Operating exposure

Similar financial terms

Annual fund operating expenses
For investment companies, the management fee and "other expenses," including the expenses for maintaining shareholder records, providing shareholders with financial statements, and providing custodial and accounting services. For 12b-1 funds, selling and marketing costs are included.

Short-run operating activities
Events and decisions concerning the short-term finance of a firm, such as how much inventory to order and whether to offer cash terms or credit terms to customers.

Operating risk
The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk.

Operating leverage
Fixed operating costs, so-called because they accentuate variations in profits.

Operating lease
Short-term, cancelable lease. A type of lease in which the period of contract is less than the life of the equipment and the lessor pays all maintenance and servicing costs.

Operating profit margin
The ratio of operating margin to net sales.

Operating cycle
The average time intervening between the acquisition of materials or services and the final cash realization from those acquisitions.

Operating cash flow
Earnings before depreciation minus taxes. It measures the cash generated from operations, not counting capital spending or working capital requirements.

Net operating margin
The ratio of net operating income to net sales.

Net operating losses
Losses that a firm can take advantage of to reduce taxes.

Exposure
The maximum loss suffered from a default by a counterparty.

Accounting exposure
The change in the value of a firm's foreign currency denominated accounts due to a change in exchange rates.

Translation exposure
Risk of adverse effects on a firm's financial statements that may arise from changes in exchange rates.

Transaction exposure
Risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate.