Musings on Markets

FEBRUARY 23, 2025

Using this distinction, all interest-bearing debt, short term and long term, clears meets the criteria for debt, but for almost a century, leases, which also clearly meet the criteria (contractually set, limited role in management) of debt, were left off the books by accountants.

Equity 77

Equity EBITDA Risk Premium Gross Debt 77

Musings on Markets

JANUARY 5, 2024

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

Dividends Risk Premium Equity Book Value 106

Brian DeChesare

SEPTEMBER 13, 2023

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

Equity Banking EBITDA Start-ups 103

Musings on Markets

FEBRUARY 27, 2022

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.

Start-ups 99

Start-ups Equity Book Value Marketability 99

Musings on Markets

NOVEMBER 10, 2022

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 98

Finance Start-ups Equity Equity Financing 98