Planet Earth was here before we were and she is our home, so why do we as humans treat her the way we do? It could be because it’s easier for us to not care, or maybe it’s just something some don’t think about. More and more people are choosing to live and eat a plant-based lifestyle, some would refer to this as pescatarian, vegetarian, or vegan. If you don’t know what the difference of these diets/lifestyles are, I’ll give you a quick breakdown. Pescatarians are those who chose to abstain from eating meat, but still consume seafood in their diets. Vegetarians also chose to abstain from eating meat, but also in this case, seafood. Vegans are the “most” plant-based of them all, abstaining from all animal-based food products and everyday products. This includes anything that comes from an animal including milk that comes from animals, butter made with animal’s milk, and even products such as honey. People chose to live these lifestyles for many reasons, but usually it’s either for dietary restrictions, or to better the environment. How we all choose to live our lives according to the environment and planet we live on, matters. Here’s a breakdown on how much water it takes to make a cheeseburger.
Now that’s a whole lot of water. But don’t worry…in 2023 there are so many alternatives to your normal beef burger. Plant-based burgers (see bottom of chart above) are still delicious, some even taste exactly like a beef burger, if that’s what you’re going for, and it’s environmental impact is so much less. It’s so important to keep in mind how much water goes into a pound of beef, pork, or chicken. This is how much power you have as a consumer of food everyday and guess what? You don’t even have to conform to a lifestyle label! Even if you cut back on your consumption of meat it would help so much, or if you only chose to eat chicken which takes a lot less water to produce than other meats such as beef or sheep.
There’s so much to learn and the choices you make, have so much effect. All it takes is a little bit of knowledge and some empathy for the world around us. It’s time for us to give back and if you want to open your eyes even more, I listed a few great documentaries about eating and the environment below.
Food Inc.
Cowspiracy
Seaspiracy
What the Health
What we choose to eat affects SO much and it’s not just water consumption
The rich are getting richer, The middle class is consuming it self from with in. Aliens have infiltrated the highest ranks in society with plans to take over the world. The earth is over populated, and working class people have no way out. Only Two man stand between them and us (George Nada )played by 80s wrestling superstar Roddy Piper. A man with nothing to lose and everything to prove, and ( Frank Armitage ) played by Keith David. A working class man that doesn’t play by the Rules. “They Live” is an action packed trill ride written in the classic stylings of critically acclaimed writer, director, and musical composer “John Carpenter” based off the 1963 short story “ Eight O’Clock in the Morning” by Ray Nelson.
“They Live” will leave you asking the questions is the system rigged against me ? Am I a follower or a Leader ? So put on your Favorite pair of Ray Ban Sunglasses, Run don’t walk and get ready for the most gut punching, bubble Gum Chewing 80’s Cult Classic action Sci-Fi adventure movie of all Time. ( John Carpenter’s) “ They Live” will keep you entertained from start to finish with out of this world fight scenes and Campy one liners like “ I have come here to chew bubble gum and kick ass. And I’m all out of bubble gum” No matter the time, No matter the day, No matter the year “They Live” will find that special place in your at home movie collection next to other Carpenter classics such as The 1982 Horror/ Sci-Fi Film “ The Thing” staring “ Kurt Russell” and “Keith David” or The 1986 Action Fantasy “ Big Trouble in little China” also Staring “Kurt Russell” and “Kim Victoria Cattrall “best known for her role on the hit 1998 HBO television show “ Sex and the City” So find a friend grab some pop corn, put on your favorite streaming platform or spend some cash and own it for life, because ( John Carpenters) “ They Live “ does not disappoint.
See this link for detailed explanation of present value of annuity concepts. FVORD represents the total amount paid against the loan with interest. C) Calculate the total amount of interest Andy will have paid on the mortgage over the 30 years. It is worth noting that this formula was first introduced in Section 3.3. The net present value (NPV) of an investment opportunity can be obtained by deducting the present value (PV) of initial investment from annuity pv formula the present value (PV) of cash inflows. The management of Graham Inc. has identified an investment opportunity requiring an initial cash outlay of $80,000.
You are asked to determine the interest rate that your company would be paying under the four-payment option. Often we know the present value, the number of payments, and the interest rate, but we do not know the amount of the recurring payments. Thus, the selling of a loan contract needs to calculate the present value of all remaining annuity payments in the term.
