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Sale and Leaseback |
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Definition of Sale and LeasebackSale and LeasebackAn agreement in which the owner of a property sells that property to a person or institution and then leases it back again for an agreed period and rental.
Related Terms:Limitation on sale-and-leasebackA bond covenant that restricts in some way a firm's ability to enter into LeasingContract granting use of real estate, equipment, or other fixed assets for a specified time in exchange for payment, usually in the form of rent. The owner of the leased property is called the lessor, the user the lessee. Best-efforts saleA method of securities distribution/ underwriting in which the securities firm agrees to sell Closing saleA transaction in which the seller's intention is to reduce or eliminate a long position in a stock, 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 Foreign Sales Corporation (FSC)A special type of corporation created by the Tax Reform Act of 1984 that Forward saleA method for hedging price risk which involves an agreement between a lender and an investor Installment saleThe sale of an asset in exchange for a specified series of payments (the installments). Limitation on merger, consolidation, or saleA bond covenant that restricts in some way a firm's ability to Negotiated saleSituation in which the terms of an offering are determined by negotiation between the issuer Opening saleA transaction in which the seller's intention is to create or increase a short position in a given Price/sales ratio (PS Ratio)Determined by dividing current stock price by revenue per share (adjusted for stock splits). Purchase and saleA method of securities distribution in which the securities firm purchases the securities Sale and lease-backsale of an existing asset to a financial institution that then leases it back to the user. 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 Short saleSelling a security that the seller does not own but is committed to repurchasing eventually. It is Substitute saleA method for hedging price risk that utilizes debt-market instruments, such as interest rate Swap saleAlso called a swap assignment, a transaction that ends one counterparty's role in an interest rate Terms of saleConditions on which a firm proposes to sell its goods services for cash or credit. Wholesale mortgage bankingThe purchasing of loans originated by others, with the servicing rights 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 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. 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. 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. return on salesThis ratio equals net income divided by sales revenue. 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 Short sale, short positionThe sale of a security or financial instrument not Gross salesThe total sales recorded prior to sales discounts and returns. Net salesTotal revenue, less the cost of sales returns, allowances, and discounts. 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 percentage of sales modelsPlanning model in which sales forecasts are the driving variables and most other variables are terms of saleCredit, discount, and payment terms offered on a sale. Sales TaxA tax levied as a percentage of retail sales. Available-for-Sale SecurityA debt or equity security not classified as a held-to-maturity security or a trading security. Can be classified as a current or noncurrent investment depending on the intended holding period. Gain-on-Sale AccountingUp-front gain recognized from the securitization and sale of a pool Sales Revenue Revenue recognized from the sales of products as opposed to the provision ofservices. Sales-type LeaseLease accounting used by a manufacturer who is also a lessor. Up-front gross Conditional SaleA type of agreement to sell whereby a seller retains title to goods sold and delivered to a purchaser until full payment has been made. Conditional Sale AgreementAn agreement entered into between a conditional buyer and a conditional seller setting out the terms under which goods change hands. point of sale (POS)The terminal at which a customer uses his/her debit card to make a direct payment transaction. See also Interac Direct Payment. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |