Also called net operating margin, return on sales can indicate how well a company makes use of its sales revenue.
By dividing Operating Profit by Net Sales, we can arrive at the Return on Sales. Essentially what we’ve done is broken down profits on a per sales basis.
We can see what percentage of sales ends up as profit, or, on the other side of the coin, how much profit is generated per unit of sales. This can be useful for a comparison of companies of different sizes, because it excludes their assets, capital structures, taxes, and interest.
Operating Profit, the numerator in this ratio, is arrived at by taking gross profit and subtracting operating expenses; it is also known as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Sales in this context can mean more than goods sold, but also services rendered or revenue generated from the business’s assets.
Futures contracts constitute a binding agreement to trade a commodity or share at a future date at an agreed-upon price
A secondary offering is the sale of a large block of previously-issued, privately-held stock, requiring SEC registration
A Bear Straddle is another name for a short straddle, in which the investor writes (goes short) on both a call and a put
A Bill of Sale is essentially a trumped-up receipt, unless you are in England. It is a document affirming ownership
Periodic distribution is a planned intermittent payment of cash from a 401(k)
Currency exchange rates will fluctuate with various macroeconomic factors such as inflation, interest rates, and so on
The Foreign Credit Insurance Association protects American businesses from non-payment in international trade deals
In a dividend arbitrage, money is made by purchasing a stock before the ex-dividend date and then exercising a put...
The dividend rate is basically just the value of the annual dividend of a company, stated as the monetary value
IRS Publication 15-b outlines the different types of fringe benefits available to employees and which ones are taxable