Consolidated Balance Sheets: These reports show what a corporation and its subsidiary companies own (assets) and owe (liabilities) at a certain date. They also show a shareholders’ equity.
Asset: Something of value that is owned, including cash and items that are convertible to cash. Examples of assets include receivables (monies owed to the company), inventories (supplies), property and equipment (buildings, land, machinery, etc.).
Liability: A company’s legal debts or obligations that arise during the course of business operations.
Equity: Total assets less total liabilities equals equity. CIRI’s equity belongs to CIRI shareholders.
Consolidated Statements of Operations: These reports show the combined revenues, expenses and net income or net loss of a company.
Revenue: The money made by operating a business or earned from holding an asset.
Expenses: The costs required to generate revenue. For example, fuel to operate construction equipment.
Net Income: When total revenues exceed total expenses.
Net Loss: When total expenses exceed total revenues.
Consolidated Statements of Cash Flows: These reports show the amount of cash received and spent during a fiscal year, including:
*Cash received or spent operating a business.
*Cash received or spent buying and selling assets.
*Cash borrowed or paid on debt and/or paid to shareholders.
Fiscal Year: Also called a financial year; any yearly period without regard to the calendar year at the end of which a company or organization determines its financial condition. CIRI’s fiscal year is Jan. 1 through Dec. 31.
Limited Liability Company (LLC): A LLC is a business organization that combines elements of both partnerships and corporations. It limits the legal risk to its owners to only the amount of their investment.
Liquidity: Cash and current assets sufficient to satisfy the Company’s liabilities and commitments as they come due.
Marketable Securities: A general term for stocks, bonds or other investments that can be sold on the open market.