Coop Financial Condition

That "assets = liabilities + equity" formula means nothing in the context of a co-op or condo. Eventually the book value of the building will depreciate to nothing, with a corresponding decrease in equity. It's the cash and any underlying mortgage that matter.

Great to know. I was so worried that this will lead to some kind of bankruptcy. So a negative equity will not cause the coop board to significantly increase maintenance right?

Thanks again.

"the shareholder's Equity was 3.3M. This year, it dropped to another 300K to 2M. "

is it the key to admit into the rich circle? no wonder the smart asses out there cannot find a 50K job

Caonima: as I mentioned above, a few years ago, it was 3.3m. This past year the amount went down by 300k, to 2m, which implies that last year was 2.3m. Was the statement really that stupid?

NYCDowntown:

Please trust NWT. He explains the formula to you, in an easy to understand way.
NWT knows what he's talking about.

NYCDowntown - I think it's a valid question. I agree with NWT that it's nothing to worry about. The whole accounting methodology of depreciation means that many of the assets have been written off over the years to be worth little or nothing in accounting terms. This doesn't mean that they're actually worth nothing and does not impact the cashflow.