Are you financially stable ? or Are you currently insolvent ?
You can diagnose and predict your finance, personal finance or company finance by yourself and I can help you with some solutions:
You need to calculate your numbers:
A = working capital
B = total assets
C = retained earnings
D = earnings before interest and tax
E = market value of equity or total capital
F= total liabilities
G = sales (annual sales)
A=Working Capital = Current Assets – Current Liabilities
B= Total Assets the combined amount of a company’s FIXED ASSETS and CURRENT ASSETS as recorded in the company’s BALANCE SHEET. This shows all the assets used by a company regardless of how they are financed.Total Assets = The sum of all cash,investments,furniture, fixtures, equipment, receivables, intangibles, and any other items of value owned by a person or a business entity.
C= Retained earnings are the cumulative net earnings or profit of a firm after accounting for dividends and are sometimes referred to as the earnings surplus. Retained earnings are the net earnings after dividends that are available reinvestment in the company’s core business or to pay down its debt.
D= Earnings Before Interest & Taxes (EBIT) is an indicator of a company’s profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is calculated as:EBIT = Revenue – Operating ExpensesorEBIT = Net Income + Interest + Taxes
E= Market value of equity
is the total dollar market value
of all of a company’s outstanding shares
. Market value of equity
is calculated by multiplying the company’s current stock price by its number of outstanding shares. A company’s market value of equity is therefore always changing as these two input variables change. A company’s market value of equity differs from its book value
of equity, because the market value of equity does not consider the company’s growth potential.
If the market value of equity can not be calculated then take the book value of capital of the company, or your total personal capital.
F= Total Liabilities refer to the aggregate of all debts an individual or company is liable for and can be easily calculated by summing all short-term and long-term liabilities, along with any off balance sheet liabilities that corporations may incur.
G= Sales: operating revenues earned by a company for selling its products or rendering its services. Also referred to as revenue, they are reported directly on the income statement as Sales or Net sales.
With all of these, you could evaluate and predict your finance:
1.- Your personal or corporate credit risk.
2.- If you are probably headed for bankruptcy, insolvency, or you are not likely to go bankrupt, and how that strong financially you are.
3.- Or to determine whether you should buy or sell a particular stock if you are concerned about the underlying company’s financial strength.
4.- Also I can help you with some possible finance, marketing and management solutions to try to improve or fix your personal finance or company financially if it were the case.