long term – Loro Dinapoli http://lorodinapoli.org/ Sat, 19 Mar 2022 14:04:55 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 http://lorodinapoli.org/wp-content/uploads/2021/07/icon-2021-07-06T154208.998-150x150.png long term – Loro Dinapoli http://lorodinapoli.org/ 32 32 Spotify Technology (NYSE:SPOT) has a pretty healthy track record http://lorodinapoli.org/spotify-technology-nysespot-has-a-pretty-healthy-track-record/ Sat, 19 Mar 2022 12:22:30 +0000 http://lorodinapoli.org/spotify-technology-nysespot-has-a-pretty-healthy-track-record/ Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. Mostly, Spotify Technology AG […]]]>

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. Mostly, Spotify Technology AG (NYSE:SPOT) is in debt. But the real question is whether this debt makes the business risky.

When is debt dangerous?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more frequent (but still costly) event is when a company has to issue shares at bargain prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. The first thing to do when considering how much debt a business has is to look at its cash flow and debt together.

Check out our latest analysis for Spotify technology

What is Spotify Technology’s debt?

You can click on the chart below for historical numbers, but it shows that as of December 2021, Spotify Technology had €1.20 billion in debt, an increase from zero, year-over-year. However, his balance sheet shows that he holds €3.43 billion in cash, so he actually has €2.23 billion in net cash.

NYSE: SPOT Debt to Equity History March 19, 2022

A Look at Spotify Technology’s Responsibilities

According to the latest published balance sheet, Spotify Technology had liabilities of €3.23 billion maturing within 12 months and liabilities of €1.83 billion maturing beyond 12 months. In return, it had 3.43 billion euros in cash and 626.0 million euros in receivables due within 12 months. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables of €992.0 million.

Given that Spotify Technology has a colossal market cap of €25.2 billion, it’s hard to believe that these liabilities pose a threat. However, we think it’s worth keeping an eye on the strength of its balance sheet, as it can change over time. Despite its notable liabilities, Spotify Technology has a net cash position, so it’s fair to say that it doesn’t have a lot of debt!

Notably, Spotify Technology posted a loss in EBIT last year, but improved it to a positive EBIT of €96 million in the last twelve months. When analyzing debt levels, the balance sheet is the obvious starting point. But it’s future earnings, more than anything, that will determine Spotify Technology’s ability to maintain a healthy balance sheet in the future. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

But our last consideration is also important, because a company cannot pay off its debts with paper profits; he needs cash. Although Spotify Technology has net cash on its balance sheet, it’s still worth looking at its ability to convert earnings before interest and taxes (EBIT) to free cash flow, to help us understand how fast it’s building ( or erodes) this treasury. balance. Fortunately for all shareholders, Spotify Technology has actually produced more free cash flow than EBIT over the past year. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Abstract

We can understand that investors are worried about Spotify Technology’s liabilities, but we can take comfort in the fact that it has a net cash position of 2.23 billion euros. And he impressed us with a free cash flow of 276 million euros, or 288% of his EBIT. So we have no problem with Spotify Technology’s use of debt. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks reside on the balance sheet, far from it. For example, we found 1 warning sign for Spotify technology which you should be aware of before investing here.

If you are interested in investing in companies that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
China February new bank loans fall more than expected, mounting pressure on c.bank http://lorodinapoli.org/china-february-new-bank-loans-fall-more-than-expected-mounting-pressure-on-c-bank/ Fri, 11 Mar 2022 10:14:00 +0000 http://lorodinapoli.org/china-february-new-bank-loans-fall-more-than-expected-mounting-pressure-on-c-bank/ Credit growth is below expectations February new loans 1.23 trln yuan against f’cast 1.49 trln yuan Money supply in February M2 +9.2% year on year, against an f’cast forecast of +9.5% February TSF 1.19 trln yuan, against f’cast 2.22 trln yuan C.bank maintains an accommodative policy to support growth BEIJING, March 11 (Reuters) – New […]]]>
  • Credit growth is below expectations
  • February new loans 1.23 trln yuan against f’cast 1.49 trln yuan
  • Money supply in February M2 +9.2% year on year, against an f’cast forecast of +9.5%
  • February TSF 1.19 trln yuan, against f’cast 2.22 trln yuan
  • C.bank maintains an accommodative policy to support growth

BEIJING, March 11 (Reuters) – New bank lending in China fell more than expected in February as general credit growth slowed, increasing pressure on the central bank to ease policy further. to support the slowing economy.

Chinese banks extended 1.23 trillion yuan ($195 billion) in new yuan loans in February, down sharply from a record 3.98 trillion yuan in January and below analysts’ expectations, the data showed. released Friday by the People’s Bank of China (PBOC). .

A pullback in loans in February was widely expected, as Chinese banks tend to preload loans at the start of the year to get better quality customers and gain market share.

Join now for FREE unlimited access to Reuters.com

Analysts polled by Reuters had predicted new yuan lending would fall to 1.49 trillion yuan in February. But the final tally was also lower at 1.36 trillion yuan in February 2021, when the economy rebounded from a pandemic-induced crisis.

“General credit growth was much weaker than expected last month, reversing much of the acceleration of recent months,” Julian Evans-Pritchard of Capital Economics said in a note.

“This suggests that more easing measures will be needed to achieve the policy goals that were recently set out in the National People’s Congress.”

Household loans, mostly mortgages, suffered a rare contraction of 336.9 billion yuan in February from 843 billion yuan in January, indicating continued weakness in China’s property market, a major driver of economic growth.

Ting Lu, chief China economist at Nomura, said a contraction in medium- and long-term household lending was the first since the data was released in 2007, and matched a 40% drop in home sales. nine of the top 100 developers in January-February.

Corporate loans fell to 1.24 trillion yuan from 3.36 trillion yuan.

Ming Ming, chief economist at CITIC Securities, said February lending may reflect weakness in the housing sector and household demand, but could accelerate as earlier easing measures begin to wear off. to be smelled.

“With the implementation of a series of policies such as the promotion of favorable monetary and investment policies to stabilize the economy, March data would be better than February data,” he said.

FURTHER RELAXATION STEPS EXPECTED

To spur growth, the central bank cut interest rates and the reserve requirement ratio (RRR) for banks, with further easing measures expected. Read more

The PBOC could give markets more clues about its liquidity and rate plans as early as next Tuesday, when its medium-term lending facility (MLF) matures.

“We continue to expect a 50 basis point cut in the RRR and a 10 basis point cut in the policy rate by the end of the second quarter of this year, as the PBOC may need to do more to echo the State Council’s call for lower effective lending rates,” Goldman Sachs analysts said in a note. .

Chinese Premier Li Keqiang said on Friday he was confident of achieving the economic growth target of around 5.5 percent for this year despite headwinds, pledging to provide more political support over the course of the year. a politically sensitive year. Read more

But many economists say that target is ambitious given the challenges, including the housing downturn, growing outbreaks of COVID-19 and an uncertain global recovery.

China said it would keep money supply and total social finance growth essentially in line with nominal economic growth this year.

M2 broad money supply rose 9.2% from a year earlier, central bank data showed, below Reuters poll estimates of 9.5%. It increased by 9.8% in January.

Outstanding yuan loans rose 11.4 percent year-on-year, compared with 11.5 percent growth in January. Analysts were expecting growth of 11.5%.

Growth in the total stock of social finance (TSF), a broad measure of credit and liquidity in the economy, slowed to 10.2% in February from a year earlier and 10.5% in January.

The TSF includes forms of off-balance sheet financing that exist outside of the conventional bank lending system, such as initial public offerings, trust company loans, and bond sales.

In February, TSF fell to 1.19 trillion yuan from 6.17 trillion yuan in January. Analysts polled by Reuters had expected a February TSF of 2.22 trillion yuan.

Join now for FREE unlimited access to Reuters.com

Editing by Raju Gopalakrishnan and Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

]]>
Before considering new debt, Europe should make full use of its common debt – EURACTIV.com http://lorodinapoli.org/before-considering-new-debt-europe-should-make-full-use-of-its-common-debt-euractiv-com/ Fri, 11 Mar 2022 05:48:17 +0000 http://lorodinapoli.org/before-considering-new-debt-europe-should-make-full-use-of-its-common-debt-euractiv-com/ Rather than issuing new debt to cope with the economic consequences of the war in Ukraine and to build a “European defence”, the EU should transform residual loans from the Recovery and Resilience Facility into immediate transfers and grants to Member States, argues Jérôme Creel. Jérôme Creel is associate professor of economics at ESCP Business […]]]>

Rather than issuing new debt to cope with the economic consequences of the war in Ukraine and to build a “European defence”, the EU should transform residual loans from the Recovery and Resilience Facility into immediate transfers and grants to Member States, argues Jérôme Creel.

Jérôme Creel is associate professor of economics at ESCP Business School, head of the research department of the French Observatory of Economic Conditions at Sciences Po.

Dominated by the Ukrainian crisisthe informal summit of EU Heads of State and Government meeting this week in Versailles is expected to see difficult discussions on the implementation of a new joint debt issue which would work the same way as Recovery and Resilience Facility (RRF) of the Next Generation EU (NGEU) programme. This program was developed to deal with the medium and long-term consequences of the Covid-19 crisis.

The idea that will probably be debated in Versailles is to provide EU member states with additional means to deal with the economic consequences of the war in Ukraine – energy, anyone? – and build a “Europe of defence”.

Beyond the tensions of certain countries of Northern Europe on the systematic use of public debt to fight against all the evils which affect the European Union, it is perhaps useful to remember two things:

On the one hand, the activation of the Recovery and Resilience Facility is in progress and we will have to wait a little longer to know if it has achieved its objectives. The economic effects estimated ex ante are generally positive, especially since the funds allocated will be directed towards Member States most affected by the pandemic (Italy and Spain).

On the other hand, the Next Generation EU program is divided between transfers or subsidies (390 billion euros, in constant 2018 euros) and loans (360 billion euros, in constant 2018 euros). The benefits of each are quite different:

The transfers are a form of free money at least in the short term for those who receive them: repayment will be late and shared between all member states, so that recipients will only repay a fraction of what they receive.

The loans involve the payment of immediate interest, but at a rate lower than the national rate if the borrowing country has a positive interest rate differential compared to the best borrowing terms of the European Union.

The expected gain from the loans is therefore much lower than the expected gain from the transfers… which has the corollary that of the 360 ​​billion euros planned for these loans, a significant fraction risks never being mobilized by the Member States. Why take out a joint loan if you can go directly to the financial markets to finance yourself?

So rather than considering renewing – already – the NGEU program by adapting it to the new challenges, would it not be possible for the EU to transform the residual loans from the Recovery and Resilience Facility into transfers and subsidies? immediately to Member States?

The facility exists. It has not yet proven itself, but the Europeans agree that it should be implemented. Let’s give it every chance of being effective by using it fully and very quickly: there is no shortage of projects to be financed!

