعض بنود القوائم المالية لذلك يجب التصحيح بالقيد المحاسبي التالي : 5350 م ح/ تكلفة المبيعات 5350 إلى ح/ مخزون سلعي 31/12 إن المبادي المحاسبية المقبولة عموما في تقيم المخزون السلعي في اخر المدة تعتمد القواعد التالية ، حيث لا تسمح بتطبيق بديل تكلفة الاستبدال 1- يقوم المخزون السلعي بالتكلفة الفعلية التاريخية ، وذلك إما بتكلفة الشراء في تاريخ اقتناء أو بالتكلفة التاريخية للأنتاج ، ويعتمد في تدفق التكلفة اسلوب معين من الأساليب المقبولة عموما ، مثل الوارد أولا صادر أولا FIFO الوارد أخير صادر أولا LIFO المتوسط الموزن WA وتستطيع المنشأة أن تطبق أي أسلوب من الأساليب السابقة وبما يتناسب وطبيعة عملها شريطة الألتزام والاستمرارية بتطبيق الأسلوب الذي اعتمده وذلك حتى ينتج النظام المحاسبي معلومات تتصف بخاصية الثبات Consistency لتكون صالحة للمقارنة 2- ان تطبيق مبدا الأ‘تراف بالأيراد وبالتالي الاعتراف بالأرباح والمكاسب ينطلق من تحقق عملية بيع فعلية من طرف خارجي ، ولا يعترف بالأرباح أو المكاسب الناجمة عن زيادة أسعار الأصول 3- يعتمد قيد الحيطة والحذر عند تقويم الأصول وذلك بأعتماد القيمة الأدني ( التكلفة أو السوق أيهما أقل ) أي يعترف بالخسارة المحتملة فقط ولا يعترف بالربح او المكسب المحتمل

يظهر في ميزان المراجعة 16250 مخزون سلعي 31/12/2003 ( 650 وحدة بسعر 25 دينار / وحدة) 9100 إيراد فؤائد دائنة 1- تتبع الشركة في تقويم المخزون السلعى اسلوب الوارد اولا صادر اولا FIFO ولكن المحاسب - عند تقويم مخزون اخر المدة - تنازل عن هذا الأسلوب وأعتد سعر /25/دينار للوحدة باعتباره السعر الاستبدالي العادل في نهاية الفترة - مبررا ذلك بأن السعر الاستبدالي سيقدم معلومات اكثر ملائمة وبالتالي معلومات مفيدة في اتخاذ القرارات التاريخ وحدات واردة سعر الوحدة وحدات صادرة 1/1 رصيد 850 15 25/2 450 30/5 1500 16 7/6 1200 15/10 500 17 10/12 550 2- تتضمن الفوائد الدائنة/ 4000/ دينار محصلة مقدما تخص عام 2004 ولقد طلبت الإدارة من المحاسب الأعتراف بها في قائمة دخل العام الحالي 2003 لانها " مضمونة " قبضتها الشركة سلفا ما هي المعالجة المحاسبية الصحيحة ؟

خسارة الدعوة القضائية أن الأجراء الذي قام به المحاسب خاطيء فلا يجوز تأجيل الأعتراف بالخسارة وترحيلها إلى ادورة تالية ، لا سيما وأنها محققة فعليا بصدور حكم قضائي نهائي بها في العام الفائت . من ناحية ثانية لا يوجد في مهنة المحاسبة مفهوم " ترابط نتائج الدورات المحاسبية " بل على العكس من ذلك تماما يعتمد على مفهوم " أستقلالية نتائج كل دورة على حدة" حتى لا تتداخل نتائج الدورات وتصبح عملية تقييم الأداء والمقارنة عديمة الجدوى . ويجب تصحيح خطأ المحاسب في حساب الأرباح والخسائر المحتجزة بأعتباره من أخطاء السنوات السابقة 7750 من ح/ الأرباح المحتجزة 7750 إلى ح/ خسارة دعوى قضائية

خسارة البضاعة الغارقة أنطلاقا مفهوم الربح ( او الخسارة ) الشامل المقبول عموما في معايير المحاسبية الدولية والأمريكية ، يتوجب الأعتراف بكامل خسارة البضاعة الغارقة في القوائم المالية للدورة التي حدثت خلالها ، فلا يجوز إذن تاجيل الأعتراف بالخسارة او توزيعها على عامين فالتأجيل مخالف لمفهوم لربح الشامل وكذلك قاعدة الحيطة والحذر التي تتطلب تعجيل الأعتراف بالخسائر حتى ولوكانت خسارة محتملة تعالج خسائر البضاعة الغارقة /55000/ دينار بأقفالها كاملة في قائمة دخل دورة 2003 في المرحلة الثانية لقائمة الدخل ضمن مجموعة أحداث النشاط التشغيلي الثانوي باعتبار أن مثل أمر الخسارة أم معتاد ينبغي توقعه وان كان غير متكرر . تجدر الأشارة أنه كان ينبغي على الأدارة أن تؤمن ضد مثل هذه الأخطار كي لا تتحمل الخسائر الناتجة

في ميزان المراجعة 7750 خسارة دعوى قضائية (منقولة من العام الفائت) تمثل خسارة الدعوى القضائية/7750/دينار دعوى تم البت فيها قضائيا بصورة نهائية في العام الفائت 2002 ولقد دفعت الشركة المبلغ المطلوب ولكن المحاسب نقلها إلى العام الحالي إنطلاق من فكرة " ترابط نتائج الدورات المحاسبية "

ميزان المراجعة 55000 خسارة بضاعة غارقة أن خسارة البضاعة الغارقة البالغة /55000/ دينار تخص بضاعة تم إستيرادها خلال عام الحالي 2003 ولقد نتجت عن غرق الباخرة الشاحنة فوجب على الشركة تحمل هذه الخسارة ، نظرا لعدم التأمين عليها ضد مخاطر الشحن ، وبالتالي لا يمكنها المطالبة بأي مبلغ من شركة التأمين ونظرا لضاخمة هذا المبلغ طلبت الأدارة توزيعها على عامين . ماهي المعالجة المحاسبية الصحيحية

معالجة المكاسب الرأسمالية : يظهر ميزان المراجعة مكسبا رأسماليا /8000/دينار ، تحقق في تاريخ البيع في بداية الدورة في 1/1/2003 ومن معطيات المسألة يستنتج ان التكلفة الأصلية للأصل المباع /30000/ دينار ومجمع استهلاكه في تاريخ البيع /9000/ دينار وبالتالي قيمته الدفترية /21000/ دينار ونظرا لبيع الأصل بمبلغ /29000/ دينار فلقد نتج مكسب راسمالي /8000/ (29000-21000) أن المعالجة المحاسبية السليمة للمكاسب أو الخسائر الرأسمالية وفق المتطلبات المبادئ المحاسبية عموما GAAP توجب أقفال تلك المكاسب او الخسائر في قائمة دخل الدورة في المرحلة الثانية بعد عرض النشاط التشغيلي الرئيسي للمنشأة ، بإعتبارأن مثل هذه الأحداث تدخل ضمن النشاط التشغيلي الثانوي لعمل المنشأة في أحداث اعتيادية ضمن نشاط المنشأة وأن لم تكن متكررة ( يتسم النشاط التشغيلي الرئيسي بالصفتين معا: الاعتياد والتكرار ، في حين يتسم النشاط الثانوي باحدى الصفتين :إما الاعتياد أو التكرار) وهذه المعالجة المحاسبية تنسجم مع مفهوم الربح الشامل Total Profit وهو مفهوم مقبول عموما في مهنة المحاسبة لذلك يعد احتجاز المكسب الرأسمالي مباشرة في حساب الاحتياطي لاستبدال الأصول الثابته مخالفة للمبادئ المحاسبية المقبولة عموما، فالمقبول هو الأعتراف بالمكسب وإقفالهى في دخل الدورة حيث تحقق ، وبعد ذلك - في مرحلة التوزيع - يمكن عدم توزيع جزء من الأرباح المتحققة وتكوين احتياطي رأسمالي لمواجهة مشكلة الأستبدال ، أي يجب التمييز بين مرحلة تحديد الدخل بأقفال المكسب في دخل الدورة وبين مرحلة توزيع وتخصيص الدخل بتكوين احتياطات رأسمالية لأغراض التوسع والاستبدال ، فالمبادئ المحاسبية المقبولة عموما تعتبر عملية استبدال الأصول مهمة إدارية وليست مشكلة محاسبية ، فالمحاسب علية تحديد الدخل بدقة وفق مفهوم الدخل الشامل لجميع الأحداث خلال دورة معينة في حين أن الأدارة تحتجز الأرباح وتكون الاحتياطات الرأسمالية وتنكون مسؤولة عن تأمين السيولة اللآزمة للتوسع والاستبدال

