Tag: value

Going Concern Value

See Also: Valuation Methods Value Drivers: Building Reliable Systems to Sustain Growth Value Chain Liquidation Valuation Asset Market Value versus Asset Book Value Going Concern Value Definition The going concern value definition is the value of a company under the assumption that it will continue to operate for the foreseeable future. This is in contrast to

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Fixed Asset Turnover Analysis

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

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Hedging Risk

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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What is Deflation?

What is Deflation? What is deflation? Deflation is the decline in the price for goods and services. It can also be referred to as the increase in the value of real money. In other words, it’s the value that the current currency will go up per unit of goods or services. Deflation Explained Deflation often

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Finance Derivatives

See Also: Finance Beta Definition Finance Leverage Definition Hedge Funds Hedging Risk Financial Ratios Finance Derivatives Definition Finance derivatives are a contract that derives its value from an underlying asset or factor. In short, the value of a derivative depends on the value of something else. When the value of the underlying factor changes, the

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Delivery Order

See Also: Economic Order Quantity (EOQ) Sales Order Business Intelligence and Finance Mergers and Acquisitions (M&A) Delivery Order Definition The delivery order definition is the document which details the delivery information of an item, is very important in distribution. A delivery order is an important document in 2 ways: it has full details of how the

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Enterprise Value (EV)

See Also: EBITDA Definition EBITDA Valuation Adjusted Present Value (APV) Method of Valuation Company Valuation Introduction Valuation Methods Enterprise Value (EV) Definition Enterprise Value is simply the total market value of the firm which includes the value of all equity holders as well as debt holders. The EV method is often considered a better measurement

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Economic Value Added

See Also: Activity Based Management Capital Structure Management How to collect accounts receivable How to manage inventory Why Exit Planning Economic Value Added Definition Economic value added (EVA) measures the effects of managerial actions. It also focuses on managerial effectiveness in a given year. Economic Value Added Formula Use the following formulas to calculate the

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Double-Declining Depreciation Formula

See Also: Double-Declining Method Depreciation Double-Declining Depreciation Formula To implement the double-declining depreciation formula for an Asset you need to know the asset’s purchase price and its useful life. First, Divide “100%” by the number of years in the asset’s useful life, this is your straight-line depreciation rate. Then, multiply that number by 2 and

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Discounted Cash Flow Analysis

See Also: EBITDA Definition Steps to Track Money In and Out of a Company Arbitrage Pricing Theory Discount Rate Required Rate of Return (Discount Payback period) DPP Discounted Cash Flow Analysis Definition The definition of a discounted cash flow (DCF) is a valuation method used to value an investment opportunity. Discounted cash flow analysis tells investors

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Discount Rate

See Also: EBITDA Definition Cost of Capital Funding Arbitrage Pricing Theory Capital Budgeting Methods Required Rate of Return Discount Rate Definition The discount rate definition, also known as hurdle rate, is a general term for any rate used in finding the present value of a future cash flow. In a discounted cash flow (DCF) model,

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Asset Disposal Definition

See Also: Current Assets Fixed Assets Balance Sheet Income Statement Depreciation Asset Disposal Definition Asset disposal is the act of selling an asset usually a long term asset that has been depreciated over its useful life like production equipment. Disposal of Assets Explanation According to its depreciation, many companies contain an asset disposal policy to

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