Acid-Test Ratio Definition - Investopedia

Acid-Test Ratio Definition - Investopedia

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Acid-Test Ratio Definition - Investopedia

1 Jul 2020 ... The acid-test ratio may not give a reliable picture of a firm's financial condition if the company has accounts receivable that take longer than ...

How Do the Current Ratio and Quick Ratio Differ? - Investopedia

8 Jul 2020 ... ... and quick ratio are liquidity ratios measuring a company's ability to pay off ... it might not be able to easily pay down its short-term obligations.

Aptitude Test Definition - Investopedia

7 Jul 2019 ... An aptitude test does not test knowledge; it is not a test for which a person ... be a great way of narrowing down options so as to make a choice.

EBITDA-To-Interest Coverage Ratio - Investopedia

31 Mar 2020 ... EBITDA-to-interest coverage ratio is used to assess a company's financial durability by examining its ability to at least pay off interest expenses. ... Because EBITDA does not account for depreciation-related expenses, a ratio ...

1%/10 Net 30 Definition - Investopedia

6 days ago ... A vendor may offer incentives to pay early to accelerate the inflow of cash, which is especially important for businesses with no revolving lines ...

Schedule K-1 Definition - Investopedia

23 Apr 2020 ... Business partners or S corporation shareholders use Schedule K-1 to ... While not filed with an individual partner's tax return, the financial ...

Doji Definition - Investopedia

5 Dec 2019 ... The time period or tick interval used does not matter. The filled or hollow bar created by the candlestick pattern is called the body. The lines that ...

Trust Definition - Investopedia

5 Apr 2020 ... A trust is a fiduciary relationship in which the trustor gives the trustee ... An unfunded trust consists only of the trust agreement with no funding.

Value Investing Definition - Investopedia

26 Jul 2020 ... Psychological biases can push a stock price up or down based on news, ... Not only do they reject the efficient-market hypothesis, but when ...

Average Down Definition - Investopedia

30 Aug 2019 ... Adding more shares increases risk exposure and inexperienced investors may not be able to tell the difference between a value and a warning ...

Reorganization Definition - Investopedia

5 Apr 2020 ... It may include shutting down or selling divisions, replacing management, ... A reorganization by a company that is in trouble but not yet in ...

Expansion Definition - Investopedia

23 Oct 2019 ... Expansion is the phase of the business cycle where real GDP grows for two or more ... The rise and fall of economic growth is not a completely random, ... This process is called the business cycle and is broken down into four ...

Check Definition - Investopedia

14 Jul 2020 ... If a check is lost or stolen, a third party is not able to cash it, as the payee is the only one who can negotiate the check. Modern substitutes for ...

Down Payment Definition - Investopedia

5 days ago ... In some cases, the down payment is not refundable if the deal falls ... However, with a down payment of $3,000, the buyer only needs to borrow ...

Net Sales Definition - Investopedia

27 Jun 2020 ... Net sales are the result of gross sales minus returns, allowances, and discounts. They are a factor in gross profit but do not include costs of ...

Down-and-In Option Definition - Investopedia

3 Oct 2019 ... It does not matter if it moves back to pre-knock-in levels. Example of Down-and-In Option. For example, a down-and-in option has a strike price of ...

Credit Definition - Investopedia

3 May 2020 ... People tend to make purchases with credit cards because they may not have enough cash on hand to make the purchase. Accepting credit cards ...

Facility Definition - Investopedia

28 Jul 2020 ... A facility is an agreement between a company and a public or private lender that ... The loan is for a set amount and does not require collateral. ... when sales are down, the owner can request a $2 million facility from a bank, ...

Write-Down Definition - Investopedia

16 Jun 2020 ... An impairment can not be deducted on taxes until the asset is sold or disposed. If an asset is being "held for sale," the write down will also need to ...

Spinoff Definition - Investopedia

1 Jun 2020 ... For example, a company might spin off one of its mature business units that are experiencing little or no growth so it can focus on a product or ...

Net Neutrality Definition - Investopedia

Net neutrality is the idea that all data on the internet should be treated equally by ... ISPs are also not to create special arrangements with services or websites, in which companies ... The Supreme Court struck down the FCC regulation in 2005.

Prospectus Definition - Investopedia

10 Apr 2020 ... A prospectus is a document that is required by and filed with the SEC that ... might include financing operations, paying down debt, or buying back stock ... issuing company against claims that pertinent information was not fully ...

Gresham's Law Definition - Investopedia

2 Oct 2019 ... At the core of Gresham's law is the concept of good money (money which is ... dates to hoard the coins with more silver which, when melted down, were ... at a discount, or not at all, and the old coins would retain greater value.

