article thumbnail

Data Update 1 for 2024: The data speaks, but what does it say?

Musings on Markets

Thus, I have treated leases as debt in computing debt ratios all through the decades that I have been computing this statistic, even though accounting rules did not do so until 2019, and capitalized R&D, even though accounting has not made that judgment yet. Standard Deviation in Equity/Firm Value 2. Book Value Multiples 3.

Dividends 106
article thumbnail

Data Update 5 for 2022: The Bottom Line!

Musings on Markets

In 2021, companies recovered entirely from the damage done in 2021, at least in the aggregate, with earnings in 2021 higher than 2019 earnings, by almost 33%. To make comparisons, profits are scaled to common metrics, with revenues and book value of investment being the most common scalar.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Brian DeChesare

The company still pays interest on the full $1000 and must repay it upon maturity, but you can buy the issuance at a steep discount because there’s a significant chance of default (see: book value vs. market value vs. face value ). A sharply declining stock price does not necessarily mean a company is “distressed.”

Equity 103
article thumbnail

Lower 2021 thresholds announced for merger reviews under Competition Act and Investment Canada Act

Deal Law Wire

Under the size of transaction test, the value of the assets in Canada or the annual gross revenue from sales (generated from those assets) in or from Canada of the target operating business and, if applicable, its subsidiaries, must be greater than C$93 million. This is down slightly from the 2019 transaction size threshold of C$96 million.

article thumbnail

National Bank Holdings Corporation Announces First Quarter 2022 Financial Results and Agreement to Acquire Rock Canyon Bank

Benzinga

Common book value per share decreased $0.71 Tangible common book value per share decreased $0.69 Tangible common book value per share decreased $0.69 Excluding accumulated other comprehensive loss, the tangible book value per share increased $0.37 Shareholders' equity totaled $820.2

Banking 40
article thumbnail

The Zomato IPO: A Bet on Big Markets and Platforms!

Musings on Markets

I know that for some value investors, trained to believe that anything that trades at more than 10 or 15 times earnings or at well above book value, this argument suffices, but given how badly this has served them over the last two decades, they should revisit the argument.

article thumbnail

META Lesson 2: Accounting Inconsistencies and Consequences

Musings on Markets

Until accountants came to their senses in 2019 , they routinely treated a large segment of leases as debt, with questionable reasons, and skewed operating margins, returns on capital and debt ratios in lease-heavy sectors like retailing and restaurants. Since net income increases by the same magnitude, the company generated $42.5

Finance 97