الأخوة الإعضاء والزوار أنا لم أقوم بطرح الأجابة على الشق الثاني من السؤال واتمنى من الجميع المشاركة في الرد وفي كيفية معالجة المكسب بيع آلة الرجاء تفعيل والمشاركة في الموضوع حتى نستمر في طرح المسائل الأخرى

أن شاء الله سوف احاول ضغط الأسطوانة مره أخرى وتحميلها على رابط اخر المطلوب هو قليل من الصبر حيث ان حجمها كبير جدا

هذا الملف كامل بعد ان قمت بتحويله على الورد حتى تستطيع عمل قص ولصق والبحث عن معني الكلمة وإذا احببتم نتعاون في ترجمته للغة العربية لا مانع لدي ولكن اود المشاركة من الجميع dictionary_of_financial_and_business_terms_686.rar

American option An option that may be exercised at any time up to and including the expiration date. Related: European option American shares Securities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign issuer. The certificates represent claims to foreign equities. American Stock Exchange (AMEX) The second-largest stock exchange in the United States. It trades mostly in small-to medium-sized companies. American-style option An option contract that can be exercised at any time between the date of purchase and the expiration date. Most exchange-traded options are American style. Amortization The repayment of a loan by installments. Amortization factor The pool factor implied by the scheduled amortization assuming no prepayemts. Amortizing interest rate swap Swap in which the principal or national amount rises (falls) as interest rates rise (decline). Analyst Employee of a brokerage or fund management house who studies companies and makes buy-and-sell recommendations on their stocks. Most specialize in a specific industry. Angels Individuals providing venture capital. Announcement date Date on which particular news concerning a given company is announced to the public. Used in event studies, which researchers use to evaluate the economic impact of events of interest. Annual fund operating expenses For investment companies, the management fee and “other expenses,” including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b- 1 funds, selling and marketing costs are included. Annual percentage rate (APR) The periodic rate times the number of periods in a year. For example, a 5° quarterly return has an APR of 200o. Annual percentage yield (APY) The effective, or true, annual rate of return. The APY is the rate actually earned or paid in one year, taking into account the affect of compounding. The APY is calculated by taking one plus the periodic rate and raising it to the number of periods in a year. For example, a 1% per month rate has an APY of 12.68°c (1.0P12). Annual report Yearly record of a publicly held company’s financial condition. It includes a description of the firm’s operations, its balance sheet and income statement. SEC rules require that it be distributed to all shareholders. A more detailed version is called a 10-K. Annualized gain If stock X appreciates 1.5°c in one month, the annualized gain for that sock over a twelve month period is 12*1.50o 18°c. Compounded over the twelve month period, the gain is (1.015)A12 19.6°c. Annualized holding period return The annual rate of return that when compounded t times, would have given the same t-period holding return as actually occurred from period 1 to period t. Annuity A regular periodic payment made by an insurance company to a policyholder for a specified period of time. Annuity due An annuity with n payments, wherein the first payment is made at time t 0 and the last payment is made at time t n - 1. Annuity factor Present value of $1 paid for each oft periods. Annuity in arrearsAn annuity with a first payment on full period hence, rather than immediately. Anticipation Arrangements whereby customers who pay before the final date may be entitled to deduct a normal rate of interest. Antidilutive effect Result of a transaction that increases earnings per common share (e.g. by decreasing the number of shares outstanding). Appraisal ratio The signal-to-noise ratio of an analysts forecasts. The ratio of alpha to residual standard deviation. Appraisal rights A right of shareholders in a merger to demand the payment of a fair price for their shares, as determined independently. Appropriation request Formal request for thnds for capital investment project. Arbitrage The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist. Arbitrage Pricing Theory (APT) An alternative model to the capital asset pricing model developed by Stephen Ross and based purely on arbitrage arguments. Arbitrage-free option-pricing models Yield curve option-pricing models. Arbitrageurs People who search for and exploit arbitrage opportunities. Arithmetic average (mcan) rate of return Arithmetic mean return. Arithmetic mean return An average of the subperiod returns, calculated by summing the subperiod returns and dividing by he number of subperiods. Arms index Also known as a trading index (TRIN) (number of advancing issues) (number of declining issues) (Total up volume) (total down volume). An advance decline market indicator. Less than 1.0 indicates bullish demand, while above 1.0 is bearish. The index often is smoothed with a simple moving average. Arm’s length price The price at which a willing buyer and a willing unrelated seller would freely agree to transact. ARMs Adjustable rate mortgage. A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or margin, over the index, usually subject to perinterval and to life-of-loan interest rate and or payment rate caps. Articles of incorporation Legal document establishing a corporation and its structure and purpose. Asian currency units (ACUs) Dollar deposits held in Singapore or other Asian centers. Asian option Option based on the average price of the asset during the life of the option.

Agency theory The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of anther person, a principal. Agent The decision-maker in a principal-agent relationship. Aggregation Process in corporate financial planning whereby the smaller investment proposals of each of the firms operational units are added up and in effect treated as a big picture. Aging schedule A table of accounts receivable broken down into age categories (such as 0-30 days, 30-60 days, and 60-90 days), which is used to see whether customer payments are keeping close to schedule. AIBD Association of International Bond Dealers. All equity rate The discount rate that reflects only the business risks of a project and abstracts from the effects of financing. All or none Requirement that none of an order be executed unless all of it can be executed at the specified price. All-equity rateThe discount rate that reflects only the business risks of a project and abstracts from the effects of financing. All-in cost Total costs, explicit and implicit. All-or-none underwriting An arrangement whereby a security issue is canceled if the underwriter is unable to re-sell the entire issue. Alpha A measure of selection risk (also known as residual risk) of a mutual thnd in relation to the market. A positive alpha is the extra return awarded to the investor for taking a risk, instead of accepting the market return. For example, an alpha of 0.4 means the fund outperformed the market-based return estimate by 0.4° o. An alpha of -0.6 means a funds monthly return was 0.6° o less than would have been predicted from the change in the market alone. In a Jensen Index, it is factor to represent the portfolios performance that diverges from its beta, representing a measure of the managers performance. Alpha equationThe alpha of a fund is determined as follows: [(sum of y) -(((sum of x)) ] / n where: n number of observations (36 months) b betaofthefund x rate of return for the S&P 500 y rate of return for the fund Alternative mortgage instruments Variations of mortgage instruments such as adjustable-rate and variable- rate mortgages, graduated-payment mortgages, reverse-annuity mortgages, and several seldom-used variations. American Depositary Receipts (ADRs) Certificates issued by a U.S. depositary bank, representing foreign shares held by the bank, usually by a branch or correspondent in the country of issue. One ADR may represent a portion of a foreign share, one share or a bundle of shares of a foreign corporation. If the ADR’s are “sponsored,” the corporation provides financial information and other assistance to the bank and may subsidize the administration of the ADRs. “Unsponsored” ADRs do not receive such assistance. ADRs carry the same currency, political and economic risks as the underlying foreign share; the prices of the two, adjusted

