A crucial financial ratio that measures a company's ability to meet its debt obligations, calculated by dividing earnings before interest and taxes (EBIT) by the interest expenses for the same period.
A timetable is a tabular statement of the times at which certain events occur, often used for schedules of public transportation such as trains and airlines, as well as for predicting natural events like high and low tides.
Timing differences arise when there are differences between the recognition of income and expenses for tax purposes and their recognition in financial statements. These discrepancies are temporary and typically reverse over subsequent periods.
A 'tip' encompasses two primary interpretations: a gratuity given for exceptional service and a piece of valuable information in investment contexts.
In legal terms, 'title' refers to the composite of facts that will permit an individual or entity to recover or retain possession of a thing, primarily related to property law.
A title abstract, often referred to as an abstract of title, is a brief history of the ownership of a particular piece of real estate. It includes a summary of legal actions, claims, and other notations that might affect the property's ownership.
The title bar is the bar at the top of a computer screen window that displays information about the item, usually the file or folder name.
A title company is a firm that examines and validates ownership titles of real estate properties, ensures they are marketable, and may also issue title insurance to protect property buyers and lenders against issues or defects in the title.
A title defect is an unresolved claim or issue against the ownership of property that prevents the presentation of a marketable title. Such claims may arise from various issues including failure of the owner's spouse or former part owner to sign a deed, current liens against the property, or interruptions in the title records of a property.
Title guaranty, often associated with title insurance, is a legal arrangement that ensures real estate titles are free from defects and claims. This protects property buyers and lenders from potential disputes over property ownership.
A Title Guaranty Company is an entity that provides title insurance, ensuring the validity and legality of a property title, thus protecting property buyers and lenders against potential title disputes and claims.
Title insurance is an insurance policy that protects the holder from loss sustained through defects in the title. Mortgage lenders virtually always require borrowers to buy a mortgagee's policy of title insurance. The premiums paid on a business title insurance policy are normally tax deductible.
A title report provides a detailed depiction of the current state of a property title, including easements, covenants, liens, and any other defects. It does not, however, describe the chain of title.
A title retention clause, commonly known as a Romalpa clause, is a contractual clause ensuring that the seller retains ownership of the goods supplied until the buyer has paid the full purchase price.
A title search is an investigation of documents in the public record office to determine the state of a title, including all liens, encumbrances, mortgages, future interests, and so on, affecting the property; it is the means by which a chain of title is ascertained.
Title theory is a modern version of the common law mortgage under which the creditor has the legal right to possession although in fact the debtor remains in possession of the property.
A Title-Theory State is one in which the law splits the title to mortgaged property into legal title held by the lender and equitable title held by the borrower. The borrower gains full title to the property upon retiring the mortgage debt. In a title-theory state, mortgage lenders may possess the property upon default of the borrower.
Tobin's Q is a ratio developed by Nobel laureate James Tobin to understand the relationship between the market value and replacement value of a firm's assets.
A toggle (in computing) is a switch that alternates between two states, typically denoted as 'On' and 'Off'. It is used to control various software options such as formatting attributes, display features, and window components.
Token money refers to currency in the form of tokens like coins or paper bills that have little intrinsic value but are used as legal tender based on a society's regulatory framework.
Tokenism refers to the practice of making a superficial or symbolic effort to appear inclusive, especially by recruiting a small number of people from underrepresented or marginalized groups to comply with affirmative action or diversity policies.
The Tokyo Stock Exchange (TSE) is the largest stock exchange in Japan and among the largest, most important, and most active stock markets globally. Transitioning from a continuous auction market to a fully computerized system, the TSE operates without a physical trading floor.
The principal stock exchange of Japan, the Tokyo Stock Exchange (TSE), is a major global exchange and currently the third-largest in the world by market capitalization. The TSE is well-known for its efficiency and modern electronic trading platforms.
The term 'Toll' carries multiple meanings, generally associated with either a legal suspension or fees charged for the use of property or infrastructure.
An advertisement in the financial press providing brief details of the amount and maturity of a recently completed bank facility. The names of the lead managers, co-managers, and managers are prominently displayed. It is customary for the borrower to pay for this advertisement, although they receive little direct benefit.
