Weighted average remaining term (WART) and weighted average loan age (WALA) are both used to estimate the credit risk, interest rate sensitivity, and potential profitability of fixed-income portfolios. WAM tends to be used as a measure for the maturity of pools of mortgage-backed securities (MB...
Weighted average shares outstanding refers to the number of shares of a company calculated after adjusting for changes in the share capital over a reporting period. The number of shares of a company outstanding is not constant and may change at various times throughout the year, due to a share...
this sounds simple, but it can be a lot more complex when large companies deal with thousands or even tens of thousands of inventory sku numbers. There are three different types of inventory costing methods: FIFO (First-in, First-out), LIFO (Last-in, Last-out), and Weighted Average. ...
Average cost method is one of three inventoryvaluationmethods, with the other two common methods being first in, first out (FIFO) and last in, first out (LIFO). Average cost method uses the weighted average of all inventory purchased in a period to assign value to the cost of goods sold...
The weighted average cost of capital (WACC) is a financial ratio that calculates a company’s cost of financing and acquiring assets by comparing the debt and equity structure of the business.
Contribution margin ratio equals contribution margin per unit as a percentage of price or total contribution margin TCM expressed as a percentage of sales S. Contribution Margin Ratio Contribution Margin per UnitPriceTCMSWeighted average contribution margin per unit equals the sum of contribution margins...
The WACC reflects the perceived riskiness of the cash flows and is calculated as a weighted average of the cost of debt and cost of equity, based on the company’s capital structure. The cost of debt is based on the yield to maturity (YTM) of a company’s publicly-traded bonds or the...
After-tax cost of debt is the net cost of debt determined by adjusting the gross cost of debt for its tax benefits. It equals pre-tax cost of debt multiplied by (1 – tax rate). It is the cost of debt that is included in calculation of weighted average cost of capital (WACC). ...
The average voting procedure reflects the weighted average of expressed opinions in [0,1]. Participants typically behave strategically. We evaluate the discrepancy between the average taste and the average vote. If the population is sufficiently large, it is possible to construct approximations of ...
Gross profit may produce misleading figures of profit. Because here, the production cost is only considered, which further depends on a stock valuation methodology. For example, the cost of materials may vary because of the inventory valuation method such as LIFO, FIFO, and weighted average method...