Andy made a down payment of $40,000 on an apartment and secured a mortgage for the rest of the purchase price. He has agreed to repay this mortgage with end-of-month payments of $1,580 for 30 years at a 3.45% annual interest rate compounded monthly. Thus, the formula gives us the current value of all the payments that will happen in the future where the discount rate or the rate of return is predetermined. This present value denotes the amount which an investor will invest now so that they can get a fixed payment in the future.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. This slight difference in timing impacts the future value because earlier payments have more time to earn interest. Imagine investing $1,000 on Oct. 1 instead of Oct. 31 — it gains an extra month of interest growth. Now let’s explore annuity due, where payments happen at the beginning of each period.
The time, represented by the number of periods (n), significantly impacts the present value of an annuity. As the number of periods increases, the present value of the annuity decreases. Hence, this is because the longer it takes to receive future cash flows, the more they are discounted to reflect the time value of money. In some instances, you may need to determine the number of payments in an ordinary annuity. For example, for how many months could you withdraw $100 from an investment account with a present value of $2,581, if the fund earns 12% per year compounded monthly. The fund begins on June 1, 2025 and the first monthly withdrawal takes place on July 1, 2025.
Capital investments often require an initial investment and then generate a series of cash flows – much similar to annuities. Therefore, to know the true profitability of a project, managers must know the concept of annuities and their present value. Just to clarify, in the following annuity formulas, we refer to the ordinary annuity.
Instead of doing the same calculation twenty times, you look up a factor once and multiply.
In simple terms, we can say that if one has money now, they can invest that money and enjoy returns on that money, so automatically, the value of money gets appreciated.
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Understanding this context helps you better evaluate offers and set realistic expectations when calculating the present value of your payment stream.
Hence, this is because the longer it takes to receive future cash flows, the more they are discounted to reflect the time value of money.
Retirement Planning: Key Financial Metrics
For example, if an individual could earn a 5% return by investing in a high-quality corporate bond, they might use a 5% discount rate when calculating the present value of an annuity. The smallest discount rate used in these calculations is the risk-free rate of return. Treasury bonds are generally considered to be the closest thing to a risk-free investment, so their return is often used for this purpose. The discount rate reflects the time value of money, which means that a dollar today is worth more than a dollar in the future because it can be invested and potentially earn a return. The higher the discount rate, the lower the present value of the annuity, because the future payments are discounted more heavily.
While future value tells you how much a series of investments will be worth in the future, present value takes the opposite approach.
The bonds will generate an interest income of $25,000 each year for the company for a five-year period.
There is a five-step process for calculating the present value of any ordinary annuity or annuity due.
The difference affects value because annuities due have a longer amount of time to earn interest.
An Annuity is a type of bond that offers a stream of periodic interest payments to the holder until the date of maturity.
Understanding Interest Rates and the Time Value of Money
These recurring or ongoing payments are technically referred to as annuities (not to be confused with the financial product called an annuity, though the two are related). Given this information, the annuity is worth $10,832 less on a time-adjusted basis, so the person would come out ahead by choosing the lump-sum payment over the annuity. Equipment leasing decisions hinge on comparing tax advantages (5-7 year depreciation schedules with diminishing bonus depreciation) against lease interest rates (6-13% for creditworthy businesses). Rating agencies like Moody’s and S&P evaluate several factors when assessing structured settlement securitizations. They examine whether the settlement was court-ordered (generally considered lower risk) or a non-court agreement.
They provide a steady stream of payments over time, making them a preferred choice for individuals seeking consistent income. However, understanding the present value of an annuity is crucial for evaluating its true worth. The present value reflects what a series of future payments is worth in today’s terms, considering factors such as interest rates and time. Let’s explore the concept, formula, examples, and practical applications of the present value of an annuity in financial planning.
Rate Per Period
Small business equipment leases in the US typically carry annual interest rates ranging from 6% to 13%. However, this range can expand significantly based on several factors. When you lease equipment instead of buying it outright, the lease payments include an implied interest rate. Understanding typical rates helps you compare leasing costs to ownership costs. Want to use a present value of annuity due calculator for real estate investments?
