Plant assets are noncurrent physical assets used in business operations. Plant assets include land and buildings. Plant assets are also called fixed assets. The category is sometimes shown on the balance sheet as property, plant, and equipment or PP&E.
Present value is a time value of money (TVM) concept. It is a lump sum of money today or at the beginning of a TVM problem. It is the current discounted value of all future cash flows. Discounting is the process of bringing money to the present. It is the opposite of compounding which is growing money to the future. Financial calculators and Excel use the PV function to calculate present value.
The present value formula includes the following variables: FV = future value, i = periodic interest rate, and n = number of periods.
Assume you will receive $1,331 at the end of three years. If you require a 10% return, what is the present value today? The present value is $1,000. See the following example.
The price-earnings or P/E ratio is a financial ratio where the market price is divided by earnings. It is one of the profitability ratios.
Profit and loss statement
The profit and loss (P&L) statement is also called the income statement. The format of the income statement is revenues minus expenses.
A profit margin is a ratio of profit to sales. A higher profit margin is more desirable.
- net profit margin is net income or net profit divided by sales
- gross profit margin is gross profit divided by sales
Coach Pat Summitt was a legendary basketball coach for the University of Tennessee Lady Vols. She was a champion coach who taught life lessons. She was a pioneer in women's athletics and the game of...
The U.S. median net worth is $258,531 for 70-74 year olds and $272,976 for 75-79 year olds. The median net worth for individuals over 80 is $235,193.