Gini Index Definition

What is the Gini index? The Gini index, or Gini coefficient, measures Income distribution within a population. Developed by Italian statistician Corrado Gini in 1912, it is often used as a gauge of Economic inequalitymeasuring the distribution of income or, more rarely, the distribution of wealth within a population. The coefficient ranges from 0 (or 0%) to 1 (or 100%), …

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What Profit Margin Is Average for a Company in the Electronics Sector?

The electronics sector can provide an investment portfolio with substantial growth opportunities. This diverse sector includes telecommunications, networking equipment, electronic components, consumer electronics, semiconductors and other electronic devices. In January 2021, the average profit margin for companies in the electronics sector was 3.49%. The profit margin is net revenue divided by total income. Analysts often use this measure to compare …

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Do-It-Yourself Projects to Boost Home Value

Together home renovations can add value to your home, but there are ways to improve your home without going into debt or destroying your savings. Painting, grouting tiles, and pressure washing your home’s exterior won’t cost much, but these do-it-yourself upgrades can add real value to your home. With a certain sweat fairness, a do-it-yourself attitude and a few dollars, …

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How does contractionary fiscal policy lead to the opposite of the crowding-out effect?

According to the general equilibrium models of contemporary macroeconomics, tax policy could crowd out private activity in the credit market. This argument also goes the other way: Contraction Policy could allow for increased private activity in the credit market. This phenomenon is sometimes referred to in the literature as “cluttering”. Understanding restrictive fiscal policy Fiscal policy refers to the spending …

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Fast-Casual vs. Fast-Food: What’s the Difference?

Fast-Casual vs. Fast-Food: An Overview The two pillars of the American restaurant industry have always been fast food and fine dining, but now the fast-growing fast food industry has gotten caught between them. Many companies combined high-quality ingredients with the convenience of fast food to start the trend, including restaurant brands Chipotle (GCM), Shake Shack (SHAKE) and Panera, among others. …

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What Economic Indicators Do Oil and Gas Investors Need to Watch?

Oil and gas investors are looking for economic indicators to help them understand the future movements of the oil industry. Like any commodity market, oil and gas companies and oil futures are sensitive to inventory levels, production, global demand, interest rate policies and overall economic numbers such as gross domestic product. Key points to remember As produced commodities, oil and …

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Accounts Receivable (AR) Definition

What is Accounts Receivable (AR)? Accounts Receivable (AR) is the balance of money owed to a business for goods or services delivered or used but not yet paid for by customers. Trade receivables are recorded on the balance sheet as current assets. AR is any amount of money owed by customers for purchases made on credit. Key points to remember …

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Inflationary Psychology Definition

What is Inflationary Psychology? Inflationary psychology is a mindset that causes consumers to spend faster than they otherwise would in the belief that prices are rising. Most consumers will immediately spend their money on a product if they think its price will increase shortly. The rationale for this decision is that consumers believe they can save money by purchasing the …

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Price-to-Book (P/B) Ratio

What is the price-to-book (P/B) ratio? Companies use the price-to-book ratio (P/B ratio) to compare a company’s market capitalization to its book value. It is calculated by dividing the company’s stock price by its book value per share (BVPS). An advantage book value is equal to its book value on the balance sheet, and companies calculate it by offsetting the …

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