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. |
Similar financial terms
Annual fund operating expensesFor 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.
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 exposure
Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.
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.
