Tracking Stocks

Just like in business, when trading stocks, you need to track your performance in order to know if your strategy is working.  I had a request to develop a spreadsheet to track stocks. I developed this spreadsheet with the fact that the person had multiple brokerage accounts. Here is a screen shot of the column and there headers. I’ll explain what each column is and what it is for. Stock Spreadshee

The first column is the date the stock was brought. The second column is the stock name or symbol. Followed by the name of the account. In this example, the person has three brokerage accounts. One is their “main” account, one is a self managed IRA account and the last account is an accounting that they have with “Robinhood” (Brokerage App) Filters were added so that they can click the filter and filter by only the account that they need to look at. For example filter for only the taxable accounts.

The “Buy” column is where you enter price that the stock was brought at. The “Share” column is where you enter the number of shares brought. The next column is a calculation of cost. It’s simply the Buy price times the number of shares plus the commission (if any). The buy date can be filtered by year and by month so that you can see what stocks you brought by what time frame.

The next set of column are the Sell Date, Sell Price per share, #Shares and Proceeds. The Proceeds column is the only calculation with the rest of them simple data entry. And just like the buy date the sell date can be filtered by time frame as well. The calculation of the proceeds is just like the Cost. It is the number shares times the sell price plus any commission.

The next column is for any dividends that you received, This will factor into the Profit calculation that we will do at the end.  The adjust column for any miscellaneous adjustments that you may have.

The Profit $ column is a calculation of Proceeds – Cost + Dividends + adjustments. This column gives you the dollar amount of the profit or loss for that particular stock. The last column is the profit or loss % for that stock. It is the Cost divided by the profit or loss $ amount.

If you would like a copy of this spreadsheet feel free to send me an email. robert.pipas@eagleeyebookkeepingservicesllc.com

www.eagleeyebookkeepingservicesllc.com

 

 

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Debt /Equity Ratio

GrowthUsing your financial statements to measure your business is one way to make sure that you and your business is moving in the right direction. In order to accomplish this you need a few things.

 

  • Financial Statements (both accurate and timely)
  • Consistency – In order to track the direction of the business, consistency is key. Knowing your ratios only once in a while will not show a true and accurate picture of your business and can lead to bad business decisions.
  • Picking the right KPI’s (Key performance Indicators) or ratios. Some ratios are a better fit for some businesses more so than others.

The Debt to Equity Ratio is a good ratio to track the businesses financial leverage. It shows as a percent how well the business is at managing it’s debt to make a profit.

The higher the ratio the more reliant the business is on debt to turn a profit.

Example: Company A – Total Liabilities $80,000, Total Equity $120,000

$80,000 / $120,000 = .6666 or 66.66%

Company B – Total Liabilities $150,000, Total Equity $80,000

$150,000 / $80,000 =  1.875 or 187.5%

Company B is higher in debt and more reliant on external loans to make a profit. However, only showing this at one point in time does not show which direction the company is going in. Company A could have a lower ratio right now but shown over time could be increasing and Company B shown over time could be decreasing. Calculating this ratio over time shows the true nature of the ratio and shows if it is improving or not.

For more information do not hesitate to ask.

robert.pipas@eagleeyebookkeepingservicesllc.com

www.eagleeyebookkeepingservicesllc.com