Act of state doctrine :This doctrine says that a nation is sovereign within its own borders and its domestic actions may not be questioned in the courts of another nation. Active :A market in which there is much trading. Active portfolio strategy :A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly. Related: passive portfolio strategy Actuals :The physical commodity underlying a futures contract. Cash commodity, physical. Additional hcdge :A protection against borrower fallout risk in the mortgage pipeline. Adjustabic rate preferred stock (ARPS) Publicly traded issues that may be collateralized by mortgages and MBSs. Adjusted present value (APV) The net present value analysis of an asset if financed solely by equity (present value of un-levered cash flows), plus the present value of any financing decisions (levered cash flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of other investment tax credits are calculated separately. This analysis is often used for highly leveraged transactions such as a leverage buy-out. Administrative pricing rules IRS rules used to allocate income on export sales to a foreign sales corporation. Advance commitment A promise to sell an asset before the seller has lined up purchase of the asset. This seller can offset risk by purchasing a futures contract to fix the sales price. Adverse selection A situation in which market participation is a negative signal. Affirmative covenant A bond covenant that specifies certain actions the firm must take. After-tax profit margin The ratio of net income to net sales. After-tax real rate of return Money after-tax rate of return minus the inflation rate. Agencies Federal agency securities. Agcncy bank A form of organization commonly used by foreign banks to enter the U.S. market. An agency bank cannot accept deposits or extend loans in its own name; it acts as agent for the parent bank. Agency basis A means of compensating the broker of a program trade solely on the basis of commission established through bids submitted by various brokerage firms. agency incentive arrangement. A means of compensating the broker of a program trade using benchmark prices for issues to be traded in determining commissions or fees. Agency cost viewThe argument that specifies that the various agency costs create a complex environment in which total agency costs are at a minimum with some, but less than 10000, debt financing. Agency costs The incremental costs of having an agent make decisions for a principal. Agency pass-throughs Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association (“ Ginnie Mae “), Federal Home Loan Mortgage Corporation (“ Freddie Mac”) and Federal National Mortgage Association (“ Fannie Mae”). Agency problem Conflicts of interest among stockholders, bondholders, and managers.

معالجة الآلات المستهلكة دفتريا : إذا كان الأصل مستهالكا بالكامل دفتريا، فإن قيمته الدفترية Book Value (أي الفرق بين تكلفته الأصلية ومجمع استهلاكه ) في هذه الحالة سوف تعادل القيمة المتبقية المقدرة أصلا، وإذا لم يتم الاعتراف أساسا بقيمة متبقية فستكون القيمة الدفترية بعد استهلاك الأصل مساوية صفرا. وفق معطيات المسألة لاتوجد قيمة دفترية متبقية للأصل المستهلك وأنه قد تم سحبه من الانتاج لذلك يتطلب مبدأ الإفصاح الكامل استبعاد هذا الأصل مستهلك من السجلات بالقيد التالي : 60000 ح/مجمع استهلاك الآلات والتجهيزات 60000 ح/ الآلات والتجهيزات وإذا تم التخلص من الأصل وازالته ، فانه يجب الأعتراف بالمكاسب أو الخسائر الرأسمالية الناتجة وإقفالها في ملخص الدورة ، وتمثل المكاسب أو الخسائر الفرق بين القيمة الدفترية والقيمة المتحصلة من عملية التخلص من الأصل المستهلك دفتريا . أما الرصيد المتبقي للآلات والتجهيزات فيصبح /290000/ دينار ويعتمد للأعتراف بمصروف الاستهلاك السنوي وفق القسط الثابت بمعدل 12.5% ، أي يبلغ /32650/دينار . وهكذا تصبح القيمة الدفترية للآلات والتجهيزات في الميزانية 31/12/2003 مساوية /166750/ دينار (290000-123250)

