AFTER-TAX PROFIT MARGIN
A ratio of the financial performance which is calculated through the division of its net income after taxes by its net sales. The after-tax profit margin of a company is vital because it shows the investors how much is the percentage of money the company actually earns when converted to dollar of sales. The interpretation of this ratio is similar to profit margin; the after-tax profit margin is just more stringent because the taxes are taken into account.
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Affirmative Covenant
A kind of contract or promise that requires a party to conduct some action. For example, a bond covenant which provides that the issuer must delive ...
Pure Risk
A risk where loss is the only potential outcome; there is no positive result. A pure risk is related to events that are out of control of the risk- ...
Efficiency
Performance level describing a process which uses the lowest amount of inputs to come up with the greatest amount of inputs. It is relative to usin ...
Tax Free
Goods and/or financial products that are not taxable. Having the tax free status allows an entity to save money and encourages additional spending ...
Reprice
A situation that is most often allowed for company executives or high-level employees. It permits them to trade in their options that out of the mo ...
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