You should only look at the Fixed Asset purchased i.e. the line item called PPE in the cash flow statement. This item will also approximately match with the additions during the year to Gross Block in the Fixed Assets schedule. Investments are usually deployment of surplus cash in liquid funds, bank deposits etc. which is not capex. But sometimes there is a separate line item for long term strategic investments such as acquisitions made during the year. Qualitatively this also should be considered as capex.
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Thanks appreciate your input. In case company do investment on its subsidiary and JV’s this too should consider for the CAPEX right ?
Yes that’s akin to capex.
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Can anyone help me understand why this kind of bulk transactions happen? On what circumstances an entity would sell and buy stock within a same day.
This is a fairly common practice that I observe but never understood the intent behind it.
These trades happen to benefit from the gain from the difference between purchase and sold price which is in decimals but with large quantities of shares. Although it looks like this is a loss making trade. Bought at 136.37, sold at 136.02.
The stock is Geekay Wires, if anyone wants to know.
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Thanks. So the lesson learnt is, for small caps such trades can skew the volume leading to false impression of big player coming in. And not all volume spikes are meaningful.
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how to find out volume growth in a company? which documents should i read it for this? @Donald @sahil_vi
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Volume growth will be usually mentioned in company quarterly presentation. During quarterly con call (if they are conducting)company mangement gives answer about volume growth by analyst. You can find concall audio recording on youtube channels( like trendlyn,alpha street) and concall transcript will be available on company website. If company is not conducting concall ,usually each year annual report will have data on volume growth.
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i was analzsing Rpg life science annual report and investor presentation. But there is no mention of volume growth in terms of products.
is it mandatory for the companies to share volume growth related data with the shareholders?
in which portion of annual report, is volume growth related info mentioned? please help me. i face difficulty finding such kinds of data
If I have to calculate how much of net profit is being reinvested in the business (year-on-year) then how do I do that looking at BS, CF and income statement. Thanks in advance
Per my understanding:
- Profit accumulates under ‘Reserves’ in the B/S.
- Reserves get invested in either ‘operational’ or ‘financial’ assets.
- Since your aim is to find the amount invested in the operational assets, you should minus both Investments (in financial products) and Cash Equivalents from the Reserves to arrive at the net profit reinvested in the business (year-on-year).
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Whatever is not paid out is by implication re-invested in the business. So, the answer is “PAT minus (dividend & buybacks)”.
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If a company sells a product then how to find out what is the profit margin per product?
HI
Can you give some example of DCF method to find the valuation of a company.
I want to learn DCF.
This is one. Check it out.
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There is no regulatory requirement to report margins at product level. The best place will be investor presentation where some companies might share such information by different lines of business/product category.
check our VP thread:
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3.pdf (438.2 KB)
Go to page number 6.
Aditya Khemka asks:
And my second question is on the breakup of our domestic revenue growth. So, we have seen some 20%-odd growth. Can you break it up into volume, price and new product introductions
please?
Yugal Sikri replies:
In terms of the three components of growth, happy news is that the majority of growth is coming
from the volumes, which is 12%-plus. And you’d have seen that the industry, we have around (-
0.8%) growth. So, we have 12% growth coming from the volume, around 4.5% from the price
increasing and remaining coming from the new product introductions.
Usually earnings call do have some specific questions that might not be covered in annual report.
Hope this helps!
thanks a lot @vansh1208