]]>
Jasco Electronics Holdings (JSE:JSC) seems to be using a lot of debt http://lorodinapoli.org/jasco-electronics-holdings-jsejsc-seems-to-be-using-a-lot-of-debt/ Thu, 10 Mar 2022 05:37:50 +0000 http://lorodinapoli.org/jasco-electronics-holdings-jsejsc-seems-to-be-using-a-lot-of-debt/ David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. […]]]>

David Iben said it well when he said: “Volatility is not a risk that interests us. What matters to us is to avoid the permanent loss of capital. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. We can see that Jasco Electronics Holdings Limited (JSE: JSC) uses debt in its activities. But does this debt worry shareholders?

When is debt a problem?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, many companies use debt to finance their growth, without any negative consequences. When we look at debt levels, we first consider cash and debt levels, together.

See our latest analysis for Jasco Electronics Holdings

How much debt does Jasco Electronics Holdings have?

You can click on the chart below for historical figures, but it shows Jasco Electronics Holdings had R157.4 million in debt in December 2021, up from R346.4 million a year earlier. However, as he has a cash reserve of R26.0 million, his net debt is lower at around R131.5 million.

JSE: JSC Debt to Equity History March 10, 2022

How healthy is Jasco Electronics Holdings’ balance sheet?

The latest balance sheet data shows that Jasco Electronics Holdings had liabilities of R203.6 million due within one year, and liabilities of R164.9 million falling due thereafter. In return, he had R26.0 million in cash and R139.5 million in debt due within 12 months. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables of R203.1 million.

This deficit casts a shadow over the R95.4m company, like a towering colossus of mere mortals. So we definitely think shareholders need to watch this one closely. Ultimately, Jasco Electronics Holdings would likely need a major recapitalization if its creditors were to demand repayment.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). Thus, we consider debt to earnings with and without amortization and depreciation expense.

While Jasco Electronics Holdings has a fairly reasonable net debt to EBITDA ratio of 1.8, its interest coverage looks low at 0.77. The main reason for this is that it has such high depreciation and amortization. While companies often boast that these fees are not cash, most of these companies will therefore require an ongoing investment (which is not spent). In any case, there is no doubt that the stock uses significant leverage. Notably, Jasco Electronics Holdings posted a loss in EBIT last year, but improved it to a positive EBIT of R15 million in the last twelve months. The balance sheet is clearly the area to focus on when analyzing debt. But it is the profits of Jasco Electronics Holdings that will influence the balance sheet in the future. So, if you want to know more about its earnings, it may be worth checking out this graph of its long-term trend.

But our last consideration is also important, because a company cannot pay debt with paper profits; he needs cash. It is therefore important to check how much of its earnings before interest and taxes (EBIT) converts into actual free cash flow. Over the past year, Jasco Electronics Holdings has burned through a lot of cash. While investors no doubt expect a reversal of this situation in due course, this clearly means that its use of debt is more risky.

Our point of view

At first glance, Jasco Electronics Holdings’ EBIT-to-free-cash-flow conversion left us hesitant about the stock, and its level of total liabilities was no more appealing than the single empty restaurant on the darkest night. busy year. That said, its ability to manage its debt, based on its EBITDA, is not such a concern. Considering all of the above factors, it seems that Jasco Electronics Holdings is too much in debt. While some investors like this kind of risky play, it’s definitely not our cup of tea. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example, Jasco Electronics Holdings has 5 warning signs (and 4 that are concerning) that we think you should know about.

In the end, sometimes it’s easier to focus on companies that don’t even need to take on debt. Readers can access a list of growth stocks with no net debt 100% freeat present.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
WM picks up 900 tonnes of waste after contractor files for bankruptcy http://lorodinapoli.org/wm-picks-up-900-tonnes-of-waste-after-contractor-files-for-bankruptcy/ Mon, 07 Mar 2022 22:06:00 +0000 http://lorodinapoli.org/wm-picks-up-900-tonnes-of-waste-after-contractor-files-for-bankruptcy/ NASHVILLE, Tenn. (WTVF) — WM was hired by Metro as an emergency contractor when Red River Waste Solutions filed for bankruptcy. “You can see the relief as we walk through when there are overflowing trash cans,” said collection operations manager Donald DeFazio. “We obviously picked up some extra tonnage in the first two weeks because […]]]>

NASHVILLE, Tenn. (WTVF) — WM was hired by Metro as an emergency contractor when Red River Waste Solutions filed for bankruptcy.

“You can see the relief as we walk through when there are overflowing trash cans,” said collection operations manager Donald DeFazio. “We obviously picked up some extra tonnage in the first two weeks because some things got delayed.”

They have already collected around 900 tons of waste. “Our goal is to get things back to normal,” DeFazio said.

In two weeks, they reached 25,000 homes; On Monday, they started on another 25,000. “Our goal is to get everyone back to their normal trash day,” DeFazio said. “It’s been a bit difficult for everyone over the last two months, they didn’t know when someone was coming.”

They brought in crews from out of state to help pick up the trash. They are part of WM’s “green team”. They respond to natural disasters like the 2020 tornadoes.

If possible, make sure your trash is well wrapped so it doesn’t spill everywhere. “It’s a big help,” DeFazio said.

WM recovers 12 daily waste routes during the 120-day emergency contract.

For months, NewsChannel 5 has heard of upset residents whose trash was piling up. Now, they are happy to see a garbage truck passing in their street. DeFazio said, “and they have to be patient.”

Unfortunately, there is no long-term solution yet as bankruptcy proceedings are ongoing. Metro’s attorney is due in court regarding the city’s contract with Red River on March 8.

WM also provides emergency support to the city’s multi-family waste services. According to their press release, they are temporarily emptying more than 700 dumpsters in the city.