[align=left:56e8e7e6d5][Formula to calculate acid test ratio: Acid Test Ratio = (cash + marketable securities + accounts receivable ) / current liabilities Acid test ratio definition and explanation: The acid test ratio is also known as the quick ratio. The acid test ratio measures the immediate amount of cash available to satisfy short term debt. Formula to calculate asset turnover ratio: Asset Turnover Ratio = sales / fixed assets. Asset turnover ratio definition and explanation: A low asset turnover ratio means inefficient utilization or obsolescence of fixed assets, which may be caused by excess capacity or interruptions in the supply of raw materials. Formula to calculate cash turnover ratio: Cash Turnover = (cost of sales {excluding depreciation}) / cash. Cash Turnover Ratio = (365 days)/ cash balance ratio. Cash turnover ratio definition and explanation: The cash turnover ratio indicates the number of times that cash turns over in a year. The cash turnover ratio and cash balance ratio are included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Formula to calculate inventory conversion ratio: Inventory Conversion Ratio = (sales x 0.5) / cost of sales. Inventory conversion ratio definition and explanation: The inventory conversion ratio indicates the extra amount of borrowing that is usually available upon the inventory being converted into receivables. The inventory conversion ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Formula to calculate inventory turnover ratio: Inventory Turnover Ratio = cost of goods sold / average inventory. Inventory turnover ratio definition and explanation: The inventory turnover ratio measures the number of times a company sells its inventory during the year. A high inventory turnover ratio indicated that the product is selling well. Formula to calculate Accounts receivable turnover ratio: Accounts Receivable Turnover Ratio = annual credit sales / average accounts receivable Accounts Receivable turnover ratio definition and explanation: This is the ratio of the number of times that accounts receivable amount is collected throughout the year. A high accounts receivable turnover ratio indicates a tight credit policy. Formula to calculate age of inventory ratio: Age of Inventory = 365 days / inventory turnover ratio Age of inventory ratio definition and explanation: The Age of Inventory shows the number of days that inventory is held prior to being sold. An increasing age of inventory ratio indicates a risk in the company's inability to sell its products. Individual inventory items should be examined for obsolete or overstocked items. A decreasing age of inventory may represent under-investment in inventory. Formula to calculate (average) collection period: Collection Period = Accounts Receivable X 365 days Credit Sales Collection Period = 365 days Accounts Receivable Turnover Ratio The average collection period calculation uses the average accounts receivable over the sales period. (Average) Collection Period definition and explanation: The collection period or average collection period must be compared to competitors to see whether the credit given, and customer risk, is in line with the industry. A high collection period shows a high cost in extending credit to customers. Formula to calculate average inventory period: Average Inventory Period = (inventory x 365 days) / cost of sales. Average inventory period definition and explanation: The average inventory period is also referred to as Days Inventory and Inventory Holding Period. This ratio calculates the average time that inventory is held. Individual inventories should be looked at to find areas where the inventory, and inventory holding period, can be reduced. The average inventory period should be compared to competitors. The average inventory period is included in the the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Formula to calculate average obligation period: Average Obligation Period = accounts payable / average daily purchases. Average obligation period definition and explantion: The average obligation period ratio measures the extent to which accounts payable represents current obligations (rather than overdue ones). The average obligation period ratio is included in the the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Formula to calculate bad debts ratio: Bad Debts Ratio = bad debts / accounts receivable. Bad debts ratio definition and explanation: The bad debts ratio is an overall measure of the possibility of the business incurring bad debts. The higher the bad debts ratio, the greater the cost of extending credit. The bad debts ratio is included in the the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Formula to calculate breakeven point: Breakeven Point = fixed costs / contribution margin. Breakeven point definition and explanation: The breakeven point is the point at which a business breaks even (incurs neither a profit nor a loss) The breakeven point is the minimum amount of sales required to make a profit. Increasing breakeven points (period to period) indicates an increase in the risk of losses. The breakeven point is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Formula to calculate cash breakeven point: Cash Breakeven Point = (fixed costs - depreciation) / contribution margin per unit. Cash breakeven point definition and explanation: The cash breakeven point indicates the minimum amount of sales required to contribute to a positive cash flow. Formula to calculate cash dividend coverage ratio: Cash Dividend Coverage = (cash flow from operations) / dividends. Cash dividend coverage ratio definition and explanation: The cash dividend coverage ratio reflects the company's ability to meet dividends from operating cash flow. A cash dividend coverage ratio of less than 1:1 (100 %) indicates that dividends are draining more cash from the business than it is generating. Formula to calculate cash maturity coverage ratio: Cash Maturity Coverage = (cash flow from operations - dividends) / current portion of long term maturities. Cash maturity coverage ratio definition and explanation: The cash maturity coverage ratio indicates the ability to repay long term maturities as they mature. The cash maturity coverage ratio indicates whether long term debt maturities are in time with operating cash flow Formula to calculate cash reinvestment ratio: Cash Reinvestment Ratio = increases in fixed assets and working capital / (net income + depreciation). Cash reinvestment ratio definition and explanation: This ratio indicates the degree to which net income is absorbed (reinvested) in the business. A cash reinvestment ratio of greater than 1:1 (100%) indicates that more cash is being use4d in the business than being obtained Formula to calculate cash turnover ratio: Cash Turnover = (cost of sales {excluding depreciation}) / cash. Cash Turnover Ratio = (365 days)/ cash balance ratio. Cash turnover ratio definition and explanation: The cash turnover ratio indicates the number of times that cash turns over in a year. Formula to calculate collection period to payment period ratio: Collection Period to Payment Period = collection period / payment period. Collection period to payment period ratio explanation and definition: The collection period to payment period above 1:1 (100%) indicates that suppliers are being paid more rapidly than the company is collecting from their customers Formula to calculate days of liquidity: Days of Liquidity = (quick assets x 365 days) / years cash expenses. Days of liquidity definition and explanation: The days of liquidity ratio indicates the number of days that highly liquid assets can support without further cash coming from cash sales or collection of receivables Formula to calculate (average) collection period: Collection Period = Accounts Receivable X 365 days Credit Sales Collection Period = 365 days Accounts Receivable Turnover Ratio The average collection period calculation uses the average accounts receivable over the sales period Average) Collection Period definition and explanation: The collection period or average collection period must be compared to competitors to see whether the credit given, and customer risk, is in line with the industry. A high collection period shows a high cost in extending credit to customers Formula to calculate (average) collection period: Collection Period = Accounts Receivable X 365 days Credit Sales Collection Period = 365 days Accounts Receivable Turnover Ratio The average collection period calculation uses the average accounts receivable over the sales period. (Average) Collection Period definition and explanation: The collection period or average collection period must be compared to competitors to see whether the credit given, and customer risk, is in line with the industry. Formula to calculate fixed charge coverage ratio: Fixed Charge Coverage Ratio = (Net Income Before Interest and Taxes + interest + fixed costs) / fixed costs. Fixed charge coverage ratio definition and explanation: The fixed charge coverage ratio indicates the risk involved in ability to pay fixed costs when business activity Formula to calculate margin of safety ratio: Margin of Safety Ratio = (expected sales - breakeven sales) / breakeven sales. Margin of safety ratio definition and explanation: The margin of safety ratio shows the percent by which sales exceed the breakeven point Revenue per employee (net sales per employee) = net sales / number of employees This ratio indicate the average revenue generated per person employed. The revenue per employee (or net sales per employee) ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Formula to calculate number of days inventory: Number of Days Inventory = 365 days / inventory turnover ratio. Number of days inventory ratio definition and explanation: The number of days inventory is also known as average inventory period and inventory holding period. A high number of days inventory indicates that their is a lack of demand for the product being sold. A low days inventory ratio (inventory holding period) may indicate that the company is not keeping enough stock on hand to meet demands. Formula to calculate operating cycle: Operating Cycle = age of inventory + collection period. Operating cycle definition and explanation: The operating cycle is the number of days from cash to inventory to accounts receivable to cash. The operating cycle reveals how long cash is tied up in receivables and inventory. A long operating cycle means that less cash is available to meet short term obligations. Formula to calculate payment period: Payment Period = (365 days x supplies payable) / inventory. Payment period definition and explanation: The payment period indicates the average period for paying debts related to inventory purchases. Payment Period to Average Inventory Period = payment period / average inventory period A payment period to average inventory period above 1:1 (100%) indicates that the inventory is sold before it is paid for (inventory does not need to be financed). (the average inventory period is also known as the inventory holding period) Formula to calculate payment period to operating cycle: Payment Period to Operating Cycle = payment period / (average inventory period + collection period). Payment period to operating cycle ratio definition and explanation: A payment period to operating cycle ratio above 1:1 (100%) indicates that the inventory is sold and collected before it is paid for (inventory does not need to be financed). Formula to calculate capital acquisition ratio: Capital Acquisition Ratio = (cash flow from operations - dividends) / cash paid for acquisitions. Capital acquisition ratio definition and explanation: The capital acquisition ratio reflects the company's ability finance capital expenditures from internal sources. A ratio of less than 1:1 (100 %) indicates that capital acquisitions are draining more cash from the business than it is generating. Formula to calculate capital employment ratio: Capital Employment Ratio = sales / (owners equity - non-operating assets). Capital employment ratio definition and explanation: The capital employment ratio shows the amount of sales which owner's investment in operations generates Formula to calculate capital structure ratio: Capital Structure Ratio = long term debt / (shareholders equity + long term debt). Capital structure ratio definition and explanation: The capital structure ratio shows the percent of long term financing represented by long term debt. A capital structure ratio over 50% indicates that a company may be near their borrowing limit (often 65%). Formula to calculate capital to non-current assets ratio: Capital to Non-Current Assets Ratio = owners equity / non-current assets Capital to non-current assets ratio definition and explanation: A higher capital to non-current assets ratio indicates that it is easier to meet the business' debt and creditor commitments. Formula to calculate debt to equity ratio (financial leverage ratio): Debt to Equity Ratio = Short Term Debt + Long Term Debt Total Shareholders Equity Debt to equity ratio definition and explanation: Debt to Equity Ratio is also referred to as Debt Ratio, Financial Leverage Ratio or Leverage Ratio. The debt to equity (debt or financial leverage) ratio indicates the extent to which the business relies on debt financing. Upper acceptable limit of the debt to equity (debt or financial leverage) ratio is usually 2:1, with no more than one-third of debt in long term. A high financial leverage or debt to equity ratio indicates possible difficulty in paying interest and principal while obtaining more funding. Formula to calculate defensive interval period: Defensive Interval Period = (cash + marketable securities + accounts receivable) / average daily purchases. Defensive interval period definition and explanation: This ratio indicates how long a business can operate on its liquid assets without needing further revenues. The defensive interval period reveals near-term liquidity as a basis to meet expenses Formula to calculate equity multiplier ratio: Equity Multiplier = total assets / shareholders equity. Equity multiplier ratio