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Net period |
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Definition of Net periodNet periodThe period of time between the end of the discount period and the date payment is due.
Related Terms:NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. PPF (periodic perpetuity factor)a generalization formula invented by Abrams that is the present value of regular but noncontiguous cash flows that have constant growth to perpetuity. Annualized holding period returnThe annual rate of return that when compounded t times, would have Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Compounding periodThe length of the time period (for example, a quarter in the case of quarterly Credit periodThe length of time for which the customer is granted credit. Discount periodThe period during which a customer can deduct the discount from the net amount of the bill Discounted payback period ruleAn investment decision rule in which the cash flows are discounted at an European Monetary System (EMS)An exchange arrangement formed in 1979 that involves the currencies Evaluation periodThe time interval over which a money manager's performance is evaluated. 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. Holding periodLength of time that an individual holds a security. Holding period returnThe rate of return over a given period. 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 Multiperiod immunizationA portfolio strategy in which a portfolio is created that will be capable of 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 lossesLosses that a firm can take advantage of to reduce taxes. Net operating marginThe ratio of net operating income to net sales. 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. Neutral periodIn the Euromarket, a period over which Eurodollars are sold is said to be neutral if it does not Payments nettingReducing fund transfers between affiliates to only a netted amount. netting can be done on 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. Subperiod returnThe return of a portfolio over a shorter period of time than the evaluation period. T-period holding-period returnThe percentage return over the T-year period an investment lasts. Waiting periodTime during which the SEC studies a firm's registration statement. During this time the firm Workout periodRealignment period of a temporary misaligned yield relationship that sometimes occurs in 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 customers’ 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. Here’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: Accounting periodThe period of time for which financial statements are produced – see also financial year. 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. Period costsThe costs that relate to a period of time. Net incomeThe last line of the Income Statement; it represents the amount that the company earned during a specified period. Periodic inventory systemAn inventory system in which the balance in the Inventory account is adjusted for the units sold only at the end of the 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 owners’ equity as reported Average Collection PeriodAverage number of days necessary to receive cash for the sale of Net Present Value (NPV)The present value of all future cash inflows minus the present value Payback PeriodThe number of years necessary for the net cash flows of an approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a compounding periodthe time between each interest computation 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 payback periodthe time it takes an investor to recoup an period costcost other than one associated with making or acquiring inventory periodic compensationa pay plan based on the time spent on the task rather than the work accomplished Odd first or last periodFixed-income securities may be purchased on dates 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. Reporting periodThe time period for which transactions are compiled into a set of financial statements. 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 stockholders’ equity plus preferred stock. payback periodTime until cash flows recover the initial investment of the project. 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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