]]>
The irreversible damage of climate change, the end of plastic pollution in sight and a discussion on the contribution of agroforestry to gender equality http://lorodinapoli.org/the-irreversible-damage-of-climate-change-the-end-of-plastic-pollution-in-sight-and-a-discussion-on-the-contribution-of-agroforestry-to-gender-equality/ Sat, 05 Mar 2022 13:00:00 +0000 http://lorodinapoli.org/the-irreversible-damage-of-climate-change-the-end-of-plastic-pollution-in-sight-and-a-discussion-on-the-contribution-of-agroforestry-to-gender-equality/ This week current climate, which every Saturday brings you a balanced view of the news of sustainable development. Sign up to receive it in your inbox every week. The latest IPCC report on impact of climate change on people and the planet makes dark reading in a week already dominated by the suffering humans inflict […]]]>

This week current climate, which every Saturday brings you a balanced view of the news of sustainable development. Sign up to receive it in your inbox every week.

The latest IPCC report on impact of climate change on people and the planet makes dark reading in a week already dominated by the suffering humans inflict on other humans. But it’s also a necessary reality check. First thing to recognize: some of the damage caused by human activity, such as coral bleaching, may be irreparable even if by the end of the century we significantly reduce greenhouse gas emissions and prevent an increase global temperature over 1.5 degrees before industrial levels. Adaptation will be necessary to some extent, but not all approaches offer good solutions.

There is still so much to defend and preserve. The Ukrainian people’s fierce resistance to the Russian invasion reminds us that no matter how tough the battle, fighting may offer a better chance of survival than surrender. A way to resist both climate change and a certain Russian tyrant is to wean our society from its dependence on fossil fuels.

Other stories I highlight this week discussing a landmark UN resolution on ending plastic pollution and how a Colombian town lost its beautiful beaches to coastal erosion.

For Climate Talks, to mark International Women’s Day, I spoke to Martina Fondi, forestry manager at Italian B-Corp Treedom, which manages the financing and remote monitoring of tree planting projects around the world, about the contribution of agroforestry to gender equality as well as other key sustainability goals.

To get Current Climate delivered to your inbox every Saturday, sign up here.


great read

The new frontier of electric vehicles: trains with batteries powerful enough to power small towns

Following the lead of automakers and truck makers, locomotive manufacturers and railroads are turning to powerful batteries to reduce carbon and diesel emissions, while maintaining an edge in fuel efficiency.


Progress

The largest share of greenhouse gases emitted in the fashion industry occurs in the material supply chain. Next generation materials such as recycled textiles, bio-based materials and plant-based leather can help reduce environmental damage from industry.

More than 170 nations around the world have backed a landmark UN resolution to put an end to plastic pollution, with a legally binding international agreement to be in place by 2024.

Challenges

By mid-February, most of the United States was experiencing some level of drought, according to the US Drought Monitor. Not only does this impact wildfire risk and water shortages, but it is also a concern for farmers as they prepare for the upcoming planting season.

The beaches of Palomino, Colombia, are considered among the most beautiful in the country. But in just a few years, as property developers removed the mangroves (and their sand-clinging roots), the sea reclaimed the sand, foreshadowing the changes expected in beach communities around the world.


The other great read

Wildfire season is year-round. How to keep the lights on and businesses running

Climate change is causing wildfire season to last year-round in the western United States, prompting power companies and businesses to innovate.


Climate Talks

In the decade since its inception, Treedom has grown 3 million trees around the world. The B-Corp is growing rapidly, with 1 million trees planted in the past eight months and a €10 million ($11 million) Series B funding round secured in October from some of the men in the business. most influential businessmen in Italy, as well as a green technology investor and former F1 driver Nico Rosberg.

Forestry manager Martina Martina, who worked to set up Treedom’s partnership with the NGO AMKA to support women’s involvement in agroforestry in Guatemala, explains how the social and economic benefits of plantation projects trees can go hand in hand with environmental objectives.

Treedom’s projects are mainly based in African and Latin American countries. Why did you choose to focus on these regions?

We started overseas because [Treedom] The founders were working on environmental projects in Cameroon, where they witnessed illegal logging and the impact of deforestation. Biodiversity loss and climate change are particularly visible in tropical and subtropical countries, and this is where our action is most needed.

How do you select the projects to propose to those who wish to finance them?

We always try to have a bottom-up and personalized approach, as different places have different environmental needs. We have to find the right solutions for the right place—the same model is not usable for, say, Honduras and Nepal. We usually discuss in depth with our partners about logistics, nurseries, seedling production, drawing, water tank, program schedule, farmer training, etc., etc. This type of activity takes a lot of time. We also travel a lot, even if in the past it was a bit difficult, it’s important. Even though we have local partners there, we have to monitor remotely and in person.

What happens if a natural disaster destroys one of your projects, as happened last summer with some of the forests that were part of corporate carbon offsets?

We have already faced many challenges. What we do is always try to be prepared. We do not produce carbon credits, it is not part of the business. We run small-scale projects, so it’s easier to take care of these activities instead of having a giant forest. We are producing additional trees in our nurseries. We have many more trees than we are going to sell, so we can replace any trees that might die. My approach is to have a Plan A, a Plan B, a Plan C, a Plan D… Whatever happens, we have a backup solution.

What goes into the pricing of planting a tree that people need to consider before, say, planting a tree for $1?

Planting a tree is not always a good idea. Planting trees requires thinking about the right trees for biodiversity, ie not monoculture, not extensive planting or other destructive activities. We never just plant trees. We grow trees, which is a totally different approach. We also focus on post-planting care, cultural care, farmer training and other types of benefits, like building tree nurseries – which we don’t just do for our projects, these activities are intended for our partners. We want to create a sustainable ecosystem, both environmentally and economically. This is why we focus on agroforestry. We don’t want to plant trees just to absorb more CO2; we also have social and economic benefits for those affected.

