|Net profit margin|
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Definition of Net profit margin
Net profit margin
net income divided by sales; the amount of each sales dollar left over after all expenses
Same as PV, but usually includes a subtraction for an initial cash outlay.
The ratio of net income to net sales.
The ratio of net income before taxes to net sales.
The cumulative book income plus any gain or loss on disposition of the assets on termination of the SAT.
A transaction in which an investor borrows to buy additional shares, using the shares
The difference between variable revenue and variable cost.
The dollar equivalent of the safety cushion for a portfolio in a contingent immunization
Used with SAT performance measures, the amount equaling the net earned spread, or
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.
Gross profit divided by sales, which is equal to each sales dollar left over after paying
When buying securities on margin, the proportion of the total market value of
An organization founded in 1944 to oversee exchange arrangements of
A division of the CME established in 1972 for trading financial
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
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 requirement (Options)
The amount of cash an uncovered (naked) option writer is required to
Marginal tax rate
The tax rate that would have to be paid on any additional dollars of taxable income earned.
Gold held by governmental authorities as a financial asset.
Actions taken by the Board of Governors of the Federal Reserve System to influence the
Monetary / non-monetary method
Under this translation method, monetary items (e.g. cash, accounts
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 (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 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 losses
Losses that a firm can take advantage of to reduce taxes.
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 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 profit margin
The ratio of operating margin to net sales.
The margin needed to cover a specific new position. Related: margin, security deposit (initial)
Reducing fund transfers between affiliates to only a netted amount. netting can be done on
Indicator of profitability. The ratio of earnings available to stockholders to net sales.
The present value of the future cash flows divided by the initial investment. Also called
Ratios that focus on the profitability of the firm. profit margins measure performance
A probability used to determine a "sure" expected value (sometimes called a
The 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.
An additional required deposit to bring an investor's equity account up to the initial margin
The profit a company makes before expenses and taxes are taken away.
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 customers’ returns, sales discounts, and other allowances are taken away from
What’s left over after you subtract the cost of goods sold and all your expenses from sales.
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. Here’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:
The profit made by a division after deducting only those expenses that can be controlled by the
Cost–volume–profit analysis (CVP)
A method for understanding the relationship between revenue, cost and sales volume.
The difference between the price at which goods or services are sold and the cost of sales.
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.
The cost of producing one extra unit.
Margin of safety
A measure of the difference between the anticipated and breakeven levels of activity.
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 difference between income and expenses.
Profit and Loss account
A financial statement measuring the profit or loss of a business – income less expenses – for an accounting period.
Profit before interest and taxes (PBIT)
A division or unit of an organization that is responsible for achieving profit targets.
See cash value added.
The amount of profit after deducting interest, taxation and dividends that is retained by the business.
The result of subtracting cost of goods sold from sales. Synonymous with gross margin.
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
An intermediate measure of profit equal to sales revenue
gross margin, or gross profit
This first-line measure of profit
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 owners’ equity as reported
See earnings before interest and income tax (EBIT).
The general term profit is not precisely defined; it may refer to net
profit and loss statement (P&L statement)
This is an alternative moniker
This concept refers to a separate source of revenue and
Ratios based on sales revenue for a period. A measure of
The profit per unit sold of a product after deducting product
Net Present Value (NPV)
The present value of all future cash inflows minus the present value
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