Present Value Table: A Complete Guide for Smarter Financial Decisions
In life insurance, calculating the present value of payouts can help policyholders or beneficiaries evaluate settlement offers and ensure they’re receiving fair compensation. The concept of present value can help you estimate how much to save today to secure a desired income during retirement. This is especially useful when planning long-term investments in NPS, PPF, or other retirement-focused schemes.
For example, if $1,000 is deposited in an account earning interest of 6% per year the account will earn $60 in the first year. In year two the account balance will earn $63.60 (not $60.00) because 6% interest is earned on $1,060. Similarly the bank paying the interest will incur interest on interest. The following timeline depicts the information we know, along with the unknown component (PVOA).
It’s also important to note that the value of distant payments is less to purchasing companies due to economic factors. The sooner a payment is owed to you, the more money you’ll get for that payment. For example, payments scheduled to arrive in the next five years are worth more than payments scheduled 25 years in the future. The present value of an annuity refers to how much money would be needed today to fund a series of future annuity payments. Or, put another way, it’s the sum that must be invested now to guarantee a desired payment in the future.
B) The total amount that Andy will pay over the 30-year term of the mortgage is equal to the number of payments (N) multiplied by the size of each payment (PMT). By substituting the values of the down payment and the present value (PV) into Formula 3.5, we can calculate the total purchase price. An essential aspect of distinction in this present value of annuity calculator is the timing of payments. He was also given an option at the time of joining to take $60,000 at once, but that would be subject to tax at the rate of 40%. You are required to assess whether John should take the money now or wait until 30 years to receive the same, assuming he is not in the requirement of funds, and the risk-free rate in the market is 6%.
An annuity is a financial product that provides a stream of payments to an individual over a period of time, typically in the form of regular installments. Annuities can be either immediate or deferred, depending on when the payments begin. Immediate annuities start paying out right away, while deferred annuities have a delay before payments begin.
Sally Lunn’s Tea Shoppe and Restaurant has now been in business for 30 years. We are still serving up the best homemade pies, pastries, and desserts that you could find anywhere in the State and their mouth watering buttermilk scones — the recipe still a secret — are as scrumptious as ever.
– Sally Lunn’s
Sally Lunn’s, located in Chester, NJ, is definitely one of my family’s top spots to go to for an aesthetic meal. It can please any person who is into a British, cottagecore atmosphere with zen music playing in the background. You are surrounded by antiques, teapots, and all types of art, similar to a grandma’s house.
They are most well-known with their vast selection of teas, which is served in its own charming teapot and teacup, just for you. Our favorite thing to order is their chicken pot pie, served with a delicious, fresh potato salad. Everything tastes homemade, but better. Their desserts are rich and fresh, and on your way out you are greeted with British candy at the counter, a must-have purchase for myself personally. This charming restaurant is perfect for tea dates and especially perfect and popular for mother’s day.
Yes, this is the best album in the history of music, don’t quote me on that though.
– an EXO fan
EXO is a South Korean-Chinese boy band based in Seoul that was formed by SM Entertainment in 2011 and debuted in 2012. The group officially consists of nine members: Xiumin, Suho, Lay, Baekhyun, Chen, Chanyeol, D.O., Kai and Sehun; however for this album release, the member Lay, is on hiatus, and could only feature on one song. They are noted for releasing music and performing extensively in Korean, Mandarin, and Japanese.
‘Don’t Mess Up My Tempo’
‘Don’t Mess Up My Tempo‘ (stylized in all caps; also abbreviated as ‘DMUMT‘) is the fifth studio album by EXO and was released on November 2, 2018. While still being on hiatus, member Lay is featured on the Chinese version of the title track, “Tempo”, marking his first appearance with the group since 2016. The album is available in four versions: Allegro, Moderato, Andante and Vivace, named after the types of tempo. It consists of 11 tracks, the 11th being a Chinese version of the title track, as mentioned before. The album debuted at number one on the Gaon Album Chart and was later repackaged as Love Shot on December 13, 2018, adding an extra 3 tracks. I will be giving a description and some of my initial thoughts on the 10 original tracks in order.
Track #1 – ‘Tempo’
‘Tempo‘ was called, “a rhythmical hip-hop-leaning dance track that showcases a cappella harmonies as they send warnings not to ‘mess up his tempo’ with their lover”. Billboard stated the preview, “starts off with a dramatic synth melody, pulsating beat and the phrase ‘I can’t believe’.” I find the vocal talent of this group to be outstanding, it really shines through this track with the unique usage of a cappella, as mentioned before, and of course their satisfying harmonies with one another. They take advantage of the amount of members they have and showcase it in their music. The bridge is *chef’s kiss*.
