Earnings before interest and taxes

because they can potentially influence negatively the company’s cash and revenue. On the other hand, the gearing ratios show a disconcerting image, whre the company relies heavily on lending. The good part is that it’s capable of fully covering the interest payments, thus giving it the opportunity to move forward with acquisitions that are part of its strategy. Based on the above mentioned data, it is our strong belief that BASF SE is a company worth noting, but requires cautiousness when…

Supplemental 53,064 45,177 35,981 Cash Interest Pd, Suppl 1,786 895 492 Cash Taxes Pd, Supplemental (http://stocks.us.reuters.com/stocks) ANALYSIS…

years with a salvage value of $30,500. The cash outlay for the machine the first year will be $305,000 then depreciation of $32,786 for seven years ending with an after-tax salvage value of $18,300. Next, earnings are estimated to be $60,000 per year before interest, depreciation, and taxes (EBITDA). As indicated previously, depreciation is estimated to be $32,786 per year and the tax rate is 40% so the net income per year is projected to be $16,329 for the life of the machine. Finally,…

There are several taxes which the people of US have to face they are income tax, capital gains, sales tax. The federal tax and the state tax are two different taxation systems, where the state tax has other divisions too under the various states payment system. Each state has its own taxation system which is different from the other states and the state does not interferes in the taxation matters of the other states and the government too does not interfere in the state affairs. Taxes are…

stance of lowering taxes, opponents dispute how fiscal conservatives can actually balance the budget, as it is difficult to balance the budget while also lowering taxes. The loss of tax revenue, without economic growth, puts more pressure on the government to fund programs and expands the debt required to fund current government spending. However, according to the economic theory – the Laffer Curve – proposed by Chicago economist, Arthur Laffer, it is possible that a decrease in taxes for…

passes $19 trillion. The U.S. has recently been through war and a recession causing debt to accumulate, if the United States doesn’t take action through the creation of citizen and company funded trust to reinvigorate the economy to pay off the interest, it will be forced to default on loans and cause mandatory government services to shut down. The United States debt has…

presented there are several financial ratios interpreted. Retailers like Kroger typically focus on six of the ratios found on the spreadsheets. They are the current ratio, quick ratio, gross profit margin, inventory turnover, return on assets, and interest coverage ratio. For this…

Activity: operating Activity includes the activity which is going to contribute for manufacturing the product. • Revenue : amount earned from sale. Sales revenue, Interest earned. • Collection from debtor also known as Accounts receivable: money which going to receive from customer • Inventory: stock available for sale • Expenses: Interest payable, tax , selling and administration expenses, cost of goods sold. • Payment to Creditors. 2. Investing Activity: it includes Investment which going…

current stockholder, who is in need of cash. The issue here is not to determine the exact price for the stock, but rather whether Watson Leisure Time Sporting Goods represents an attractive investment situation. Although Mr. Thomas has a primary interest in the profitability ratios, he will take a close look at all the ratios. He has no fast and firm rules about required return on investment, but rather wishes to analyze the overall condition of the firm. The firm does not currently pay a cash…

The biggest problem the U.S. government facing is that it does not know how much money taxpayers own in the Tax Havens. But, no country in this world can force other countries to change their regulations and laws, so the U.S. cannot ask another countries to change their laws to satisfy the U.S.. The effective way to limit the harmful effects is to ask other countries to share the information with the U.S. In May 2009; OECD removed Andorra, Liechtenstein and Monaco from the list of Uncooperative…