Subscribe to this topicForums > Dragon Global Diversified Public Forum > Topic: Financials
| Dec 14th 2007, 12:26 Gedeon Zehetbauer |
Financials | |
| Hello Maelstrom, I looked over your financials. At first there seems to be a mistake in the balance sheet, your income statement shows under Retained earnings a loss of 3009 L$ for november, but in your balance sheet I see a profit of 248,011.52 L$ for the same position? Btw were did you get these 0.52 Linden cents from, I have never seen Linden cents:-) Well a mistake, or a math that i do not understand? Second thing is if I take you october financials your cash on base of your income statement should be 515,163.16 L$ (also with cents) but you report 656,820.17 L$, that means you earned 98,657.01 L$ more than your income statement shows, thats really positiv for DGD, but unreproducible. I hope you can help with this things |
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| Dec 14th 2007, 12:52 Maelstrom Baphomet |
Re: Financials | |
| The income statement has a notation on investment values, that the exact gains and losses cannot be calculated because of the different reporting methods and styles of the exchanges. It'd take processing the financial data ten times longer if I tried to calculate trade gains as I process hundreds to thousands of transactions/month in some cases and it'd be impossible for me to run all those numbers without them being presented by the exchanges in some form of summary statement. That said, the calculations for the 3009 negative value was the loss on actual hard operations, not investment value, which makes up a very small part of the fund. The loss on retained earnings was also because we paid a dividend. So the question may be why would we pay a dividend when our operational margins were so low. The answer is in our investment value. In order to determine how much "profit" the overall company made the best tool to me right now is in fact the balance sheet. When there is a discrepancy after all data is filled in, the only explanation is a change in traded holdings. So, for better or for worse, I use that number for retained earnings on the balance sheet Also, the retained earnings on the balance sheet each period are calculated on an ongoing basis, in other words, they sum. If you've noticed, the retained earnings on the balance sheet gradually rises from period to period.. (so far). This rise is the growth of the fund's combined equity and operations positions. The reason we ended up paying a dividend was based on the balance sheet retained earnings numbers because it reflected a strong gain on our investment holdings. That, and our NAV had also increased on a healthy level based on the non-capex financial report compared to previous periods. So, in summary, the numbers are accurate, they're just not calculated in the normal method GAAP utilizes due to the sad reporting standards on most exchanges in this market. When the exchanges begin to present summarized data in a unified or even similar format then it will be able to calculate more precisely the value of investment performances and interest gains in a short time frame. |
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| Dec 14th 2007, 12:53 Maelstrom Baphomet |
Re: Financials | |
| Loss on retained earnings on the income statement, was because of a dividend. (wish we could edit) | ||
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| Dec 14th 2007, 12:59 Maelstrom Baphomet |
Re: Financials | |
| Let me try explaining it one other way.. Operations + Equity Returns = Profit or Loss Operations = -3009 because of a dividend. Equity Returns = ? Until the balance sheet is filled out. Value of the fund - Value of the fund for the previous period = True Profit or Loss reflected on the balance sheet as retained earnings difference from the previous period. |
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| Dec 14th 2007, 13:00 Maelstrom Baphomet |
Re: Financials | |
| This means the #'s you are really looking for.. THe true profit and loss which are determined by the retained earnings of the balance sheet.. are at the main bottom of that page. ESTIMATED land income + investment returns based on changes on balance sheet: 79,006.01 (Retained Earnings differential from last period to this one.) ESTIMATED EPS: 0.13 (Above/Common Stock Value) Dividend Declared PS: 0.005 |
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| Dec 14th 2007, 13:04 Maelstrom Baphomet |
Re: Financials | |
| And there's a note on the retained earnings which explains why it is so high: ******************************************* Retained Earnings * (TAKE DIRECTLY FROM LINE 523 of INCOME STATEMENT) ####Retained earnings takes into account previous months accumulations.#### ******************************************* The pounded segment is the important part. THe retained earnings are cumulative. So even though it's showing 200k+ that's including 6 months of operations. I should remove the bracketed section as it is irrelevant to the way by which I utilize these sheets. I can't use line 523 because it's only accurate for physical operations, not equity operations. |
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| Dec 14th 2007, 13:06 Maelstrom Baphomet |
Re: Financials | |
| I hope this helps. I'm really horrible with explanations sometimes, though as usual I do my best. | ||
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| Dec 14th 2007, 13:16 Maelstrom Baphomet |
Re: Financials | |
| One last note. In like manner.. the changes in cash flows are changes in operational cash flows, not changes based on equity value changes. It's on hard operations.. the rental operations. | ||
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| Dec 14th 2007, 13:21 Maelstrom Baphomet |
Re: Financials | |
| Oh, and also, needed to add; the .52 cents is likely interest or investment gains. You cannot get L Cents in SL, but you can in an SL bank or stock exchange! :-) | ||
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| Dec 14th 2007, 13:34 Gedeon Zehetbauer |
Re: Financials | |
| well that was really a quick answer, I am impressed:-) I understand the problem, what I would suggest is to take the stock exchange accounts as a black hole and valuate the investment only on base what you deposited. So you only have to count what you deposit and withdraw from the account and fill it into the income statement as "gains from investments". so your income statement would show realistic profit and would be more transparent. Just a suggestion |
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