The Ultimate Glossary of Terms About Earn Money)
What Is EBITDA?
Another way to compare profitability to net income is through EBITDA, or earnings before interest, taxes, depreciation, and amortization. EBITDA tries to represent cash profit made by the company's operations by removing non-cash depreciation and amortization expenses, taxes, and debt costs that are based on capital structures.
Understanding EBITDA
EBITDA is net income (earnings) plus the reimbursable costs of interest, taxation, depreciation, and amortization. Regardless of the depreciation assumptions or financing strategies used by the companies, EBITDA can be used to monitor and compare the underlying profitability of those companies.
There are various methods to define health equity. When everyone has "the chance to 'attain their maximum health potential' and no one is "disadvantaged from achieving this potential because of their social position or other socially determined circumstance," that is one definition of health equity that is frequently used.1 Health equity is defined by the U.S. Department of Health and Human Services as achieving the highest degree of health for everyone. The elimination of health and healthcare disparities, as well as focused and ongoing societal efforts to resolve past and current injustices, are all necessary for achieving health equity.2 An overarching objective of Healthy People 2020 and a top priority for the Centers for Disease Control and Prevention is to achieve health equality, eliminate disparities, and improve the health of all groups
Balance Sheet.
one of the key records used to assess the financial standing of a company or a person. A snapshot of assets, shareholder equity, and liabilities for a specific time frame, such as yearly or quarterly, is provided by the balance sheet. Statement of net worth is another name for a balance report.
History of EBITDA
One of the select few investors with a track record comparable to Buffett's created EBITDA: Liberty Media Chair John Malone. 4 In order to convince lenders and investors to support his leveraged growth strategy, which involved using debt and reinvesting earnings to reduce taxes, the pioneer of the cable industry developed the metric in the 1970s. 5 6 EBITDA was found to be helpful by lenders and investors in leveraged buyouts (LBOs) during the 1980s in determining whether the targeted companies had the profitability to pay back the debt that was expected to be incurred in the acquisition. It made sense to exclude the interest and tax expense from earnings because a buyout would probably result in a shift to the capital structure and tax
Ignores Costs of Asserts
EBITDA is frequently misunderstood to be a monetary earnings indicator. EBITDA, however, disregards the expense of assets, in contrast to free cash flow. EBITDA is frequently criticized for assuming that profitability is solely a result of sales and operations, almost as if the company's assets and debt funding were a gift. Does management believe that the tooth fairy pays for capital expenses, to paraphrase Buffett once more?
Alpha
a tool for informing investors about the success of bonds, stocks, and mutual funds. Risk assessment is another name for alpha. If alpha is zero, for example, the yield on investment will be exactly as expected given the risk. An investment that beat the market's known risks has an alpha value greater than zero.
Bear Market
A significant and ongoing stock market decline is referred to as a bear market. Before a bear market is referred to, stock values must have decreased by at least 20% from their peak level. A decline in consumer trust and pessimistic economic predictions that result in stock sell-offs can start a bear market. The stock market crashed by 33% in March 2020, and the coronavirus was the direct cause of the sharp decline in prices. This marked the beginning of the shortest bear market in history. The global stock markets returned to a bull market in April after a bear market that ran just one month.
Bull Marketing
A bull market, as opposed to a bear market, describes a period when the economy is strong, stock prices are increasing gradually, and all signs point to continued improvement. Stock prices rise as a result of increased purchasing by investors. Before describing a market as a bull market, economists look for stock values to increase by at least 20% from their most recent low. The most extended bull market in contemporary history, lasting from 2009 to March 2020, has just been enjoyed by investors. The S&P 500 increased by a staggering 330% over these more than.
Asset
an item or group of items that a person or business owns and can be measured financially. Assets include things like real estate, tools, inventory, cash accounts, and investments. Assets and liabilities are displayed on a typical balance sheet. A company's performance is improved by factors like brand recognition and customer base. They are not, however, listed on the balance sheet because they cannot be converted into money.
Transactions are facilitated by a broker, who acts as an intermediary between investors and the stock market. Brokers must hold licenses and can be either individuals or businesses. The broker is trusted by the investor to act in his best interests and provide expert investment advice. In some cases, brokers receive a flat fee based on performance in addition to the commission that they typically receive in exchange for their services.
Asset Allocations
Your money and investments are divided among different types of accounts as part of an asset allocation. The individual's financial situation and risk tolerance are just a few factors that can affect their decision to allocate assets.
Boots trapped
Bootstrapping is a method of starting a firm that relies solely on the entrepreneur's personal funds and was developed as a way to keep more control over the enterprise. Likewise, see "pre-transacted."
A bond is a type of investment security that is issued by a government or company for a set period of time and comes with the guarantee of regular interest payments. The bond's issuer reimburses the investor when the bond matures. Government bonds that are sold to finance significant infrastructure projects are the most typical example of this sort of asset. Bonds sometimes entail less risk than equities, which attracts some investors.
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