Investment DictionaryOPERating Leverage An operating leverage is a company’s EBIT (earnings before taxes and financial operations) sensitivity to changes of sales. As the sensitivity is measured to operating income (close to EBIT), the http://www.investingforbeginners.eu/operating_leverage HyPERinflation Hyperinflation is an economical situation when inflation is extremely high. Regularly it is a result of inflation spiral and some disasters (as war), and is very dangerous for the economy. Just try imagine your b http://www.investingforbeginners.eu/hyperinflation Earnings PER Share Earnings per share (EPS) shows how much of net earnings are allocated to one common share. EPS might give some guidance about the value of the share for shareholder. Share price compared to EPS is equal to P/E ra http://www.investingforbeginners.eu/earnings_per_share PERformance Based Compensation Performance based compensation is a form of compensation for the investment management work depending on quality of results. Performance base compensation is very common in investment management industry and help http://www.investingforbeginners.eu/performance_based_compensation PERsonal Investing Personal investing is investing when investments are made by an individual but not a corporation which is corporate investment. Personal investing is a part of personal finance that is responsible for pe http://www.investingforbeginners.eu/personal_investing OPERating Income Operating income (operating profit) is the type of company’s profit that comes from operating activity. That means operating profit is lower than gross income by operating expenses but higher than pre-tax p http://www.investingforbeginners.eu/operating_income OPERating Margin Operating margin is a profitability percentage that shows what company’s profit margin is before it pays interests and taxes. Operating margin simply ignores capital structure (because ignores financial act http://www.investingforbeginners.eu/operating_margin OPERating Cash Flow Operating cash flow or ‘cash flow from operations’ (CFFO) is one of the most important among financial indicators and is used to measure company’s results in cash terms. While net income or oper http://www.investingforbeginners.eu/operating_cash_flow Asset PERformance Asset performance is a return of an asset over some period. Usually performance is measured on annual basis. But basically performance of any asset depends on its riskiness and the period (most of the stocks and http://www.investingforbeginners.eu/asset_performance Average Collection PERiod Average collection period is a financial ratio that is used to measure how fast company collects its receivables. ‘Average collection period’ shows what is the average time period till company gets ca http://www.investingforbeginners.eu/average_collection_period Non-PERforming Loan Ratio Non-performing loan ratio measures the quality of the loan portfolio of the financial institution. This financial ratio compares non-performing loans to the total loan portfolio (loans are assets for the bank), a http://www.investingforbeginners.eu/nonperforming_loan_ratio Non-OPERating Assets Non-operating assets are assets of the company that aren’t used in the main activity of the company. Such assets can be either financial or non-financial. This asset type is very important during the valuat http://www.investingforbeginners.eu/nonoperating_assets | Recommended Topics Investment psychology gains momentum in contemporary business world Balance Sheet Most Popular Articles Investing in Gold (I) Investing in Gold (II) Investing in Uncertain Period
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