Comps Definition - Investopedia

25 Jun 2019 ... Comps not only provide investors and analysts with important information ... When comp store sales are up, the company's sales are increasing at its current stores. When total sales growth is up and comp stores are down, the ...

Bitcoin Definition - Investopedia

Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered ... like Bitcoin sets the release rate ahead of time and according to an algorithm. ... when Mt. Gox, a Bitcoin exchange in Japan, was forced to close down after ...

Budget Definition - Investopedia

3 Aug 2020 ... A budget is a microeconomic concept that shows the trade-off made ... Creating and using a budget is not just for those who need to closely ...

Netting Definition - Investopedia

23 Mar 2020 ... Netting entails offsetting the value of multiple positions or payments due to be ... multiple transactions, reducing the number of transactions down to one. ... of swaps, but there is one type of swap where netting does not occur.

Down-and-Out Option Definition - Investopedia

2 Aug 2019 ... A barrier option is a type of option where the payoff, and the very existence of the option, depends on whether or not the underlying asset reaches ...

Rainmaker Definition - Investopedia

3 Jan 2020 ... Provided that their techniques are legal and ethical, employers are not that bothered about how they go about their job. The company enjoys ...

Net Lease Definition - Investopedia

9 Mar 2020 ... Net lease refers to a provision that requires a tenant to pay some or all of ... for the income and do not want the headaches of arranging maintenance, ... Instead, net leases are broken down into three primary types that deal ...

Not for Profit Definition - Investopedia

29 May 2020 ... To achieve tax-exempt status, the organization needs to request 501(c)(3) status from the Internal Revenue Service (IRS).2 If desired, the not-for- ...

ISM Manufacturing Index Definition - Investopedia

24 Apr 2020 ... ISM Manufacturing Index, which used to be called Purchasing ... with the previous month while a reading of 50 indicates no change and a ...

Three Black Crows Definition - Investopedia

19 Apr 2019 ... Three black crows are a visual pattern, meaning that there are no particular calculations to worry about when identifying this indicator.

Business Model Definition - Investopedia

3 Jul 2020 ... Admittedly, the business model may not tell you everything about a company's ... of the hub-and-spoke model while forcing labor costs down.

Non-Deliverable Forward (NDF) Definition - Investopedia

30 Jul 2020 ... That said, non-deliverable forwards are not limited to illiquid markets or currencies. They can be used by parties looking to hedge or expose ...

Free of Particular Average (FPA) Definition - Investopedia

13 Dec 2019 ... English FPA Provisions. In some cases, insurance companies are liable for partial loses. The conditions in which FPA clauses no longer apply ...

GDP Price Deflator Definition - Investopedia

27 May 2020 ... The GDP price deflator measures the changes in prices for all of the ... However, that same economy might be exhibiting little-to-no growth, but ...

EBITDA Margin Definition - Investopedia

29 May 2020 ... EBITDA margin measures a company's profit as a percentage of revenue. ... That is, interest, taxes, depreciation, and amortization are not part of a ... in taxes could be used to pay down debt, an assumption made in EBITDA.

Intermediate Good Definition - Investopedia

25 Jun 2019 ... The miller breaks down the wheat to make flour—a secondary ... Economists do not factor intermediate goods when they calculate gross ...

Earnings Per Share – EPS Definition - Investopedia

15 May 2020 ... Basic EPS does not factor in the dilutive effect of shares that could be ... factory burned down—which would have temporarily decreased EPS ...

Balance of Payments (BOP) Definition - Investopedia

23 Apr 2020 ... The balance of payments (BOP) is a statement of all transactions made ... is included in calculations of national output, while the capital account is not. ... through exports of capital, it must do so by running down its reserves.

Joint Venture (JV) Definition - Investopedia

7 Jul 2020 ... A joint venture (JV) is a business arrangement where two or more parties pool ... It is important to draft it with care, to avoid litigation down the road. ... different entities into a new one, which may or may not be a partnership.

Karl Marx Definition - Investopedia

5 May 2020 ... Karl Marx was a 19th century philosopher, author and economist famous ... the term "capitalism" in English are unclear, it appears that Karl Marx was not ... and thereby exploiting, laborers to drive down the cost of production.

Tenancy in Common – TIC Definition - Investopedia

30 Jun 2020 ... The co-tenants may have a different share of ownership interests. ... In TIC agreements the change in members does not break the agreement.

Consumer Goods Definition - Investopedia

29 Jul 2020 ... Consumer goods, or final goods, are goods sold to consumers for their own use or enjoyment and not as means for further economic production ...

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