An indicator of a company's profitability, calculated as revenue minus expenses, excluding tax and interest. EBIT is also referred to as "operating earnings", "operating profit" and "operating income", as you can re-arrange the formula to be calculated as follows: EBIT = Revenue - Operating Expenses Also known as Profit Before Interest & Taxes (PBIT), and equals Net Income with interest and taxes added back to it. Taobiz explains Earnings Before Interest & Tax - EBIT In other words, EBIT is all profits before taking into account interest payments and income taxes. An important factor contributing to the widespread use of EBIT is the way in which it nulls the effects of the different capital structures and tax rates used by different companies. By excluding both taxes and interest expenses, the figure hones in on the company's ability to profit and thus makes for easier cross-company comparisons. EBIT was the precursor to the EBITDA calculation, which takes the process further by removing two non-cash items from the equation (depreciation and amortization).
A description of a derivative relating its strike price to the price of its underlying asset. Moneyness describes the intrinsic value of an option in its current state. Moneyness tells option holders whether exercising will lead to a profit. There are many forms of moneyness, including in,out or at the money. Moneyness looks at the value of an option if you were to exercise it right away. A loss would signify the option is out of the money, while a gain would mean it's in the money. At the money means that you will break even upon exercising the option.
A document published by the Internal Revenue Service (IRS) that provides information on deducting home mortgage interest. Mortgage interest deductions are considered itemized deductions. IRS Publication 936 explains what can be deducted as mortgage interest, how to claim the deduction and limitations on the total amount that can be deducted. Types of mortgage interest that can be considered for the deduction include second mortgages, home equity loans and lines of credit. In order to qualify for the deduction, the taxpayer must fill out Schedule A of Form 1040 and be legally liable for the mortgage. If the taxpayer is not legally liable for paying the mortgage, the mortgage interest cannot be deducted. The debt must also be secured debt.
An options strategy that consists of buying and selling out-of-the-money calls and puts and is designed to lock in investor returns above or below a designated trading price. The modidor is a modified version of the iron condor, but differs in that there is just one breakeven price. It resembles a broken-winged butterfly when charted. Whereas an iron condor is best used in a volatile environment in the hope that a security will trade within a discernible range, the modidor allows for profits regardless of an issue’s volatility. With a modidor, the underlying stock must simply move above (in a bullish scenario) or below (in a bearish scenario) a specific breakeven price.
An analyst's estimate for a company's future quarterly or annual earnings. Taobiz explains Earnings Estimate Analysts use forecasting models, management guidance, and fundamental information on the company in order to derive an estimate.
A document published by the Internal Revenue Service (IRS) that helps employers determine when they are to deposit Social Security, Medicare and income taxes for their employees. Employers must use one of the two authorized employment tax deposit schedules: semi-weekly or monthly. The deposit schedule used is based on the amount of tax liability reported during a lookback period, which is the calendar year preceding the previous year (e.g. the lookback period for 2011 begins in 2009). Employers use the monthly deposit schedule if the total tax liability in the lookback year was $50,000 or less, and use the semi-monthly schedule if the total tax liability was over $50,000. For a new employer, the income for the lookback year is considered $0. Employers use Forms 941, 943, 944 or 945 when depositing funds. The deposit instructions in IRS Publication 931 do not cover federal unemployment tax.
A conference call between the management of a public company, analysts, investors and the media to discuss the financial results during a given reporting period such as a quarter or a fiscal year. An earnings call is usually preceded by an earnings report, which contains summary information on financial performance for the period. Taobiz explains Earnings Call The term "earnings call" is a combination of a company's report of "earnings" - i.e. its net income or earnings per share - and the conference call to discuss results. The term "earnings call" is generally taken to mean a periodic call wherein management discusses financial performance for a period, regardless of whether the company actually has earnings or not. The vast majority of listed companies host earnings calls to discuss their financial results, although small companies with minimal investor interest may be the exception to the rule. Many companies provide a phone recording or presentation of the earnings call on their corporate websites for a number of weeks after the actual call, making it possible for investors who could not log-in to the call to access this information.
An acronym representing the months March, June, September, and December. MJSD is one of the option cycles.