finance
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Original Issue Discount (OID): Definition & How It Works
An original issue discount (OID) is a type of debt instrument. Often a bond, OID’s are sold at a lower value than face value when issued, hence the D in OID. On maturity, the face value is paid
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Understanding Operating Risk: A Key Component of Business Risk
Operating risk is the risk related to a company’s cost structure. More specifically, it is the risk the company faces due to the level of fixed costs in its operations. Together with sales
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Operating Return on Assets (OROA): Definition & Calculation
Operating return on assets (OROA), an efficiency or profitability ratioProfitability RatiosProfitability ratios are financial metrics used by analysts and investors to measure and evaluate the ability
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Operating Ratio: Definition, Calculation & Importance
The operating ratio is a measure of efficiency that is used by management to determine day-to-day operational performance. This metric compares operating expenses, also known as OPEX, to net sales. Th
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![Operating Profit Margin: Definition & Calculation | [Your Company Name]](https://www.etffin.com/article/uploadfiles/202110/2021100815165062_S.png)
Operating Profit Margin: Definition & Calculation | [Your Company Name]
Operating Profit Margin is a profitability or performance ratio that reflects the percentage of profit a company produces from its operations, prior to subtracting taxes and interest charges. It is ca
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Operating Cash to Total Cash Ratio: Meaning & Significance
The Operating Cash to Total Cash Ratio measures how much of a business’ generated cash flow comes from its core operations. This can be used as an indicator of how well a business can susta
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Operating Cash to Debt Ratio: Understanding Financial Health
The Operating Cash to Debt Ratio measures the percentage of a company’s total debt that is covered by its operating cash flow for a given accounting period. The operating cash flow refers to the
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Understanding the Operating Cash Flow Ratio: A Key Liquidity Metric
The Operating Cash Flow Ratio, a liquidity ratio, is a measure of how well a company can pay off its current liabilitiesCurrent LiabilitiesCurrent liabilities are financial obligations of a business e
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Operating Asset Turnover Ratio: Definition & Analysis
The operating asset turnover ratio, an efficiency ratio, is a variation of the total asset turnover ratioAsset Turnover RatioThe asset turnover ratio, also known as the total asset turnover ratio, mea
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Online Payment Companies: A Comprehensive Guide
Online payment companies are responsible for handling online or internet-based methods of payment. The online payment systems allow the seller to accept payments and the buyer to send payments over th
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One-Period Dividend Discount Model (DDM): Valuation Explained
The one-period dividend discount model is a variation of the dividend discount modelDividend Discount ModelThe Dividend Discount Model (DDM) is a quantitative method of valuing a company’s stock
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Understanding Oil & Gas Company Balance Sheets: Key Differences
The oil and gas industry is vast and contributes to a significant portion of the world’s energy consumption. Like many other industries, oil and gas companies own specific line items unique to t
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Office REITs: Understanding Investment in Commercial Office Properties
Office REITs are REITs that build, manage, and maintain office buildings, and they lease the offices to companies that need space to accommodate their employees. While there are companies that own the
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Understanding Your Notice of Assessment (NOA) - CRA Explained
A Notice of Assessment (NOA) is a statement issued by the Canada Revenue Agency (CRA) to Canadian taxpayers at the end of a tax year. The statement details the amount of income taxIncome Tax PayableIn
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Nostro Accounts Explained: A Comprehensive Guide
A Nostro account is a bank account that a bank holds with a foreign bank in the currency of the country where the funds are held. The term “nostro” is a Latin word that means “ours,&
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Understanding Financial Statement Normalization: A Comprehensive Guide
Financial statementsThree Financial StatementsThe three financial statements are the income statement, the balance sheet, and the statement of cash flows. These three core statements are normalization
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Noncumulative Preferred Stock: Definition & Key Differences
Noncumulative refers to a type of preferred stock for which dividends are not accumulated over time. The company is not obliged to pay noncumulative stockholders any unpaid dividends. For e
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Understanding Non-Sufficient Funds (NSF) & Overdraft Fees
Non-sufficient funds, or insufficient funds, is a banking term used to indicate that the checking account does not have sufficient balance to cover a transaction or payment. Colloquially, NSF checks a
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Understanding Non-Refundable Tax Credits: A Comprehensive Guide
A non-refundable tax credit is a credit that is applied to taxes payable that only reduces a taxpayer’s liability to a minimum of zero. In other words, it cannot go below zero and cannot be refu
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Non-Recourse vs. Recourse Loans: Understanding the Difference
Non-recourse vs. recourse loans are two general categories often used when shopping for a real estate loan. There are, of course, many factors to consider when getting a loan, either for a home or a c
finance
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Understanding Gross Annual Income: Definition & CalculationAnnual income is the total value of income earned during a fiscal yearFiscal Year (FY)A fiscal year (FY) is a 12-month or 52-week period of time used by governments and businesses for accounting purpo...
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Managing Finances While Incarcerated: A Guide to Paying BillsThere are steps you can take to protect your finances while youre in jail. Getting incarcerated isn't easy on any level, but there are steps you can take to blunt the impact jail time has...
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Western Union Money Order Deposit Guide: Options & InstructionsA money order is similar to a check, except it's prepaid and not linked to a bank account. You can generally deposit a Western Union money order in your bank account, or cash it at a check-cashing...
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Overcoming Financial Strain: A Practical Guide for AmericansWe all feel financial strain sometimes. According to a survey by Northwestern Mutual, money was the most common source of stress for 44% of Americans. If you’re feeling...