![AICPA Town Hall Series – September 2 Edition [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/09/mp_1988_0_0jpg.jpg)
AICPA Town Hall Series – September 2 Edition
![Securitization and Mortgage Backed Securities [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/09/mp_1979_0_0jpg.jpg)
Historically, banks were almost entirely reliant on deposits to raise funds. But in the past few decades banks have found alternative sources of funding. One of those sources is securitization. Securitization is the process of bundling illiquid financial assets and then creating securities that are backed by the cash flows from the pool of financial assets. The financial assets can be packaged in such a way that each bundle of assets has a different risk profile. Many banks securitize mortgages, for example, which creates a mortgage-backed security (MBS). A mortgage-backed security is a financial instrument that derives its cash flows from a pool of mortgages. You can have residential mortgage-backed securities (RMBS) or commercial mortgage-backed securities (CMBS).Mortgage-backed securities are a special type of asset-backed security (ABS) where the underlying asset is a mortgage. Asset-backed securities can also be backed by credit card receivables, car loans, student loans, equipment loans, etc.Valuing mortgage-backed securities and asset-backed securities is difficult because the cash flows are uncertain. This is due to:• interest rate risk• prepayment risk• default riskSome banks use Monte Carlo simulations to estimate the value of MBS or ABS. Securitization has several advantages:• It removes risky, illiquid assets from the bank’s balance sheet • It reduces the bank’s regulatory capital requirements• It raises cash and increases liquidity so the bank can underwrite more loansThe investors buying the securities benefit from being able to invest in mortgages (or credit card debt, car loans, etc.) without having to originate or service the mortgages.— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE* http://eepurl.com/dIaa5z — HIRE MICHAEL MCLAUGHLIN, PHD, CPA* https://michaelmclaughlin.com/hire-me— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT* https://edspira.thinkific.com—LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/—GET TAX TIPS ON TIKTOK* https://www.tiktok.com/@prof_mclaughlin—ACCESS INDEX OF VIDEOS* https://www.edspira.com/index—CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira* Instagram: https://www.instagram.com/edspiradotcom* LinkedIn: https://www.linkedin.com/company/edspira—CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin—ABOUT EDSPIRA AND ITS CREATOR* https://www.edspira.com/about/
![Equity Turnover Ratio- Meaning, Formula, Calculation & Interpretations [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/09/mp_1976_0_0jpg.jpg)
This comprehensive tutorial discusses the Equity Turnover Ratio in detail. You will learn exactly what the Equity Turnover Ratio is, how to calculate it, and how to interpret the results. We will also go over how to calculate the Equity Turnover Ratio in Excel using the Colgate Case Study. You can download the Colgate Equity Turnover Ratio template from this link – https://www.wallstreetmojo.com/ratio-analysis-template/What is Equity Turnover Ratio?——————————————–The ratio of a firm’s net sales to its average equity over a specific period is known as equity turnover, and it can be used to determine if the company is generating enough revenue to justify the shareholders’ holding of its equity. Formula——————————————–Equity Turnover Formula = Net Sales / Average Shareholders’ EquityInterpretation——————————————— Comparing the Equity Turnover Ratio between firms in the same industry is a good idea. For example, the oil refinery industry’s turnover ratio is substantially lower than a service business because oil refineries require a significant capital investment to generate sales.- If a firm wishes to attract more shareholders by boosting its equity turnover ratio, it might skew the equity by increasing the debt component in the capital structure. This is a very risky action because it puts the business in a position of taking on too much debt. For more details, you can refer to our article – https://www.wallstreetmojo.com/equity-turnover-ratio/ Connect with us! YouTube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUwLinkedIn https://www.linkedin.com/company/wallstreetmojo/mycompany/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/?utm_medium=copy_linkTwitter https://twitter.com/wallstreetmojo
![Refinancing Burnout | Mortgages [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/09/mp_1958_0_0jpg.jpg)