definition and explanation: The equity multiplier ratio discloses the amount of investment leverage. Formula to calculate financial leverage ratio: Financial Leverage Ratio = total debt / shareholders equity. Financial leverage ratio definition and explanation: The financial leverage ratio is also referred to as the debt to equity ratio. The financial leverage ratio indicates the extent to which the business relies on debt financing. Upper acceptable limit of the financial leverage ratio is usually 2:1, with no more than one-third of debt in long term. A high financial leverage ratio indicates possible difficulty in paying interest and principal while obtaining more funding. Formula to calculate fixed assets to short term debt ratio: Fixed Assets to Short Term Debt = fixed assets / (accounts payable + current portion of long term debt). Fixed assets to short term debt ratio definition and explanation: The fixed assets to short term debt ratio can indicate dangerous financial policies due to business vulnerability in a tight money market. A low fixed assets to short term debt ratio indicates the return on fixed assets may not be realized before long term liabilities mature. Fixed costs to total assets = fixed costs / total assets An increase in the fixed costs to total assets ratio may indicate higher fixed charges, possibly resulting in greater instability in operations and earnings. The fixed costs to total assets ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio Formula to calculate fixed coverage ratio: Fixed coverage = earnings before interest and taxes / fixed charges before taxes. Fixed coverage ratio definition and explanation: The fixed coverage ratio indicates the ability of a business to pay fixed charges (fixed costs) when business activity falls. Formula to calculate debt to equity ratio (financial leverage ratio): Debt to Equity Ratio = Short Term Debt + Long Term Debt Total Shareholders Equity Debt to equity ratio definition and explanation: Debt to Equity Ratio is also referred to as Debt Ratio, Financial Leverage Ratio or Leverage Ratio. The debt to equity (debt or financial leverage) ratio indicates the extent to which the business relies on debt financing. Upper acceptable limit of the debt to equity (debt or financial leverage) ratio is usually 2:1, with no more than one-third of debt in long term. A high financial leverage or debt to equity ratio indicates possible difficulty in paying interest and principal while obtaining more funding. Formula to calculate interest coverage ratio: Interest Coverage Ratio = (net income + interest) / interest. Interest coverage ratio definition and explanation: The interest coverage ratio is also referred to as the times interest earned ratio. The interest coverage ratio indicates the extent of which earnings are available to meet interest payments. A lower interest coverage ratio means less earnings are available to meet interest payments and that the business is more vulnerable to increases in interest rates. Formula to calculate gearing ratio: Gearing Ratio = long term debt / shareholders equity. Gearing ratio (long term debt to shareholders equity) definition and explanation: The long term debt to shareholders equity ratio is also referred to as the gearing ratio. A high gearing ratio is unfavourable because it indicates possible difficulty in meeting long term debt obligations Non-Current Assets to Non-Current Liabilities = non-current assets / non-current liabilities This ratio indicates protection (collateral) for long term creditors. A lower ratio means that there is a lower amount of assets backing long term debt. Formula to calculate operating leverage: Operating Leverage = percent change in EBIT / percent change in sales. Operating leverage definition and explanation: The operating leverage reflects the extent to which a change in sales affects earnings. A high operating leverage ratio, with a highly elastic product demand, will cause sharp earnings fluctuations. Retained Earnings to Total Assets = retained earnings / total assets This ratio indicates the extent to which assets have been paid for by company profits. A retained earnings to total assets ratio near 1:1 (100%) indicates that growth has been financed through profits, not increased debt. A low ratio indicates that growth may not be sustainable as it is financed from increasing debt, instead of reinvesting profits. Short Term Debt to Depreciation = current portion of long term debt / depreciation A short term debt to depreciation ratio of close to 1:1 (100%) indicates that the repayment of long term debt is inj line with the life of the assets. This ratio should be in line with inflation in fixed asset prices Short Term Debt to Liabilities = (accounts payable + current portion of long term debt) / (accounts payable + long term debt) This ratio indicates liquidity. A higher ratio means less liquidity. Formula to calculate short to long term debt: Short Term Debt to Long Term Debt = current portion of long term debt / long term debt. Short to long term debt definition and explanation: The short to long term debt ratio can indicate if a business is vulnerable to a money market squeeze Net Income Increases to Pay Increases = change in net income / change in salaries, wages and benefits This ratio shows whether net income is increasing faster than wages (in dollar terms). A ratio of less than 1:1 (100%) indicates that profitability increases are less than the increases in wages. A recurring ratio of less than 1:1 (100%) indicates eroding profits and is a cause for concern. Profits per Employee (Net Income per Employee) = net income / number of employees This ratio indicate the average profit generated per person employed. Formula to calculate net income to assets ratio: Net Income to Assets = net profit before taxes / total assets. Net income to assets ratio definition and explanation: The net income to assets ratio is also referred to as the return on assets ratio. Net Income to Fixed Charges = net income / fixed charges The ratio of net income to fixed charges is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Net Income to Fixed Charges = net income / fixed charges The ratio of net income to fixed charges is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. Non-operating Income to Net Income = non-operating income / net income Increasing ratios may indicate changes in accounting made to boost profits. Increasing ratios may mean that the business is moving away from its core business Operating Income to Wages and Salaries = operating income / (salaries + wages + benefits) This ratio shows the relationship between operating income and amount of wages and salaries paid. A declining trend indicates a narrowing of margins and is a cause for concern. Percent change in operating income vs. sales volume = % change in operating income / % change in sales volume An increase may indicate higher fixed charges. Formula to calculate cash ratio: Cash Ratio = (cash + marketable securities) / current liabilities. Cash ratio definition and explanation: The cash ratio (cash and marketable securities to current liabilities ratio) measures the immediate amount of cash available to satisfy short term debt Cash Ratio = (cash + marketable securities) / current liabilities The cash ratio (cash and marketable securities to current liabilities ratio) measures the immediate amount of cash available to satisfy short term debt. Formula to calculate cash debt coverage ratio: Cash Debt Coverage = (cash flow from operations - dividends) / total debt. Cash debt coverage ratio definition and explanation: The cash debt coverage ratio shows the percent of debt that current cash flow can retire. A cash debt coverage ratio of 1:1 (100%) or greater shows that the company can repay all debt within one year Formula to calculate current ratio: Current ratio = current assets / current liabilities. Current ratio definition and explanation: The current ratio is used to evaluate the liquidity, or ability to meet short term debts. High current ratios are needed for companies that have difficulty borrowing on short term notice. The generally acceptable current ratio is 2:1 The minimum acceptable current ratio is 1:1 Formula to calculate gearing ratio: Gearing Ratio = long term debt / shareholders equity. Gearing ratio (long term debt to shareholders equity) definition and explanation: The long term debt to shareholders equity ratio is also referred to as the gearing ratio. A high gearing ratio is unfavourable because it indicates possible difficulty in meeting long term debt obligation Formula to calculate quick assets: Quick Assets = cash + marketable securities + accounts receivable. Quick assets definition and explanation: Quick assets are the amount of assets that can be quickly converted to cash. Quick assets are used to determine the quick ratio and days of liquidity ratio. Formula to calculate quick ratio: Quick ratio = (cash + marketable securities + accounts receivable) / current liabilities. Quick ratio definition and explanation: The quick ratio is used to evaluate liquidity. Higher quick ratios are needed when a company has difficulty borrowing on short term notice Formula to calculate working capital: Working Capital = current assets - current liabilities. Working capital definition and explanation: Working capital is the liquid reserve available to satisfy contingencies and uncertainties. A high working capital balance is needed if the business is unable to borrow on short notice Working Capital from Operations to Total Liabilities = working capital provided from operations / current liabilities This ratio measures the degree by which internally generated working capital is available to satisfy obligations. Working Capital Provided by Net Income = net income - depreciation A high ratio indicates that a company's liquidity position is improved because net profits result in liquid funds. Formula to calculate cash debt coverage ratio: Cash Debt Coverage = (cash flow from operations - dividends) / total debt. Cash debt coverage ratio definition and explanation: The cash debt coverage ratio shows the percent of debt that current cash flow can retire. A cash debt coverage ratio of 1:1 (100%) or greater shows that the company can repay all debt within one year Formulas to calculate cash return on assets ratio: Cash Return on Assets (excluding interest) = (cash flows from operations before interest and taxes) / total assets. Cash Return on Assets (including interest) = (cash flow from operations) / total assets. Cash return on assets definition and explanation: A higher cash return on assets ratio indicates a greater cash return. Formula to calculate cash return to shareholders ratio: Cash Return to Shareholders = cash flow from operations / shareholders equity Cash return to shareholders ratio definition and explanation: The cash return to shareholders ratio indicates a return earned by shareholders. Formulas to calculate contribution margin and contribution margin ratio: Contribution Margin = sales - variable costs. Contribution Margin Ratio = (sales - variable costs)/sales. Contribution margin and contribution margin ratio definition and explanation: Contribution margin is the amount generated by sales to cover fixed costs. The contribution margin ratio indicates the percent of sales available to cover fixed costs and profits Current Return on Training and Development = increase in productivity and knowledge contribution / training costs This ratio is a general indicator of the current return on training and development. Formula to calculate gross margin ratio: Gross Profit Margin Ratio = gross profit / sales. Gross margin ratio definition and explanation: Gross profit margin ratio is also called gross margin ratio. To calculate gross profit subtract cost of sales (variable costs) from sales. (i.e. gross profit = sales - cost of sales) Formulas to calculate profit margin ratios: Net Profit Margin Ratio (After Tax Margin Ratio) = net profit after tax / sales. Pretax Margin Ratio = net profit before taxes / sales. Operating Profit Margin (Operating Margin) = net income before interest and taxes / sales. Profit Margin Ratios definitions and explanations: These three profit margin ratios state how much profit the company makes for every dollar of sales. The net profit margin ratio is the most commonly used profit margin ratio. Formula to calculate return on assets: Return on Assets = net profit before taxes / total assets. Return on assets ratio definition and explanation: The return on assets ratio provides a standard for evaluating how efficiently financial management employs the average dollar invested in the firm's assets, whether the dollar came from investors or creditors. A low return on assets ratio indicates that the earnings are low for the amount of assets. The return on assets ratio measures how efficiently profits are being generated from the assets employed. A low return on assets ratio compared to industry averages indicates inefficient use of business assets. Formula to calculate return on investment: Return on Investment Ratio = net profits before tax / shareholders equity. Return on investment definition and explanation: The return on investment ratio provides a standard return on investor's equity. The return on investment ratio is also referred to as return on investment or ROI. Return on Investment is a key ratios for investor Formula to calculate times interest earned: Times Interest Earned Ratio = (net income + interest) / interest. Times interest earned definition and explanation: The times interest earned ratio indicates the extent of which earnings are available to meet interest payments. A lower times interest earned ratio means less earnings are available to meet interest payments and that the business is more vulnerable to increases in interest rates Cash Flow from Operations to Net Income = (cash flow from operations) / net income The cash flow from operations to net incomes ratio indicates the extent to which net income generates cash in a business. A decline in the cash flow from operations to net income ratio indicates a cash flow problem. Cash