article thumbnail

Bank Profitability: Decoding the Income Statement

Tom Spencer

The interest rate set by the central bank serves as a benchmark or reference rate for banks. It reflects the bank’s assessment of potential losses it may incur and its commitment to maintaining a strong balance sheet. Indirect tax refers to taxes imposed based on the consumption, sale, or use of goods and services.

Banking 88
article thumbnail

Can an Expense Be Profit?

Martinka Consulting

Last month a friend referred me to a business owner wanting to sell his company. Sales were down from 2014 and expenses were up. His balance sheet is a mess. ” It included the usual suspects like his salary, his wife’s salary, benefits, car (used to make sales calls), etc.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Repair Regulations: Limiting Business Deductions

Women in Consulting

into office supplies, these items must now be put on the balance sheet and depreciated and tracked. Any purchase of non-consumable items over $200 must be separately tracked and depreciated. Instead of lumping items like cheap printers, phones, routers, etc.

article thumbnail

Getting Your Deal Done

Martinka Consulting

You may think it sexy to make something but if you’re a sales type with no manufacturing experience it’s probably a road to disaster. Have a strong balance sheet. I recently saw a business for sale and on the surface it looked great, with $1 million of earnings. I’ll know it when I see it doesn’t work.

article thumbnail

6 Reasons Inflation is Higher than You Think

Tom Spencer

This is already impacting home sales, and Fannie Mae forecasts home sales will fall for the next 2 years. While the total assets on the Fed’s balance sheet are currently more than $8 trillion , there is more than $57 trillion of total debt in the US economy. A period of aggressive QE could persist for some time.

article thumbnail

How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

Of course, there are also myriad books and reference guides on the topic. A finance textbook or reference guide is a good investment; but “Google works too,” he says. See More Videos > See More Videos > Tackle the balance sheet. “They’re not hard to calculate. Play with numbers.

Finance 28
article thumbnail

Banks – Industry Overview

Tom Spencer

In secondary markets, the sales & trading function operates as a market maker. Banks refer to interest rate risk as “asset sensitive” or “liability sensitive”. Banks have huge balance sheets well in excess of their equity value due to all deposits being liabilities – the balance sheet is the business.

Banking 12