When the refinancing rate declines more people decide to refinance, which increases the prepayment rate. But a decrease in the refinancing rate doesn’t always increase the prepayment rate. This is because: • Some people already refinanced when the rate previously declined• Some people can’t refinance no matter what the rate is (e.g., they have a low credit score)Thus, you can have a situation where a decrease in the refinancing rate is accompanied by a decrease in the prepayment rate. This is called the burnout effect.— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE* http://eepurl.com/dIaa5z — HIRE MICHAEL MCLAUGHLIN, PHD, CPA* https://michaelmclaughlin.com/hire-me— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT* https://edspira.thinkific.com—LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/—GET TAX TIPS ON TIKTOK* https://www.tiktok.com/@prof_mclaughlin—ACCESS INDEX OF VIDEOS* https://www.edspira.com/index—CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira* Instagram: https://www.instagram.com/edspiradotcom* LinkedIn: https://www.linkedin.com/company/edspira—CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin—ABOUT EDSPIRA AND ITS CREATOR* https://www.edspira.com/about/
![Net Fixed Asset Turnover Ratio- Meaning, Formula, Calculation & Interpretations [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/09/mp_1954_0_0jpg.jpg)
This tutorial covers the most important aspects of the Net Fixed Asset Turnover Ratio. You will learn precisely what Net Asset Turnover Ratio is, its formula, calculating the ratio, and interpreting the results. We’ll also cover how to calculate the Net Fixed Asset Turnover Ratio in excel using the Colgate Case Study. You can download the Colgate Net Fixed Asset Turnover Ratio template from this link – https://www.wallstreetmojo.com/ratio-analysis-template/What is Net Fixed Asset Turnover Ratio?——————————————–The Net Fixed Asset Turnover Ratio is used to determine a company’s ability to generate sales from fixed assets investments. Formula——————————————–Net Fixed Asset Turnover Ratio Formula = Net Sales / Average Net Fixed Assets. Relevance and Uses of Net Fixed Asset Turnover Ratio——————————————— Creditors and investors can use this ratio to determine how effectively a company uses its machines and equipment to generate sales.- Creditors might use this ratio to see if the company can generate enough cash flow from newly purchased equipment to pay off the loan used to buy it.- The company can use this ratio to keep track of how much they have invested in each asset each year and create a pattern to compare year-over-year trends.For more details, you can refer to our article – https://www.wallstreetmojo.com/fixed-asset-turnover-ratio-formula/Connect with us! YouTube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUwLinkedIn https://www.linkedin.com/company/wallstreetmojo/mycompany/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/?utm_medium=copy_linkTwitter https://twitter.com/wallstreetmojo
![Get Free Business Plan Template | Get it Here: www.bizmove.com/business-gifts.htm #shorts [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/08/mp_1935_0_0jpg.jpg)
Get Free Business Plan Template. Get It Here: https://www.bizmove.com/business-gifts.htm✅ 𝗚𝗲𝘁 𝗙𝗥𝗘𝗘 𝗧𝗼𝗼𝗹𝘀 𝗳𝗼𝗿 𝗦𝘁𝗮𝗿𝘁𝗶𝗻𝗴 and Managing 𝗮 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀. 𝗛𝗲𝗿𝗲: https://www.bizmove.com/. You get worksheets, books, checklists, templates, guides, spreadsheets, and more.
![Get Free Business Books From Amazon | Get it Here: www.bizmove.com/free/business.htm #shorts [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/08/mp_1932_0_0jpg.jpg)
How to Start a Business Free Book. Get It Here: http://www.bizmove.com/free/business.htm✅ 𝗚𝗲𝘁 𝗙𝗥𝗘𝗘 𝗧𝗼𝗼𝗹𝘀 𝗳𝗼𝗿 𝗦𝘁𝗮𝗿𝘁𝗶𝗻𝗴 and Managing 𝗮 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀. 𝗛𝗲𝗿𝗲: https://www.bizmove.com/. You get worksheets, books, checklists, templates, guides, spreadsheets, and more.
![Get Free Business Plan Template | Get it Here: www.bizmove.com/business-gifts.htm #shorts [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/08/mp_1927_0_0jpg.jpg)
Get Free Business Plan Template. Get It Here: https://www.bizmove.com/business-gifts.htm✅ 𝗚𝗲𝘁 𝗙𝗥𝗘𝗘 𝗧𝗼𝗼𝗹𝘀 𝗳𝗼𝗿 𝗦𝘁𝗮𝗿𝘁𝗶𝗻𝗴 and Managing 𝗮 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀. 𝗛𝗲𝗿𝗲: https://www.bizmove.com/. You get worksheets, books, checklists, templates, guides, spreadsheets, and more.
![Get Free Business Books From Amazon | Get it Here: www.bizmove.com/free/business.htm #shorts [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/08/mp_1924_0_0jpg.jpg)
How to Start a Business Free Book. Get It Here: http://www.bizmove.com/free/business.htm✅ 𝗚𝗲𝘁 𝗙𝗥𝗘𝗘 𝗧𝗼𝗼𝗹𝘀 𝗳𝗼𝗿 𝗦𝘁𝗮𝗿𝘁𝗶𝗻𝗴 and Managing 𝗮 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀. 𝗛𝗲𝗿𝗲: https://www.bizmove.com/. You get worksheets, books, checklists, templates, guides, spreadsheets, and more.
