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What does this tell you? (Note, it's for a small indy weeaboo

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What does this tell you?

(Note, it's for a small indy weeaboo shop in the UK)
>>
>>1504779

The asset position is bad. If it suddenly needed to liquidate assets to pay a bill or some shit it would struggle to do it. It clearly has liabilities far in excess of its assets (such as cash, receivables, fixed assets, etc).

It's probably not doing very well and is something you shouldn't invest in
>>
>>1504779
It tells me basically nothing- those are 4 numbers with literally no context to put them in.
>>
>>1504787
For context, I'm not involved with this business (but I do dislike the owner for personal reasons). I stumbled across duedil and found that you can pull this kind of info on a business for nothing, which I found surprising. I don't get the business lingo tho, which I why I'm here.

I understand what an asset is (and I *think* in this case it means their current assets are worth less now than what they paid for originally). I don't get the term "liabilities" though. Is that things like rent on the building, debts owed to other parties, that kind of thing? So higher number is worse?

>>1504802
This is the state of a certain business in the UK as of June 2016. (the date of the last annual returns sent to Companies House)
>>
>>1504811

An asset is cash (such as on hand or in a bank), receivables (cash not yet received for sales, or services), and fixed assets (inventories, which are the stores of materials, products to be sold, tools, equipment, etc).

Current Liabilities are things that have to be paid for, due usually within 1 year, such as debts to banks for loans, accounts, interest, bonds, dividends, reserve for taxes.

Current Liabilities are basically debts incurred by the company during its normal operation of business
>>
>>1504811
I think you would be better served spending some time on Investopedia.
>>
>>1504828
cheers,

>>1504832
You're right. I haven't really got the income to be investing in anything at the moment though, and I'm quite risk adverse anyways. I've done a little forex trading, but then Brexit happened and a lost about £50, which scared me off.
>>
>>1504877

forex trading, binary options, cryptoshit stuff, is exactly all the shit you don't do when you are poor, are new, or are a massive pleb.

Learn how to read financial statements, then read about passive investing, namely index trackers, and then about investing in stocks for the long term.

Day trading or short term stuff is all a giant meme that you will lose money on constantly unless you are lucky or have insider info.
>>
>>1504885
Funnily enough, I just logged into my forex account. Over the course of about 6 months I've made a whopping profit of £0.04. Gosh.

Thanks for advice. I expected /biz/ to bite my head off once I revealed that I know nothing. Cheers.
>>
>>1504891
Nothing wrong with knowing nothing, as long as you're determined to learn. Nobody is born knowing everything.
>>
>>1504891

Charles Stanley is a good online broker for the UK, it's the one I use. Also, most people here don't know anything or make any money either. You'll find there are very few legit threads about stocks, and those that are, shill really terrible companies.

Jim Slater's The Zulu Principle, Graham's Intelligent Investor, and his Interpretation of Financial Statements (which is in reprint right now) are good places to start.
>>
>>1504891

Actually, start with Tim Hale's Smarter Investing, and read monevator too
>>
>>1504907
>>1504902
>>1504901
Fantastic. I'll get started right away. I didn't expect this thread to rekindle my interested in investing and all that. Thanks again!

Just to double check, the business in the OP is doing crap, then?
>>
>>1504910

Not entirely possible to tell, because Net Assets refers to total assets less total liabilities. The number on the right is just current liabilities, and we have no information about current assets against the non-current assets.

We also don't know how much of the assets are receivables, how much money the company is borrowing, how much cash flow the business has, and other important stuff.

But just from its asset position, which is indeed a quite important thing, it's not looking good
>>
>>1504910
>Just to double check, the business in the OP is doing crap, then?
There's no way to tell based on that information alone. For instance, just because a company has high debt doesn't mean it's bad. They could be taking on extra debt so they can expand. When looking at all of these variables, you have to look at the broader picture.
>>
>>1504923
>>1504915
Fair enough. I'll deffo read those books so I know for the future how much info is enough to tell)
(If you like, the link to the business is here - https://beta.companieshouse.gov.uk/company/06900794/filing-history

https://www.duedil.com/company/06900794/page-23-limited)
>>
>>1504931

Looks like it has 986 quid of current assets, and 36K of current liabilities, so that's not good.

They claim their total assets less current liabilities is 35K, so they must have a lot of non-current assets coming from somewhere which aren't mentioned.

Not much info in their tiny account sheet. Nothing at all said about revenue or cash flow, which is of vital importance when you're trying to see how healthy a business is
>>
>>1504950
Just ordered Smarter Investing.

DESU, I drive past that shop all the time. I never see anyone inside. It has a reputation for being overpriced and whenever it comes up in conversation, the one line I always hear is: "it's a nice shop, but I'd rather just get it on eBay. Cheaper."
>>
>>1504964

You might also care to get "How to read the financial pages" by michael brett.

I got it at the suggestion of Jim Slater, whose book I love. You can get it secondhand off uk amazon for 1 penny.

Smarter Investing is about passive investing in mutual funds, which are great because smart people use your money to try and make a return, without doing any fancy-pants shit and trying to beat the market or time it.

The book focuses on how the best investors are ones who accept they aren't geniuses who can beat the market, and are simply happy with getting an adequate return.

You might care to google Jim Slater's article on the telegraph for his book recommendations. Unsurprisingly, he recommends his own book, the Zulu Principle, once you can read financial accounts. And I think it's a great one
>>
>>1504811
>duedil

What is the US equiv of this?
>>
>>1504988
No idea. Try googling "company information US" (as opposed to UK). Is what I did.
>>
>>1504977
All 5 books should be winging their way to me now. Late nights ahead.
>>
>>1505004

Good, I hope you enjoy reading Benjamin Graham, he really is fantastic. His authoritative writing from back in the the 30s and on really comes across amazingly.

If you want an absolutely tome of a book, which is pretty advanced, I suggest you check out the classic 1940 edition reprint of Security Analysis.

Warren Buffet has high praise for Security Analysis, and said the Intelligent Investor is the greatest investing book ever written.
>>
>>1505012
Thanks for the help anon.
Thread posts: 24
Thread images: 1


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