How does this approach advance gender equality?

We work in quite a few different countries and cultures, so we’re careful in our approach – we can’t tell people what to do, that’s not how it works. We must work together. Our approach is generally to give opportunities to everyone, men and women, which is not necessarily common in some of these countries. Trees can provide such an opportunity, because it is [seen as a] a very caring industry, and caring work is something that is generally seen as female work. So, in almost every culture, caring for trees is something that women are allowed to do. Once involved in the project, they will receive training. They will acquire skills. They will have a better diet, thanks to the fruits of the trees. Moreover, they will sell fruits at the market, so they will earn some money. Education and money are generally essential to help women grow and give them the opportunity to learn, to face and overcome challenges and to have more confidence. It’s a process, but in the long term, you can see that something is changing.

Martina Fondi’s responses have been condensed and edited for brevity and clarity.


on the horizon

Oil tycoon Harold Hamm’s Continental is one of the companies investing in a $4.5 billion project to capture 8 million tons a year of carbon dioxide, move it across five states via a 2,000-meter pipeline miles and inject it into a highly porous and permeable rock formation. over a mile under North Dakota farmland.

]]>
Dell’s stock drops sharply following unexpected fourth-quarter loss http://lorodinapoli.org/dells-stock-drops-sharply-following-unexpected-fourth-quarter-loss/ Thu, 24 Feb 2022 23:47:40 +0000 http://lorodinapoli.org/dells-stock-drops-sharply-following-unexpected-fourth-quarter-loss/ IT infrastructure and data center giant Dell Technologies Inc. saw its shares fall hard in extended trading today after missing earnings forecasts and posting a surprise loss in the fourth quarter. The company beat revenue expectations, at least, thanks to record shipments of personal computers. However, investors couldn’t stomach the $29 million net loss, sending […]]]>

IT infrastructure and data center giant Dell Technologies Inc. saw its shares fall hard in extended trading today after missing earnings forecasts and posting a surprise loss in the fourth quarter.

The company beat revenue expectations, at least, thanks to record shipments of personal computers. However, investors couldn’t stomach the $29 million net loss, sending Dell’s shares down more than 11% during the after-hours session, following a steep decline. regular exchanges as well.

For the quarter, Dell reported adjusted earnings of $1.72 per share on revenue of $27.9 billion, up 16% from the same period a year ago. Wall Street was looking for a profit of $1.95 per share on sales of $27.5 billion.

Dell’s unexpected loss was a far cry from the $695 million profit it made in the same period a year ago. The company blamed it on a higher-than-expected effective tax rate for lower-than-expected profits, as well as higher operating costs that hit $1.65 billion from $475 million. one year ago.

On the other hand, Dell at least generated record revenue for the year. For its fiscal year 2022, the company posted sales of $101.2 billion, up 17% from a year ago.

Dell vice president and co-chief operating officer Jeff Clarke (pictured) chose not to dwell on the loss, pointing to performance in fiscal 2022, which he said was the best year in its history to date.

“We hit over $100 billion in revenue and grew 17% — a huge achievement and ahead of our long-term growth goals,” Clarke said. “For our customers, the biggest opportunity is to turn data into insights, actions and progress, and they prioritize investments in technology.”

Chuck Whitten, Dell’s other co-chief operating officer, said the company benefited from widespread digital transformation that accelerated growth in technology spending throughout the year. “We also made strategic progress in multicloud, edge, services as a service and telecommunications and launched solutions in these spaces, engaged customers and made investments to position Dell for growth. future,” he said.

Once again, the bulk of Dell’s revenue in the quarter came from its PC unit, the Client Solutions group. It recorded sales of $17.3 billion, up 26% from a year ago. The increase was primarily driven by commercial PC sales, which jumped 30% to $12.9 billion, with consumer PC sales up 16% to $4.4 billion.

Dell’s other core business is its infrastructure solutions group, which represents the data center servers, systems, networks and storage equipment it sells. It’s not as big as the PC business, but it still generated a massive $9.2 billion in revenue, up 3% from a year ago.

It was the first quarter in which Dell no longer had a formal relationship with its former subsidiary VMware Inc., meaning there was no more revenue either. Even so, Dell CFO Tom Sweet said the company generated a good return on investment from the VMware spin-off, adding $10.3 billion in cash flow and earning an investment grade thanks. to reduce its debt.

With financial results out of the way, Dell said it has created a new dividend policy under which it will pay quarterly cash dividends on its common stock. The initial dividend rate was set at $1.32 per share per year for fiscal 2023, or about $1 billion in total, the company said. The first installments will be payable in April.

Photo: SiliconANGLE

Show your support for our mission by joining our Cube Club and our Cube Event community of experts. Join the community that includes Amazon Web Services and Amazon.com CEO Andy Jassy, ​​Dell Technologies Founder and CEO Michael Dell, Intel CEO Pat Gelsinger, and many other luminaries and experts.

]]>
Is your adult child struggling to buy a house? Here’s when it makes sense to offer them your home http://lorodinapoli.org/is-your-adult-child-struggling-to-buy-a-house-heres-when-it-makes-sense-to-offer-them-your-home/ Thu, 24 Feb 2022 05:07:00 +0000 http://lorodinapoli.org/is-your-adult-child-struggling-to-buy-a-house-heres-when-it-makes-sense-to-offer-them-your-home/ You have an adult child who is struggling to buy a home in today’s overheated seller’s market. During this time, you are ready to unload your current abode. Maybe to downsize or move to a retirement community. Maybe to move to a warmer climate or a low-tax state. No matter. You are financially strong and […]]]>

You have an adult child who is struggling to buy a home in today’s overheated seller’s market. During this time, you are ready to unload your current abode. Maybe to downsize or move to a retirement community. Maybe to move to a warmer climate or a low-tax state. No matter. You are financially strong and don’t really need the money from selling your house. Hmmm. Here are some thoughts, which range from the ultra-generous to the practical.