![Mortgage Prepayment Risk for Banks [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/08/mp_1918_0_0jpg.jpg)
Changes in interest rates create problems for banks due to mismatches of fixed-rate and floating-rate instruments, as well as differences in time to maturity, rate-setting frequency, and indexes. But changes in interest rates also lead to prepayment risk.Prepayment risk occurs when a borrower repays the principal sooner than required. Prepayment is a problem because the bank gets stuck re-lending the money at a less favorable interest rate. Prepayments occur through:• Curtailment (the borrower pays an additional principal amount along with their scheduled mortgage payment; this reduces the balance of the loan)• Housing turnover (the borrower sells the property and pays off the loan)• Refinancing (the borrower gets a new loan and pays off the first loan)The most important factor affecting prepayment is the refinancing rate. However, prepayment is also affected by:• Borrower characteristics (e.g., credit score)• Geographic location• Mortgage seasoning • Seasonality • The burnout effect— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE* http://eepurl.com/dIaa5z — HIRE MICHAEL MCLAUGHLIN, PHD, CPA* https://michaelmclaughlin.com/hire-me— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT* https://edspira.thinkific.com—LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/—GET TAX TIPS ON TIKTOK* https://www.tiktok.com/@prof_mclaughlin—ACCESS INDEX OF VIDEOS* https://www.edspira.com/index—CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira* Instagram: https://www.instagram.com/edspiradotcom* LinkedIn: https://www.linkedin.com/company/edspira—CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin—ABOUT EDSPIRA AND ITS CREATOR* https://www.edspira.com/about/
![Asset Turnover Ratio- Meaning, Formula, Calculation & Interpretations [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/08/mp_1913_0_0jpg.jpg)
This tutorial will cover the concept of Asset Turnover Ratio from the ground up, including its formula and step-by-step calculations. Following that, we will use the Colgate Case Study to calculate the Asset Turnover Ratio in excel and interpret the results.You can download the Colgate Asset Turnover Ratio template from this link – https://www.wallstreetmojo.com/ratio-analysis-template/What is Asset Turnover Ratio?——————————————–The Asset Turnover Ratio measures how much revenue a company generates based on its total assets. This ratio helps determine whether the company is generating sufficient revenues to justify holding a large amount of assets on its balance sheet.Formula——————————————–Asset Turnover Ratio Formula = Net Sales / Average Total AssetsInterpretation of Asset Turnover Ratio——————————————— If the asset turnover ratio is less than one, the company is in trouble since its total assets are unable to generate enough revenue at the end of the year. However, this is based on a presumption. For example, the asset turnover of the industry in which the firm operates is less than 0.5, while this company’s ratio is 0.9, then despite its lower asset turnover, this company is performing well.- If the asset turnover ratio is greater than one, it is always a favorable sign. Because this indicates that the company is self-sufficient in terms of revenue. There is, however, an exception. A company in the retail industry, for example, will have fewer total assets. As a result, most organization’s average ratio is always more than 2 in this industry. In this situation, a 1.5 asset turnover indicates that the company isn’t doing well.For more details, you can refer to our article – https://www.wallstreetmojo.com/asset-turnover-ratio/Connect with us! YouTube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUwLinkedIn https://www.linkedin.com/company/wallstreetmojo/mycompany/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/?utm_medium=copy_linkTwitter https://twitter.com/wallstreetmojo
![Taxes on illegal income [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/08/mp_1889_0_0jpg.jpg)
Income from illegal activities is considered taxable income. The IRS says illegal income, including income from dealing drugs, must be reported on your tax return. You can report illegal income in one of two ways. If you stole money, received a bribe, or were hired to kill someone, you would report the income on line 8 of Schedule 1 where it says, “Other income.”But if you earned money from an illegal business, like a money laundering operation, you would report the income on Schedule C. This way you can take deductions for wages, rent, and other expenses of your business.There’s an exception for drug traffickers, however, as they only get a deduction for the cost of goods sold. — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people. — SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE* http://eepurl.com/dIaa5z — HIRE MICHAEL MCLAUGHLIN, PHD, CPA* https://michaelmclaughlin.com/hire-me— GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT* https://edspira.thinkific.com—LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/—GET TAX TIPS ON TIKTOK* https://www.tiktok.com/@prof_mclaughlin—ACCESS INDEX OF VIDEOS* https://www.edspira.com/index—CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira* Instagram: https://www.instagram.com/edspiradotcom* LinkedIn: https://www.linkedin.com/company/edspira—CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin—ABOUT EDSPIRA AND ITS CREATOR* https://www.edspira.com/about/