“Comment, question or quotation of the day”

18-12-2018 : Daily quote

Nobody on Wall Street knows how to predict the financial markets.
Bernard Madoff

17-12-2018 : Question asked on the Vernimmen.com website

Why in a construction company stocks are low and how to track the work-in-progress line that is important?   For a construction company, inventories are often low because it is supplied daily by its dealer in building materials, and it is the one which carries the bulk of inventories in this sector.   It is necessary to monitor over time the evolution of the item Work in progress in relation to the item Customer advances; and when Work in Progress grows faster than or exceeds the Customer Advances line, beware. This is either a sign of poor management, because in this sector customers are asked to pay as work progresses and well-managed companies always charge customers a little in advance of the completion of the work. Or the sign of a fraud if losses on a construction work are hidden by an overstatement of Work in progress, which do not forget, are nothing from an accounting point of view but costs that have been taken out of the P&L account to be written into an asset on the balance sheet, which improves the result in the P&L. Have a nice day.  



Glossary

The Vernimmen.com glossary provides definitions for a couple of thousands of financial, stock market or economic terms.
This financial dictionary allows beginners to progress in their learning of finance and to experts to cease the precise meaning of a sentence.

Quiz

The Vernimmen.com Quiz offers over 300 questions with answers to progress in your understanding of finance and to test your knowledge.
Questions are sorted by key topics (financial analysis, investment and stock markets, value, financial engineering and financial management).

Survey

We frequently ask our readers to give us their point of view on a specific topic.
You will find here the current survey with the to-date status of answers as well as past polls.

Financial data

Thanks to our partner Infinancial, we can offer on this page financial data on over 16 000 groups around the world.
Updated several times a year, this database offers information sometimes hard to find elsewhere (beta, …)



The Vernimmen.com Letter

Number 116 of November 2018

News : When accounting impacts on financial management decisions

Statistics : Yield curves

Research : The importance of annual report readability

Q&A : What's a debt wall?

COMMENTS : Comments posted on Facebook