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Net operating losses |
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Definition of Net operating lossesNet operating losseslosses that a firm can take advantage of to reduce taxes.
Related Terms:NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. Annual fund operating expensesFor investment companies, the management fee and "other expenses," 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. 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 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 floatSum of disbursement float and collection float. 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 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. Operating cash flowEarnings before depreciation minus taxes. It measures the cash generated from Operating cycleThe average time intervening between the acquisition of materials or services and the final Operating exposureDegree to which exchange rate changes, in combination with price changes, will alter a Operating profit marginThe ratio of operating margin to net sales. Operating leaseShort-term, cancelable lease. A type of lease in which the period of contract is less than the Operating leverageFixed operating costs, so-called because they accentuate variations in profits. Operating riskThe inherent or fundamental risk of a firm, without regard to financial risk. The risk that is Payments nettingReducing fund transfers between affiliates to only a netted amount. netting can be done on Residual lossesLost wealth of the shareholders due to divergent behavior of the managers. Safety-net returnThe minimum available return that will trigger an immunization strategy in a contingent Short-run operating activitiesEvents 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. 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 OPERATING EXPENSESThe total amount that was spent to run a company this year. 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. Operating profitThe 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. Net incomeThe 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 profitThis equals the cash inflow from sales during the period minus the cash extraordinary gains and lossesNo pun intended, but these types of gains 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 operating activitiesIncludes all the sales and expense activities of a business. operating cash flowSee cash flow from operating activities. operating leverageA relatively small percent increase or decrease in operating profitSee 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 FlowIncome available after the payment of taxes, plus the value of the approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a degree of operating leveragea factor that indicates how a percentage change in sales, from the existing or current 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 operating budgeta budget expressed in both units and dollars operating leveragethe proportionate relationship between 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. Operating expenseAny expense associated with the general, sales, and administrative Operating incomeThe net income of a business, less the impact of any financial activity, Operating leaseThe 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. net floatDifference between payment float and availability float. 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. operating leverageDegree 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. 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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