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Arbitrage profit is profit derived from a riskless (or near riskless) transaction.
For example, say gold is selling on the London exchange for $800 per oz and gold is selling on the New York exchange for $804 per oz. Buying one oz of London gold and selling one oz of New York gold (trades in close proximity) provides an arbitrage profit of $4 (less transaction fees).
The purchase and sale will likely have the effect of increasing the price of London gold and decreasing the price of New York gold. So for every subsequent trade, the arbitrage profit will be lower and lower until the prices are at parity.
What else can I help you with?
Short-term creditors are usually most interested in assessing?
profitability
How do you calculate long term solvency and profitability ratio?
Long-term SolvencyDebt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues Long-term Solvency Debt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues
What is a profitability index?
Profitability index is the "rolling forward" of indices of profitability. For example, a company has a turnover of
Is profitability of the firm important in the short term debt paying ability of a firm?
Yes, profitability is important for a firm's short-term debt paying ability, as it influences cash flow and the capacity to meet immediate financial obligations. A profitable firm typically generates sufficient income, which can be used to cover short-term liabilities. However, liquidity also plays a crucial role; a firm may be profitable yet still face challenges if it lacks sufficient liquid assets. Therefore, while profitability is significant, it should be considered alongside liquidity to assess short-term debt repayment capability effectively.
What does the term company mean?
what does the term company mean in insurance
What are some objectives of a hotel?
Long term profitability.
Short-term creditors are usually most interested in assessing?
profitability
Why non profitability sampling should be prefered as compared to profitability sampling?
The answer depends on what "profitability sampling" means. Despite an MSc degree in statistics and 30 years' experience as a statistician, I have not come across the term!
A short-term creditor would be most interested in?
profitability
How do you calculate long term solvency and profitability ratio?
Long-term SolvencyDebt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues Long-term Solvency Debt to Capitalization = Long-term Debt X 100 Long-term Debt + Unrestricted Net Assets Profitability Operating Margin = Operating Revenue - Operating Expenses X 100 Total Operating Revenues
What is trend analysis?
Trend signifies future possibilities . The trend analysis acquaint us with the profitability and the short term as well as long term liquidity of business
What does the term COGS mean on the trading market of gold?
In the trading market of gold and other products "COGS" is the cost of goods sold, one of the many factors along with labor and transport used to figure the profitability of the commodity traded.
What is feasibility analysis?
The analysis of how feasable something is. i.e. can you afford it. whilst looking at other factors such as long term profitability.
What is profitability and sustainability?
Profitability refers to a company's ability to generate revenue and maximize its profits relative to its expenses. Sustainability, on the other hand, refers to the ability of a company to operate in a way that meets its current needs without compromising the ability of future generations to meet their own needs, focusing on social, environmental, and economic dimensions. Profitability is often seen as a short-term measure, while sustainability is a long-term approach to business success.
What is a profitability index?
Profitability index is the "rolling forward" of indices of profitability. For example, a company has a turnover of
Is Working capital is a measure of a company's profitability?
No, working capital is not a direct measure of a company's profitability. Instead, it represents the difference between current assets and current liabilities, indicating a company's short-term financial health and liquidity. While sufficient working capital can support operations and indirectly contribute to profitability, it does not directly assess a company's overall profitability, which is typically measured by metrics like net income or return on equity.
How is the profitability of a scheme determined?
how is the profitability of scheme determined