Flow from Investing to Operating and Financing = cash flows from investing / (cash flows fro operations + cash flows from financing) This ratio compares the funds needed for investment to the funds obtained from financing and operations Cash Flow for Investing vs. Financing = (net cash flows - current portion of long term debt) / (net cash flows from operating and financing activities) The cash flow for investing vs. financing compares funds needed for investment to the funds obtained from financing and operations. Cash Flow from Sales to Total Sales = (cash flow from operations - dividends) / total sales The cash flow from sales to sales ratio indicates the degree to which sales generate cash retained by the business. A positive cash flow from sales to sales ratio means that sales are generating cash flow. Formula to calculate cash flow coverage ratio: Cash Flow Coverage Ratio = net income + depreciation and amortization/total debt payments. Cash flow coverage ratio definition and explanation: The cash flow coverage ratio indicates the ability to make interest and principal payments as they become due. A cash flow coverage ratio of less than one indicates bankruptcy within two years. Cash Flow to Long Term Debt = cash flow / long term debt The cash flow to long term debt ratio appraises the adequacy of available funds to pay obligations. Cash Flow from Operations to Current Portion of LTD = cash flow from operations / current portion of long term debt This ratio indicates the ability to retire debt as currently structured. A ratio of less than 1:1 (100%) indicates that debt is structured to be repaid quicker than the company has the ability to. Formula to calculate net cash flows for investing: Net Cash Flow for Investing = (purchase of fixed assets and securities) / net cash flows from financing activities. Net cash flows for investing ratio definition and explanation: The net cash flows for investing ratio determines the adequacy of debt and equity issuances Operations Cash Flow to Current Liabilities = cash flow from operations / current liabilities If the operations cash flow to current liabilities ratio keeps increasing, it may indicate that cash inflows are increasing and need to be invested Operations Cash Flow Plus Fixed Charges to Fixed Charges= (cash flow from operations + fixed cost) / fixed costs This ratio indicates the risk involved when business activity, and ability to pay fixed costs, falls. Operations Cash Flow Plus Interest to Interest = (cash flow from operations + interest) / interest This ratio indicates the cash actually available to meet interest charges. A ratio of less than 1:1 (100%) indicates insufficient cash flow is being generated to meet current interest payments Sales to Accounts Payable = Sales / accounts payable A high sales to accounts payable ratio indicates the inability to obtain short-term credit on the form of cost-free funds to finance sales growth. Sales to Break-even (or Breakeven) Point = sales / break-even point This ratio reflects the extent to which profits are not vulnerable to a decline in sales. A sales to breakeven point ratio near 1:0 (100%) means that the company is quite vulnerable to economic declines. A ratio below 1:1 (100%) indicates that the company's sales are inadequate to cover fixed costs. Sales to Cash = sales / cash This is sometimes referred to as a cash turnover ratio. A high sales to cash ratio may indicate a cash shortage. A low ratio many reflect the holding of idle and unnecessary cash balances. Sales to Current Assets = sales / current assets A high sales to current assets ratio indicates deficient working capital. Formula to calculate sales to fixed assets ratio: Sales to Fixed Assets = sales / fixed assets. Sales to fixed assets ratio definition and explanation: The sales to fixed assets ratio is often called the asset turnover ratio. Sales to Net Income = sales / net income A declining ratio is a cause for concern. Sales to Total Assets = sales / total assets A low ratio indicates that the total assets of the business are not providing adequate revenue. Sales to Working Capital = sales / working capital A high ratio may indicate inadequate working capital, which reflects negatively on liquidity. Net Income to Assets = net income / total assets This ratio indicates the before tax return on investment Change in Employment = increase/(decrease) in the number of employees This ratio shows how many more (fewer) employees the company has than the previous year. Fixed Labour to Total Labour = fixed labour costs (including benefits) / total labour costs (including benefits) Shows the extent to which labour costs are fixed. A low percent is preferred, especially in industries with volatile demands or seasonality. Labour Cost to Net Income = (salaries, wages and benefits) / net income This ratio measures the extent to which labour costs number of employees x average wage and benefit per employee) affect net income. This ratio indicates the extent to which a reduction in unproductive labour (as a percent of total labour costs) may increase net income Labour Cost to Sales = (salaries, wages and benefits) / sales This ratio indicates the extent to which labour costs must be absorbed into sales prices. Labour Cost to Total Costs = (salaries, wages and benefits) / total costs This ratio measures the extent to which labour is a cost factor Percent Change in People Employed = (( the change in the number of employees) / number of employees in previous year) x 100% This ratio shows the percent growth in number of employees Percent Increase in Wages or Salaries per Employee = ((current year average wage and benefit per employee - previous year average wage and benefit per employee)/ previous year average wage and benefit per employee) x 100% This ratio indicates the percent increase in the average annual income (including benefits) per employee. discretionary costs = advertising + research and development + training + repairs and maintenance costs discretionary costs as a percent of sales = (discretionary costs / sales) x 100% A decreasing trends indicate profit may have come from reductions in discretionary costs which may negatively affect future profits. Formula to calculate equipment replacement ratio: Equipment Replacement Ratio = change in undepreciated assets / depreciation. Equipment replacement ratio definition and explanation: The equipment replacement ratio indicates whether the company is spending sufficient funds on replacing asse Formula to calculate equipment upkeep ratio: Equipment Upkeep Ratio = equipment repairs and replacement costs / total revenues. Equipment upkeep ratio definition and explanation: A decline in the equipment upkeep ratio indicates eroding revenues. Formula to calculate fixed charge coverage ratio: Fixed Charge Coverage Ratio = (Net Income Before Interest and Taxes + interest + fixed costs) / fixed costs. Fixed charge coverage ratio definition and explanation: The fixed charge coverage ratio indicates the risk involved in ability to pay fixed costs when business activity falls. Fixed costs (excluding labour) per employee = fixed costs - fixed labour costs / number of employees The fixed costs (excluding labour) per employee ratio shows the overhead factor (excluding labour) that each employee carries. Fixed costs to total assets = fixed costs / total assets An increase in the fixed costs to total assets ratio may indicate higher fixed charges, possibly resulting in greater instability in operations and earnings. Long Term Return on Training and Development = increase in productivity and knowledge assets / training costs This ratio is a general indicator of the long term return on training and development. An average of several years' ratios should be used to compensate for training and development cost fluctuations Office repairs and supplies per employee = office repairs and supplies / number of employees This ratio shows the cost of office repairs and supplies per employee. This is one factor that may be taken into consideration when planning staff reductions, or budget planning. Percent Growth in Productivity and Knowledge Assets = growth in productivity and knowledge assets / previous year productivity and knowledge assets This ratio indicates the rate of growth or decline in the quality of employees. Phone costs per employee = phone costs / number of employees This ratio shows the cost of telephone charges per employee. This is one factor that may be taken into consideration when planning staff reductions, or budget planning. Productivity and Knowledge Assets = productivity and knowledge contribution x 6 This ratio indicates the amount of assets residing in the knowledge and skills of employees. Productivity and Knowledge Contributed per Employee = productivity and knowledge contribution / number of employees This ratio indicates the average amount of excess net income that each employee adds through experience, training, productivity and creativity. Productivity and Knowledge Contribution = net income - normal return on investment This ratio shows the amount of net income that comes from employees (versus capital). In a competitive environment, margins and profits will be forced to yield normal returns for shareholders. This ratio indicates the contribution of the company being run better or smarter than normal. Repairs and Maintenance to Associated Assets = repairs and maintenance / fixed assets A decreasing trend may indicate a company's failure to maintain capital facilities. Training Costs per Employee = training costs / number of employees This ratio shows the average amount spent on training each employee in the period. A decline may indicate future declines in productivity. An increase may indicate and increase in employee turnover Percent Export Revenues = (export revenue x 100%) / total revenue The percent export revenue indicates the sales volume risk associated with currency risks. Percent Unstable Foreign Assets = (assets in politically unstable countries x 100%) / total assets The percent unstable foreign assets indicates the amount of assets at risk because of political instability of the country (ies) of origin Percent Unstable Foreign Earnings = (earnings from politically unstable countries x 100%) / net earnings The percent unstable foreign earnings indicates the amount of earnings at risk because of political instability of the country (ies) of origin. Average Wage and Benefit per Employee = (salaries + wages + benefits) / number of employees This ratio indicates the average cost (excluding overhead allocations) of each person employed. Fixed costs per employee = fixed costs / number of employees This ratio shows the overhead factor that each employee carries. Fixed costs (excluding labour) per employee = fixed costs - fixed labour costs / number of employees The fixed costs (excluding labour) per employee ratio shows the overhead factor (excluding labour) that each employee carries. Increase in Wages or Salaries per Employee = current year average wage and benefit per employee - previous year average wage and benefit per employee This ratio indicates the dollar amount of increase in the average annual income (including benefits) per employee Office repairs and supplies per employee = office repairs and supplies / number of employees This ratio shows the cost of office repairs and supplies per employee. This is one factor that may be taken into consideration when planning staff reductions, or budget planning. Phone costs per employee = phone costs / number of employees This ratio shows the cost of telephone charges per employee. This is one factor that may be taken into consideration when planning staff reductions, or budget planning. Training Costs per Employee = training costs / number of employees This ratio shows the average amount spent on training each employee in the period. A decline may indicate future declines in productivity. An increase may indicate and increase in employee turnover. Formula to calculate Altman's Z-Score: z-score = 1.2 a + 1.4 b + 3.3 c + d + .6 f e g where : a = working capital, b = retained earnings, c = operating income, d = sales, e = total assets, f = net worth and g = total debt Altman z-score definition and explanation: The Altman z-score is a bankruptcy prediction calculation. The z-score measures the probability of insolvency (inability to pay debts as they become due). 1.8 or less indicates a very high probability of insolvency. 1.8 to 2.7 indicates a high probability of insolvency. 2.7 to 3.0 indicates possible insolvency. 3.0 or higher indicates that insolvency is not likely. Formula to calculate audit ratio: Audit Ratio = audit costs / sales Audit ratio definition and explanation: A high audit ratio indicates that more audit time was required because of problems with the company's accounting records or control procedures. Retained Earnings Growth Rate = (net income - dividends) / common shareholders' equity A lower retained earnings growth ratio reflects the company's inability to generate internal funds Interest Cost of Inventory = inventory x interest rate The interest cost of inventory reflects the interest associated with holding inventory. Insurance, storage, theft and obsolescence costs must be added to the interest cost of inventory when determining the total inventory holding costs Overhead to Total Labour = fixed costs/ variable (direct) labour) costs The overhead to direct labour ratio shows the overhead factor per direct labour dollar. Overhead to Variable Costs = fixed costs / variable costs This ratio shows the overhead factor per variable dollar cost. Formula to calculate quality ratio: Quality Ratio = 1 - (sales returns and allowances / sales). Quality ratio definition and explanation: The quality ratio, or product quality ratio, indicates the extent of acceptance (in dollar terms) of the product or services sold. The analyst should look to see whether the quality is increasing or decreasing. A decrease in the quality ratio indicates declining product quality, which may lead to decreasing sales or profit margins. http://www.bizwiz.ca/financial_ratios_formulas_and_explanations.htm[/align:56e8e7e6d5]

أول خطوة : عليك اتباعها هو قراءة عقد التأسيس ما يعرف articles of Association من خلال هذا العقد يتبين لك معلومات مهمة جدا تحديد طبيعة نشاط الشركة - راس المال الشركاء نسب حقوق الملكية - الصفة القانونية للشركة هي شركة مساهمة -شركة محدودة بناء على هذه المعلومات تقوم بتصميم ما يعرف بدليل الحسابات Chart of Account من خلال فهمك لطبيعة النشاط تستطيع صياغة نوعية الحسابات المطلوبة .

يتم إدخال البضاعة على السعر القديم كمرتجعات يعني على سعر 10$ وحيث انك تستعمل متوسط السعر WAC فكل ما سوف تقوم به هو 10+7 = 17 يقسم على عدد الكمية الموجودة بذلك يكون هناك متوسط جديد والله اعلم

أحسنت يا أخي محمد عبد الرحمن هو خطأ في الطباعة وسوف اقوم بالتعديل عليه السؤال الثاني : من نفس الكتاب ضمن رصيد الآلات والتجهيزات /60000/ دينار آلات مستهلكة دفتريا بالكامل Fully Depreciated منذ بداية 2003 ولقد تم سحبها من العملية الانتاجية ، علما أن لم يعترف بقيمة نفاية ولا يتوقع الحصول على أية قيمة بيعية للنفاية الباقية ، أما باقي الآلات فانها ما زالت قيك الاستثمار وتستهلك وفق القسط الثابت بمعدل سنوي 12.5% ( اي ان العمر الانتاجي لها يبلغ /8/سنوات ) أن مكسب بيع الآلة البالغ /8000/ دينار تحقق في 1/1/2003 حيث تم بيع الآلة نقد بمبلغ /29000/دينار ، ولقد كان مجمع استهلاكها /9000/ دينار ونظرا لآن القيمة الأستبدالية لآلة جديد مماثلة تبلغ /50000/ دينار ، قلقد طلبت منك الأدارة احتجاز هذا المكسب في حساب أحتياطي رأسمالي لاستبدال الأصول الثابتة مباشرة ضمن بنود حقوق الملكية ، دون أن تظهر في قائمة الدخل عام2003 وذلك لضرورة عدم التوزيع هذا المكسب ؟ 350000 الآلات والتجهيزات في الميزان 147000 مجمع استهلاك الآلات والتجهيزات ( الباقي من رصيد أول المدة بعد بيع أحد الآلات ) 8000 مكسب رأسمالي / بيع آلة ( من منطلق بيانات التكلفة التاريخية الأصلية ) كبفية المعالجة الصحيحة

