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Sales value at split-off |
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Definition of Sales value at split-offSales value at split-offA cost allocation methodology that allocates joint costs to joint
Related Terms: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 NPV (net present value of cash flows)Same as PV, but usually includes a subtraction for an initial cash outlay. PV (present value of cash flows)the value in today’s dollars of cash flows that occur in different time periods. Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible Book valueA company's book value is its total assets minus intangible assets and liabilities, such as debt. A Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Carrying valueBook value. Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life 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. Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. 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 Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Expected valueThe weighted average of a probability distribution. Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Extraordinary positive valueA positive net present value. Face valueSee: Par value. 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 Future valueThe amount of cash at a specified date in the future that is equivalent in value to a specified Intrinsic value of an optionThe amount by which an option is in-the-money. An option which is not in-themoney Intrinsic value of a firmThe present value of a firm's expected future net cash flows discounted by the Investment valueRelated:straight value. Last splitAfter a stock split, the number of shares distributed for each share held and the date of the Liquidation valueNet amount that could be realized by selling the assets of a firm after paying the debt. Loan valueThe amount a policyholder may borrow against a whole life insurance policy at the interest rate Market value1) The price at which a security is trading and could presumably be purchased or sold. Market value ratiosRatios that relate the market price of the firm's common stock to selected financial Market value-weighted indexAn index of a group of securities computed by calculating a weighted average Maturity valueRelated: par value. Net adjusted present valueThe adjusted present value minus the initial cost of an investment. Net asset value (NAV)The value of a fund's investments. For a mutual fund, the net asset value per share Net book valueThe current book value of an asset or liability; that is, its original book value net of any 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 salvage valueThe after-tax net cash flow for terminating the project. Original face valueThe principal amount of the mortgage as of its issue date. Par valueAlso called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date. Parity valueRelated:conversion value Present valueThe amount of cash today that is equivalent in value to a payment, or to a stream of payments, Present value factorFactor used to calculate an estimate of the present value of an amount to be received in Present value of growth opportunities (NPV)Net present value of investments the firm is expected to make Price/sales ratio (PS Ratio)Determined by dividing current stock price by revenue per share (adjusted for stock splits). Price value of a basis point (PVBP)Also called the dollar value of a basis point, a measure of the change in Relative valueThe attractiveness measured in terms of risk, liquidity, and return of one instrument relative to Replacement valueCurrent cost of replacing the firm's assets. Residual valueUsually refers to the value of a lessor's property at the time the lease expires. Reverse stock splitA proportionate decrease in the number of shares, but not the value of shares of stock 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 Salvage valueScrap value of plant and equipment. SplitSometimes, companies split their outstanding shares into a larger number of shares. If a company with 1 Split-fee optionAn option on an option. The buyer generally executes the split fee with first an initial fee, Split-rate tax systemA tax system that taxes retained earnings at a higher rate than earnings that are Standardized valueAlso called the normal deviate, the distance of one data point from the mean, divided by Stock splitOccurs when a firm issues new shares of stock but in turn lowers the current market price of its Straight valueAlso called investment value, the value of a convertible security without the con-version option. Terminal valueThe value of a bond at maturity, typically its par value, or the value of an asset (or an entire Time value of an optionThe portion of an option's premium that is based on the amount of time remaining Time value of moneyThe idea that a dollar today is worth more than a dollar in the future, because the dollar Utility valueThe welfare a given investor assigns to an investment with a particular return and risk. Value-added taxMethod of indirect taxation whereby a tax is levied at each stage of production on the value Value-at-Risk model (VAR)Procedure for estimating the probability of portfolio losses exceeding some Value additivity principalPrevails when the value of a whole group of assets exactly equals the sum of the Value dateIn the market for Eurodollar deposits and foreign exchange, value date refers to the delivery date Value datingRefers to when value or credit is given for funds transferred between banks. Value managerA manager who seeks to buy stocks that are at a discount to their "fair value" and sell them at BOOK VALUEAn asset’s cost basis minus accumulated depreciation. BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: CAPITAL IN EXCESS OF PAR VALUEWhat a company collected when it sold stock for more than the par value per share. 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. PAR VALUEAn arbitrary value that a company may assign to its stock. Par value has no relationship to what the stock is selling for on the open market. 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: SALVAGE VALUEThe amount management estimates a piece of equipment will be worth at the end of its useful life, either as a trade-in or if it were sold for scrap. Cash value added (CVA)A method of investment appraisal that calculates the ratio of the net present value of an Cost of salesThe manufacture or purchase price of goods sold in a period or the cost of providing a service. Economic Value Added (EVA)Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge 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. 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. Shareholder valueIncreasing the value of the business to its shareholders, achieved through a combination of Value-based managementA variety of approaches that emphasize increasing shareholder value as the primary goal of every business. No par value stockStock issued by the company that does not have an arbitrary value (par value) assigned to it. Par valueAn arbitrary value assigned by the company to each share of stock; it is used in the accounting for the sale of stock and in some jurisdictions for calculating taxes. 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. Stated value stockStock issued by the company that does not have a par value, but does have a stated value. For accounting purposes, stated value is functionally equivalent to par value. book value and book value per shareGenerally speaking, these terms net present value (NPV)Equals the present value (PV) of a capital investment present value (PV)This amount is calculated by discounting the future
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