|Net operating margin|
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Definition of Net operating margin
Net operating margin
The ratio of net operating income to net sales.
The ratio of net income to net sales.
For investment companies, the management fee and "other expenses,"
a method of allocating joint cost to joint products using a
The ratio of net income before taxes to net sales.
A transaction in which an investor borrows to buy additional shares, using the shares
This equals the cash inflow from sales during the period minus the cash
With some exceptions, the cash effects of transactions
The difference between variable revenue and variable cost.
An intermediate measure of profit equal to sales revenue
the difference between selling price and
The margin that results when variable production costs are subtracted
the proportion of each revenue dollar remaining after variable costs have been covered;
a factor that indicates how a percentage change in sales, from the existing or current
Percentage change in profits given a 1 percent change in sales.
The dollar equivalent of the safety cushion for a portfolio in a contingent immunization
EBITDA divided by total sales or total revenue.
Effective margin (EM)
Used with SAT performance measures, the amount equaling the net earned spread, or
European Monetary System (EMS)
An exchange arrangement formed in 1979 that involves the currencies
Offsetting exposures in one currency with exposures in the same or another currency,
Firm's net value of debt
Total firm value minus total firm debt.
Revenues less the cost of goods sold.
gross margin, or gross profit
This first-line measure of profit
Gross profit margin
Gross profit divided by sales, which is equal to each sales dollar left over after paying
Gross Profit Margin
Gross profit divided by revenue.
Initial margin requirement
When buying securities on margin, the proportion of the total market value of
International Monetary Fund
An organization founded in 1944 to oversee exchange arrangements of
International Monetary Fund (IMF)
Organization originally established to manage the postwar fixed exchange rate system.
International Monetary Market (IMM)
A division of the CME established in 1972 for trading financial
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
Maintenance margin requirement
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
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.
Margin account (Stocks)
A leverageable account in which stocks can be purchased for a combination of
A demand for additional funds because of adverse price movement. Maintenance margin
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
Margin requirement (Options)
The amount of cash an uncovered (naked) option writer is required to
Margin Tax Rate
The tax rate applicable to the last unit of income.
The cost of producing one extra unit.
The incremental change in the unit cost of a product as a result of a
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
The tax rate that would have to be paid on any additional dollars of taxable income earned.
marginal tax rate
Additional taxes owed per dollar of additional income.
Marginal Tax Rate
Percent of an increase in income paid in tax.
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.
Any measure of the economy's money supply.
See money base.
Gold held by governmental authorities as a financial asset.
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Actions taken by the central bank to change the supply of money and the interest rate and thereby affect economic activity.
Monetizing the Debt
See printing money.
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
The value of all the holdings of a mutual fund, less the fund's liabilities.
Net asset value (NAV)
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 after Operations
Cash flow available for debt service—the payment of interest and principal on loans. Generally calculated as cash provided by operating activities before interest
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 cost of normal spoilage
the cost of spoiled work less the estimated disposal value of that work
Net Domestic Product
GDP minus depreciation.
Net errors and omissions
In balance of payments accounting, net errors and omissions record the statistical
Exports minus imports.
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.
Difference between payment float and availability float.
The company's total earnings, reflecting revenues adjusted for costs of doing business,
The profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales.
The last line of the Income Statement; it represents the amount that the company earned during a specified period.
The excess of revenues over expenses, including the impact of income taxes.
net income (also called the bottom line, earnings, net earnings, and net
The current inventory balance, less allocated or reserved items.
Gross, or total, investment minus depreciation.
Investment spending minus depreciation.
A lease arrangement under which the lessee is responsible for all property taxes, maintenance
Net National Product
GNP minus depreciation.
Net operating losses
Losses that a firm can take advantage of to reduce taxes.
The amount of an employee’s wages payable after all tax and other deductions have been removed.
The period of time between the end of the discount period and the date payment is due.
Net present value
A discounted cash flow methodology that uses a required rate of
net present value method
a process that uses the discounted
Net present value (NPV)
The present value of the expected future cash flows minus the cost.
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 present value (NPV)
Equals the present value (PV) of a capital investment
Net Present Value (NPV)
The present value of all future cash inflows minus the present value
net present value (NPV)
the difference between the present values of all cash inflows and outflows for an investment project
net present value (NPV)
Present value of cash flows minus initial investment.
Net Present Value (NPV) Method
A method of ranking investment proposals. NPV is equal to the present value of the future returns, discounted at the marginal cost of capital, minus the present value of the cost of the investment.
Net present value of future investments
The present value of the total sum of NPVs expected to result from
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