A tombstone ad is an advertisement placed in newspapers by investment bankers during a public offering of securities. It provides basic details about the issue and lists the underwriting group members involved in the offering in alphabetical groupings according to the size of their participation.
Understanding 'TON': From Finance Jargon to Measures of Weight. Learn the different contexts in which 'TON' is used, including its meaning in bond trading and its various weight measurements.
Toner is the black or colored powder used by photocopiers and laser printers to create images on paper. It consists of tiny particles of easily melted plastic.
Tonnage tax is a method of calculating the corporation tax liability of a ship-owning company, allowing taxes to be based on the net registered tonnage of its shipping fleet instead of the actual profit or loss made.
The term 'Too Big to Fail' (TBTF) refers to organizations, particularly financial institutions, whose failure would pose a systemic risk to the economy. This concept gained prominence during the 2008-2009 financial crisis.
A toolbar is an area of a computer screen, often across the top, containing buttons and menus. In some applications, a toolbar can be docked at any edge of the screen or torn off to become a floating palette. Toolbars can also be turned off to cause them not to appear. Also called a button bar.
The top rate of income tax is the highest percentage of income that individuals in the highest income bracket are required to pay. This rate often affects high-income earners more significantly.
An investment strategy or approach where the investor focuses on macroeconomic factors before identifying specific industries and individual companies that are likely to benefit from those broader trends.
Topography refers to the state of the surface of the land, including its features, shape, and the arrangement of its natural and artificial physical attributes.
Topping out is a term used in finance to denote the point at which a market or security is at the end of a period of rising prices and is expected to either remain stable or decline. This term is often associated with market peaks and potential future downturns.
The primary stock exchange in Canada, facilitating the trading of Canadian shares. Transitioned to fully electronic trading in April 1997.
The Toronto Stock Exchange (TSE) is the largest stock exchange in Canada, listing around 1,200 company stocks and offering 33 options. The exchange employs both open outcry and Computer Assisted Trading System (CATS) for its operations.
A Torrens Registration System is an organized method of land registration where a government registrar certifies the title's condition, making it easier to ascertain ownership and any encumbrances without extensive title searches.
A tort is a wrongful act or an infringement upon someone's rights that is neither a crime nor a breach of contract, rendering the perpetrator liable to the victim for damages.
Total Absorption Costing allocates all manufacturing costs to products, ensuring all costs related to production are accounted for in the valuation of inventory and cost of goods sold.
Total capitalization refers to the comprehensive capital structure of a company, including long-term debt and all forms of equity. It reflects the total amount of capital a company has raised through debt and equity instruments to fund its operations and growth.
Total comprehensive income is the sum of net profit shown in the profit and loss account (income statement) along with any other comprehensive income. Under the Financial Reporting Standard Applicable in the UK and Republic of Ireland (Section 5), it should be presented as part of a statement of comprehensive income (statement of total recognized gains and losses).
Total cost represents the comprehensive expenses incurred by a firm to produce a specific level of output, encompassing both fixed and variable costs.
Total cost of production is a term used to refer to the overall expense incurred by a company to manufacture a product or provide a service. It includes both fixed and variable costs.
The sum of all expenditure incurred during an accounting period within an organization, on a product, or on a process. Total costs are often analyzed into fixed costs and variable costs.
Total disability refers to an injury or illness that is so serious it prevents a worker from performing any functions for which he or she is educated and trained. Workers with total disability may qualify for Disability Income Insurance, either through a private employer's plan or through the Social Security Disability Income Insurance program.
Total income refers to the income of a taxpayer from all sources before any income-tax allowances are applied. This is often referred to as statutory total income and includes income calculated on various bases depending on the source of income. This concept is pivotal for calculating a person's income tax for a given year.
Total loss refers to damage that is so extensive that repair is not economical. Typically seen in contexts like insurance claims, accidents, and natural disasters, total loss indicates that the cost to reconstruct, repair, or salvage an item exceeds its replacement value.
Total paid refers to the paid circulation of an issue of a periodical, encompassing paid subscription copies, newsstand and other single-copy sales, graced copies, and other copies considered paid according to audit regulations; also known as total net paid.
