Category Archives: SMSF Investing

MASTERCLASS Investment – What is Debt to Equity Ratio and how Investors can use it

When looking for financially strong companies to invest in, one fundamental ratio, Debt to Equity (D/E) gives us a measure of a company’s financial leverage (borrowings) calculated by dividing its total liabilities by stockholders’ equity. It indicates what proportion of equity and debt … Continue reading

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MASTERCLASS Investment –Company Health Ratios – Profit Margins

In the Profit & Loss Statement or Income Statement, (one of the 3 Financial Reports Companies issue) there are four levels of profit or profit margins – Gross profit (after cost of sales deducted from sales/revenue), Operating profit (after expenses … Continue reading

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Masterclass SMSF – Acquiring assets from related parties – a possible solution for property?

Property – when the SMSF hasn’t enough to borrow itself – acquiring assets from related parties may be possible using a non-geared related unit trust or company. From August 1999, the only other alternative for your SMSF to invest in … Continue reading

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MASTERCLASS Investment – What is the Cash Flow Statement and what do we learn from it?

Today’s Masterclass looks at what is cash flow and the Cashflow Statement, what does it tell us and why it is as important along-side the Profit & Loss and Balance Sheet. What is the Cashflow Statement – When we talk … Continue reading

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Masterclass SMSF – Related Party Investment SMSF – or In-House asset SMSF – what is allowed?

The Australian Tax Office (ATO) as regulator of SMSFs, is clear about the investing part of running an SMSF – “You need to manage your fund’s investments in the best interests of fund members and in accordance with the law. … Continue reading

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MASTERCLASS Investment – What is, and how do you read the Balance Sheet or Financial Position?

As previously explained in our post about Company Reports, the Balance Sheet (or Financial Position) is one of three reports or statements that a company or business produces which shows how the business has performed. The other two reports are Profit and Loss (or Income … Continue reading

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MASTERCLASS Investment – How to Understand Profit & Loss (or Income) Statements

As previously explained at Company Reports, the Profit & Loss (or Income Statement) is one of three reports or statements that a company or business produces which shows how the business has performed. The other two reports are Balance Sheet … Continue reading

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