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Definition of EBITDAR
Earnings before interest, taxes, deprecation, amortization, and rents.
the combined discounts for lack of control and marketability. g the constant growth rate in cash flows or net income used in the ADF, Gordon model, or present value factor.
Earnings of a firm as reported on its income statement.
The accumulated coupon interest earned but not yet paid to the seller of a bond by the
The repayment of a loan by installments.
The pool factor implied by the scheduled amortization assuming no prepayemts.
Swap in which the principal or national amount rises (falls) as interest rates
A situation wherein participants in a transaction have different net tax rates.
Related: Benchmark interest rate.
The ratio of net income before taxes to net sales.
Also called the base interest rate, it is the minimum interest rate investors will
The requirement that a claim holder voting against a plan of reorganization
interest that is not immediately expensed, but rather is considered as an asset and is then
Net income plus depreciation.
interest paid on previously earned interest as well as on the principal.
A portfolio manager invests dollars in an instrument denominated in a foreign
A non-cash expense that provides a source of free cash flow. Amount allocated during the
Net income for the company during the period.
Earnings before interest and taxes (EBIT)
A financial measure defined as revenues less cost of goods sold
Earnings per share (EPS)
EPS, as it is called, is a company's profit divided by its number of outstanding
Earnings retention ratio
Positive or negative differences from the consensus forecast of Earnings by institutions
The ratio of Earnings per share after allowing for tax and interest payments on fixed interest
The real flow of cash that a firm could pay out forever in the absence of any change in
Profits in excess of the competitive level.
Effective annual interest rate
An annual measure of the time value of money that fully reflects the effects of
Equilibrium rate of interest
The interest rate that clears the market. Also called the market-clearing interest
Forward interest rate
interest rate fixed today on a loan to be made at some future date.
Fully diluted earnings per shares
Earnings per share expressed as if all outstanding convertible securities
interest earned before taxes are deducted.
The price paid for borrowing money. It is expressed as a percentage rate over a period of time and
Interest coverage ratio
The ratio of the Earnings before interest and taxes to the annual interest expense. This
Interest coverage test
A debt limitation that prohibits the issuance of additional long-term debt if the issuer's
Interest equalization tax
Tax on foreign investment by residents of the U.S. which was abolished in 1974.
Contractual debt payments based on the coupon rate of interest and the principal amount.
Interest on interest
interest earned on reinvestment of each interest payment on money invested.
Interest-only strip (IO)
A security based solely on the interest payments form a pool of mortgages, Treasury
Interest rate agreement
An agreement whereby one party, for an upfront premium, agrees to compensate the
Interest rate cap
Also called an interest rate ceiling, an interest rate agreement in which payments are made
Interest rate ceiling
Related: interest rate cap.
Interest rate floor
An interest rate agreement in which payments are made when the reference rate falls
Interest rate on debt
The firm's cost of debt capital.
Interest rate parity theorem
interest rate differential between two countries is equal to the difference
Interest rate risk
The risk that a security's value changes due to a change in interest rates. For example, a
Interest rate swap
A binding agreement between counterparties to exchange periodic interest payments on
A firm's deduction of the interest payments on its debt from its Earnings before it calculates
Interest tax shield
The reduction in income taxes that results from the tax-deductibility of interest payments.
Loan amortization schedule
The schedule for repaying the interest and principal on a loan.
Low price-earnings ratio effect
The tendency of portfolios of stocks with a low price-Earnings ratio to
A loan repayment schedule in which the outstanding principal balance of the loan
Nominal interest rate
The interest rate unadjusted for inflation.
The total number of derivative contracts traded that not yet been liquidated either by an
Planned amortization class CMO
1) One class of CMO that carries the most stable cash flows and the
Pooling of interests
An accounting method for reporting acquisitions accomplished through the use of equity.
Price/earnings ratio (PE ratio)
Shows the "multiple" of Earnings at which a stock sells. Determined by dividing current
Rate of interest
The rate, as a proportion of the principal, at which interest is computed.
Real interest rate
The rate of interest excluding the effect of inflation; that is, the rate that is earned in terms
Accounting Earnings that are retained by the firm for reinvestment in its operations;
This is the total number of shares of a security that investors have borrowed, then sold in the
interest calculated only on the initial investment. Related:compound interest.
Spot interest rate
interest rate fixed today on a loan that is made today. Related: forward interest rates.
Stated annual interest rate
The interest rate expressed as a per annum percentage, by which interest
Earnings before interest and tax, divided by interest payments.
True interest cost
For a security such as commercial paper that is sold on a discount basis, the coupon rate
Earnings per share of common stock
How much profit a company made on each share of common stock this year.
Profits a company plowed back into the business over the years. Last January’s retained Earnings, plus the net income or profit that a company made this year (which is calculated on the income statement), minus dividends paid out, equals the retained Earnings balance on the balance sheet date.
See depreciation, but usually in relation to assets attached to leased property.
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.
The cost of money, received on investments or paid on borrowings.
Profit before interest and taxes (PBIT)
Income that a company receives in the form of interest, usually as the result of keeping money in interest-bearing accounts at financial institutions and the lending of money to other companies.
The amount of interest that is owed but has not been paid at the end of a period.
Payroll taxes payable
The amount of payroll taxes owed to the various governments at the end of a period.
The residual Earnings of the company.
Statement Retained Earnings
One of the basic financial statements; it takes the beginning balance of retained Earnings and adds net income, then subtracts dividends. The Statement of Retained Earnings is prepared for a specified period of time.
This term has two quite different meanings. First, it may
basic earnings per share (EPS)
This important ratio equals the net
diluted earnings per share (EPS)
This measure of Earnings per share
earnings before interest and income tax (EBIT)
A measure of profit that
earnings per share (EPS)
See basic Earnings per share and diluted Earnings per share.
net income (also called the bottom line, earnings, net earnings, and net
price/earnings ratio (price to earnings ratio, P/E ratio, PE ratio)
This key ratio equals the current market price
times interest earned
A ratio that tests the ability of a business to make
The amount of interest accumulated on a debt security between
Basic Earnings Power Ratio
Percentage of Earnings relative to total assets; indication of how
interest paid on principal and on interest earned in previous
Earnings per Share
A measure of the Earnings generated by a company on a per
Effective Interest Rate
The rate of interest actually earned on an investment. It is
Nominal Interest Rate
The rate of interest quoted, or stated, to be paid on a security
Price to Earnings Ratio (P/E, PE Ratio)
A measure of how much investors are willing to pay for each dollar
Real Interest Rate
The rate of interest paid on an investment adjusted for inflation
interest paid only on the principal; calculated by multiplying the
Times Interest Earned Ratio
A measure of how well a company is able to meet its interest
a method of determining interest in which interest that was earned in prior periods is added to the original investment so that, in each successive period, interest is earned on both principal and interest
a method of determining interest in which interest is earned only on the original investment (or principal) amount
Reduction in value of an asset over some period for accounting
The write-off of an asset over the period when the asset is used. This term
The cost of funds loaned to an entity. It can also refer to the equity ownership
Pooling of interests
An method for accounting for a business combination. When used, the expenses of the combination are charged against income at once, and the net
A company’s accumulated Earnings since its inception, less any distributions to shareholders.
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