Excel Maritime Carriers Ltd.(fka EXMCQ)

[eddy2]

http://finance.yahoo.com/q/bs?s=DIS+Balance+Sheet&annual


My lead in yesterday was with the topic of a Orlando Mall that was to take us to the topic of Micky Land.


You may notice that there is no Capital surplus on Micky's balance sheet and as well very little liability as debt but plenty of other debt in a different form. you may also notice that there is still a whopping retained earnings and that is what we will talk about today and just how one looks at this item on the balance sheet.

First one has to take into account that on every quarter that there is a snap shot taken of earnings. These earnings may not be delivered as of yet but are held in depreciation tax gains, administration expense tax advantage gains as well as accounts receivable gains when these accounts are brought up to date and paid by customer who ever that customer maybe be it one of your own or other wise.


Now because this retained earnings is due noted in one snap shot that does not mean there will be a double exposure to those same earnings the next quarter what takes place should the debt not be paid is that it will be added to the liability on the balance sheet until paid as well as interest charges.


So how can a company increase the liability on it sell and make it look to the untrained eye as if liability debt is going out of control due to none payments by its customers when in fact this is not the case at all.



Look back at Micky's world a world were little new capital is required to grow that brings little market risk to the stock that has a nice steady growth upwards for the most part and most important no capital surplus as noted in the shares of BP that had a huge disaster in the gulf covered by there liability underwriters were today there is little insurance left for tomorrows risk.