Track #2 – ‘Sign‘
‘Sign‘ is an electropop track with an intense bass and “bombastic” groove with lyrics expressing a man’s growing doubt due to lies told by the woman he loves. The instrumental of this song always wakes me up with it’s hearty bass, vocals and passionate melody. Exactly what an album needs.
Track #3 – ‘Ooh La La La’
‘Ooh La La La‘ is a Latin pop song, combining a heavy 808 bass and an “exotic” atmosphere of Spanish guitar. The lyrics of the song are about imagined love when two people accidentally make eye contact. This song is one of my all-time favorites. A smooth, sensual sound over a heavy beat is an automatic win in my book, I mean body-rolling is very fun. I feel like its also a favorite among most EXO fans, for good reason.
Track #4 – ‘Gravity‘
‘Gravity’ is characterized as an electropop track with a retro sound and funky rhythm, which the British duo LDN Noise worked on. The lyrics were co-written by member Chanyeol, and are described as about the desire to capture a girl’s attention with gravity and charm. Such a funky, colorful contribution to the album, again with the unique instrumental differing from the others and with their vocals in the catchy chorus. A mood lifter for sure.
Track #5 – ‘With You‘
‘With You‘ is described as an R&B and pop track with a “bright” synthesizer and electro-trap elements. Member Chanyeol participated in writing and composing the song. The lyrics are about growing to like someone more when one spends more time with them. Another sweet flavor greets us in this album. Beautiful vocals, even with a brighter sound, a trap beat is still present, making it upbeat, catchy, yet smooth.
Track #6 – ‘24/7‘
‘24/7‘ is a midtempo song with a modern sound and memorable catchy phrases. The lyrics express complex emotions after one says “cold words” to their lover. Catch me having this song on repeat. The most iconic and memorable thing from this song is the synthesized whistle that is heard in the beginning and end. Such a beautiful, sparkly song with the chimes, gorgeous high notes in the choruses, yet again flexing how amazing their vocals are, will never skip it.
Track #7 – ‘Bad Dream‘
‘Bad Dream‘ is characterized as an up-tempo R&B song, where the “sophisticated” guitar riff and poppy synthesizer’s dynamic melody line go well together with lyrics about one thinking about their past lover alone at night, with comparisons to a storm. I am obsessed with the transition from a cool guitar intro to the synthesizer, as mentioned before. It brings more layers to the song and makes the instrumental just as catchy, yet just as unique compared to the rest of the album. It brings you into a beautiful vocal slowdown before the chorus hits you, its so passionate. Not a single dull moment.
Track #8 – ‘Damage‘
‘Damage‘ is a hip hop and dance song with a bass-heavy and reggae rhythm, with its lyrics expressing the “cold” reaction one has after getting hurt by their lover, and giving back the pain they experienced like a “sudden flash of lightning”. This is ‘Sign‘ ‘s more outspoken, tougher, older sister. This song has me shouting the choruses every time. If you need something to bring back the life in you, this song will do it. I’m ready to (hypothetically) beat someone up after this one, how dare my lover hurt me, I deserve better.
Track #9 – ‘Smile On My Face‘
‘Smile On My Face‘ is described as an R&B ballad with soft melodies and simple yet “sophisticated” grooves, with lyrics about healing one’s own pain after a breakup, smiling and “letting their love go”. This is the only ballad in the album, bringing more to the table to show how versatile this group is. Ballads are not my favorite; however, I am still able to immensely appreciate the beauty of this song, and feel its somber message through the music, even if I don’t immediately understand the Korean lyrics without translating them. Says a very real and mature message, just what the album needed.
Track #10 – ‘Oasis‘
This last song, ‘Oasis‘, is an elliptical pop song with a combination of staccato piano and strings, heavy 808 bass, and a grand harmony. It uses the concept of a road as if the members have a strong desire to go somewhere else. They are tired of the place and have an urge to be somewhere else. This is possibly due to a broken heart or the search for themselves. Oh boy, does this song have a chokehold on me, couldn’t skip if I tried. The instrumental in the beginning uses pauses after each line to pull you in, introduces the 808’s in the mix, has a slowed down build-up to bring you to a breathtaking chorus. I feel free thanks to this song, one of my favorites.
