A projection is an estimate of future performance made by economists, corporate planners, and credit and securities analysts to anticipate economic and financial conditions.
A Quant, or quantitative analyst, is a professional with strong mathematical and computer skills who provides numerical and analytical support services, typically in the finance sector.
Quantitative Analysis involves using mathematical and statistical methods to evaluate investments, business operations, and financial data.
A quick asset is any asset that can be converted into cash within a short timeline, typically 90 days or less.
The Quick Ratio, also known as the Acid-Test Ratio or Liquid Ratio, is a measure of a company's ability to meet its short-term obligations using its most liquid assets.
A basis used in absorption costing for absorbing manufacturing overhead into the cost units produced.
The real value of money refers to the actual purchasing power of money as corrected for inflation over time.
Reckoning involves settling accounts through detailed counting and computations to achieve a final total or conclusion.
Return on Investment (ROI) measures the profitability of an investment, calculated as the net profit from an investment divided by the original cost of the investment, usually expressed as a percentage.
RAROC is a performance measurement tool used by financial institutions to determine the risk-adjusted profitability of various units within the organization.
The safety margin is the excess of actual sales over break-even sales, providing a buffer that measures how much sales can drop before incurring a loss.
A Sales Analyst operates within an accounting department and is responsible for tracking sales by region, product, or account. They ensure proper accounting and make recommendations to enhance profitability.
In standard costing, the sales margin price variance arises due to the difference between actual sales revenue and the budgeted or standard selling prices for the actual sales quantities achieved. This variance can be either adverse or favorable.
Sales Margin Quantity Variance is an important concept within standard costing that measures the difference between the budgeted sales quantity and the actual sales quantity, valued at the standard profit margin per product.
Sales mix represents the relative proportions of individual products that make up the total units sold within a company, offering insights into profitability and strategic planning.
Sales volume variance is the difference between the budgeted sales quantity and the actual sales quantity, valued at the standard profit per unit or standard contribution margin per unit. It measures the impact of sales volume fluctuation on the financial performance of a business.
A securities analyst is an individual who performs investment research and examines the financial condition of companies and industries to provide investment recommendations.
Separable assets and liabilities refer to the specific assets and liabilities of a business that can be clearly distinguished from other assets and liabilities. This distinction is crucial when assessing the financial health of a company or when conducting valuations, such as during a merger or acquisition.
An analysis of changes in the financial position of a firm from one accounting period to another; also known as the sources and uses of funds statement.
Standard costing involves assigning a predetermined cost to products or services, which serves as a benchmark for measuring performance and cost control.
The standard price is a predetermined cost established for a product or service, commonly used as a benchmark for budgeting, costing, and performance evaluation in manufacturing and other industries.
A predetermined selling price set for each product sold for a specified period. These prices are compared with the actual prices obtained during the period in order to establish sales margin price variances in a system of standard costing.
A financial statement that provides detailed information about a company's cash inflows and outflows during a specific period. It is essential for assessing the liquidity, flexibility, and overall financial health of an organization.
A Statement of Changes in Financial Position details the sources and uses of an entity's financial resources during a specific period. It is commonly referred to as a Cash-Flow Statement.
Stock valuation is the process of determining the intrinsic value of a company's stock, which helps investors make informed decisions about buying, selling, or holding shares.
A time sheet is a tool used to record the amount of time an employee or machine spends on different tasks or activities over a specified period. These recorded hours are integral for job costing, operational assessments, and activity tracking, aiding in accurate financial and productivity analyses.
Trading Profit represents the profit of an organization before deductions for interest, directors' fees, auditors' remuneration, and other similar expenses. It is crucial for assessing the core operating efficiency of a business.
A trend is a general direction of movement that can be observed in various fields such as technology, economics, fashion, and finance. In the context of securities, a trend refers to the long-term price or trading volume movements, either up, down, or sideways, that characterize a particular market, commodity, or security, and also applies to interest rates and yields.
The turnover ratio is a financial metric that evaluates the efficiency with which a company utilizes its assets to generate revenue. It is an important indicator of operational performance.
The Unit Standard Selling Price is a predefined rate at which a product or service is intended to be sold, expressed on a per-unit basis.
Upside potential refers to the amount of upward price movement an investor or an analyst expects of a particular stock, bond, or commodity.
A value-added statement outlines the wealth that a company has created for its stakeholders and how that wealth is distributed among employees, shareholders, governments, and others.
Variable cost refers to expenses that change in proportion to the production output or sales volume. They fluctuate based on the operational activity, such as material costs, labor costs, and utility expenses.
The Variable Cost Ratio measures the ratio of variable costs to sales revenue, expressed as a percentage. It provides insight into the relationship between production costs and sales, crucial for cost management and pricing strategies.
Variance in standard costing and budgetary control refers to the difference between the standard or budgeted levels of cost or income for an activity and the actual costs incurred or income achieved.
Vertical analysis is a financial analysis method wherein each line item in a financial statement is listed as a percentage of a base item.
A weighted average, or weighted mean, is an arithmetic average that factors the varying degrees of importance of the numbers in a data set. Instead of each of the data points contributing equally to the final average, some data points contribute more than others.
A financial metric used to gauge the average cost of capital by weighting each capital component proportionally.
