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NET SALES (revenue) |
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Definition of NET SALES (revenue)NET SALES (revenue)The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
Related Terms:NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the Contingent deferred sales charge (CDSC)The formal name for the load of a back-end load fund. Days' sales in inventory ratioThe average number of days' worth of sales that is held in inventory. Days' sales outstandingAverage collection period. Domestic International Sales Corporation (DISC)A U.S. corporation that receives a tax incentive for 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. Foreign Sales Corporation (FSC)A special type of corporation created by the Tax Reform Act of 1984 that Industrial revenue bond (IRB)Bond issued by local government agencies on behalf of corporations. 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 lossesLosses that a firm can take advantage of to reduce taxes. 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. Payments nettingReducing fund transfers between affiliates to only a netted amount. netting can be done on Price/sales ratio (PS Ratio)Determined by dividing current stock price by revenue per share (adjusted for stock splits). Revenue bondA bond issued by a municipality to finance either a project or an enterprise where the issuer Revenue fundA fund accounting for all revenues from an enterprise financed by a municipal revenue bond. Safety-net returnThe minimum available return that will trigger an immunization strategy in a contingent Sales chargeThe fee charged by a mutual fund when purchasing shares, usually payable as a commission to Sales forecastA key input to a firm's financial planning process. External sales forecasts are based on Sales-type leaseAn arrangement whereby a firm leases its own equipment, such as IBM leasing its own SIMEX (Singapore International Monetary Exchange)A leading futures and options exchange in Singapore. Total revenueTotal sales and other revenue for the period shown. Known as "turnover" in the UK. NET INCOMEThe profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales. NUMBER OF DAYS SALES IN RECEIVABLES(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that haven’t been collected yet. 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: Cost of salesThe manufacture or purchase price of goods sold in a period or the cost of providing a service. 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. RevenueIncome earned from the sale of goods and services. Sales mixThe mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs. Net incomeThe last line of the Income Statement; it represents the amount that the company earned during a specified period. RevenueAmounts earned by the company from the sale of merchandise or services; often used interchangeably with the term sales. SalesAmounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue. Sales discountsA contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales. Sales journalA journal used to record the transactions that result in a credit to sales. Sales returnsA contra account that offsets revenue. It represents the amount of sales made that were later returned. Unearned revenueMoney that has been paid by customers for work yet to be done or goods yet to be provided. 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 return on salesThis ratio equals net income divided by sales revenue. revenue-driven expensesOperating expenses that vary in proportion to Net Present Value (NPV)The present value of all future cash inflows minus the present value approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a incremental revenuethe revenue resulting from an additional contemplated sale 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 revenue centera responsibility center for which a manager is accountable only for the generation of revenues and has no control over setting selling prices, or budgeting or incurring costs sales mixthe relative combination of quantities of sales of the various products that make up the total sales of a company sales value at split-off allocationa method of assigning joint cost to joint products that uses the relative sales values of the products at the split-off point as the proration basis; use of this method requires that all joint products Gross salesThe total sales recorded prior to sales discounts and returns. 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. RevenueAn inflow of cash, accounts receivable, or barter from a customer in exchange Sales allowanceA reduction in a price that is allowed by the seller, due to a problem Sales discountA reduction in the price of a product or service that is offered by the Sales value at split-offA cost allocation methodology that allocates joint costs to joint
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