- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
- Company Profile:
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In investments, cash flow represents earnings before depreciation, amortization, and non-cash charges. Sometimes called cash earnings. Cash flow from operations (called funds from operations by real estate and other investment trusts) is important because it indicates the ability to pay dividends.
Industry:Financial services
Interest paid on consumer loans; e.g., interest on credit cards and retail purchases.
Industry:Financial services
The point below which the firm will need either to obtain additional financing or to liquidate some of its assets to meet its fixed costs.
Industry:Financial services
Excess correlation of equity or bond returns. For example, under usual conditions we might observe a certain level of correlation of market returns. A period of contagion would be associated with much higher-than-expected correlation. Some examples are the conjectured contagion in East Asian markets beginning in July 1997 when the Thai currency devalued and the impact across many emerging markets of the Russian default. Contagion is difficult to identify because you need some sort of measure of the expected correlation. It is complicated because correlation's are known to change through time, for example, see Erb, Harvey and Viskanta's article in the 1994 Financial Analysts Journal. In periods of negative returns, correlation's (and volatility) are known to increase, so what might appear to be excessive may not be contagion.
Industry:Financial services
Cash flow from operations minus preferred stock dividends, divided by the number of common shares outstanding.
Industry:Financial services
A market condition in which futures prices are higher in the distant delivery months.
Industry:Financial services
The number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation.
Industry:Financial services
A plot of the net profit to a speculator in currency options under various exchange rate scenarios.
Industry:Financial services