Donate outright from home

Say you just gave your adult child your home. If you do this this year, it would reduce your unified federal gift and estate tax exemption by $12.06 million. To calculate the impact, reduce the FMV of the home you would donate by the annual federal gift tax exclusion, which is $16,000 for that year. The remainder is the amount that would reduce your unified federal exemption.

If you are married, your spouse receives a separate Unified Federal Exemption of $12.06 million. If you and your spouse jointly donate the home, each of your unified federal exemptions will be reduced. To calculate the impact, take half the FMV of the home minus the $16,000 annual exclusion. The remainder is the amount that would reduce your unified federal exemption. Ditto for your spouse’s separate exemption.

If your child is married and you give the house to your child and their spouse, you can claim a separate annual exclusion of $16,000 for your child’s spouse.

If you expect the house to continue to appreciate (apparently a good bet), removing it from your estate by gifting it is a good tax avoidance strategy.

Warning: Do do not donate the house outright if you intend to continue living there until the bitter end. In this scenario, expect the IRS to argue that the full FMV at the date of death of the home should be included in your estate for federal estate tax purposes, even if you were paying rent. fair to your child. Sources: CRI Sec. 2036 and Rev. Rule. 70-155 and 78-409.

Example 1: The current FMV of your home, owned by you and your spouse, is $750,000. You generously decide to make a joint gift of the property to your beloved unmarried daughter.

After subtracting two annual exclusions, the joint gift is valued at $718,000 ($750,000 – $32,000 for two exclusions) for federal gift tax purposes. So your unified federal exemption of $12.06 million is reduced by $359,000 (half of $718,000). Ditto for your spouse’s separate exemption. Neither you nor your spouse owe federal gift tax, as the gift is protected by your unified federal exemption. You and your spouse have exhausted some of your respective exemptions, but you still have plenty left.

As for your daughter, she takes on your presumed low tax base in the property, increasing the chances that she will owe Uncle Sam when the house is eventually sold for a gain. However, if she lives in the home for at least two years, she will qualify for the $250,000 exclusion of the federal single filer home sale gain.

Example 2: Now suppose your daughter is married and you and your spouse decide to make a joint gift of the house to your daughter and her spouse.

After subtracting four annual exclusions, the joint gift is valued at $686,000 ($750,000 – $64,000 for four exclusions) for federal gift tax purposes. So your unified federal exemption of $12.06 million is reduced by $343,000 (half of $686,000). Ditto for your spouse’s separate exemption. Neither you nor your spouse owe federal gift tax, as the gift is protected by your unified federal exemption. You and your spouse have exhausted some of your respective exemptions, but you still have plenty left.

As for your daughter and her spouse, they take over your presumed low tax base in the property, which increases the chances that they will owe the uncle when the house is finally sold for a gain. However, if they live in the home for at least two years, they will qualify for the $500,000 exclusion of the co-filer’s federal home sale gain. Pleasant!

Warning: If you’ve made substantial gifts in previous years, you may have already used up some of your $12.06 million unified federal gift and estate tax exemption. Ask your tax advisor about this.

Discount sale

Let’s say you decide to sell your house to your child for less than FMV. For federal tax purposes, you are considered to have donated the difference between the FMV and the bargain sale price. Source: CRI Sec. 2512(b). From a tax standpoint, this can be OK, as long as you understand what’s in store for everyone involved.

Example 3: You are unmarried and decide to sell your $750,000 residence to your single son for $250,000. In the eyes of the IRS, you donated $484,000 ($750,000 FMV minus $250,000 bargain sale price minus $16,000 annual gift tax exclusion). This reduces your $12.06 million unified federal gift and estate exemption by $484,000. Except in the unlikely event that you have already used up substantially all of your unified federal exemption by making substantial prior gifts, you will owe no federal gift tax.

What about the federal tax consequences of the discount sale for you? Good question. To calculate your taxable gain or loss, subtract the home’s tax base from the sale price of $250,000. Any loss is non-deductible. If you have a gain, it qualifies for the $250,000 federal single filer gain exclusion if you follow all the basic rules (you probably do).

Your son’s tax base in the house will only be $250,000. Thus, he will likely trigger a large gain when he sells the property. However, if he lives there for at least two years, he will qualify for his own $250,000 federal gain exclusion.

At the end of the line : These tax results are acceptable, but not optimal. Please continue reading.

Warning: Do do not make a profitable sale of your house if you intend to continue living there until you leave this cruel orb. In this scenario, the IRS can be expected to argue that the full FMV at the date of death of the home remains in your estate for federal estate tax purposes, even if you paid rent. fair to your child. Source: CRI Sec. 2036 and Rev. Ruls. 70-155 and 78-409.

Sale at full price with financing from you

Not comfortable with the idea of ​​giving a big gift to your child looking for a home? I understand. So, let’s look at the alternative of selling the house to your child for the current FMV with you taking over a note for a large portion of the purchase price. When interest rates are low, such a vendor-financed arrangement will provide significant relief to your child while providing the best tax results for you and your child.

