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Types of Capital for Construction Businesses

Levelset

The term capital is used across industries to represent all of a company’s financial assets, including cash, inventory, equipment, and more. Several different types of capital — working capital , debt capital , and equity capital — are common in the construction industry. Debt capital. 3 types of capital for construction.

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Buyers Retreat as Mortgage Rates Creep Over 7% Threshold Again

Pro Builder

Rates are rising due to uncertainty about the Federal Reserve’s plan to tame inflation in a strong economy, as well as an ongoing battle over raising the debt ceiling and the possibility of a U.S. Even if the debt crisis is resolved before a default, rates don’t have a lot of reason to move significantly lower anytime soon.

Debt 52
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The Impact of ASC 842 – The New Lease Standard Is Here

Construction Business Owner

There are several steps you should take now to prepare for a successful transition to the new standard: The first step is to: Build an inventory of your leases. Existing debt covenant calculations may need to be amended as a result of the implementation of the new lease standard. Determine how to account for each lease.

Leases 177
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Home Prices Increase 17.2%—Is the Housing Market in a Bubble?

Pro Builder

Bubbles are driven by irrational behaviors driving up prices, yet the housing market’s price acceleration can be pinpointed to low inventory. Debt as a percentage of personal income has dropped to 85.3% The median price for an existing home reached $329,100, a 17.2% Housing stock remains at a record low with just 2.1

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Real-Time Work-in-Progress Figures — Construction’s Secret Weapon

ProcurementExpress.com

Yes, WIPs are considered current assets – meaning, accountants consider inventory assets to be current, as they are expected to turn into cash within the year. WIP is one element of an inventory account. In a manufacturing context, WIP allows accounting to record all inventory items that occupy an in-between state.

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Is Fed’s Homebuyer Credit a Long Term Problem?

Constructonomics

If the tax credit had continued to show the results it had in those months, experts were saying that excess home inventory would be cleared by summer, opening the door to new construction for construction companies once again. This was very welcome news to the millions of Americans who rely on their contractor’s license for a living.

Debt 100
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Real-Time Work-in-Progress Figures — Construction’s Secret Weapon

ProcurementExpress.com

Yes, WIPs are considered current assets – meaning, accountants consider inventory assets to be current, as they are expected to turn into cash within the year. WIP is one element of an inventory account. In a manufacturing context, WIP allows accounting to record all inventory items that occupy an in-between state.