Ignore the Balance Sheet at Your Own Risk

Martinka Consulting

He told me something that’s stuck with me when he said how as an operator he was concerned with the profit and loss statement but as a deal person he found an appreciation for the balance sheet and its importance. The balance sheet tends to get overlooked by many businesspeople, sellers, and buyers, which is a shame. The balance sheet is filled with information, some of which is: How does the company manage its cash flow and what level of working capital is needed?

Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? MISHS. Global Economic.

Fed Openly Discusses "Permanently High Balance Sheet"; Lie Finally Admitted

MishTalk

Merits of Not Shrinking the Balloon When the Fed first launched QE, they stated they had the "tools" necessary to shrink their ballooning balance sheet. Once the Federal Reserve lifts interest rates from near zero, likely this week, the focus will turn to the other legacy of the crisis-era policies: the Fed's swollen balance sheet. A " permanently higher balance sheet.

Financial Engineering Chart of the Day: Fed Balance Sheet vs. S&P 500

MishTalk

Fed Balance Sheet vs. S&P 500 I was playing around with some ideas on the St Louis Fed "Fred" database and came up with this. Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific

Central Bank Balance Sheets: What Will They Look Like in 2016-2017?

MishTalk

Central Bank Policy Rates Current Rates Bank of England: 0.50% Bank of Japan: 0.10% Fed: 0.00%-0.25% (currently 0.14%) ECB: 0.05% Central Bank Balance Sheets Three Questions Other than asset bubbles, what do we have to show for this?

Apple's Balance Sheet Math: Does Apple Really Have $203 Billion in Usable Cash on Hand as Widely Reported?

MishTalk

Current Liabilities Cash Much Smaller Than You Think I don't often dive into balance sheets, but did so after reading a Market-Watch opinion by Brett Arends. billion in “off-balance-sheet” liabilities.

What a Business Financial Statement Can Tell You About the Health of Your Business

Tom Spencer

Business Strategy balance sheet business planning cash flow statement financial statements income statementWhen you run your own small business, it can be difficult to keep an objective distance from what you do. Bills come in, sales go out, you have your day-to-day goals and you watch the curvy line of profit and loss make its inexorable progress throughout the financial year.

Consultant Ninja: A Simple Question about the Credit Markets.

Consultant Ninja

Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. I realize that is a gross simplification, but if the gist is right, it leads me to a simple observation: Why doesnt the government just give long-term loans to the healthy banks (building up their balance sheets) so that they can loan to businesses? I am a strategy consultant at.

5 Ways Your Data Strategy Can Fail

Harvard Business

Paradoxically, “data” appear everywhere but on the balance sheet and income statement. Mint Images/Getty Images. There are plenty of great ideas and techniques in the data space: from analytics to machine learning to data-driven decision making to improving data quality.

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Debate Over Fed's Exit Strategy Continues: Bernanke vs. Dudley vs. Yellen

MishTalk

Yesterday, former fed chair Ben Bernanke said " No Need for Fed to Shrink Balance Sheet ". The Federal Reserve does not need to shrink its $4 trillion-plus balance sheet by even "a dime" for it to normalize monetary policy when the time comes, former Fed Chair Ben Bernanke said on Monday. Bernanke said Thursday, in a change of tone on how the Fed will execute its exit strategy from crisis-era interventions.

Flip the Switch

Martinka Consulting

One of the first things I do when I see financial statements is check if the year-to-date income on the P&L is the same as the year-to-date income on the balance sheet. It is tough to manage a business, be in control, and implement (a new) strategy. Business Buying Exit Strategies Increasing ValueRecently I got an e-newsletter from my friend Allan VanderHamm with Berntson Porter.

Beware of Incomplete Information

Martinka Consulting

” She deciphered this by looking at the third quarter P&L and an October 23 balance sheet. ” Sure enough, the company’s job system and accounting system only sync at the end of the month so the drop in net income, as per the mid-month balance sheet, was fiction. Business Buying Exit Strategies Increasing Value Weekly MemoTime goes fast. Years whiz by, quarters, months, and weeks come around too soon.

Mergers & Acquisitions: Valuation

Tom Spencer

LAST post, I highlighted the importance of strategy when considering the viability of a potential acquisition; however, before a final decision can be made, a consultant needs to estimate the value of the target company. “Price is what you pay. Value is what you get.”

