|Nexus (of contracts)|
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Definition of Nexus (of contracts)
Nexus (of contracts)
A set or collection of something.
Futures contracts, such as stock index futures, that settle for cash, not involving
Similar to equipment trust certificates except that the lender is either the
contracts which have been bought or sold without the transaction having been completed by
View of corporation as a set of contracting relationships, among individuals
A federal Act that forces government contractors to comply with the government’s minimum wage and hour rules.
Same as PV, but usually includes a subtraction for an initial cash outlay.
the value in today’s dollars of cash flows that occur in different time periods.
An international bank headquartered in Basel, Switzerland, which
The value of assets that can be converted into cash immediately, as reported by a company. Usually
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its
Purchase of a security and simultaneous sale of a future, with the balance being financed
The value of assets that can be converted into cash immediately, as reported by a
The actual physical commodity, as distinguished from a futures contract.
The length of time between a firm's purchase of inventory and the receipt of cash
A company that pays out all earnings per share to stockholders as dividends. Or, a company or
In general, the time between cash disbursement and cash collection. In net working capital
Cash deficiency agreement
An agreement to invest cash in a project to the extent required to cover any cash
The provision of some futures contracts that requires not delivery of underlying assets but
An incentive offered to purchasers of a firm's product for payment within a specified time
A dividend paid in cash to a company's shareholders. The amount is normally based on
A short-term security that is sufficiently liquid that it may be considered the financial
In investments, it represents earnings before depreciation , amortization and non-cash charges.
Cash flow after interest and taxes
Net income plus depreciation.
Cash flow coverage ratio
The number of times that financial obligations (for interest, principal payments,
Cash flow from operations
A firm's net cash inflow resulting directly from its regular operations
Cash flow matching
Also called dedicating a portfolio, this is an alternative to multiperiod immunization in
Cash flow per common share
cash flow from operations minus preferred stock dividends, divided by the
Cash flow time-line
Line depicting the operating activities and cash flows for a firm over a particular period.
Cash-flow break-even point
The point below which the firm will need either to obtain additional financing
Cash management bill
Very short maturity bills that the Treasury occasionally sells because its cash
Also called spot markets, these are markets that involve the immediate delivery of a security
A public equity issue that is sold to all interested investors.
The proportion of a firm's assets held as cash.
A transaction where exchange is immediate, as contrasted to a forward contract, which
Temporary investments of currently excess cash in short-term, high-quality
An amount the insurance company will pay if the policyholder ends a whole life
Refers to a situation where a firm runs out of cash and cannot readily sell marketable securities.
Contingent deferred sales charge (CDSC)
The formal name for the load of a back-end load fund.
Days' sales in inventory ratio
The average number of days' worth of sales that is held in inventory.
Days' sales outstanding
Average collection period.
Discounted cash flow (DCF)
Future cash flows multiplied by discount factors to obtain present values.
Discretionary cash flow
cash flow that is available after the funding of all positive NPV capital investment
Domestic International Sales Corporation (DISC)
A U.S. corporation that receives a tax incentive for
Equivalent annual cash flow
Annuity with the same net present value as the company's proposed investment.
Expected future cash flows
Projected future cash flows associated with an asset of decision.
Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that
Free cash flows
cash not required for operations or for reinvestment. Often defined as earnings before
General cash offer
A public offering made to investors at large.
Good delivery and settlement procedures
Refers to PSA Uniform Practices such as cutoff times on delivery
Delivery and settlement of securities within five business days.
Incremental cash flows
Difference between the firm's cash flows with and without a project.
A firm's cash balance as reported in its financial statements. Also called book cash.
Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.
Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow.
Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from
Price/sales ratio (PS Ratio)
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
Real cash flow
A cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash
Regular way settlement
In the money and bond markets, the regular basis on which some security trades are
The fee charged by a mutual fund when purchasing shares, usually payable as a commission to
A key input to a firm's financial planning process. External sales forecasts are based on
An arrangement whereby a firm leases its own equipment, such as IBM leasing its own
Scheduled cash flows
The mortgage principal and interest payments due to be paid under the terms of the
When payment is made for a trade.
The date on which payment is made to settle a trade. For stocks traded on US exchanges,
A figure determined by the closing range which is used to calculate gains and losses in
The rate suggested in Financial Accounting Standard Board (FASB) 87 for discounting the
The trade is settled one business day beyond what is normal.
Statement of cash flows
A financial statement showing a firm's cash receipts and cash payments during a
A method of cash budgeting that is organized along the lines of the statement of cash flows.
An agreement in settlement of a lawsuit involving specific payments made over a
Symmetric cash matching
An extension of cash flow matching that allows for the short-term borrowing of
Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the
Wanted for cash
A statement displayed on market tickers indicating that a bidder will pay cash for same day
CASH AND CASH EQUIVALENTS
The balance in a company’s checking account(s) plus short-term or temporary investments (sometimes called “marketable securities”), which are highly liquid.
A statement that shows where a company’s cash came from and where it went for a period of time, such as a year.
CASH FLOWS FROM FINANCING ACTIVITIES
A section on the cash-flow statement that shows how much cash a company raised by selling stocks or bonds this year and how much was paid out for cash dividends and other finance-related obligations.
CASH FLOWS FROM INVESTING ACTIVITIES
A section on the cashflow statement that shows how much cash came in and went out because of various investing activities like purchasing machinery.
CASH FLOWS FROM OPERATIONS
A section on the cash-flow Stockholders’ equity statement that shows how much cash came into a company and how much went out during the normal course of business.
NET SALES (revenue)
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
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 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:
A method of accounting in which profit is calculated as the difference between income
The amount of cash expended.
Cash Flow statement
A financial report that shows the movement in cash for a business during an accounting period.
Cash value added (CVA)
A method of investment appraisal that calculates the ratio of the net present value of an
Cost of sales
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
Discounted cash flow (DCF)
A method of investment appraisal that discounts future cash flows to present value using a discount rate, which is the risk-adjusted cost of capital.
The 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.
Amounts held in currency and coin (commonly referred to as petty cash) and amounts on deposit in financial institutions.
Cash receipts journal
A journal used to record the transactions that result in a debit to cash.
The amount of currency and coin that a company keeps on hand to pay for small purchases and expenses.
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
A contra account that offsets revenue. It represents the amount of the discounts for early payment allowed on sales.
A journal used to record the transactions that result in a credit to sales.
A contra account that offsets revenue. It represents the amount of sales made that were later returned.
Statement of Cash Flows
One of the basic financial statements; it lists the cash inflows and cash outflows of the company, grouped into the categories of operating activities, financing activities, and investing activities. The Statement of cash Flows is prepared for a specified period of time.
cash burn rate
A relatively recent term that refers to how fast a business
An obvious but at the same time elusive term that refers to cash
cash flow from operating activities, or cash flow from profit
This equals the cash inflow from sales during the period minus the cash
statement of cash flows
One of the three primary financial statements
discounted cash flow (DCF)
Refers to a capital investment analysis technique
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