Hi Serenity,
When analyzing stocks for myself using your tool, I am having a bit of trouble when attempting to find (on the companies balance sheet) the correct values for "Current Assets" and "Current Liabilities."
Firstly, I often find values for both "TOTAL Current Assets" and "OTHER Current assets". Im unsure which should be used?
Secondly, again regarding finding the "Current Assets" and "Current Liabilities." I'm told on GuroFocus that there for Banks and Insurance companies.
Below is an example: (I wasn't sure which link type would work, sorry for the repeats...)
<img src="https://i.imgur.com/ch4dKjf.png" />
Thank you so much for any advice, and i love your site!
Sincerely,
Justin Barracosa
Submitted by Justin Barracosa. Created on Tuesday 26th May 2015. Updated on Monday 10th February 2020.
Total Current Assets
Dear Justin,
Thank you for your kind words!
> "TOTAL Current Assets" and "OTHER Current assets". Im unsure which should be used?
The column used on Serenity for Current Assets is Total Current Assets.
> I'm told on GuroFocus that there for Banks and Insurance companies.
There appears to be a typo in your question. Could you please clarify that line?
The image from your query is displayed below.
Financials Example - BAC
Thanks!
Thanks!
Can i also assume that TOTAL current liabilities would be used for "Current Liabilities?
Wow, sorry about that brutal typo, im not sure what happened there. Allow me to re-phrase:
Im told on GuruFocus (a website) that banks and Insurance Companies (and see so for myself) do not have (Total) Current assets or Current liabilities...
Any advice on that?
Thank you.
Total Assets and Equity:Debt
Dear Justin,
> Can i also assume that TOTAL current liabilities would be used for "Current Liabilities?
Yes, Serenity does use Total Current Liabilities for Current Liabilities.
> banks and Insurance Companies do not have (Total) Current assets or Current liabilities...
Financials, Utilities and other stocks that don't report Current Assets and Current Liabilities are to be evaluated using Total Assets and Equity:Debt instead.
Total Assets and Equity:Debt
Understanding the relationship between total assets, equity, and debt is vital for assessing financial health. Total assets represent everything owned, while equity is the difference between assets and liabilities (or debt). Monitoring these metrics helps gauge solvency, leverage, and overall financial stability.
Graham's framework
Dear ashdeep,
The Quick Reference has Graham's own recommendations for the said metrics.
Thank you for your informative comment!