Conclusion
EXO’s entire discography is so good in my opinion, it was hard to choose just one album to review, but I think I made the right choice with ‘Don’t Mess Up My Tempo‘. There is never a dull moment, its very versatile and will never leave you wanting more. I will always be amazed by how much talent this boy band has. If you want more information about the group and their discography, go to here.
“Despair is typical of those who do not understand the causes of evil, see no way out, and are incapable of struggle. The modern industrial proletariat does not belong to the category of such classes.” – Vladimir Lenin
Drawing from Taoist and indirectly Leninist philosophies, new religion Dudeism seeks to afford practitioners a greater freedom from un-Dude norms that one might not otherwise abide. The Church of the Latter-Day Dude practice, or ABIDEment agrees with the Buddhist concept of detachment.
“Though ‘The Big Lebowski’ is a story about an aging ex-hippie in Los Angeles who is trying to solve a kidnapping case, at its heart it’s really a story about how to live your life, how to deal with conflict and how to maintain peace of mind in a world that’s gone crazy. So there’s really no distinction between the movie and Eastern philosophy — the movie is infused with it,” says church Chiang Mai based founder Oliver Benjamin. “I felt as if I’d seen a story that put all the difficulties of modern life into a manageable perspective. And it was probably the most touchingly funny film I’d ever seen.” https://dudeism.com/cnn-interview/
“Despair is typical of those who do not understand the causes of evil, see no way out, and are incapable of struggle. The modern industrial proletariat does not belong to the category of such classes.” said Vladimir Lenin.
If pain is mandatory and suffering is optional, the Dudeist way certainly seems a way to be of value to the proletariat.
The religion uses the Big Lebowski movie as a mythology to inform the simple way of abiding life as it comes. Though the chaos of life (sometimes caused by wayward Nihilists, facists, and reactionaries) will come, the way of the Dude allows one to trascend the despair of these trials and find the mellow path through. This ultimately allows people to come together, bowl, have a toke, share a brew. In other words and certainly in the eyes of the Church of the Latter-Day Dude, live free.
Don’t be an *ssh*le – https://dudeism.com/dudeism-rules/
Also worth considering is whether the exam itself is scheduled online or in person and how often it’s administered. The cost of the exam—including the enrollment fee, course materials including workbooks, and any administrative fees—should also be taken into account. Evaluate whether you currently have the knowledge to be an efficient bookkeeper or the formal education or equivalent experience that could be applied toward certification.
Although you won’t earn a more general bookkeeping certification, you’ll receive access to free resources, such as software, tech support, and a free listing in member directories. QuickBooks ProAdvisors will also be able to use a certification badge on all marketing materials. Once the courses have been completed, you are eligible to take the certification exam.
Bookkeeping Hiring Test
But experienced bookkeepers with certification can make more and find themselves in higher demand. This 100% online course will prepare you for the American Institute of Professional Bookkeepers (AIPB) certification exam. Wade Lindenberger is a CPA with over 20 years of financial accounting and management experience in public accounting and private industry. He is currently Director of Finance and Administration for New Children’s Museum. Before his current position, he worked as the National Finance and Accounting Service Line Leader for Premier Alliance Group, a national professional services firm. Wade was also Director of the Finance and Accounting service line for the San Diego office of a global, publicly held professional services firm.
Other options include online and traditional college courses and accounting software certification programs. Unlike the AIPB and NACPB certifications, you won’t earn the certified bookkeeper or certified public bookkeeper distinction when you complete these courses. However, you’ll receive a certificate from an accredited institution that shows you have the knowledge and skills to perform the duties required of a bookkeeper. After successfully passing the exam and meeting all of the requirements, you’ll receive a certificate of completion. You’ll also be able to put the letters “CPB,” which stands for certified public bookkeeper, behind your name.
Continuing Education Information
As a financial professional, your credibility is key and a major factor in attracting or retaining clients. The primary purpose of becoming a certified bookkeeper—rather than just learning bookkeeping—is to enhance your credibility. Clients often look at certifications to verify a level of experience and expertise when selecting a bookkeeper, so we’ll walk you through how to become a certified bookkeeper. From assessing your current level of education to choosing a certification program, our guide will help you. You must pass the bookkeeping, payroll, QuickBooks Online and accounting certification exams before qualifying for CPB licensure. If you do not pass one of the certification exams, you can retake it for a fee of $40 for NACPB members and $50 for nonmembers.
