Annual "Total Average Opening" = (Year of the Year total assets + year assets Total) ÷ 2
If you want to calculate the total amount of an average assets, the calculation is calculated as follows: Total average assets of the average assets of 2002-2004 have been used as an example of the total amount of assets. "= (2002 total amount of total assets + total assets of 2003 + total assets total amount of assets) ÷ 3
Registered capital is the company's debt assumentation Responsible to enter the asset section.
The total investment is the total assets investing in investors, including the registered asset part, and the total investment is minus the registered asset part.
The total assets on the balance sheet is the profitable property, which is equivalent to the sum of the owner's rights.
The total investment and registered capital are specified in the company's charter. Registered capital is mandatory, and the total investment is an investment intention. It may not be in place.
The total amount of the average assets refers to the average value of the number of enterprises and the number of years, the total amount of assets is = (total number of assets, total number of assets) ÷ 2.
Right multiplier is a static indicator, this algorithm called average equity multiplier.
Right Multiplier is also a multiplication of share capital, which means that the total asset is equivalent to the multiple of shareholders' equity. Represents the level of debt, the maximum number of rights and interests, the higher the level of corporate liabilities.
The reciprome of shareholders 'equity ratio is called the equity multiplier, that is, the total assets is how many times the shareholders' equity. The larger the multiplication, indicating that the capital investment in shareholders is smaller in the asset. It is used to measure the financial risks of the company.
equity multiplier calculation formula
equity multiplier = total assets / total shareholders' equity = 1 / (1-balance rate).
Example: According to the relevant data of the balance sheet, calculate the number of rights and interests at the end of 2001 in 2001. Right payment rate is the percentage of net profit and average net assets, also called net value returns or net asset yields.
formula: Net profit / average net asset * 100% of which: average net assets = (Year of the year, net assets + year net assets) / 2
assets / owner's equity total = 1 ÷ (1-balance rate)
equity multiplier = 4500/2430 = 1.85
Equity multiplier effects
The number of equity is large, It shows that enterprise liabilities, generally lead to higher enterprise financial leverage, and have a large financial risk, and you must seek an optimal capital structure in business management to get appropriate EPS / CEPS, thereby maximizing corporate value. If the borrowing capital cost rate is less than the company's asset remuneration, the borrowing fund will first generate an avoidance effect (debt interest tax before deduction), increase EPS / CEPS, and the lever is expanded, enabling corporate value to increase the debt. However, leverage expansion also increases the bankruptcy of enterprises, and bankruptcy risk will reduce the company's value.
The number of equity is multiplier, and the total assets that represent the company are several times more of the owners' rights. The larger the equity multiplication, the larger the financial leveraged multiples on behalf of the company, and the company will bear greater risks. However, if the company's operating conditions are just in the upward trend, higher equity multiplication can create higher corporate profits, and generate a positive incentive effect on the company's stock value through improving the shareholders' equity of interest.