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Aug 4, 2020 • 11 tweets • 2 min read
What Is Liquidation?
Liquidation in finance & economics is the process of bringing a business to an end & distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.
As company operations end, the remaining assets are used to pay creditors & shareholders, based on the priority of their claims.
The term liquidation may also be used to refer to the selling of poor-performing goods at a price lower than the desired or cost to the business.
Aug 31, 2019 • 21 tweets • 3 min read
What Is Valuation?
Valuation is the analytical process of determining the current (or projected) worth of an asset or a company. There are many techniques used for doing a valuation.
An analyst placing a value on a company looks at the business's management, the composition of its capital structure, the prospect of future earnings, and the market value of its assets, among other metrics.
Apr 29, 2019 • 27 tweets • 4 min read
Understanding Off-Balance Sheet Financing
Off-balance sheet (OBS) financing is an accounting practice whereby a company does not include a liability on its balance sheet. It is used to impact a company’s level of debt and liability.
Common forms of off-balance sheet financing include operating leases and partnerships. Operating leases have been widely used, although accounting rules have been tightened to lessen the use.
