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Net interest margin is similar in concept to net interest spread, but the net interest spread is the nominal average difference between the borrowing and the lending rates, without compensating for the fact that the earning assets and the borrowed funds may be different instruments and differ in volume.
Net interest income (NII) [1] is the difference between revenues generated by interest-bearing assets and the cost of servicing (interest-burdened) liabilities. For banks , the assets typically include commercial and personal loans, mortgages, construction loans and investment securities.
A professional investor contemplating a change to the capital structure of a firm (e.g., through a leveraged buyout) first evaluates a firm's fundamental earnings potential (reflected by earnings before interest, taxes, depreciation and amortization and EBIT), and then determines the optimal use of debt versus equity (equity value).
Interest earned on certain bonds and deposit accounts are taxed like ordinary income. ... the net investment income tax, which is a 3.8% tax on interest, dividends, capital gains, and more. ...
A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, [1] pronounced / ˈ iː b ɪ t d ɑː,-b ə-, ˈ ɛ-/ [2]) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset ...
Operating Income / Net Sales Operating income is the difference between operating revenues and operating expenses, but it is also sometimes used as a synonym for EBIT and operating profit. [11] This is true if the firm has no non-operating income. (Earnings before interest and taxes / Sales [12] [13]) Profit margin, net margin or net ...
NIAS – Net Income Attributable to Shareholders; NII – Net Interest Income; NIM – Net Interest Margin; NNTO – No Need To Open; NOA – Net Operating Assets; NOI – Net Operating Income; NOPAT – Net Operating Profit After Tax; NPA – Non Performing Asset; NPL – Non-performing loan; NPV – Net Present Value; NTE – Not To Exceed ...
The net interest margin assigned to the CD would be 1% multiplied by the balance in each of the 3 years. The same calculation is made on the loan side. For example ...