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Financial Terms | |
Real Actions (Earnings) Management |
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Definition of Real Actions (Earnings) ManagementReal Actions (Earnings) ManagementInvolves operational steps and not simply acceleration
Related Terms:Abusive Earnings ManagementThe use of various forms of gimmickry to distort a company's true financial performance in order to achieve a desired result. Abusive Earnings ManagementA characterization used by the Securities and Exchange Accounting earningsearnings of a firm as reported on its income statement. activity-based management (ABM)a discipline that focuses on the activities incurred during the production/performance process as the way to improve the value received Adjusted EarningsNet income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss. After-tax real rate of returnMoney after-tax rate of return minus the inflation rate. approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a ![]() Asset/liability managementAlso called surplus management, the task of managing funds of a financial basic earnings per share (EPS)This important ratio equals the net Basic Earnings Power RatioPercentage of earnings relative to total assets; indication of how Bottom-up equity management styleA management style that de-emphasizes the significance of economic Cash management billVery short maturity bills that the Treasury occasionally sells because its cash Certified Management Accountant (CMA)a professional designation in the area of management accounting that Collection fractionsThe percentage of a given month's sales collected during the month of sale and each Core EarningsA measure of earnings that includes only the results of the primary operating Corporate financial managementThe application of financial principals within a corporation to create and ![]() cost management system (CMS)a set of formal methods Cost Plus Estimated Earnings in Excess of BillingsRevenue recognized to date under the percentage-of-completion method in excess of amounts billed. Also known as unbilled accounts Demand Management PolicyFiscal or monetary policy designed to influence aggregate demand for goods and services. diluted earnings per share (EPS)This measure of earnings per share EarningsNet income for the company during the period. EarningsIn general, refers to a company's total sales less cost of sales and operating expenses, including interest and income tax. earnings before interest and income tax (EBIT)A measure of profit that Earnings before interest and taxes (EBIT)A financial measure defined as revenues less cost of goods sold Earnings before interest and taxes (EBIT)The operating profit before deducting interest and tax. Earnings before interest, taxes, depreciation and amortization (EBITDA)The operating profit before deducting interest, tax, depreciation and amortization. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working ![]() Earnings ManagementThe active manipulation of earnings toward a predetermined target. Earnings per ShareA measure of the earnings generated by a company on a per Earnings per share (EPS)EPS, as it is called, is a company's profit divided by its number of outstanding earnings per share (EPS)See basic earnings per share and diluted earnings per share. Earnings per share of common stockHow much profit a company made on each share of common stock this year. Earnings retention ratioPlowback rate. Earnings surprisesPositive or negative differences from the consensus forecast of earnings by institutions Earnings yieldThe ratio of earnings per share after allowing for tax and interest payments on fixed interest EBBS - Earnings before the bad stuffAn acronym attributed to a member of the Securities and EBDDT - Earnings before depreciation and deferred taxesThis measure is used principally by Economic earningsThe real flow of cash that a firm could pay out forever in the absence of any change in Exchange Rate, RealThe nominal exchange rate corrected for price level differences. Fully diluted earnings per sharesearnings per share expressed as if all outstanding convertible securities Going-private transactionsPublicly owned stock in a firm is replaced with complete equity ownership by a Institute of Management Accountants (IMA)an organization composed of individuals interested in the field of management accounting; it coordinates the Certified management Interest Rate, RealNominal interest rate less expected inflation. Low price-earnings ratio effectThe tendency of portfolios of stocks with a low price-earnings ratio to Managementmanagement refers to the individuals in an entity that have the authority and the responsibility to manage the entity. The positions of these individuals, and their titles, vary from one entity to another and, to some extent, from one country to another depending on the local laws and customs. Thus, when the context requires it, the term includes the board of directors or committees of the board which are designated to oversee certain matters (e.g., audit committee). Management accountingThe production of financial and non-financial information used in planning for the future; making decisions about products, services, prices and what costs to incur; and