A management philosophy developed by W. Edwards Deming, focusing on continuous quality improvement through organization-wide cooperation and continuous employee training.
Total Quality Management (TQM) is an organizational approach that seeks to improve quality and performance to meet or exceed customer expectations. Through continuous improvement, employee empowerment, and systematic process analysis, TQM aims to enhance the overall operational efficiency and customer satisfaction.
Total Quality Management (TQM) is a comprehensive organizational approach that seeks to enhance quality and productivity through a participative culture, continuous improvement processes, and focused customer satisfaction.
Total Revenue is the overall income generated by a company from its business activities, typically from the sale of goods and services, before any expenses are subtracted.
The Total Standard Cost is the sum of the Total Standard Production Cost and the Standard Cost Allowance for non-production overhead, which provides a comprehensive measure of the standard expenses incurred during the production process.
A comprehensive look at the Total Standard Production Cost, including standard direct materials cost, standard direct labor cost, standard fixed overhead cost, and standard variable overhead cost.
Total Standard Profit represents the difference between the sales at standard selling prices and the standard overhead cost of these sales. It is used to evaluate the performance of a business against its predefined cost and sales benchmarks.
A Totten Trust, also known as a payable-on-death (POD) account, is a type of trust where the assets are designated for a beneficiary, but the grantor retains control and the right to reclaim the assets. When the grantor dies, the assets pass to the beneficiary, but not until they have been included as part of the grantor's taxable estate.
Touch typing is the method of typing without looking at the keyboard, allowing typists to gaze at the text to be typed. Achieved through extensive practice, touch typing relies on muscle memory and the use of all ten fingers.
A touchpad is a built-in pointing device for laptops and notebooks that serves as a substitute for an external mouse, enabling users to navigate and interact with their devices using finger gestures.
A 'Tour of Duty' can refer to either the duration of a specific military assignment or the scheduled work hours of an employee in a contiguous block of time.
Aggressive promoting of a particular item by a corporate spokesperson, public relations firm, broker, or analyst. Touting a stock is unethical if it misleads investors.
A town house is a dwelling unit, generally having two or more floors and attached to other similar units via party walls. Town houses are often used in planned unit developments and condominium developments, which provide for clustered or attached housing and common open space.
Toxic assets are financial instruments for which there is no longer a functioning market, making their value highly uncertain and leading to difficulties in selling them at reasonable prices. The term gained prominence during the financial crisis following the 2008 subprime lending debacle.
A detailed explanation of attempts to locate delayed or lost shipments, including the processes involved and their use in context with registered, certified, or insured mail.
Tracing mail refers to the process of tracking the journey and delivery status of a sent email or postal mail. This is a critical feature for ensuring communication reliability and accountability.
A track record is a businessman’s reputation for producing results on a timely and economical basis. A strong track record can significantly influence the ability to secure financing and attract investors for new projects, ensuring successful and timely project completion.
Trackage refers to the charge imposed by a railroad company for the use of its rail lines by another railroad company. This arrangement allows one railroad to operate its trains over another railroad's tracks.
A trackball is a computer pointing device that allows users to control the cursor movement on a screen by rotating a ball embedded within a fixed housing, providing an alternative to the traditional mouse.
Tracking refers to the process of monitoring and recording the progress or performance of various activities, objects, or data points over time. This can be applied in numerous fields such as logistics, financial performance, project management, marketing campaigns, and online user behavior.
A tract, or parcel, of land is a defined area of real estate, typically held for the purpose of subdividing into smaller plots for development or sale.
A tract house is a type of dwelling that features similar design and floor plan characteristics as other houses within a residential development.
A time draft that is guaranteed by a non-bank firm and sold in the secondary money market. It is similar to a banker's acceptance but more risky.
Trade advertising encompasses efforts aimed at wholesalers or retailers to encourage them to purchase products for resale to their customers.
A trade agreement is typically a legally binding pact between or among governments designed to foster, regulate, and sometimes restrict various aspects of commerce between the member countries.
A trade allowance is a producer discount given to distributors or retailers as a promotional effort to encourage sales. Retailers pass along the discount to the consumer, which promotes higher sales volumes. Though it can reduce producer profits, this practice is widely followed in many industries.
