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Financial Terms | |
basic earnings per share (EPS) |
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Definition of basic earnings per share (EPS)basic earnings per share (EPS)This important ratio equals the net
Related Terms:Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange Accounting earningsearnings of a firm as reported on its income statement. Accounting periodThe period of time for which financial statements are produced – see also financial year. Adjusted Cash Flow Provided by Continuing OperationsCash flow provided by operating Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign ![]() Annual fund operating expensesFor investment companies, the management fee and "other expenses," Annual percentage rate (APR)The periodic rate times the number of periods in a year. For example, a 5% annual percentage rate (APR)Interest rate that is annualized using simple interest. Annual percentage yield (APY)The effective, or true, annual rate of return. The APY is the rate actually Annualized holding period returnThe annual rate of return that when compounded t times, would have Annuity PeriodThe time between each payment under an annuity. authorized share capitalMaximum number of shares that the company is permitted to issue, as specified in the firm’s articles of incorporation. Authorized sharesNumber of shares authorized for issuance by a firm's corporate charter. Authorized sharesThe number of shares of stock that the company is legally authorized to sell. ![]() Average Amortization PeriodThe average useful life of a company's collective amortizable asset base. Average Collection PeriodAverage number of days necessary to receive cash for the sale of Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total BARRA's performance analysis (PERFAN)A method developed by BARRA, a consulting firm in Basic balanceIn a balance of payments, the basic balance is the net balance of the combination of the current Basic business strategiesKey strategies a firm intends to pursue in carrying out its business plan. Basic Earnings Power Ratiopercentage of earnings relative to total assets; indication of how Basic IRR ruleAccept the project if IRR is greater than the discount rate; reject the project is lower than the book value and book value per shareGenerally speaking, these terms Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Book Value per ShareThe book value of a company divided by the number of shares ![]() Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's cash flow from operating activities, or cash flow from profitThis equals the cash inflow from sales during the period minus the cash Cash flow from operationsA firm's net cash inflow resulting directly from its regular operations Cash flow per common shareCash flow from operations minus preferred stock dividends, divided by the Cash Flow Provided by Operating ActivitiesWith some exceptions, the cash effects of transactions CASH FLOWS FROM OPERATIONSA section on the cash-flow Stockholders’ equity statement that shows how much cash came into a company and how much went out during the normal course of business. Commercial paperShort-term unsecured promissory notes issued by a corporation. The maturity of commercial paperShort-term unsecured notes issued by firms. Committee, AIMR Performance Presentation Standards Implementation CommitteeThe Association for Investment Management and Research (AIMR)'s performance Presentation Standards Implementation Common SharesAre equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends. Compounding periodThe length of the time period (for example, a quarter in the case of quarterly compounding periodthe time between each interest computation Core EarningsA measure of earnings that includes only the results of the primary operating Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Credit periodThe length of time for which the customer is granted credit. Critical Growth PeriodsTimes in a company's history when growth is essential and without which survival of the business might be in jeopardy. degree of operating leveragea factor that indicates how a percentage change in sales, from the existing or current degree of operating leverage (DOL)percentage change in profits given a 1 percent change in sales. diluted earnings per share (EPS)This measure of earnings per share Direct paperCommercial paper sold directly by the issuer to investors. Discontinued operationA business segment that has been or is planned to be closed or sold off. Discontinued OperationsNet income and the gain or loss on disposal of a business segment whose assets and operations are clearly distinguishable from the other assets and operations of an entity. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an dispersionthe degree of variability or difference; it is measured Dividends per shareAmount of cash paid to shareholders expressed as dollars per share. Dividends per shareDividends paid for the past 12 months divided by the number of common shares EarningsNet income for the company during the period. EarningsIn general, refers to a company's total sales less cost of sales and operating expenses, including interest and income tax. earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working Earnings ManagementThe active manipulation of earnings toward a predetermined target. Earnings per ShareA measure of the earnings generated by a company on a per Earnings per share (EPS)eps, as it is called, is a company's profit divided by its number of outstanding earnings per share (EPS)See basic earnings per share and diluted earnings per share. Earnings per share of common stockHow much profit a company made on each share of common stock this year. Earnings retention ratioPlowback rate. Earnings surprisesPositive or negative differences from the consensus forecast of earnings by institutions Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Economic earningsThe real flow of cash that a firm could pay out forever in the absence of any change in Euro-commercial paperShort-term notes with maturities up to 360 days that are issued by companies in Evaluation periodThe time interval over which a money manager's performance is evaluated. Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Extended Amortization PeriodAn amortization period that continues beyond a long-lived asset's economic useful life. Extended Amortization PeriodsAmortizing capitalized expenditures over estimated useful lives that are unduly optimistic. Farm Improvement and Marketing Cooperatives Loans ActSee here FHA prepayment experienceThe percentage of loans in a pool of mortgages outstanding at the origination Full Credit PeriodThe period of trade credit given by a supplier to its customer. Fully diluted earnings per sharesearnings per share expressed as if all outstanding convertible securities Funds From Operations (FFO)Used by real estate and other investment trusts to define the cash flow from Grace PeriodA specific period of time after a premium payment is due during which the policy owner may make a payment, and during which, the protection of the policy continues. The grace period usually ends in 30 days. Grace PeriodLength of time during which repayments of loan principal are excused. Usually occurs at the start of the loan period. Growing perpetuityA constant stream of cash flows without end that is expected to rise indefinitely. Holding periodLength of time that an individual holds a security. Holding period returnThe rate of return over a given period. HyperinflationExtremely high inflation. Income from Continuing OperationsAfter-tax net income before discontinued operations, Income statement (statement of operations)A statement showing the revenues, expenses, and income (the Issued share capitalTotal amount of shares that are in issue. Related: outstanding shares. Issued sharesThe number of shares that the company has sold to the public. issued sharesshares that have been issued by the company. Low price-earnings ratio effectThe tendency of portfolios of stocks with a low price-earnings ratio to Management/closely held sharespercentage of shares held by persons closely related to a company, as Multiperiod immunizationA portfolio strategy in which a portfolio is created that will be capable of Net Cash after OperationsCash flow available for debt service—the payment of interest and principal on loans. Generally calculated as cash provided by operating activities before interest net income (also called the bottom line, earnings, net earnings, and netoperating earnings) Net operating lossesLosses that a firm can take advantage of to reduce taxes. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |