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Definition of Sales
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term revenue.
Similar to equipment trust certificates except that the lender is either the
The formal name for the load of a back-end load fund.
The average number of days' worth of sales that is held in inventory.
Average collection period.
A U.S. corporation that receives a tax incentive for
A special type of corporation created by the Tax Reform Act of 1984 that
Determined by dividing current stock price by revenue per share (adjusted for stock splits).
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
The amount sold after customers’ returns, sales discounts, and other allowances are taken away from
(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.
A ratio that shows how much net income (profit) a company made on each dollar of net sales. Here’s the formula:
A ratio that shows how much a company had to collect in net sales to make a dollar of profit. Figure it this way:
The manufacture or purchase price of goods sold in a period or the cost of providing a service.
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.
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.
return on sales
This ratio equals net income divided by sales revenue.
the relative combination of quantities of sales of the various products that make up the total sales of a company
sales value at split-off allocation
a 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
The total sales recorded prior to sales discounts and returns.
Total revenue, less the cost of sales returns, allowances, and discounts.
A reduction in a price that is allowed by the seller, due to a problem
A reduction in the price of a product or service that is offered by the
Sales value at split-off
A cost allocation methodology that allocates joint costs to joint
percentage of sales models
Planning model in which sales forecasts are the driving variables and most other variables are
A tax levied as a percentage of retail sales.
Sales Revenue Revenue recognized from the sales of products as opposed to the provision of
Lease accounting used by a manufacturer who is also a lessor. Up-front gross
Accounts receivable turnover
The ratio of net credit sales to average accounts receivable, a measure of how
Administrative pricing rules
IRS rules used to allocate income on export sales to a foreign sales corporation.
A promise to sell an asset before the seller has lined up purchase of the asset. This
After-tax profit margin
The ratio of net income to net sales.
The ratio of net sales to total assets.
Average collection period, or days' receivables
The ratio of accounts receivables to sales, or the total
Brokerage house clerical operations that support, but do not include, the trading of stocks and
Before-tax profit margin
The ratio of net income before taxes to net sales.
An analysis of the level of sales at which a project would make zero profit.
A detailed schedule of financial activity, such as an advertising budget, a sales budget, or a capital budget.
When a stock is sold for a profit, it's the difference between the net sales price of securities and
Clearing house / Clearinghouse
An adjunct to a futures exchange through which transactions executed its floor are settled by a
The percentage of a given month's sales collected during the month of sale and each
Commodities Exchange Center (CEC)
The location of five New York futures exchanges: Commodity
The representing of accounting information over multiple years as percentages
Dividend yield (Funds)
Indicated yield represents return on a share of a mutual fund held over the past 12
Fixed asset turnover ratio
The ratio of sales to fixed assets.
Purchases and sales of eurobonds that occur before the issue price is finally set.
Gross profit margin
Gross profit divided by sales, which is equal to each sales dollar left over after paying
The process of dividing each expense item of a given year by the same expense item in
The ratio of annual sales to average inventory which measures the speed that inventory
A mutual fund with shares sold at a price including a large sales charge -- typically 4% to 8% of
The theory that in certain situations, institutions wish to sell their shares but postpone the
Mutual funds are pools of money that are managed by an investment company. They offer
Net asset value (NAV)
The value of a fund's investments. For a mutual fund, the net asset value per share
Net operating margin
The ratio of net operating income to net sales.
Net profit margin
Net income divided by sales; the amount of each sales dollar left over after all expenses
No load mutual fund
An open-end investment company, shares of which are sold without a sales charge.
A mutual fund that does not impose a sales commission. Related: load fund
Arrangement whereby sales are made with no formal debt contract. The buyer signs a receipt,
Operating profit margin
The ratio of operating margin to net sales.
Portfolio turnover rate
For an investment company, an annualized rate found by dividing the lesser of
Indicator of profitability. The ratio of earnings available to stockholders to net sales.
Ratios that focus on the profitability of the firm. Profit margins measure performance
Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months
Analysis of the effect on a project's profitability due to changes in sales, cost, and so on.
Billing method in which the sales for a period such as a month (for which a customer also
Foreign exchange market intervention in which the monetary authorities have
Total asset turnover
The ratio of net sales to total assets.
Total sales and other revenue for the period shown. Known as "turnover" in the UK.
Mutual Funds: A measure of trading activity during the previous year, expressed as a percentage of
The percent of a mutual fund's assets used to defray marketing and distribution expenses. The
The process of dividing each expense item in the income statement of a given year by net
Working capital ratio
Working capital expressed as a percentage of sales.
A method of accounting in which you record expenses when you incur them and sales as you make them—not when you pay bills or receive checks in the mail.
What was spent to run the non-sales and non-manufacturing part of a company, such as office salaries and interest paid on loans.
An accounting statement that summarizes information about a company in the following format:
The profit a company makes after cost of goods sold, expenses, and taxes are subtracted from net sales.
What’s left over after you subtract the cost of goods sold and all your expenses from sales.
What was spent to run the sales part of a company, such as sales salaries, travel, meals, and lodging for salespeople, and advertising.
Cost of goods sold
See cost of sales.
Cost–volume–profit analysis (CVP)
A method for understanding the relationship between revenue, cost and sales volume.
sales to customers who have bought goods or services on credit but who have not yet paid their debt.
The difference between the price at which goods or services are sold and the cost of sales.
See sales mix.
sales revenue less the cost of materials.
The price at which goods or services are bought and sold within divisions of the same organization, as opposed to an arm’s-length price at which sales may be made to an external customer.
The business income or sales of goods and services.
Amounts owed to the company, generally for sales that it has made.
The result of subtracting cost of goods sold from sales. Synonymous with gross margin.
Amounts earned by the company from the sale of merchandise or services; often used interchangeably with the term sales.
accounts receivable turnover ratio
A ratio computed by dividing annual
Well, frankly, accrual is not a good descriptive
asset turnover ratio
A broad-gauge ratio computed by dividing annual
Refers to accounts receivable from credit sales to customers
The annual sales volume level at which total contribution
cash burn rate
A relatively recent term that refers to how fast a business
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