Welcome to....







Order Currently Published Books by the Author

Educational Library
Type of Securities Investment Strategies Fundamental Analysis Technical Analysis
Understanding Financial Statements Income Statement Analysis Balance Sheet Analysis Cash Flow Analysis Shareholders' Equity Analysis Ratios and Definitions


Balance Sheet Analysis

 - Leverage and financial
   strength affect share value

 - Liquidity concerns can
   decimate a business

 - Cash is critical, to a point
    * Window Dressing
    * Cash Gap
    * Cash Per Share
    * Burn Rate

 - Marketable Securities

 - Receivables are interwoven
    with cash flow
    * Past Dues and Write-offs
    * Receivables turnover ratios
    * Securitizations

 - Inventory - focus on the
   profit margins
    * Perpetual vs. Periodic
       Inventory
    * Inventory Accounting
       Calculation
    * Inventory Costing Methods
    * Lower of Cost of Market
    * Inventory Categories
    * Inventory Turnover Ratios

 - Fixed assets are necessary in
   order to be a world class
   company

 - Liabilities with equity attributes
   are enriching

 - Emphasizing debt net of cash
   can be misleading

 - Book value is a tool to
    properly evaluate a stock

 - Off-balance sheet assets and
   liabilities are legal

 

 


Cash Gap

The cash gap is the time between paying for inventory and other bills and collecting cash from the sales of products or services. The company, therefore, needs to cover the shortage by borrowings or raising equity. Stretching payables, utilizing just-in-time inventory or emphasizing credit card payments will lessen the need for financing. The bigger the gap the more resources are needed to cover the shortage; thus, profitability is reduced and leverage increased. The shorter the cash gap, usually the more profitable and efficient the organization, and the higher its market value.  

The Cash Gap

 

Click here for information on:
Window Dressing
Cash Per Share
Burn Rate

 

 

Need a Financial Advisor ? Business & Franchising Opportunities Featured
Companies
Financial
Institutions
Other
Opportunities
Made It ?
Spend It !
Risks, Uncertainties and Disclosures

 


Donations - Help Keep This Site Free!

 

| Home | Getting Started | Bank Savings | Equity Instruments | Bonds | Treasury Securities | Agency Securities | Derivatives |
| Funds | Annuities | Value Investing | Growth Investing | Income Investing  | Market Capitalization Strategy
| Momentum Investing | Technical Investing | Buy and Hold Strategy | Buy What You Know | Contrarian Investing | Turnaround Investing |
| Tobin’s Q | Responsible Investing | ADR's  | Global Investing Strategy | The Dow Theory  |  Odd-Lot Theory  |
| Election Cycle Theory  | Dow Dividend Theory | Penny Stocks | IPOs | Dollar Cost Averaging | Drips | Risk Tolerance  |
| Introduction to Fundamental Analysis | Income Statement Analysis | Balance Sheet Analysis | Cash Flow Analysis |
| Shareholders’ Equity Analysis | Ratios and Definitions | Technical Analysis | Type of Charts | Chart Reading | Oscillators |
| Chart Overlays | Chart Patterns | Elliot Wave Theory | Spinella Heart Rate Theory | Fibonacci | The Envelope System |
| Time Value of Money | Exchanges | IndexesAsset Allocation | Retirement Savings | Site Map |

Click here: To save on ordering any of "The Chestnut and Cedar Stock Report's" books.