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Accounting
Banking

Financial Leverage

A technique that involves the use of borrowed funds (debt) wholly (100% debt) or partially (a mix of debt and...

Asset Play

A share of stock that is attractive because it is incorrectly priced (i.e., its current price doesn't reflect the value...

Asset Turnover

A financial ratio that measures the number of times an asset has passed through inventory during the a specific period...

Return On Net Worth

Also return on equity (ROE). It is a profitability measure that indicates how efficiently the company did invest and manage...

Round Tripping

An accounting trick that involves the sale of unused or idle assets for a promise to buy them or their...

Compromise Theory

A theory that centers on the assumption that the value of a levered firm equals the value of same firm...

Constructed Beta

A value of beta (systematic risk measure) that is constructed artificially when market-generated betas are not available (or cannot be...

Current Market Value

The price that would be received from selling an asset under current market conditions. For example, the market value of...

Basic EPS

It stands for basic earnings per share; the ratio of net income available to common shareholders to common shares outstanding:...

Basic Earnings Per Share (EPS)

The ratio of net income available to common shareholders to common shares outstanding: This ratio doesn't take into account the...