Sunday, March 11, 2018 1:34:15 AM
So half of the share holders deficit owed is the paying back of the tax rebate.
So let’s say there was $1.50 of treasury owed and a $1 of share holders deficit how much of the treasury is contributed too the tax rebate that was issued on the $1 of capital raised. Well it’s $.50. You could take the $.50 and deduct it from the $1.50 and be left with a $1 of tax’s owed.
How much revenue was generated if there was a $1 of depreciation. Well all toll there was $2.00 worth of revenue. How much profit was generated. In this particular case zero yet there was a $1.50 in tax’s owed to the goverment.
Everyone can see the $.50 owed on the tax rebait but the head scratching is why the other $1 of tax’s.
This brings us to following the money over to the credit that was offered out “receivables”. You may be asking your self why then is there tax’s charged on something not yet received. The answer to that is the depreciation that is allowed to be taken off the revenue to obtain the profits.
Let’s take a moment and look at the charges you would charge your customer on your depreciated assets. The company just purchased a very expencive piece of equipment for a $1 that has a service live of ten years. The equipment can be depreciated 10% a year. The first year $.10 is depreciated. The second year 10% of $.90 is allowed so now it’s less then the previous year.
You wouldn’t charge your customer $.10 one year and five years down the road a lot less. You would equal the charges over the time period or service live of the machinery you purchased.
So in the beginning of the cycle there is a deficit and toward the end of the cycle you would have a positive cash flow.
This is of course if the numbers are being met.
Now comes the curve ball at you. The stock falls to where it’s below the projected future earnings. The company buys back the shares with money borrowed. This becomes now a double tax whammy to the company. Borrowed money is money that has been previously taxed and your now using that money to buy back shares that has a tax debt associated with the equity.
This brings us to the formula EBIDA and why this is crucial in validating a stocks value.
I hope this information helps others in understanding the complexity in the numbers. Don’t be fooled just cause there is treasury stock that it’s time to buy the stock. If the assets are under water relative to the liability depending if there is more credit then debt and who is holding the debt of the credit. If it’s the company holding the debt of the credit the share holders put up along with the tax rebate from the government then there is good debt and bad debt in the mix.
We will leave it there for now. Good luck.
Recent FCX News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/28/2024 09:30:54 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/07/2024 07:57:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/23/2024 12:16:11 PM
- Freeport Second-Quarter and Six-Month 2024 Financial and Operating Results Release Available on Its Website • Business Wire • 07/23/2024 12:00:00 PM
- U.S. Index Futures Dip Slightly as Investors Await Major Earnings Reports, Oil Prices Edge Up • IH Market News • 07/23/2024 10:04:07 AM
- Freeport Commences Commissioning of New Indonesian Smelter and Provides Update on Second-Quarter 2024 Copper and Gold Sales • Business Wire • 07/02/2024 01:22:00 PM
- Freeport-McMoRan Declares Quarterly Cash Dividends on Common Stock • Business Wire • 06/26/2024 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 09:41:23 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/12/2024 08:13:07 PM
- Freeport CEO Kathleen L. Quirk to Receive The Copper Club’s Ankh Award • Business Wire • 06/11/2024 02:22:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:39:03 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:38:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:38:38 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:38:01 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:37:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:37:28 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:36:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:36:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:35:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:34:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 09:45:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 09:44:46 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/08/2024 08:39:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/07/2024 09:56:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/06/2024 08:13:32 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM