Facebook, Inc. (FB) stock set its all-time intraday high of $224.20 on Jan. 29 and then traded as low as $137.10 on March 18. This puts the stock deep into bear market territory at 33.2% below the high. In the process, Facebook shares cascaded below their annual and quarterly value levels at $185.93 and $178.64,…
What Is Accrued Liability? The term “accrued liability” refers to an expense incurred but not yet paid for by a business. These are costs for goods and services already delivered to a company for which it must pay in the future. A company can accrue liabilities for any number of obligations and are recorded on…
Given blockchain’s disruption of financial services and subsequent widespread application across industries, it’s hard to find a segment that has not been influenced by the technology. Cryptocurrencies have made a strong impact on payments, remittances, and foreign exchange. Initial coin offerings (ICOs) have challenged stock investing, startup loans, and venture capital. Even the food supply…
What Is the Average Age of Inventory? The average age of inventory is the average number of days it takes for a firm to sell off inventory. It is a metric that analysts use to determine the efficiency of sales. The average age of inventory is also referred to as days’ sales in inventory (DSI)….
What Is the Treynor Ratio? The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio. Excess return in this sense refers to the return earned above the return that could have been earned in…
What Is a Matched Book? A matched book is an approach that banks and other institutions may take to ensure that the maturities of its assets and liabilities are equally distributed. A matched book is also known as “asset/liability management” or “cash matching.” There is a functional benefit to adopting the matched book method; it…
What Is a Capitalized Lease Method? The capitalized lease method is an accounting approach that posts a company’s lease obligation as an asset on the balance sheet. If the lease agreement meets at least one of the four criteria provided by the Financial Accounting Standards Board (FASB), the lease is capitalized, which means that the…
The revolutionary technology blockchain began with cryptocurrencies like bitcoin but has since expanded beyond the worlds of finance and banking. With a slew of new businesses and applications built on the technology, these industries now represent a mass decentralization that will soon impact the whole world. Blockchain helps distribute the cost of running a platform…
What Is an Asset’s Useful Life? A tangible asset is any asset in physical form. Tangible assets include fixed assets such as machinery, land, and buildings. Tangible assets can also be current assetssuch as inventory. Any tangible asset has a useful life of more than one year. Factors involved in determining the useful life of…