Visual Financial Accounting for You: Greatly Modified Chess Positions as Financial and Accounting Concepts

By Anthony Brticevic

The ebook combines chess images with accounting and financial concepts. Nine chapters cover topics from fundamental analysis. The reader does not need to know how to play chess. The CHESSBOARD IMAGES assist the reader by making MATHEMATICAL CONCEPTS MORE VISUAL. 

 

Chessboard images assist because they can and do convey mathematical information, visually. The most important chess piece---for our purposes---is the PAWN. It does and will have a value of one unit (p = 1). The other pieces will derive their values from the base value of the Pawn. For example, Bishops and Knights are worth three units each. If you see one pawn, one Knight, and one Bishop the collective value will be seven units (p + B + Kn). 

 

Chessboard images convey mathematical formulas as to the fundamental analyses of companies. Chessboard images aid learning and retrieval via visual cues. 

 

To be clear the black pawns are REVENUES, the white pawns are EXPENSES, the other black pieces are ASSETS and the other white pieces are LIABILITIES.

 

Conceptually, in terms of this ebook, people and businesses do and will prefer more black pawns and other black pieces. If the black units outnumber the white units, the business is healthy. If White has more units or pieces, the business has work to do. 

 

Anthony lives and works in Sydney Australia. He holds a degree in accountancy, majoring in business and also has a graduate certificate in business---both from Western Sydney University.

• Language: English
• Publisher: Anthony Brticevic
• Release date: Mar 9, 2023
• ISBN: 9798215100875

Anthony Brticevic

Anthony Brticevic is an Australian-trained accountant or analyst who is passionate about data as evidence.  He enjoys deploying those skills to help people make safer or smarter choices as to the stock market and more.  He enjoys running, social chess, and social Latin dancing, basketball and soccer.  Anthony lives and works in Sydney Australia.  Please send questions to [e-mail] or via LinkedIn at www.linkedin.com/in/anthony-brticevic. More than happy to help. 

Book preview

PART 1 MEASURING PROFITABILITY

1 PROFIT MARGIN RATIOS

ACCOUNTING IS THE LANGUAGE OF BUSINESS

WARREN BUFFET

1A. Profit = total income - total cost.

Here, referring to Ch. 1 VISUAL 1, we have a good profit of $1,000,000 (4P – 3P).

1B. % profit margin = 100 × (profit ÷ sales revenue).

And Profit Margin is equal to about 25% ((4P – 3P)/4P). (See Ch. 1 Profit Margin Ratios VISUAL 1.)

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Ch. 1 Profit Margin Ratios VISUAL 1

1C. % gross profit margin = 100 * (gross profit / sales revenue).

And the Gross Profit Margin is equal to about 50% ((4P – 2P)/4P). (See Ch. 1 Profit Margin Ratios VISUAL 2.)

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Ch. 1 Profit Margin Ratios VISUAL 2

1D. % operating margin = 100 * (operating profit / sales revenue).

Now, we find an Operating Margin equal to about 40% ((5P - 3P)/5P). (See Ch. 1 Profit Margin Ratios VISUAL 3.)

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