|Margin of safety
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: stock trading, inventory, inventory control, financial advisor, finance, tax advisor, financial, money,
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 demand for additional funds because of adverse price movement. Maintenance margin
a factor that indicates how a percentage change in sales, from the existing or current
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
The difference between variable revenue and variable cost.
Used with SAT performance measures, the amount equaling the net earned spread, or
Gross profit divided by sales, which is equal to each sales dollar left over after paying
When buying securities on margin, the proportion of the total market value of
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
A leverageable account in which stocks can be purchased for a combination of
The amount of cash an uncovered (naked) option writer is required to
Marginal tax rate
The tax rate that would have to be paid on any additional dollars of taxable income earned.
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)
Indicator of profitability. The ratio of earnings available to stockholders to net sales.
In a contingent immunization strategy, the difference between the initially available
The minimum available return that will trigger an immunization strategy in a contingent
An additional required deposit to bring an investor's equity account up to the initial margin
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.
The cost of producing one extra unit.
An intermediate measure of profit equal to sales revenue
gross margin, or gross profit
This first-line measure of profit
The profit per unit sold of a product after deducting product
Profit Margin Ratio
A measure of how much profit is earned on each dollar of sales. It
the difference between selling price and
contribution margin ratio
the proportion of each revenue dollar remaining after variable costs have been covered;
product contribution margin
the difference between selling price and variable cost of goods sold
product line margin
see segment margin
the ratio of income to sales
a buffer level of inventory kept on hand by a company in the event of fluctuating usage or unusual delays in lead time
the excess of revenues over direct variable expenses and avoidable fixed expenses for a particular segment
total contribution margin
see contribution margin
The margin that results when variable production costs are subtracted
Revenues less the cost of goods sold.
The incremental change in the unit cost of a product as a result of a
marginal tax rate
Additional taxes owed per dollar of additional income.
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
Percent of an increase in income paid in tax.
Contract Work Hours and Safety Standards Act
A federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week.
EBITDA divided by total sales or total revenue.
Gross Profit Margin
Gross profit divided by revenue.
Extra inventory kept on hand to guard against requirements
Margin Tax Rate
The tax rate applicable to the last unit of income.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.