Completing courses and workbooks can help you prepare for and pass your bookkeeping exam.
With expertise in curriculum development, business systems, and instructional leadership, she is dedicated to promoting learning and development.
It’s designed for experienced bookkeepers, office managers, or those looking to make the transition to a career in bookkeeping or accounting.
Xero Advisor
To maintain the CB credential, you must fulfill 60 continuing education credits every three years. The primary difference between the AIPB’s certification and NACPB’s license is the resulting title. Those credentialed by AIPB earn the Certified Bookkeeper (CB) designation. Those who earn licensure through NACPB gain the Certified Public Bookkeeper (CPB) title. The Certified Bookkeeper (CB) program is not basic bookkeeping—it does not teach novices to become bookkeepers.
The CB designation is so important that 1,000 colleges and universities give a CB course to help bookkeepers prepare for the national CB exam. If you pass one test but not the other, you receive aipb certification test credit for the test you passed. You can retake the other test after 30 days for a $60 fee, and you will take a different test from the first time. For Parts 1 and 2, which occur at Prometric Test Centers, you will automatically receive your grade immediately after the test ends. For Parts 3 and 4, you can choose between paper and online test formats.
Experience
Time and money are valuable resources, and you want to spend both wisely. Think about how much time you have available every week and during the duration of the course. Additionally, take whether a self-paced or structured schedule is best for you into account.
Is recertification required for bookkeeper certification?
AIPB offers a series of six self-paced classes and accompanying workbooks, all of which are part of AIPB’s CB preparatory course. AIPB also has extra courses for sale, such as mastering double-entry bookkeeping. The cost to become a CPB includes four courses and their respective exams. If you purchase these materials as a bundle, they cost $1,276 in total for members, and $1,596 for nonmembers.
The University of Georgia Center for Continuing Education is committed to providing equal access to continuing education programs for students living with permanent or temporary disabilities. Learn more about the University of Georgia Center for Continuing Education program accommodations. This process involves completing at least 60 CPE hours every three years, except for the initial certification cycle. After receiving their initial certification, CBs receive 40 CPE hours, leaving them with only 20 hours to complete by the beginning of the first renewal period. As of 2024, NACPB requires candidates to earn a cumulative score of at least 75% on the CPB exam to qualify for certification.
Certification registration fee, 6 workbooks and Prometric Test Center fees not included.
Meanwhile, AIPB’s CB credentialing program emphasizes professional experience, requiring candidates to have relevant professional experience.
He is a member of the American Institute of Certified Bookkeepers’ Advisory Board.
AIPB also has extra courses for sale, such as mastering double-entry bookkeeping.
To qualify for the CPB certification exam, you must complete NACPB courses in accounting, payroll, and Intuit QuickBooks fundamentals.
Forbes Advisor’s education editors are committed to producing unbiased rankings and informative articles covering online colleges, tech bootcamps and career paths. Our ranking methodologies use data from the National Center for Education Statistics, education providers, and reputable educational and professional organizations. An advisory board of educators and other subject matter experts reviews and verifies our content to bring you trustworthy, up-to-date information.
Examinees have their tests scored electronically immediately after completion and receive the results immediately. Bookkeeping certifications validate advanced skills in financial reporting, payroll management, and taxation. These optional credentials can build your credibility and help you qualify for higher-paying jobs.
You can include this in your email signatures and on business cards, social media sites, and all of your marketing materials to promote your achievement. You can also become certified through local or online college courses or specialize in particular accounting software. We have evaluated each of these programs to help you determine the best one for you. However, the CPB path may be better for less experienced bookkeepers as it requires only one year of professional experience. CPB and CB bookkeeping certifications include experience requirements, which you must meet to fully qualify for initial credentialing.
