Tag: formula
Backorder Costs
What is 'Backorder Costs' A cost incurred by a business when it is unable to fill an order and must complete it...
Weighted Average Cost Of Capital – WACC
DefinitionThe weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to...
Quick Ratio
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...
Time Value of Money
DefinitionThe time value of money is the greater benefit of receiving money now rather than later. It is founded on time preference. Time Value...
Variable Cost Ratio
What is the 'Variable Cost Ratio' The variable cost ratio is an expression of a company's variable production costs as a percentage...
Lead Time
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...
Earnings Before Interest & Tax (EBIT)
What is 'Earnings Before Interest & Tax - EBIT' An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax...
Earnings Multiplier
What is the 'Earnings Multiplier' The earnings multiplier is an adjustment made to a company's P/E ratio that takes into account current...
Earnings Per Share (EPS)
What is 'Earnings Per Share - EPS' Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding...
Expense Ratio
DefinitionThe expense ratio of a stock or asset fund is the total percentage of fund assets used for administrative, management, advertising, and all other...