|
Added Value
{{One source, date=June 2010 Added value in financial analysis of shares is to be distinguished from value added. It is used as a measure of shareholder value, calculated using the formula: :Added Value = The selling price of a product - the cost of bought-in materials and components Added Value can also be defined as the difference between a particular product's final selling price and the direct and indirect input used in making that particular product. Also it can be said to be the process of increasing the perceived value of the product in the eyes of the consumers (formally known as the value proposition). The difference is profit for the firm and its shareholders after all the costs and taxes owed by the business have been paid for that financial year. Value added or any related measure may help investors decide if this is a business that is worthwhile investing on, or that there are other and better opportunities (fixed deposits, debentures). Example A jewelry business c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Value Added
Value added is a term in economics for calculating the difference between market value of a product or service, and the sum value of its constituents. It is relatively expressed by the supply-demand curve for specific units of sale. Value added is distinguished from the accounting term added value which measures only the financial profits earned upon transformational processes for specific items of sale that are available on the market. In business, ''total value added'' is calculated by tabulating the ''unit value added'' (measured by summing unit profit — the difference between sale price and production cost, unit depreciation cost, and unit labor cost) per each unit sold. Thus, total value added is equivalent to revenue minus intermediate consumption. Value added is a higher portion of revenue for integrated companies (e.g. manufacturing companies) and a lower portion of revenue for less integrated companies (e.g. retail companies); total value added is very nearly ap ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Shareholder Value
Shareholder value is a business term, sometimes phrased as shareholder value maximization. The term expresses the idea that the primary goal for a business is to increase the wealth of its shareholders (owners) by paying dividends and/or causing the company's stock price to increase. It became a prominent idea during the 1980s and 1990s, along with the management principle value-based management or managing for value. Definition The term ''shareholder value'', sometimes abbreviated to ''SV'', can be used to refer to: * The market capitalization of a company; * The view that the primary goal for a company is to increase the wealth of its shareholders (owners) by paying dividends and/or causing the stock price to increase (i.e. the Friedman doctrine introduced in 1970); * The more specific concept that planned actions by management and the returns to shareholders should outperform certain bench-marks such as the cost of capital concept. In essence, the idea that shareholders' money ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Value Proposition
In marketing, a company’s value proposition is the full mix of benefits or value (economics), economic value which it promises to deliver to the current and future customers (i.e., a market segment) who will buy their Product (business), products and/or Service (economics), services. It is part of a company's overall marketing strategy which differentiates its brand and fully Positioning (marketing), positions it in the market. A value proposition can apply to an entire organization, parts thereof, customer accounts, or products and services. Creating a value proposition is a part of the overall business strategy of a company. Robert S. Kaplan, Kaplan and Norton note: Developing a value proposition is based on a review and analysis of the Cost-benefit analysis, benefits, Economic cost, costs, and value that an organization can deliver to its customers, prospective customers, and other constituent groups within and outside the organization. It is also a positioning of value, wher ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Fixed Deposit
A fixed deposit (FD) is a tenured deposit account provided by banks or non-bank financial institutions which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. The term fixed deposit is most commonly used in India and the United States. It is known as a term deposit or time deposit in Canada, Australia, New Zealand, and as a bond in the United Kingdom. A fixed deposit means that the money cannot be withdrawn before maturity unlike a recurring deposit or a demand deposit. Due to this limitation, some banks offer additional services to FD holders such as loans against FD certificates at competitive interest rates. Banks may offer lesser interest rates under uncertain economic conditions. The tenure of an FD can vary from 7, 15 or 45 days to 1.5 years and can be as high as 10 years. In India these investments can be safer than Post Office Schemes as they a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Debenture
In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowledges it, but in some countries the term is now used interchangeably with bond, loan stock or note. A debenture is thus like a certificate of loan or a loan bond evidencing the company's liability to pay a specified amount with interest. Although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital. Senior debentures get paid before subordinate debentures, and there are varying rates of risk and payoff for these categories. Debentures are freely transferable by the debenture holder. Debenture holders have no rights to vote in the company's general meetings of shareholders, but they may have separate meetings or votes e.g. on changes to the rights attached to the debentures. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Value Added
In accounting, as part of financial statements analysis, economic value added is an estimate of a firm's economic profit, or the value created in excess of the Required rate of return, required return of the types of companies, company's shareholders. EVA is the net profit less the capital charge ($) for raising the firm's capital. The idea is that value is created when the return on the firm's economic capital employed exceeds the cost of that capital. This amount can be determined by making adjustments to Generally accepted accounting principles, GAAP accounting. There are potentially over 160 adjustments but in practice, only several key ones are made, depending on the company and its industry. Calculation EVA is net operating profit after taxes (or NOPAT) less a capital charge, the latter being the product of the cost of capital and the economic capital. The basic formula is: : \begin \text & = ( \text - \text ) \cdot (\text - \text) \\[8pt] & = \text - \text \cdot (\text - \ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Value Added
Market value added (MVA) is the difference between the current market value of a firm and the capital contributed by investors. If MVA is positive, the firm has added value. If it is negative, the firm has destroyed value. The amount of value added needs to be greater so than the firm's investors could have achieved investing in the market portfolio, adjusted for the leverage (beta coefficient) of the firm relative to the market. Basic formula The formula for MVA is: : MVA = V - K where: * ''MVA'' is market value added * ''V'' is the market value of the firm, including the value of the firm's equity and debt * ''K'' is the capital invested in the firm MVA is the present value of a series of EVA values. MVA is economically equivalent to the traditional NPV measure of worth for evaluating an after-tax cash flow profile of a project if the cost of capital In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or from a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Kay (economist)
Sir John Anderson Kay, (born 1948) is a British economist. He was the first dean of Oxford’s Said Business School and has held chairs at the London School of Economics, the University of Oxford, and London Business School. He has been a fellow of St John's College, Oxford, since 1970. Early life and education Born in Edinburgh, Kay was educated at the Royal High School, Edinburgh University, and Nuffield College, Oxford. He lectured in economics at Oxford from 1971 to 1978. Later career In 1979, Kay became Research Director and the Director of the independent think tank, the Institute for Fiscal Studies. In 1986 he became a professor at the London Business School and founded London Economics, a consultancy firm. He was the first director of Oxford's Said Business School from 1997 to 1999, and has written at some length as to why he chose to resign after only two years. He has served as a director of Halifax plc and of several investment companies. In 2003, Kay ad ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Ratios
A financial ratio or accounting ratio states the relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareholders (owners) of a firm, and by a firm's creditors. Financial analysts use financial ratios to compare the strengths and weaknesses in various companies. If shares in a company are publicly listed, the market price of the shares is used in certain financial ratios. Ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent percentage value, such as 10%. Some ratios are usually quoted as percentages, especially ratios that are usually or always less than 1, such as earnings yield, while others are usually quoted as decimal numbers, especially ratios that are usually mor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Corporate Development
Corporate development refers to the planning and execution of strategies to meet organizational objectives, primarily through mergers and acquisitions or divestitures. The kinds of activities falling under corporate development may include strategic planning, market and competitor mapping and tracking, phasing in or out of markets or products, arranging strategic alliances or partnerships or joint ventures, identifying and acquiring companies ( M&A), securing funding (various forms of equity or debt) or corporate financing, divesting of assets or divisions or selling the whole company, listing on a stock exchange or undertaking various capital management initiatives. Process Corporate strategy depends on the circumstances of a company and the area where development is desired. Corporate development is usually a process that takes place over an extended period of time and may be adjusted or refined as the project moves forward Reshaping management One of the manifestations of c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