A trade area, also known as a market area, is the geographic region from which a business draws its customers. Understanding trade areas helps businesses determine the potential demand for their products or services and informs decisions on location and marketing strategies.
The trade balance, also known as the balance of trade, measures the difference in value between a country's imports and exports over a specific period. It is a critical indicator of economic health and international competitiveness.
Trade barriers are governmental or operational activities or restrictions that make the importation of certain goods into a country difficult or impossible. Examples include tariffs, regulations, and inspections.
A trade book is a publication intended for general readership and usually sold through bookstores and other retail outlets.
Trade credit refers to open-account arrangements with suppliers of goods and services, involving a firm's record of payment with the suppliers. It constitutes a company's accounts payable and is an essential external source of working capital despite potentially high costs.
Trade creditors refer to suppliers or vendors to whom a business owes money for goods or services delivered but not yet paid for. These obligations are part of trade payables on a company's balance sheet.
The day on which a security or commodity future trade actually takes place. The settlement date usually follows the trade date by three business days but can vary depending on the transaction and method of delivery used.
Trade debtors, also known as trade receivables, represent amounts owed to a business by its customers for goods or services delivered or used but not yet paid for. It is a key component in the working capital of a business.
A trade deficit occurs when a country's imports exceed its exports, resulting in a negative balance of trade, while a trade surplus occurs when exports exceed imports, leading to a positive balance of trade.
A trade discount is a reduction in the list price of goods offered by sellers to buyers, often to encourage bulk purchases or maintain customer loyalty.
Property placed on or annexed to rented real estate by a tenant for the purpose of conducting a trade or business. The law makes provisions for, and leases often expressly permit (or require), the tenant's removal of such fixtures at the end of their tenancy.
Trade, particularly in the context of income tax, refers to activities or transactions that could be subject to income tax charges as opposed to capital gains tax. Determining whether an activity is classified as a 'trade' involves evaluating various factors or 'badges of trade'.
Trade loading, also known as channel stuffing, is a practice where manufacturers or suppliers induce more products into the distribution channel than the end customer demand, often through aggressive sales tactics, to inflate short-term sales and revenue figures.
A trade magazine, also known as a business publication, features editorial content that is designed to appeal to readers within a specific industry, occupation, or profession.
A trade name is a name under which a business operates and presents itself to the public. Unlike trademarks, trade names may not necessarily be registered or trademarked.
Trade payables represent the amounts a business owes to its suppliers for goods and services received but not yet paid for. They are recorded as current liabilities on the balance sheet.
Trade promotion refers to marketing efforts directed at retailers, distributors, or wholesalers to boost product sales and increase distribution. These promotions often involve special pricing, display allowances, or additional marketing support.
A trade rate is a special price offered to retailers by wholesalers, manufacturers, or distributors, or by a seller to individuals or organizations in a related industry.
Trade receivables, also known as accounts receivable or trade debtors, represent amounts owed to a business by its customers for invoiced amounts. These are classified as current assets on the balance sheet but are separate from prepayments and other non-trade debtors. A provision for bad debts is often shown against the trade receivables balance as per the prudence concept. This provision is based on the company's historical data of bad debts and its current expectations.
The Trade Receivables Collection Period refers to the time given to customers to pay their accounts, which is typically 30 days. However, late payments can occur and may affect cash flow significantly.
A trade reference is a critical component for assessing the creditworthiness of a trader, typically provided by another member within the same trade, often required by suppliers before extending credit terms.
A trade secret is any formula, pattern, machine, or process of manufacturing used in a business that may provide a competitive advantage; it includes plans, processes, tools, mechanisms, or compounds known only to its owner and necessary employees.
A trade show is an event held to exhibit goods and services for the benefit of individuals or companies involved in a particular trade. It typically takes place in an exhibition hall where exhibitors rent space to display their offerings.
A trade union, also known as a labor union, is an organization formed by workers to protect their rights, improve working conditions, secure better wages, and advocate for their interests through collective bargaining and various forms of negotiation with employers.
A Trade War is a conflict involving two or more countries aimed at improving their own import/export positions by imposing tariffs or other trade barriers against each other.
