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In management accounting, the Cash conversion cycle ( CCC) measures how long a firm will be deprived of cash if it increases its investment in inventory in order to expand customer sales. [ 1] It is thus a measure of the liquidity risk entailed by growth. [ 2] However, shortening the CCC creates its own risks: while a firm could even achieve a ...
10 year minus 2 year treasury yield. In finance, the yield curve is a graph which depicts how the yields on debt instruments – such as bonds – vary as a function of their years remaining to maturity. [ 1][ 2] Typically, the graph's horizontal or x-axis is a time line of months or years remaining to maturity, with the shortest maturity on ...
Date rolling (business day) conventions adjust non-business into business days to determine payment execution dates. Another convention states whether the calculation of the amount of interest payment or accrued interest within a coupon period must use the adjusted (aka bumped) or the unadjusted (aka unbumped) dates. An example of a complete ...
Capitalism. Business cycles are intervals of general expansion followed by recession in economic performance. The changes in economic activity that characterize business cycles have important implications for the welfare of the general population, government institutions, and private sector firms. There are numerous specific definitions of what ...
Real business-cycle theory (RBC theory) is a class of new classical macroeconomics models in which business-cycle fluctuations are accounted for by real (in contrast to nominal) shocks. [1] Unlike other leading theories of the business cycle, [ citation needed ] RBC theory sees business cycle fluctuations as the efficient response to exogenous ...
The alternative, exit multiple approach, (implicitly) assumes that the business will be sold at the end of the projection period at some multiple of its final explicitly forecast cash flow: see Valuation using multiples. This is often the approach taken for venture capital valuations, where an exit transaction is explicitly planned.
Cobweb model. The cobweb model or cobweb theory is an economic model that explains why prices may be subjected to periodic fluctuations in certain types of markets. It describes cyclical supply and demand in a market where the amount produced must be chosen before prices are observed.
Period, the unit of time into which a customer relationship is divided for analysis. A year is the most commonly used period. Customer lifetime value is a multi-period calculation, usually stretching 3–7 years into the future. In practice, analysis beyond this point is viewed as too speculative to be reliable.