ensuring that plans are implemented and achieved. management accountinga discipline that includes almost Management Accounting Guidelines (MAGs)pronouncements of the Society of management Accountants of Management buyout (MBO)Leveraged buyout whereby the acquiring group is led by the firm's management. management buyout (MBO)Acquisition of the firm by its own management in a leveraged buyout. Management/closely held sharesPercentage of shares held by persons closely related to a company, as management controlThis is difficult to define in a few words—indeed, an management control system (MCS)an information system that helps managers gather information about actual organizational occurrences, make comparisons against plans, management expense ratio (MER)The total expenses expressed as an annualized percentage of daily average net assets. MER does not include brokerage fees and commissions, which are also payable by the Fund. Management feeAn investment advisory fee charged by the financial advisor to a fund based on the fund's management feeThe fee paid to the fund’s manager for supervising the administration of the fund. management information system (MIS)a structure of interrelated elements that collects, organizes, and communicates management stylethe preference of a manager in how he/she interacts with other stakeholders in the organization; Money managementRelated: Investment management. net income (also called the bottom line, earnings, net earnings, and netoperating earnings) Net Realizable ValueSelling price of an asset less expenses of bringing the asset into a saleable state and expenses of the sale. 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 Net realizeable valueThe expected revenue to be gained from the sale of an item or open-book managementa philosophy about increasing a firm’s performance by involving all workers and by ensuring Operating EarningsA term frequently used to describe earnings after the removal of the Operational Earnings Managementmanagement actions taken in the effort to create stable Passive investment managementBuying a well-diversified portfolio to represent a broad-based market performance management systema system reflecting the entire package of decisions regarding performance measurement and evaluation Portfolio managementRelated: Investment management Premanaged Earningsearnings before the effects of any earnings-management activities. price-earnings (P/E) multiple (ratio)Ratio of stock price to earnings per share. Price / Earnings (P/E) RatioThe ratio of price to earnings. Faster growing or less-risky firms typically have higher P/E ratios than either slower-growing or more risky firms. Price/earnings ratio (PE ratio)Shows the "multiple" of earnings at which a stock sells. Determined by dividing current price/earnings ratio (price to earnings ratio, P/E ratio, PE ratio)This key ratio equals the current market price Price to Earnings Ratio (P/E, PE Ratio)A measure of how much investors are willing to pay for each dollar Pro-Forma EarningsReported net income with selected nonrecurring items of revenue or gain RealMeasured in base year, or constant, dollars. Contrast with nominal. Real assetsIdentifiable assets, such as buildings, equipment, patents, and trademarks, as distinguished from a real assetsAssets used to produce goods and services. Real Business Cycle TheoryBelief that business cycles arise from real shocks to the economy, such as technology advances and natural resource discoveries, and have little to do with monetary policy. Real capitalWealth that can be represented in financial terms, such as savings account balances, financial Real cash flowA cash flow is expressed in real terms if the current, or date 0, purchasing power of the cash Real Exchange RateExchange rate adjusted for relative price levels. Real exchange ratesExchange rates that have been adjusted for the inflation differential between two countries. Real GDPGDP expressed in base-year dollars, calculated by dividing nominal GDP by a price index. Real IncomeIncome expressed in base-year dollars, calculated by dividing nominal income by a price index. Real interest rateThe rate of interest excluding the effect of inflation; that is, the rate that is earned in terms Real Interest RateThe rate of interest paid on an investment adjusted for inflation real interest rateRate at which the purchasing power of an investment increases. Real marketThe bid and offer prices at which a dealer could do "size." Quotes in the brokers market may real microprofit centera center whose output has a market value Real Money SupplyMoney supply expressed in base-year dollars, calculated by dividing the money supply by a price index. real optionsOptions embedded in real assets. Real Rate of InterestSee interest rate, real. Real timeA real time stock or bond quote is one that states a security's most recent offer to sell or bid (buy). real value of $1Purchasing power–adjusted value of a dollar. Real WageWage expressed in base-year dollars, calculated by dividing the money wage by a price index. Realizable Revenue A revenue transaction where assets received in exchange for goods andservices are readily convertible into known amounts of cash or claims to cash. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |