If you’re buying a finished item for resale, this is relatively easy. It’s trickier if you have to calculate all the factors, such as labour, that go into manufacturing a product. .
Earthlink Inc. (ELNK). This internet provider is second to AOL in terms of dial-up subscribers. For fiscal year 2005, it incurred a $ 47.1 Million of depreciation cost. Meanwhile, total depreciable long-term asset stood at $ 190 Million, giving Earthlink 4.03 years to fully depreciate its long term asset.
No hard-and-fast rule will tell you how much debt is appropriate for a particular company, because levels of indebtedness can vary across industries. To get an idea of whether a company is overburdened by debt, divide its assets by its equity. The result is the company’s financial leverage.
There are three main repayment plans for most student loans: graduated, extended, and income-based repayment. Each of these plans offers different features that will cater to different needs. If you believe your salary is going to increase rapidly then a graduated plan may be best for you. If you are not able to make the recommended payments, an extended or income-based plan may be best. Learn about the different options available to you, and choose the one that puts you in the best financial position going forward.
Think of FCF as the deposit you put in a savings account after paying your regular monthly bills. If this deposit keeps increasing, you should feel pretty good about the state of your finances. On the other hand, if your deposit starts shrinking or if you need to dip into your savings account just to tread water, you know some serious financial problems may be lurking just around the corner.
Don’t buy a property just because it is a “steal”. Consider all the costs of buying the property, including any needed repairs, utility bills, property insurance and taxes, and risk of vacancy. If possible, make a cash flow examples, or ask for a cash flow examples from the prior owners of the property (if it was used as a rental property). Collect as many documents as you can which detail the property’s utility and other costs.
The annual report is the best source for this kind of information. Be sure to read the shareholders letter, as well as the presentations of the company’s product lines. Those are also part of the company’s SEC filings.