See Also: Current Ratio Analysis Quick Ratio Analysis Financial Ratios Current Liabilities Debt Ratio Analysis Net Cash Definition The net cash formula is cash minus the liabilities. It is often used in business much like the current ratio. It determines a company’s ability to pay off its obligations. You can also use it to determine
See Also: Finance Beta Definition Stock Options Basics Employee Stock Ownership Plan (ESOP) Blue Sky Laws Subscription (Preemptive) Rights Initial Public Offering (IPO) Definition An Initial Public Offering (IPO) is the process of selling a company’s stock to the public for the first time. Before the IPO the company is private; after the IPO the
See Also: Company Life Cycle Market Positioning Marking to Market Mining the Balance Sheet for Working Capital Inventory to Working Capital Make-or-Buy Business Decision Make-or-buy decisions arise in business when a company must decide whether to produce goods internally or to purchase them externally. This typically is an issue when a company has the ability
Limited Partnership Definition A limited partnership is a private or public business owned by two or more partners, including both general partners and limited partners. In this type of partnership, the partners share the profits and losses of the business as stipulated in a predetermined agreement. The general partners share the management and control of
See Also: Hedging Risk Risk Premium Business Risk Interest Rate Risk Commercial Risk Investment Risk Definition The investment risk definition is the risk of a particular investment. Furthermore, an investment risk assessment usually contains several different forms ranging from interest rate risks to currency risks. Investment Risk Meaning Investment risk contains several different measures, including the
See Also: Investment Banks Non-Investment Grade Bonds (Unsecured Debentures) Investment Risk Comparison Analysis Customer Analysis Investment Analysis Definition Investment analysis is defined as the process of evaluating an investment for profitability and risk. It ultimately has the purpose of measuring how the given investment is a good fit for a portfolio. Furthermore, it can range
See also: Internal Rate Of Return Example NPV versus IRR Owner’s Equity Net Present Value (NPV) vs Payback Method Cost of Capital Valuation Methods Internal Rate of Return Method Definition The Internal Rate of Return method is the process of applying a discount rate that results in the present value of future net cash flows
See Also: Adjusted Gross Income Definition Gross Profit Margin Ratio Analysis PEO Arrangement Compared to Outsourcing Payroll Payroll Accounting Purchase Option Gross Up Definition Defined as paying a full amount without any deductions, gross up is most often used in terms of salary for employees. Gross Up Explanation Gross up, explained as a method for
Gross Domestic Product (GDP) Definition The gross domestic product is the value of goods and services produced in a national economy usually over a year, but can be any period of time. Gross Domestic Product (GDP) Explained The GDP, defined is the primary indicator of a country’s economy over time. Gross domestic product history can
See Also: Long Term Debt Maturity Date Non-Investment Grade Bonds Owner’s Equity Par Value of a Bond Preferred Stocks Core Satellite Portfolio Fixed Income Securities Definition What are fixed income investments? Fixed income securities are financial instruments that represent debt obligations. A company, government, or other organization can raise funds by issuing debt instruments to
See Also: Sensitivity Analysis Valuation Working Capital Analysis Return on Asset Analysis Standard Chart of Accounts SWOT Analysis (ROE) Return on Equity Fixed Asset Turnover Analysis Definition The definition of fixed asset turnover analysis and ratio shows what portion of sales is generated from fixed asset investment. Additionally, it is most likely to be useful
Hedging Risk Definition Hedging is a strategy for reducing exposure to investment risk. An investor can hedge the risk of one investment by taking an offsetting position in another investment. The values of the offsetting investments should be inversely correlated. Hedge Your Bet When an investor buys a stock, he will profit if that stock
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