المعالجة المحاسبية للأراضي والمباني : لقد تم إرتكاب خطأين بمخالفت للمبادي المحاسبية المقبولة عموما GAAP وهما عدم فصل الأصلين عن بعضهما وأستهلاك الأراضي عدم فصل تكلفة الأراضي عن تكلفة المباني ، فهما أصلان ذوا طبيعة مختلفة فالأراضي أصل ثابت غير خاضع للأستهلاك ، أما المباني فهو اصل ثابت يتوجب إستهلاكه وفق عمره الانتاجي المحدد وبالتالي لا يجوز دمجهما مع بعضهما في حساب واحد انسجاما مع مبدا الأفصاح التام Full Disclousre كما ان كل اصل لوحده مهم نسبيا Material فلا يمكن تبرير الدمج أيضا لذلك على المحاسب فصل حساب الأراضي واثباته وفق التكلفة التاريخية /80000/دينار واثبات المباني ايضا بتكلفتها التاريخية /90000/ 170000-8000/ خطا استهلاك الأراضي فالأراضي أصل غير قابل للأستهلاك حيث لا تتدنى منافعه المتوقعة مستقبلا بالأستخدام أو مرورالزمن ( عمره الأنتاجي ليس محدد) ولا يمكن اعتبار تكوين مجمع استهلاك الأراضي تطبيقا لقيد او سياسة الحيطة والحذر Conservatism فتكوين مجمع استهلاك لهذا الأصل يعني في الواقع الأمر تكوين احتياطات رأسمالية سرية hidden Reserves وهذا مخالف لمبدأ الأفصاح التام وللتطبيق السليم لقيد الحيطة والحذر وتصبح القوائم المالية غير صادقة التمثيل وبالتالي غير موثوق بها Unreliable . لذلك يجب استبعاد استهلاك الأراضي واجراء التصحيح للازم باعتباره من أخطاء الدورات المحاسية السابقة ويتطلب التصحيح رقم الأرباح المحتجزة Retain Earnings انسجاما مع مطلب النظرية المحاسبية والمعايير الدولية إذا لا يجوز تصحيح أخطاء سنوات سابقة في قائمة دخل الدورة الجارية ( مخالف لفرض استقلالية نتائج كل دورة على حدة ومخالف مبدأ مقابلة الأيرادات بالمصروفات ، ومخالف لضرورة توافر خاصية قابلية البيانات المحاسبية للمقارنة والاستفادة منها في تقويم الأداء والتنبؤ لاتخاذ القرارات ) يتم تحديد مجمع استهلاك الأراضي المكون عن السنتين السابقتين لغرض استبعاده والإبقاء على مجمع استهلاك المباني : قسط الأستهلاك السنوي للأصلين = 10200÷ 2= 5100 دينار معدل استهلاك السنوي المعتمد = 5100÷ 170000= 3% سنويا مجمع إستهلاك الأراضي عن سنتين = 80000× 3% ×2= 4800 دينار 4800 ح/ مجمع استهلاك المباني والأراضي 4800 ح/ الأرباح المحتجزة ويبقى رصيد مجمع استهلاك المباني /5400/ دينار (10200-4800 )عن السنتين السابقتين وفيما يخص العام الحالي 2003 فيتم الإعتراف بمصروف استهلاك المباني واقفاله في قائمة الدخل بمبلغ /2700/ (90000×3%) وبذلك يصبح مجموع مجمع استهلاك /8100/ دينار عن ثلاث سنوات يطرح تكلفة المباني /90000/ باعتباره حسابا مقابلا contra account بيحث تنتج القيمة الدفترية book Value للمباني أخيرا بالنسبة لارتفاع القيمة السوقية للأراضي وللمباني ، فأن المعايير المحاسبية الدولية تتجاهل تغيرات أسعار الأصول خصوصا الأصول الثابتة . إن الموقف العام في التطبيق العملي هو اعتماد التكلفة التاريخية للأصول عنداقتنائها فهناك مجموعة متكاملة من الفروض والمبادي والقيود تؤيد تطبيق منهج التكلفة التاريخية : 1- فرض وحدة القياس النقدي بالعملة الوطنية ، الدينار مثلا ، حيث يفترض أن دينار البارحة يساوي دينار اليوم، أي افتراض عدم تغير القوة الشرائية لودة النقد وبذلك يتم تجاهل تغيرات الأسعار بعد تاريخ اقتناء الأصول وهذا الفرض مقبول عموما من مجلس معايير المحاسبية المالية FASB في الولايات المتحدة ( وهي المجلس المختص بإصدار المعايير وتعديلها ) ومقبول أيضا من لجنة معايير المحاسبية الدولية 2- أعتماد مبدأ التكلفة التاريخية Historical Cost Principle ويتم اشتقاق هذه المبدأ من الفرض السابق . وهذا المبدأ هو من أهم المبادئ المحاسبية المقبولة عموما . 3-مبدأ الاعتراف بالأيرادات الذي يعترف بالإيراد عند البيع ، اي يعرف بالإيرادات وبالتالي الأرباح والمكاسب المحققة فعلآ لذلك لا يعترف بالمكاسب المحتملة الناجمة عن ارتفاع أسعار السوق 4-قيد الحيطة والحذر ، والذي يمكن تسميته أيضا بسياسة التحفظ عند تقوم الأصول . فطبقا لهذا القيد لا يعترف بالمكاسب المحتملة ولكن يعترف بالخسائر المحتملة . ويتضح هذه الموقف بالقبول العام للقاعدة الشهيرة : التكلفة او ا لسوق ايهما اقل 5-يجب أن تتوفر في المعلومات المحاسبية ، حتى تصبح مفيدة في أتخاذ القرارات خاصية قابلية التحقق verifiable ، أي إمكانية تدقيقها والتحقق من صحتها وبالتالي كونها موثوق بها ., وتقدير ارتفاع أسعار الأراضي والمباني ، هو غالبا غير موثوق به ، لعدم توافر سوق نشطة وعدم إمكانية تحديد قيمة عادلة مقبولة من جميع الأطراف المستفيدة من المعلومات المحاسبية . الخلاصة : أن المجموعة النقاط السابقة تؤيد المعالجة المحاسبية المقبولة عموما ، وهي عدم الاعتراف بتغيرات القيمة بعد اقتناء الأصل ، اي اعتماد التكلفة التاريخية وتجاهل تغيرات الأسعار . ولكن، من ناحية ثانية يمكن الإفصاح عن تغيرات الأسعار الأصول في صورة ملاحظات إضافية على القوائم المالية - هذا ما جاء في كتاب مدخل النظرية المحاسبية للدكتور رضوان حلوه انصح الجميع بإقتناء الكتاب [www.darwael.com

لفت انتباهي وانا اقراء في كتاب مدخل النظرية المحاسبية للدكتور رضوان حلوه وجود تطبيقات شاملة محلوله وللحل سوف اقتبس منها بعض الأمثلة ونطرحها للنقاش حتى يستفيد الأخوة من الراي والحل الصحيح لهذه الأمثلة وتعم الفائدة على الجميع ؟ في دورتين ماليتين لعامي 2001و2002 دمج المحاسب الأراضي والمباني في حساب واحد ، واعتمد لها نفس معدل الأستهلاك وفق طريقة القسط الثابت ، علما أن القيمة الدفترية التاريخية للأراضي /80000/ دينار في حين تبلغ القيمة السوقية الحالية للأراضي /95000/ وللمباني /125000/دينار ولقد طلبت منك الأدارة إثبات الأراضي والمباني بقيمتها السوقية حتى نكون القوائم المالية ملائمة وصادقة في تمثيلها للقيم الجارية والأعتراف بالمكاسب الناتجة عن ذلك في قائمة الدخل عام 2003؟ ظهر في ميزان المراجعة استهلاك المباني والأراضي (تراكمي عن عامي 2001، 2002)بقيمة 10200 قيمة المباني واراض في الميزان 170000 المراد هنا ان نقوم بالمعالجة الصحيحة حسب المعايير والمبادي المحاسبية المقبولة عموما ؟ وسوف نقوم بطرح الإجابة الصحيحة بعد الحصول على مشاركات حتى لايقع المحاسبين في هذه الأخطاء الرجاء وضع الحل الذي تراه مناسب وهو تحدي لك لتعرف ان ما تقوم به صحيح- وسوف نقوم بوضع مثال عن أخطاء دارجة والحل بعد المشاركات المهم هو ان تفهما لخطاء وتسعى لوضع الحل