RABCPA PC Blog

We are familiar with the stock market, but less familiar with the credit market. However, the credit market dwarfs the stock market in transactions and in market value. Trillions of dollars are traded on the credit markets each week. In a nutshell, credit markets are generally trade government and corporate bonds. If you are a believer in wisdom of the crowd, you will closely follow the credit markets. Depending on the demand for a particular bond interest rates will fluctuate and reflect the thinking of the market participants. For example, if the crowds are thinking that a recession is around the corner they will pile into bonds driving the rates down. Anyone following the credit markets will quickly be aware of what the general feeling of consumers are.

Posted February 25, 2017 by Robert A Bonavito in Forensic Accounting

Essentially, companies create value for their owners by investing cash to generate more cash in the future. The three important drivers in order to determine core value for a company are growth, return on invested capital (ROIC) and cash flow. The interplay of these three characteristics can be seen in successful companies.  As a company grows it usually creates more cash flow and at the same time increases return on invested capital.

Posted February 16, 2017 by Robert A Bonavito in Business Valuations

There is a trend to expenditures and income, this trend closely follows a persons age. Naturally, for most of your life your income has to exceed or equal your expenses otherwise you would go bankrupt. However, in your early 20s studies show that your expenditures do actually exceed your income. In your 30s 40s and 50s the trend of income exceeding your expenditures makes sense, since you’ll be saving for retirement and unplanned expenses. By your 60s and 70s income and expenses level off.

Posted January 28, 2017 by Robert A. Bonavito in Matrimonial & Divorce