Weighted Average Metrics for Income Statement and Balance Sheet formoney losing companies to determi

Discussion in 'Accounting' started by 2.7182818284590..., Apr 6, 2010.

  1. REVENUE________ 1.00000000
    COGS_EXPENSE___ 0.73653587
    GROSS_PROFIT___ 0.26346413
    EBITDA_EXPENSE_ 0.96698689
    EBITDA_________ 0.03301311
    EBIT_EXPENSE___ 1.08160911
    EBIT___________ -0.08160911
    TOTAL_COSTS____ 1.10018924
    NET_PROFIT_____ -0.10018924

    Since these companies don't pay taxes, their total interest payments
    are only 1.84% of revenues. Therefore, a financially distressed
    company is mostly caused, not by high interest payments, but by very
    high fixed costs, such as COGS and S&M/Marketing/R&D.
    2.7182818284590..., Apr 6, 2010
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  2. 2.7182818284590...

    Rod Speed Guest

    They do actually, just not income taxes.
    That utterly mangles the real story.

    They mostly go broke because not enough are buying what they are selling.

    You only get very high fixed costs when they arent selling much.
    Rod Speed, Apr 6, 2010
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  3. I agree with your opinion as well. Keep in mind, if the revenues
    increased, than the debt/revenues would DECREASE. It wouild be less
    than 1.84% of revenues.
    2.7182818284590..., Apr 7, 2010
  4. 2.7182818284590...


    Aug 13, 2015
    Likes Received:
    can you help me?

    I have this situation:

    Clients: 167080


    The gross profit: 167080-147812= 19268

    Administrative Expenses : 10143

    The net Profit is 9125

    The Corporation tax is 1825

    The debtors and the creditors are 0 because what was paid also was cashed.

    i Have some difiiculties completing the Trial balance
    Alexandra.Dumitriu, Aug 13, 2015
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