Example 4: You are married and decide to sell your residence for its FMV of $750,000 to your married son and his wife. The couple can manage a down payment of $150,000. You fund the remaining $600,000 by taking up a note for that amount. Assuming you’re feeling charitable, you can charge the lowest interest rate allowed by the IRS without any weird tax consequences. This is the applicable federal rate or AFR.

AFRs change monthly in response to bond market conditions and are generally well below commercial rates. At the time this was written, the long-term AFR, for loans over nine years old, was just 1.90% (assuming monthly compounding). The mid-term AFR, for loans over three years but not over nine years, was only 1.40% (assuming monthly compounding). At the time of writing, the going rate nationwide for a 30-year fixed-rate commercial mortgage was around 3.8%, while the rate for a 15-year loan was about 3.2%.

So you could pick up a 30-year note that charges long-term AFR of just 1.90%. Alternatively, you can pick up a nine-year note that charges a mid-term AFR of just 1.40%. Either arrangement would be a great deal for your son.

Now let’s move on to tax results. From a tax standpoint, you simply sold your home for $750,000. Assuming you qualify for the $500,000 federal gains exclusion on the sale of a home, you will likely owe little or no federal income tax on the transaction. Tax-wise, you are safe. There is no freebie, since you sold the house for FMV. From a tax perspective, the sale removes any future appreciation in the value of the home from your taxable estate. Obviously, these are all good tax results for you.

On your son’s side, his tax base in the house is $750,000. If he and his wife live there for at least two years, they will be eligible for the exclusion of $500,000 of the gain from the sale of the co-filer’s home, which should entirely house any gain unless the home fails. appreciate very substantially.

If you wish, you can financially retire your son after the sale by making annual cash gifts to him under the annual gift tax exclusion lien of $16,000, or $32,000 if you and your spouse makes joint gifts to your son ($2 x $16,000), or a whopping $64,000 if you and your spouse generously make joint gifts to your son and his spouse ($4 x $16,000). However, do not give indirect gifts in the form of accepting reduced payments or no payment on the bill owed to you. This would invite the IRS to recast the entire arrangement as a discount sale of your home, with the suboptimal tax consequences explained in Example 3.

Key point: You must go through the legal process of securing the note owed to you with the house. Otherwise, your son will not be able to treat the interest paid to you as deductible qualifying residence interest. If the remark is do not secured by the property, interest payments will be treated as non-deductible personal interest.

The bottom line

Here is. Some potential solutions to your adult child’s home-buying challenges in today’s crazy real estate market, with resulting federal tax consequences.

]]>
We think Gujarat Industries Power (NSE: GIPCL) is taking risks with its debt http://lorodinapoli.org/we-think-gujarat-industries-power-nse-gipcl-is-taking-risks-with-its-debt/ Tue, 15 Feb 2022 02:07:42 +0000 http://lorodinapoli.org/we-think-gujarat-industries-power-nse-gipcl-is-taking-risks-with-its-debt/ Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to […]]]>

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. When we think of a company’s risk, we always like to look at its use of debt, because over-indebtedness can lead to ruin. We can see that Gujarat Industries Power Company Limited (NSE: GIPCL) uses debt in its business. But the more important question is: what risk does this debt create?

When is debt dangerous?

Debt is a tool to help businesses grow, but if a business is unable to repay its lenders, it exists at their mercy. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. That said, the most common situation is when a company manages its debt reasonably well – and to its own benefit. When we think about a company’s use of debt, we first look at cash and debt together.

Check out our latest analysis for Gujarat Industries Power

What is Gujarat Industries Power’s net debt?

The image below, which you can click on for more details, shows that as of September 2021, Gujarat Industries Power had a debt of ₹4.86 billion, up from ₹3.89 billion in a year . However, he also had ₹1.52 billion in cash, and hence his net debt is ₹3.34 billion.

NSEI:GIPCL Debt to Equity Historical February 15, 2022

A look at the responsibilities of Gujarat Industries Power

The latest balance sheet data shows that Gujarat Industries Power had liabilities of ₹5.58 billion due within one year, and liabilities of ₹6.68 billion falling due thereafter. On the other hand, it had cash of ₹1.52 billion and ₹2.89 billion of receivables due within one year. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables by ₹7.85 billion.

This deficit is sizable compared to its market capitalization of ₹11.6 billion, so it suggests shareholders to watch Gujarat Industries Power’s use of debt. This suggests shareholders would be heavily diluted if the company needed to shore up its balance sheet quickly.

We measure a company’s leverage against its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT ) covers its interest charge (interest coverage). The advantage of this approach is that we consider both the absolute amount of debt (with net debt to EBITDA) and the actual interest expense associated with that debt (with its interest coverage ratio ).

Gujarat Power Industries has a low net debt to EBITDA ratio of just 0.85. And its EBIT covers its interest charges 54.4 times. So we’re pretty relaxed about his super-conservative use of debt. But the bad news is that Gujarat Industries Power has seen its EBIT fall by 11% over the last twelve months. We believe that this type of performance, if repeated frequently, could well spell trouble for the stock. The balance sheet is clearly the area to focus on when analyzing debt. But you can’t look at debt in total isolation; since Gujarat Industries Power will need revenue to repay this debt. So, if you want to know more about its earnings, it may be worth checking out this graph of its long-term trend.

Finally, a company can only repay its debts with cold hard cash, not with book profits. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Over the past three years, Gujarat Industries Power has recorded free cash flow of 28% of its EBIT, which is lower than expected. It’s not great when it comes to paying off debt.

