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Net float |
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Definition of Net floatNet floatSum of disbursement float and collection float. net floatDifference between payment float and availability float.
Related Terms:NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. Availability floatChecks deposited by a company that have not yet been cleared. Bank collection floatThe time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank. Collection floatThe negative float that is created between the time when you deposit a check in your account Corporate processing floatThe time that elapses between receipt of payment from a customer and the Dirty floatA system of floating exchange rates in which the government occasionally intervenes to change Disbursement floatA decrease in book cash but no immediate change in bank cash, generated by checks European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Exposure nettingOffsetting exposures in one currency with exposures in the same or another currency, Firm's net value of debtTotal firm value minus total firm debt. FloatThe number of shares that are actively tradable in the market, excluding shares that are held by officers Floaterfloating rate bond. Floating exchange rateA country's decision to allow its currency value to freely change. The currency is not Floating lienGeneral lien against a company's assets or against a particular class of assets. Floating supplyThe amount of securities believed to be available for immediate purchase, that is, in the Floating-rate contractA guaranteed investment contract where the credit rating is tied to some variable Floating-rate note (FRN)Note whose interest payment varies with short-term interest rates. Floating-rate payerIn an interest rate swap, the counterparty who pays a rate based on a reference rate, Floating-rate preferredPreferred stock paying dividends that vary with short-term interest rates. Free floatAn exchange rate system characterized by the absence of government intervention. Also known as International Monetary FundAn organization founded in 1944 to oversee exchange arrangements of International Monetary Market (IMM)A division of the CME established in 1972 for trading financial Inverse floating rate noteA variable rate security whose coupon rate increases as a benchmark interest rate declines. In-house processing floatRefers to the time it takes the receiver of a check to process the payment and Mail floatRefers to the part of the collection and disbursement process where checks are trapped in the postal system. Managed floatAlso known as "dirty" float, this is a system of floating exchange rates with central bank Monetary goldGold held by governmental authorities as a financial asset. Monetary policyActions taken by the Board of Governors of the Federal Reserve System to influence the Monetary / non-monetary methodUnder this translation method, monetary items (e.g. cash, accounts Net adjusted present valueThe adjusted present value minus the initial cost of an investment. Net advantage of refundingThe net present value of the savings from a refunding. Net advantage to leasingThe net present value of entering into a lease financing arrangement rather than Net advantage to mergingThe 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 assetsThe difference between total assets on the one hand and current liabilities and noncapitalized longterm Net benefit to leverage factorA linear approximation of a factor, T*, that enables one to operationalize the Net book valueThe current book value of an asset or liability; that is, its original book value net of any Net cash balanceBeginning cash balance plus cash receipts minus cash disbursements. Net changeThis is the difference between a day's last trade and the previous day's last trade. Net errors and omissionsIn balance of payments accounting, net errors and omissions record the statistical Net financing costAlso called the cost of carry or, simply, carry, the difference between the cost of financing Net incomeThe company's total earnings, reflecting revenues adjusted for costs of doing business, Net investmentGross, or total, investment minus depreciation. Net leaseA lease arrangement under which the lessee is responsible for all property taxes, maintenance Net operating lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. Net periodThe 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 opportunitiesA model valuing a firm in which net present value of new Net present value of future investmentsThe present value of the total sum of NPVs expected to result from Net present value ruleAn investment is worth making if it has a positive NPV. Projects with negative NPVs Net profit marginnet income divided by sales; the amount of each sales dollar left over after all expenses Net salvage valueThe after-tax net cash flow for terminating the project. Net working capitalCurrent assets minus current liabilities. Often simply referred to as working capital. Net worthCommon stockholders' equity which consists of common stock, surplus, and retained earnings. NettingReducing transfers of funds between subsidiaries or separate companies to a net amount. Netting outTo get or bring in as a net; to clear as profit. Payment floatCompany-written checks that have not yet cleared. Payments nettingReducing fund transfers between affiliates to only a netted amount. netting can be done on Positive floatSee:float. Safety-net returnThe 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. NET INCOMEThe profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales. NET SALES (revenue)The amount sold after customersâ€™ returns, sales discounts, and other allowances are taken away from RATIO OF NET INCOME TO NET SALESA ratio that shows how much net income (profit) a company made on each dollar of net sales. Hereâ€™s the formula: RATIO OF NET SALES TO NET INCOMEA ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way: 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. Net profitSee operating profit. Net incomeThe last line of the Income Statement; it represents the amount that the company earned during a specified period. net income (also called the bottom line, earnings, net earnings, and netoperating earnings) net present value (NPV)Equals the present value (PV) of a capital investment net worthGenerally refers to the book value of ownersâ€™ equity as reported Net Present Value (NPV)The present value of all future cash inflows minus the present value approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Internet business modela model that involves intraneta mechanism for sharing information and delivering data from corporate databases to the local-area network (LAN) desktops net cost of normal spoilagethe 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 methoda process that uses the discounted net realizable value approacha 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 allocationa method of allocating joint cost to joint products that uses, as the proration base, sales value at split-off minus all costs necessary network organizationa flexible organization structure that Net incomeThe excess of revenues over expenses, including the impact of income taxes. Net present valueA discounted cash flow methodology that uses a required rate of Net realizeable valueThe expected revenue to be gained from the sale of an item or Net salesTotal revenue, less the cost of sales returns, allowances, and discounts. availability floatChecks already deposited that have not yet been cleared. floating-rate securitySecurity paying dividends or interest that vary with short-term interest rates. net present value (NPV)Present value of cash flows minus initial investment. net working capitalCurrent assets minus current liabilities. net worthBook value of common stockholdersâ€™ equity plus preferred stock. payment floatChecks written by a company that have not yet cleared. Clean FloatA flexible exchange rate system in which the government does not intervene. Dirty FloatA flexible exchange rate system in which the government intervenes. Floating Exchange RateSee flexible exchange rate. International Monetary Fund (IMF)Organization originally established to manage the postwar fixed exchange rate system. MonetarismSchool of economic thought stressing the importance of the money supply in the economy. Adherents believe that the economy is inherently stable, so that policy is best undertaken through adoption of a policy rule. Monetarist RuleProposal that the money supply be increased at a steady rate equal approximately to the real rate of growth of the economy. Contrast with discretionary policy.
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