You Don’t Need to Be a Silicon Valley Startup to Have a Network-Based Strategy

Harvard Business

For most companies intellectual property is something that sits on their balance sheet. Different companies can pursue quite different platform strategies based on what kinds of capital they choose to network together. Growth strategy Business models Social platforms Digital ArticleThe success of platform companies like Airbnb, Amazon, and Netflix has led to envy bordering on despair for their competitors.

Nothing Magical About 2% Inflation Target Says Bernanke

MishTalk

Bernanke also made the case in his presentation for keeping the Fed’s balance sheet big in the aftermath of the financial crisis. [Is Most other major central banks have permanently large balance sheets and are able to implement monetary policy without problems,” he said.

Can an Expense Be Profit?

Martinka Consulting

His balance sheet is a mess. Marketing strategies have to be tried and you have to realize they won’t all work. Business Buying Exit Strategies Weekly MemoLast month a friend referred me to a business owner wanting to sell his company. His primary motivation was he’s burned out and the driving force for the burn out is 2015 was not a good year financially. Sales were down from 2014 and expenses were up. But this is not the point of the story.

Swiss Gold Referendum in Perspective

MishTalk

After the implementation of the EURCHF floor, gold’s share of the SNB balance sheet has fallen to 7.5% from around 30% in 2007 (top chart) [SNB Balance Sheet]. Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific

One Track Minds Means Inefficiency

Martinka Consulting

I see a bunch of single issue councilmembers with no big picture focus or strategy. A friend doesn’t believe in business plans, strategy, metrics, job descriptions, etc. From bidding (his expertise), to sales (he was good once it got to the technical part), and accounting (of which he knew almost nothing, especially regarding the balance sheet). I look across the lake (figuratively) at Seattle and its City Council.

"Whatever It Takes" Stage Two; Headwinds Explain Why Draghi Will Fail This Time

MishTalk

Having already cut interest rates to record lows and saying they can go no lower, Draghi is now focused on boosting the ECB’s balance sheet. We are quite confident that the impact on our balance sheet size will be adequate, will be significant, will be sizable,” Draghi said.

Mish's Global Economic Trend Analysis: Reader Question: Does the.

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? The feds balance sheet doesnt reflect it. Feds Balance Sheet. Fluctuations in repo balances.

New Tools! More Pure Bank Profit!

MishTalk

Inquiring minds are monitoring the Fed''s Balance Sheet. One more week like this and the FED balance sheet will be $1 trillion more than last year at this time. Three rounds of so-called quantitative easing have enlarged the Fed’s balance sheet to almost $3.8

Tools 78

Review: BCG 2016 M&A Report

Consultants Mind

M&A-heavy shops like GE, Cisco etc will think about strategy, survey competitors and landscape, assess opportunities, and capture synergies better than those companies who casually, or nervously fall/get trapped into an acquisition. 2015 was a blockbuster M&A year.

Report 190

Finding the Perfect Fit

Joellyn Sargent

You seek new opportunities that align with your strategy, instead of changing your strategy to accommodate random opportunities. Think about this: Business fitness includes a strong balance sheet. Leadership Managing customer experience leadership marketing strategy Have you ever had to give up your favorite pair of pants because you gained too much weight? If so, you know how uncomfortable it can be when what should fit really doesn’t.

Reader Question on Banking System Insolvency, QE, and "Necessity"

MishTalk

reader Dave, a friend, noted that as the Fed jacked up its balance sheet, velocity has mirrored the curve to the downside. Dave asks " Can''t an argument be made that since much of the banking system is really insolvent, that the Fed increasing its balance sheet is necessary? " "Necessity" This depends on what you mean by "necessary" and more importantly, who gets to decide. In response to Will Prices Rise Significantly When Velocity of Money Picks Up?

Steen Jakobsen: US Credit Cycle Peaked, Zero Growth Coming to Europe, Gold 1425 by Year End

MishTalk

Central Bank Balance Sheets Excuse me? Hard even to see change in ECB balance sheet. Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific

Draghi Pressures ECB to Buy "Junk-Rated" Loan Bundles of Greece and Cyprus

MishTalk

On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB''s balance sheet by another €1 trillion. Bundesbank president Jens Weidmann, who also sits on the ECB’s policy making governing council, has already objected to the plan to buy ABS, which he says leaves the central bank’s balance sheet too exposed to risks. In this case, the stench on Greek bank balance sheets will not go away.

