|Net operating losses
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Definition of Net operating losses
Net operating losses
losses that a firm can take advantage of to reduce taxes.
Same as PV, but usually includes a subtraction for an initial cash outlay.
For investment companies, the management fee and "other expenses,"
An exchange arrangement formed in 1979 that involves the currencies
Offsetting exposures in one currency with exposures in the same or another currency,
Total firm value minus total firm debt.
An organization founded in 1944 to oversee exchange arrangements of
A division of the CME established in 1972 for trading financial
Gold held by governmental authorities as a financial asset.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Under this translation method, monetary items (e.g. cash, accounts
The adjusted present value minus the initial cost of an investment.
The net present value of the savings from a refunding.
The net present value of entering into a lease financing arrangement rather than
The difference in total post- and pre-merger market value minus the cost of the merger.
The value of a fund's investments. For a mutual fund, the net asset value per share
The difference between total assets on the one hand and current liabilities and noncapitalized longterm
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 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.
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
The average time intervening between the acquisition of materials or services and the final
Degree to which exchange rate changes, in combination with price changes, will alter a
Operating profit margin
The ratio of operating margin to net sales.
Short-term, cancelable lease. A type of lease in which the period of contract is less than the
Fixed operating costs, so-called because they accentuate variations in profits.
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is
Reducing fund transfers between affiliates to only a netted amount. netting can be done on
Lost wealth of the shareholders due to divergent behavior of the managers.
The minimum available return that will trigger an immunization strategy in a contingent
Short-run operating activities
Events and decisions concerning the short-term finance of a firm, such as
SIMEX (Singapore International Monetary Exchange)
A leading futures and options exchange in Singapore.
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 customersâ€™ returns, sales discounts, and other allowances are taken away from
The total amount that was spent to run a company this year.
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. Hereâ€™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:
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.
The profit made by the business for an accounting period, equal to gross profit less selling, finance, administration etc. expenses, but before deducting interest or taxation.
The last line of the Income Statement; it represents the amount that the company earned during a specified period.
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
extraordinary gains and losses
No pun intended, but these types of gains
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 ownersâ€™ equity as reported
Includes all the sales and expense activities of a business.
operating cash flow
See cash flow from operating activities.
A relatively small percent increase or decrease in
See earnings before interest and income tax (EBIT).
Net Present Value (NPV)
The present value of all future cash inflows minus the present value
Operating Cash Flow
Income available after the payment of taxes, plus the value of the
approximated net realizable value at split-off allocation
a method of allocating joint cost to joint products using a
degree of operating leverage
a factor that indicates how a percentage change in sales, from the existing or current
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
a budget expressed in both units and dollars
the proportionate relationship between
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
Net realizeable value
The expected revenue to be gained from the sale of an item or
Total revenue, less the cost of sales returns, allowances, and discounts.
Any expense associated with the general, sales, and administrative
The net income of a business, less the impact of any financial activity,
The rental of an asset from a lessor, but not under terms that would
degree of operating leverage (DOL)
Percentage change in profits given a 1 percent change in sales.
Difference between payment float and availability float.
net present value (NPV)
Present value of cash flows minus initial investment.
net working capital
Current assets minus current liabilities.
Book value of common stockholdersâ€™ equity plus preferred stock.
Degree to which costs are fixed.
operating risk (business risk)
Risk in firmâ€™s operating income.
International Monetary Fund (IMF)
Organization originally established to manage the postwar fixed exchange rate system.
School 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.
Proposal 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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