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Such tasks as reconciling accounts, monthly closing, preparing financial statements are part of the accounting cycle and are typically managed by accounting departments. This can lead to burnout, missed deadlines, and a loss of focus on high-value activities.
The Variables As I mentioned at the start of this post, this entire exercise of collecting and analyzing data is a selfish one, insofar as I compute the data variables that I find useful when doing corporate financialanalysis, valuation, or investment analysis. Profit Margins 1. Costs of equity & capital 1.
I was reminded of that paper a few weeks ago, when Fitch downgraded the US, from AAA to AA+, a relatively minor shift, but one with significant psychological consequences for investors in the largest economy in the world, whose currency still dominates global transactions.
That said, it does mean that any broad conclusions (about profitability and revenues) that emerge from my data apply to public companies, and it may be dangerous to extrapolate to private businesses, especially in a year like 2020 where private businesses could have been affected more adversely by COVID shutdowns than public companies.
RITHOLTZ: So a lot of companies that go public then have a valuable currency they can use for acquisitions. And so today, I think that part of the IG fixed rate corporate bond market, obviously part of the real estate, and we’ve been talking at length about that, we have to suffer some of the pain or losses in some way shape or form.
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