Our point of view

Gujarat Industries Power’s EBIT growth rate and the level of its total liabilities are certainly weighing on it, in our view. But his coverage of interest tells a very different story and suggests a certain resilience. When we consider all the factors mentioned, it seems to us that Gujarat Industries Power is taking risks with its use of debt. While this debt may increase returns, we believe the company now has sufficient leverage. There is no doubt that we learn the most about debt from the balance sheet. But at the end of the day, every business can contain risks that exist outside of the balance sheet. We have identified 1 warning sign with Gujarat Industries Power, and understanding them should be part of your investment process.

If you are interested in investing in companies that can generate profits without the burden of debt, then check out this free list of growing companies that have net cash on the balance sheet.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

]]>
5 ways to use your tax refund strategically http://lorodinapoli.org/5-ways-to-use-your-tax-refund-strategically/ Fri, 11 Feb 2022 19:56:09 +0000 http://lorodinapoli.org/5-ways-to-use-your-tax-refund-strategically/ Taxpayers received an average tax refund of nearly $3,000 in 2021, according to the IRS, and there’s an opportunity to use this financial windfall to improve your financial situation. (iStock) Tax season is here, which means millions of American taxpayers could soon receive a substantial financial windfall in the form of a tax refund check. […]]]>

Taxpayers received an average tax refund of nearly $3,000 in 2021, according to the IRS, and there’s an opportunity to use this financial windfall to improve your financial situation. (iStock)

Tax season is here, which means millions of American taxpayers could soon receive a substantial financial windfall in the form of a tax refund check. Last year, the average reimbursement was $2,873, according to the Internal Revenue Service (IRS).

American taxpayers generally use their tax refund to improve their finances, according to a survey by the university of chicago. In 2021, consumers planned to increase their savings (46%), cover their living expenses (35%) or pay off their debts (32%) with their tax return.

How Americans Used Their Tax Refunds, by Income

While many Americans use the extra cash from their tax refund to build long-term wealth, others decide to splurge on something fun or fund a major purchase, the survey finds. . If you’re wondering how to use your tax refund wisely, consider the following strategies:

  1. Pay off high interest credit card debt
  2. Boost your retirement nest egg
  3. Pay off your student loan balance
  4. Invest in the stock market
  5. Create an emergency fund

Keep reading to learn more about these options in the sections below. And visit Credible to compare a wide variety of financial products, such as debt consolidation loans and high-yield savings accounts.

YOU COULD SEE A LOWER TAX REFUND THIS YEAR, AND THAT’S WHY

1. Pay off high-interest credit card debt

According to the Federal Reserve. That means many Americans may be entering 2022 with a load of high-interest debt that’s hard to pay off each month.

Revolving Credit Balances, Federal Reserve

If your revolving credit balance has increased over the past year, you might consider using your tax refund check to pay off your credit cards. Since credit card interest increases daily, you can save hundreds or thousands of dollars in interest charges over time by paying off credit card debt with your tax refund.

Another way to get rid of credit card debt is to take out a debt consolidation loan. This is a flat-rate, low-interest personal loan that you repay in fixed monthly installments. You can compare debt consolidation loan rates from multiple lenders at once on Credible and find the lowest possible rate for your financial situation.

SHOULD YOU MAKE ADDITIONAL MORTGAGE PAYMENTS OR INVEST THE MONEY?

2. Boost your retirement nest egg

The median retirement savings balance is $93,000, well below the amount that experts say is needed to retire, according to a Transamerica survey. One way to shore up your retirement fund is to add your tax refund check to a Roth or traditional IRA (individual retirement account).

Americans under age 50 can contribute up to $6,000 per year to a traditional or Roth IRA, although the maximum annual contribution gradually decreases at certain income levels. according to the tax authorities. Consumers age 50 or older can contribute $7,000 per year, depending on their income.

5 STRATEGIC WAYS TO SAVE FOR YOUR CHILD’S COLLEGE FUND

3. Pay off your student loan balance

Monthly payments and interest charges on federal student loans are paused until May 1, 2022. This means borrowers who choose to continue making payments on their college debt can reduce their principal balance without paying interest.

You can maximize this current federal benefit by using your tax refund check to pay off the principal balance of your student loans. Or you can also save tax refund money to use when student loan repayments resume in a few months.

Student borrowers may also consider refinancing while interest rates are still near their lowest levels. Keep in mind that refinancing federal student loan debt into a private student loan will disqualify you from income-driven repayment (IDR) plans and some student loan forgiveness programs. You can compare student loan refinance rates on Credible to decide if this debt repayment method is right for you.

HOW TO GET INTEREST DEDUCTION ON A STUDENT LOAN

4. Invest in the stock market

If you have solid savings and no debt to repay, you might consider invest your tax return in the stock market. Although the stock market is subject to short-term fluctuations, it can offer a better long-term return on investment than savings accounts or traditional bonds.

To mitigate your risk, you might consider putting your money in an index fund that tracks the stock market, such as an S&P 500 index fund. This can diversify your investment, which protects your money more than if you just invested in a few individual stocks. .

SOCIAL SECURITY PAY CHECKS RISE AT HIGHEST RATE IN NEARLY 40 YEARS

5. Create an emergency fund

Consumers are recommended to have approximately three to six months of spending saved in an emergency fund. Having a solid emergency savings can help you avoid getting into debt when you’re faced with unexpected expenses like car repairs or surprise medical bills.

This year, you could start your emergency savings by putting your tax refund in a high-yield savings account. These accounts have higher savings rates than traditional bank accounts, although they have a lower return on investment than stocks. But unlike equity investments, you can quickly and penalty-free access your money in a high-yield savings account if you need it in an emergency.

You can compare high yield savings account rates from multiple banks at once on Credible to find the best possible deal for your financial needs. Shopping is free and does not affect your credit score.

5 REASONS TO FILE YOUR TAXES EARLY

You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

]]>