Net operating expenses are the total costs associated with running a business, excluding costs related to producing and selling products. Calculating these expenses helps businesses make wise spending decisions and anticipate their total costs over a given period of time. Deducting operating costs from taxes is also a benefit for many businesses. Net operating expenses […]
Net position is the total of an investor’s current, open, and long positions minus their total of current, open, and short positions. It helps determine which position has a greater comparative value and simplifies the balance sheet for better decision-making. Net position can also refer to a person’s or company’s ownership of various assets. Financial […]
Net profit is the amount of money a business earns after expenses, while gross profit is revenue minus the cost of goods sold. Net profit includes all business expenses, while gross profit only includes expenses directly related to the product or service. Net profit is a more accurate indicator of a business’s success. A net […]
Net cash flow from operating activities is the amount of income generated from business operations after deducting operating expenses, which is important for determining a company’s liquidity. It reflects the amount of cash a company has on hand to pay invoices and distinguishes between a healthy financial position on paper and in practice. It is […]
Net accounts receivable is the difference between a company’s accounts receivable and the allowance for bad debts. Two methods for creating the reserve portion of net accounts receivable are taking a percentage of credit sales or a dollar amount of old accounts receivable. Net accounts receivable is the difference between a company’s current accounts receivable […]
Net change is the difference between a stock’s closing values on two consecutive days, providing short-term change in value for stock analysts. Dividends and stock splits do not affect net change, which is denominated in dollars and cents. The net change is the difference between the closing values of shares on two consecutive days. On […]
A network support technician maintains and troubleshoots computer network systems, including hardware and software. They should be familiar with networking software and configurations, and typically hold a degree in computer science. They are part of an IT department and in high demand as electronic communications become more important. A network support technician is a specific […]
Net asset value is a company’s assets minus liabilities. Improving it involves increasing sales or reducing expenses. Accountants use the total debt to total assets ratio to determine how much debt a company uses to finance its assets. Companies can improve their net asset value ratio by reducing debt and improving net profit. Smaller companies […]
Net operating income is the profit a company makes after deducting operating expenses and cost of goods sold. It’s important for measuring profitability and making future plans. It’s also used to determine income taxes and should be analyzed alongside historical and industry data. Net operating income refers to the amount of money a company has […]
Net domestic product (NDP) is GDP minus depreciation, giving a more accurate measure of a nation’s economic health. Gross domestic product (GDP) measures a country’s output, while gross national product (GNP) includes income from abroad. Gross domestic income (GDI) measures revenues earned during production. In economics, net domestic product (NDP) is the measurement of a […]
Net of Tax is a financial accounting convention that presents an item’s value with tax already deducted. It is generally considered unacceptable, but can be used for one-time occurrences or to show a profit or loss. It is also used in the salaries of employees assigned to foreign countries. Net of Tax is a financial […]
Net turnover is the net value of combined income over a given period of time or the “turnover” of an asset or other item valued over the same period. It is the net profit before VAT and post-trade discounts, and can also refer to services or inventory for a business. The word “net” distinguishes it […]
Net worth certificates were developed in the 1980s to support banks affected by deregulation of deposit rate restrictions. They allowed banks to restructure investment portfolios and remain solvent during economic downturns. Although less common today, the provisions that made them possible still exist. A net worth certificate is a type of financial instrument used to […]
Net operating loss occurs when a business has more expenses than revenue. Carryover net operating loss applies the loss to prior or future tax returns, but tax regulations must be followed. The carryover period and balance are recorded by accountants. Not all companies are eligible for net operating loss carry forward rules. When a business […]
Float is the temporary inaccuracy of a bank balance due to the period between when a check is deposited and when the issuing bank acknowledges that deposit. The net float is the sum of the disbursement float and collections float in an account. The Check Clearing for the 21st Century Act expedited the processing of […]
A net listing is an agreement where the broker takes the difference between the sales price and the net price agreed upon by the seller as commission, but it is considered illegal in many places due to the potential for exploitation. Home sellers should be careful with this agreement as it can lead to ethical […]
Net Investment in Operating Capital analyzes a company’s capital expenditure and working capital. Large investments in long-term assets can lead to financial difficulties during economic downturns, and low working capital can restrict a company’s ability to obtain loans. Net Investment in Operating Capital is a two-part analysis that looks at two different types of business […]
Net profit margin is the profit left after taxes and expenses have been paid. It is calculated by dividing net profit after tax by sales generated. A higher net profit margin is desirable, and it helps companies compare their performance to competitors. Net profit margin is a figure that identifies how much profit remains after […]
Net weight is the weight of an item minus its packaging and any additional items contributing to its total weight. It applies to all weighable objects and is important for consumers to judge the value of a product. To calculate net weight, subtract the tare weight from the total weight. This is important for products […]
A network manager configures and oversees hardware and software for local and non-local networks, including servers and routers. They supervise network teams, establish and maintain networks, and ensure network security. They also oversee ongoing operations and handle major issues. A network manager is typically responsible for configuring and overseeing the hardware and software used by […]