The selling and marketing expenses increased by 7.4% from Rs 43,438 million in 2023 Interior Design Bookkeeping to Rs 46,648 million in 2024. The general and administrative expenses also grew by 2.1% from Rs 39,426 million to Rs 40,250 million. The profit before tax marginally declined by 0.3% from Rs 98,438 million in 2023 to Rs 98,147 million in 2024. The net cash generated from operating activities for the year ended March 31, 2024, was Rs 176,216 million compared to Rs 130,601 million for the year ended March 31, 2023. For example, let’s say Reliance Industries had revenue of Rs.5,00,000 crores in 2023 (base year) and revenue of Rs.6,00,000 crores in 2024 (current year).
Strike offers a free trial along with a subscription to help traders and investors make better decisions in the stock market.
A company’s financial performance might look good in isolation, but it could still lag behind its competitors or industry standards.
Analyzing equity changes over time can provide insights into how the company has financed its operations and whether it has generated profits or incurred losses.
We will explore how ManufacturingCo, Inc. uses horizontal analysis for internal performance evaluation and regulatory compliance.
However, this method provides only an overview of the financial health of the business and it is often performed by external stakeholders.
The latter two tend to go hand-in-hand because the most useful benchmark against which to compare recent performance is most often the preceding period.
The horizontal analysis formulas are employed to illustrate the revenue growth over time.
What are the Differences Between Horizontal vs Vertical Analysis?
In this example the business is looking for trends over the three years from 2019 to 2021. By producing the horizontal analysis it is possible to monitor changes in each line item over time. It allows you to evaluate normal balance how effectively a company is converting its revenue into profits. By examining the changes in profitability over time, you can assess the company’s overall financial health.
Use Cases: Applying the Horizontal Analysis Formula
Horizontal analysis is a financial analysis technique that compares financial information over multiple periods to identify trends and changes. Horizontal analysis is used to assess a sequence of financial statement data over a specified time frame. By comparing financial results from prior periods with those from more recent periods, a company enhances its capacity to determine the direction and magnitude of account balance movements. Horizontal analysis allows for the comparison of financial data over time, highlighting trends, patterns, and changes in performance.
Trial Balance
Vertical analysis focuses on a single period and expresses each line item as a percentage of a base figure, such as total revenue or assets.
From 2023 to 2024, Reliance Industries’ revenue increased by Rs.1,00,000 crores, or 20%.
By converting nominal changes into percentages, you gain a clearer picture of proportional changes and can make more informed decisions regarding strategy and resource allocation.
Horizontal analysis provides insight into the direction in which a company’s financial data is moving.
In contrast, horizontal analysis compares data over multiple periods, revealing trends and changes over time.
The percentages are particularly noticeable when an account experiences an abrupt up or down Swing. This enables managers to investigate the variances and ascertain their causes, whether they are positive or negative. Alterations that occur abruptly sometimes indicate a permanent shift that necessitates action or is indicative of unique circumstances during that time. The revenue decreased by 0.8% from Rs 604,234 million in 2023 to Rs 599,327 million in 2024. The cost of revenues also declined by 2.2%, from Rs 430,297 million to Rs 420,998 million during the same period.
Obviously financial statements for at least two accounting periods are required, however, using a larger number of accounting periods can make it easier to identify trends within the financial data.
Depending on the metrics you want to focus on, you will need different financial statements, like balance sheets, income statements, or cash-flow statements.
Dollar amount changes provide a clear picture of the absolute differences in financial figures over time.
Comparative financial statements serve as the cornerstone of horizontal analysis.
If you use Layer, you can even automate parts of this process, including the control of data flows, calculations, and sharing the results.
Horizontal Analysis Formula
With real-time dashboards, they could track costs instantly and make better decisions. Horizontal analysis of the cash flow statement helps you see horizontal analysis formula how cash is being managed year over year. In the end, horizontal analysis turns financial data into actionable insights. Are operating expenses spiraling out of control, or is the company tightening its belt? This approach not only looks at the numbers but also tracks their evolution.
Select the Time Period
Percentages offer an excellent way to measure proportional changes, but they can sometimes be misleading. For instance, a company with minimal debt might display a 500% increase in interest expense if its debt grows from $10,000 to $50,000—even though the absolute figure is relatively small. Always analyze both the percentage and the absolute values to obtain a full picture. Cash flow statements also provide insights into a company’s investing and financing activities. Analyzing these sections helps you understand how the company allocates its resources and manages its capital. Percentage changes are a crucial part of horizontal analysis as they reveal the relative magnitude of changes between the base year and the current year.
