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Definition of Net assets
The difference between total assets on the one hand and current liabilities and noncapitalized longterm
Excess of the purchase price over the fair market value of the net assets acquired under purchase
Method of accounting for a merger in which the acquirer is treated as having purchased
Accounting for an acquisition using market value for the consolidation of the two entities'
Extent to which a company's net assets cover a particular debt obligation, class of preferred stock, or equity position.
The total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund.
Same as PV, but usually includes a subtraction for an initial cash outlay.
A merger or consolidation in which an acquirer purchases the selling firm's assets.
A firm's productive resources.
A common element of a financial plan that describes projected capital spending and the
Value of cash, accounts receivable, inventories, marketable securities and other assets that
An exchange arrangement formed in 1979 that involves the currencies
Acquisition of another company by purchase of its assets in exchange for cash or stock.
Offsetting exposures in one currency with exposures in the same or another currency,
Claims on real assets.
Total firm value minus total firm debt.
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
Value of property, equipment and other capital assets minus the depreciation. This is an
Gold held by governmental authorities as a financial asset.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Net adjusted present value
The adjusted present value minus the initial cost of an investment.
Net advantage of refunding
The net present value of the savings from a refunding.
Net advantage to leasing
The net present value of entering into a lease financing arrangement rather than
Net advantage to merging
The difference in total post- and pre-merger market value minus the cost of the merger.
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
Net benefit to leverage factor
A linear approximation of a factor, T*, that enables one to operationalize the
Net book value
The current book value of an asset or liability; that is, its original book value net of any
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
This is the difference between a day's last trade and the previous day's last trade.
Net errors and omissions
In balance of payments accounting, net errors and omissions record the statistical
Net financing cost
Also called the cost of carry or, simply, carry, the difference between the cost of financing
Sum of disbursement float and collection float.
The company's total earnings, reflecting revenues adjusted for costs of doing business,
Gross, or total, investment minus depreciation.
A lease arrangement under which the lessee is responsible for all property taxes, maintenance
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
Net operating margin
The ratio of net operating income to net sales.
The period of time between the end of the discount period and the date payment is due.
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
Net present value of growth opportunities
A model valuing a firm in which net present value of new
Net present value of future investments
The present value of the total sum of NPVs expected to result from
Net present value rule
An investment is worth making if it has a positive NPV. Projects with negative NPVs
Net profit margin
net income divided by sales; the amount of each sales dollar left over after all expenses
Net salvage value
The after-tax net cash flow for terminating the project.
Net working capital
Current assets minus current liabilities. Often simply referred to as working capital.
Common stockholders' equity which consists of common stock, surplus, and retained earnings.
Reducing transfers of funds between subsidiaries or separate companies to a net amount.
To get or bring in as a net; to clear as profit.
A tangible asset with unique physical properties, like a parcel of land, a mine, or a
Other current assets
Value of non-cash assets, including prepaid expenses and accounts receivable, due
Reducing fund transfers between affiliates to only a netted amount. netting can be done on
Publicly traded assets
assets that can be traded in a public market, such as the stock market.
Current assets minus inventories.
Identifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a
A tangible asset with physical properties that can be reproduced, such as a building or
assets that remain after sufficient assets are dedicated to meet all senior debtholder's claims in full.
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months
Return on total assets
The ratio of earnings available to common stockholders to total assets.
The minimum available return that will trigger an immunization strategy in a contingent
SIMEX (Singapore International Monetary Exchange)
A leading futures and options exchange in Singapore.
Anything of value that a company owns.
Cash, things that will be converted into cash within a year (such as accounts receivable), and inventory.
The profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
RATE OF RETURN ON TOTAL ASSETS
The percentage return or profit that management made on each dollar of assets. The formula is:
RATIO OF NET INCOME TO NET SALES
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Here’s the formula:
RATIO OF NET SALES TO NET INCOME
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
Things that the business owns.
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Things that the business owns and are part of the business infrastructure – fixed assets may be
Intangible fixed assets
Non-physical assets, e.g. customer goodwill or intellectual property (patents and trademarks).
Net present value (NPV)
A discounted cash flow technique used for investment appraisal that calculates the present value of future cash flows and deducts the initial capital investment.
See operating profit.
Tangible fixed assets
Physical assets that can be seen and touched, e.g. buildings, machinery, vehicles, computers etc.
Items owned by the company or expenses that have been paid for but have not been used up.
assets owned by the company that do not possess physical substance; they usually take the form of rights and privileges such as patents, copyrights, and franchises.
The last line of the Income Statement; it represents the amount that the company earned during a specified period.
Current refers to cash and those assets that will be turned
An informal term that refers to the variety of long-term operating
net income (also called the bottom line, earnings, net earnings, and net
net present value (NPV)
Equals the present value (PV) of a capital investment
Generally refers to the book value of owners’ equity as reported
return on assets (ROA)
Although there is no single uniform practice for
Fixed Assets Turnover Ratio
A measure of the utilization of a company's fixed assets to
Net Present Value (NPV)
The present value of all future cash inflows minus the present value
Return on Total Assets Ratio
A measure of the percentage return earned on the value of the
Total Debt to Total Assets Ratio
See debt ratio
approximated net realizable value at split-off allocation
a method of allocating joint cost to joint products using a
Internet business model
a model that involves
a mechanism for sharing information and delivering data from corporate databases to the local-area network (LAN) desktops
net cost of normal spoilage
the cost of spoiled work less the estimated disposal value of that work
net present value (NPV)
the difference between the present values of all cash inflows and outflows for an investment project
net present value method
a process that uses the discounted
net realizable value approach
a method of accounting for by-products or scrap that requires that the net realizable value of these products be treated as a reduction in the cost of the primary products; primary product cost may be reduced by decreasing either
net realizable value at split-off allocation
a method of allocating joint cost to joint products that uses, as the proration base, sales value at split-off minus all costs necessary
a flexible organization structure that
The excess of revenues over expenses, including the impact of income taxes.
Net present value
A discounted cash flow methodology that uses a required rate of
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