What is a Non-Recurring Item? In accounting, a non-recurring item is an infrequent or abnormal gain or loss that is reported in the company’s financial statements. Unlike other items reported by a company, non-recurring items do not arise from the normal company’s operations. The items are generally caused by unusual and infrequent events that are…
What is the Book Value Per Share (BVPS)? The book value per share (BVPS) is calculated by taking the ratio of equity available to common stockholders against the number of shares outstanding. When compared to the current market value per share, the book value per share can provide information on how a company’s stock is…
What is Cap Rate (REIT)? Cap rate is a financial metric that is used by real estate investors to analyze real estate investments, and determine their potential rate of return based on annual returns. It is calculated based on the net income that a real estate investment is expected to generate over a one-year time…
What are Excel Dashboards? Excel dashboards make it easy to quickly review data reports rather than wade through large volumes of data. Overviews help make quick, urgent decisions by allowing one to skim through a lot of information at once in a short time. The dashboards make it easy to track Key Performance Indicators (KPIs), helping organizations…
What is FMAN (February, May, August, and November)? FMAN is one of the three options cycles, and it comprises multiple options contracts that share the same terms and expire in the months of February, May, August, and November. The Chicago Board Options Exchange requires that commodities, indexes, and common stocks should be assigned to a…
What is a Benchmark? A benchmark is a measure used by individual and institutional investors to analyze the risk and return of a portfolio to understand how it is performing vis-à-vis other market segments. Some of the established benchmarks for standard analysis include the S&P 500, Barclays US Aggregate Bond Index, Russell 2000, and the…
What is the Active Return of a Portfolio? Active return refers to the gains or losses from a portfolio that are directly related to the decisions made by the portfolio manager. The active return can be positive or negative, depending on whether it overperforms or underperforms the market. For example, if the benchmark is 5%…
What is Farmland? In arable regions worldwide, farms are constructed in a variety of ways. Farmland is a real estate asset class that combines cropland (to grow crops), pastureland (to house and raise livestock), and timberland (for logging). Farmland is a productive asset critical to many crop and livestock operations. It may appear on the…
What is the Specific Identification Method? The specific identification method relates to inventory valuation, specifically keeping track of each specific item in inventory and assigning cost individually instead of grouping items together – the manner of calculation that is typically done in the first in, first out (FIFO) and last in, first out (LIFO) methods….
What is Impairment? The impairment of a fixed asset can be described as an abrupt decrease in fair value due to physical damage, changes in existing laws creating a permanent decrease, increased competition, poor management, obsolescence of technology, etc. In the case of a fixed-asset impairment, the company needs to decrease its book value in…
