How to calculate working capital
Working capital – a combination of cash and liquid assets that are necessary to finance the activities of the company. Knowing the amount of working capital, you can more effectively manage the company and make investment decisions. The value of working capital characterizes the ability and speed of repayment of the current obligations of the company. If the company does not have working capital or is very modest, then most likely it will not be successful. The calculation of working capital is also useful for evaluating the efficient use of company resources.  Formula for calculating working capital:
Hang current assets. Current assets are assets that can be converted into cash within one year. Such assets include cash and short-term capital. For example, accounts receivable, deferred expenses and stocks are current assets.
As a rule, current assets and their total value are indicated in the balance sheet of the company. Continue reading
International investment under the flag of the UAE
The UAE is an ideal location for making investments and managing them all over the world: income received outside the country is completely exempt from any taxes, and investment activity, including international, is considered prestigious and encouraged by the government – the investor can count on loyalty and support with sides of business, banks and government institutions
Yes, the UAE is not the only tax-free jurisdiction in the world, but most of the “tax havens” are on the “black lists” of almost all civilized countries. The UAE does not concern the consequences of global trends of deoffshorization, therefore, companies registered on their territory do not have problems and additional costs when settling with counterparties from other states. In addition, the UAE has concluded double taxation avoidance treaties and mutual protection of investments with many countries of the world. Continue reading
Family business: you can not increase to lose
Dmitry Motorin talks about the problem of effective business inheritance and gives advice to owners and founders of companies how to transfer their business to the heirs without problems
In the county of Lancashire, in England, about family companies they usually say that “there are only three generations between tattered shoes.” Our country has a hot issue of capital inheritance to go in the next 10-15 years. There are historical reasons for this.
It is amazing that not only people, but also the companies created by them, want to live forever. Many of today’s successful enterprises were created on the ruins of the USSR economy in the 90s and with new opportunities in the 2000s. These firms turn out to be the same living organisms, though social, and they just like their founders want to extend their active phase of life. The question is, how true shareholders are able to keep track not only of their longevity, but also the longevity of their company? Continue reading