Underlying profit, also known as core profit or normalized profit, is a financial metric that represents a company’s earnings before the impact of certain non-recurring or unusual items. These items…
In finance and investment, an underlying asset refers to the tangible or intangible asset that serves as the basis for a derivative contract. It is the asset whose value or…
Working capital turnover is a financial metric that measures how efficiently a company utilizes its working capital, which is the difference between its current assets and current liabilities. It is…
A white label product is a product or service that is produced by one company but is sold under the brand name of another company. This allows the second company…
A vertical merger, also known as a sequential merger, occurs when two companies operating at different levels of the same production or distribution process combine. In other words, one company…
A zero-sum game is a situation in which the total gains of all participants are equal to the total losses. In other words, for every winner, there must be a…
A value proposition is a concise statement that clearly articulates the unique value a product or service offers to its customers. It should highlight the benefits and advantages that set…
Cost reduction is a critical aspect of financial management and business operations. It involves implementing strategies and measures to minimize expenses and improve profitability. By reducing costs, businesses can enhance…
Variable cost, in business accounting, refers to an expense that fluctuates in proportion to the level of production or activity. Unlike fixed costs, which remain constant regardless of output, variable…
A value chain is a systematic framework that delineates the sequence of activities involved in producing and delivering a product or service. It encompasses all processes, from raw material acquisition…