Former Fed Governor Thomas Hoenig Says US Banks Undercapitalized, Unsafe, and Unsound

MishTalk

In a recent speech, Mr. Hoenig noted that under American accounting rules, derivative holdings add $300 billion to the balance sheets of five top banks — JPMorgan Chase, Citigroup, Bank of America, Goldman Sachs and Morgan Stanley. This higher capital ratio is achieved by reducing on-balance sheet assets by a pre-assigned risk weight and excluding off-balance sheet assets, such as derivatives.

ECB Now a Hedge Fund; €1T Bazooka; ECB Promotes Euro Carry Trade; Draghi Has it Backwards

MishTalk

Question: Mr Draghi, you said that the new measures and the TLTROs will have a sizeable impact on your balance sheet. So all this makes a precise estimate of the impact that these transactions will have on our balance sheet very complicated, especially at the stage when none of these operations have as yet been undertaken. The second aim is to steer, significantly steer, the size of our balance sheet towards the dimensions it used to have at the beginning of 2012.

Another "Print Your Way to Prosperity" Mindless MMT Proposal

MishTalk

The Fed’s tapering merely slows the growth of its balance sheet. The rarely admitted truth, however, is that there is no need for central banks’ balance sheets to shrink. They could stay permanently larger; and, for some countries, permanently bigger central-bank balance sheets will help reduce public-debt burdens. Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific

Profile of Success: Dave Ramsey

Consultants Mind

He is unafraid to describe your spending habits as crazy, your relationships as broken, or your investment strategies as stupid. Basically, pay off my credit cards monthly, never carry a balance. Dave Ramsey. This is a famous radio host from the United States who I listen to regularly.

Reflections on "Paper Reserves" of Central Banks; Gold and the Tapering Disconnect

MishTalk

In Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific

Why Financial Statements Don’t Work for Digital Companies

Harvard Business

This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement. For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. Let’s first look at the balance sheet. steven moore for hbr.

Can the Fed Really Print Money? What Would Negative Interest Rates Do?

MishTalk

Despite the unprecedented increase in the Federal Reserve’s balance sheet, growth in M2 over the first nine months of this year fell below its average rate of growth over the past 115 years, a time when the growth in the monetary base was stable and quite modest.

Greek default in all but name - Tom Spencer consulting blog

Tom Spencer

Over the last few decades, countless risky financial products were sold to investors using harmless sounding terms like “credit default swap”, “mortgage backed security”, “special purpose vehicle” and “off-balance sheet financing”. Business Strategy. About. Book Shop. Archive.

US Corporations Take Huge Losses on Venezuelan Currency

MishTalk

Overall, foreign companies have an estimated $16 billion in outstanding dividends listed on their balance sheets that they have not been able to return to headquarters, according to Caracas-based research firm Ecoanalitica.

Two-Week Price Inflation in Argentina hits 30%, US Products Lead the Way; Currency Devaluations Hit P&G Earnings

MishTalk

P&G, which in January announced second quarter earnings results that were already feeling the ill effects of foreign exchange rates, said Tuesday afternoon that it would incur a charge between $230 million and $280 million, or 8 cents to 10 cents per share, a one-time charge resulting from revaluing its Venezuelan balance sheet in the wake of a change in the way the Venezuelan bolivar is valuated. Price of many goods in Argentina soared in the past two weeks.

Would a Bund by any other name smell as sweet?

Tom Spencer

Thirdly, European banks are currently focused on building their balance sheets not on lending. Dexia has around $700 billion on its balance sheet, but like many banks it requires access to short term funding. Business Strategy. About. Book Shop. Archive.

Economic Illusions vs. Reality; Helicopter Drop, What Else?

MishTalk

Our conclusion is that, in a financially-challenged economy like the Eurozone, with policy rates close to the ELB, and with excessive leverage in both the public and private sectors, balance sheet expansion by the central bank alone may not be sufficient to boost aggregate demand by enough to achieve the inflation target in a sustained manner. The balance sheet of the Swiss National Bank has expanded even more impressively, again with no discernable impact on the inflation rate.

Austria "Bad Bank" Goes Bad, $8.5 Billion "Bail-In" Underway

MishTalk

The step, allowed by new legislation that gives banking supervisors more power to intervene, followed an outside audit of Heta''s balance sheet that exposed a capital hole of up to 7.6 Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific This entire notion that you can take bad assets from a bank and put them in a "bad bank" to make everything well, is ridiculous. Today we see yet another failure of the construct.

Capital Flight from Italy High and Rising

MishTalk

Italy has a relatively stable current account surplus, increasing Tarhet2 liabilities reflect a surge of financial outflows in the balance of payments. Data of the balance of Payments have been published until August 2015.