Long-term liabilities refer to financial obligations or debts that are due beyond a 12-month period, typically extending several years, on a company's balance sheet.
Margin refers to the amount of money or securities required to be deposited by an investor in order to trade in financial markets, typically to cover potential losses from market fluctuations.
Marginal analysis is an economic and financial decision-making tool that assesses the additional or incremental costs and benefits associated with a specific action or unit of production, helping determine the optimal level of that action.
Mark-to-market is the process of valuing an asset or security based on its current market price, often reflecting its real-time value rather than its book value.
Market capitalization is the total value of a publicly traded company's outstanding shares, calculated by multiplying the current stock price by the total number of outstanding shares.
Modeling in finance refers to the creation and utilization of mathematical representations or simulations to analyze, forecast, or evaluate financial data or investment opportunities.
Modified cash basis accounting is a hybrid accounting method that incorporates elements of both cash and accrual basis accounting, allowing certain elements of accrual-based accounting while maintaining a simplified approach by recording most transactions on a cash basis.
Net margin refers to a company's profitability ratio, calculated by dividing net income by total revenue and representing the percentage of profit per dollar of sales.
Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by comparing the present value of its expected cash flows to the initial investment cost.
A Net Non-Deliverable Forward (NDF) is a derivative contract used in currency markets where parties settle the net difference between a predetermined exchange rate and the prevailing market rate without physically delivering the underlying currency.
An operating budget is a financial plan that outlines an organization's projected income and expenses for day-to-day operations within a specific time frame, usually a fiscal year.
Operating Cash Flow refers to the cash generated or used by a company's core business operations within a specific period, excluding financing and investing activities.
Operating expenditures, often abbreviated as OPEX, represent the ongoing expenses incurred by a business in its day-to-day operations to maintain and run the company.
Operating Profit Margin is a financial metric representing the proportion of revenue remaining after deducting operating expenses, reflecting the company's operating efficiency and profitability.
Out of the money refers to a situation in options trading where the current market price of an underlying asset is not favorable for exercising the option, resulting in no immediate profit for the holder.
Overhead costs refer to ongoing business expenses that are not directly attributed to a specific product or service but contribute to the operation as a whole.
A participating forward is a financial contract that allows the holder to receive additional profits or incur further losses beyond the agreed-upon price of the underlying asset at maturity.
In the context of accounting and finance, a "period" typically refers to a specific duration or timeframe used for financial reporting, analysis, or decision-making purposes.
Period costs are expenses incurred in a specific accounting period, such as selling, general, and administrative expenses, not directly tied to the production of goods or services.
Porter's Five Forces Model is a framework used in business analysis to assess the competitive forces within an industry, helping businesses evaluate their competitive position and strategic options.
Present value refers to the current worth of a future sum of money, discounted to reflect its current value based on a specific rate of return or interest over time.
Pro forma refers to financial statements presenting potential future financial performance or outcomes, often created under special circumstances or hypothetical scenarios.
Qualitative evaluation involves the assessment of non-quantifiable factors or attributes, such as subjective judgments, opinions, and observations, to gauge quality or characteristics.
Ratio forward hedging is like a safety net for businesses dealing with money in different currencies. It's a way to protect against the risk that comes from changes in exchange rates.
The Required Rate of Return is the minimum profit or yield an investor expects from an investment to compensate for the investment's risk and opportunity cost.
