What is Net Assets? Definition: Net Assets is the value of a company’s total assets, minus liabilities. Just like shareholders equity, net asset affirms what a company owns and what it owes. Consequently, the higher the value of a company net asset, the more valuable it is. Assets, in this case, denote resources or things
What is Modified Internal Rate Of Return MIRR? Definition: Modified Internal Rate of Return or MIRR represents an investment’s internal rate of return when the investment is tailored to factor in the differences between investment return and re-investment rate. The MIRR operates on the assumption that a company reinvests its positive cash flows and the
What is Net Book Value (NBV)? Definition: Net book value in finance refers to an asset worth, at a given time. In its purest form, it represents the carrying value of assets, as represented in the balance sheet. It is calculated by subtracting accumulated depreciation from the original cost of total asset. Likewise, people often
What is Net Capital Spending? Definition: Net capital spending is the amount of money that a firm uses to acquire fixed assets in a given accounting period. Companies in a phase of rapid growth or in an expansion drive tend to spend more on fixed assets, in a bid to accelerate the production or the
What is A Money Market? Definition: The money market is a section in the financial market that facilitates the trading of liquid and short-term financial instruments. In this segment of the capital markets, investors, as well as corporations, buy and sell securities of short-term maturities. The commonly traded instruments, in this case, include treasury bills
What is Normal Profit? Definition: Normal profits in business refer to a situation where a company generates revenue that is equal to the total costs incurred in its operation, thus allowing it to remain operational in a competitive industry. Normal profit is considered an important factor in a business’s production process because it is the
What is Nominal Value In Capital Markets? Definition: The nominal value is the price printed on the front or face of a stock certificate, security, or any other financial instrument indicating what it will be worth at maturity. Commonly called par value 0r face value, it usually refers to either bonds or stocks. In economics,
What Is Net Credit Sales? Definition: Net credit sales refer to the amount of sales that a firm makes from its customers who pay on credit instead of cash. Likewise, it does not include sales that are paid immediately. The NCS concept is helpful in ascertaining the total credit that a firm allows its customers
What are Net Exports? Definition: Net Export is a financial metric that measures a country’s net economic trade with other countries. In its purest form, it is the difference between the value of goods exported and imported. Depending on whether a country imports or exports more, the value can be positive or negative. Net Export
What is Net Pay? Definition: Net Pay refers to the amount of money that employees get to take home after all deductions are removed from the gross pay. It is simply the amount paid out on payday. It is computed from gross pay based on how employees are classified in an organization. Understanding Net Pay