|Margin of safety|
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Definition of Margin of safety
Margin of safety
A measure of the difference between the anticipated and breakeven levels of activity.
margin of safety
the excess of the budgeted or actual sales
The dollar equivalent of the safety cushion for a portfolio in a contingent immunization
a factor that indicates how a percentage change in sales, from the existing or current
A demand for additional funds because of adverse price movement. Maintenance margin
The ratio of net income to net sales.
The ratio of net income before taxes to net sales.
A transaction in which an investor borrows to buy additional shares, using the shares
A federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week.
The difference between variable revenue and variable cost.
An intermediate measure of profit equal to sales revenue
the difference between selling price and
The margin that results when variable production costs are subtracted
the proportion of each revenue dollar remaining after variable costs have been covered;
EBITDA divided by total sales or total revenue.
Used with SAT performance measures, the amount equaling the net earned spread, or
Revenues less the cost of goods sold.
gross margin, or gross profit
This first-line measure of profit
Gross profit margin
Gross profit divided by sales, which is equal to each sales dollar left over after paying
Gross Profit Margin
Gross profit divided by revenue.
Initial margin requirement
When buying securities on margin, the proportion of the total market value of
Maintenance margin requirement
A sum, usually smaller than -but part of the original margin, which must
This allows investors to buy securities by borrowing money from a broker. The margin is the
The amount added to a lower figure to reach a higher figure, expressed as a percentage of the higher figure, e.g. the margin that profit represents as a percentage of selling price.
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
Margin requirement (Options)
The amount of cash an uncovered (naked) option writer is required to
Margin Tax Rate
The tax rate applicable to the last unit of income.
The cost of producing one extra unit.
The incremental change in the unit cost of a product as a result of a
Marginal Propensity to Consume
Fraction of an increase in disposable income that is spent on consumption.
Marginal Propensity to Import
Fraction of an increase in disposable income that is spent on imports.
Marginal Propensity to Save
Fraction of an increase in disposable income that is saved.
Marginal tax rate
The tax rate that would have to be paid on any additional dollars of taxable income earned.
marginal tax rate
Additional taxes owed per dollar of additional income.
Marginal Tax Rate
Percent of an increase in income paid in tax.
Net operating margin
The ratio of net operating income to net sales.
Net profit margin
Net income divided by sales; the amount of each sales dollar left over after all expenses
Operating profit margin
The ratio of operating margin to net sales.
The margin needed to cover a specific new position. Related: margin, security deposit (initial)
product contribution margin
the difference between selling price and variable cost of goods sold
product line margin
see segment margin
Indicator of profitability. The ratio of earnings available to stockholders to net sales.
the ratio of income to sales
Profit Margin Ratio
A measure of how much profit is earned on each dollar of sales. It
In a contingent immunization strategy, the difference between the initially available
The minimum available return that will trigger an immunization strategy in a contingent
a buffer level of inventory kept on hand by a company in the event of fluctuating usage or unusual delays in lead time
Extra inventory kept on hand to guard against requirements
the excess of revenues over direct variable expenses and avoidable fixed expenses for a particular segment
total contribution margin
see contribution margin
The profit per unit sold of a product after deducting product
An additional required deposit to bring an investor's equity account up to the initial margin
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