Tag: formula

What is 'Backorder Costs' A cost incurred by a business when it is unable to fill an order and must complete it...

DefinitionThe weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to...

DefinitionIn finance, the acid-test or quick ratio or liquidity ratio measures the ability of a company to use its near cash or quick assets...

DefinitionThe time value of money is the greater benefit of receiving money now rather than later. It is founded on time preference. Time Value...

What is the 'Variable Cost Ratio' The variable cost ratio is an expression of a company's variable production costs as a percentage...

What is lead time and why is it important In the business world, lead time is the amount of time that elapses between the start...

What is 'Earnings Before Interest & Tax - EBIT' An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax...

What is the 'Earnings Multiplier' The earnings multiplier is an adjustment made to a company's P/E ratio that takes into account current...

What is 'Earnings Per Share - EPS' Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding...

DefinitionEnterprise value, total enterprise value, or firm value is an economic measure reflecting the market value of a business. It is a sum of...