Stakeholders Definition

Below please find a definition of “Stakeholders”

Financial Analysis Training & Glossary TermsStakeholders: Customers or organizations that have an interest in a company and can be affected by the company’s actions are known as stakeholders. Creditors, suppliers and unions are good examples of stakeholders.

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Sovereign Risk Definition

Below please find a definition of “Sovereign Risk”

Financial Analysis Training & Glossary TermsSovereign Risk: The probable risk associated with the fact that a country can go broke and thereby fail to meet its financial obligations is termed as sovereign risk. The government of that country consequently might be forced to change its foreign exchange regulations and this is one of the risks the investors worry about facing under the circumstances.

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Sinking Fund Definition

Below please find a definition of “Sinking Fund”

Financial Analysis Training & Glossary TermsSinking Fund: A fund that is meant for putting away money over time periodically with the intent of repaying a debt is termed as a sinking fund. This money is kept separate from other assets of the company.

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Short-Term Liabilities Definition

Below please find a definition of “Short-Term Liabilities”

Financial Analysis Training & Glossary TermsShort-Term Liabilities: Debts that will have to be paid off within a period of one year are termed as short-term liabilities. Short-term liabilities are very similar to short-term debts since they are both indicators of a company’s financial stability and health.

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Short-Term Debt Definition

Below please find a definition of “Short-Term Debt”

Financial Analysis Training & Glossary TermsShort-Term Debt: As the name suggests, a debt that will mature in a year or less is termed as short-term debt. This type of debt is a good indicator of a company’s financial health. If a company is able to pay off its short-term obligations, that mean the company is in solid grounds.

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Securities Market Definition

Below please find a definition of “Securities Market”

Financial Analysis Training & Glossary TermsSecurities Market: A very common term for securities market is a stock exchange. This stock exchange is the place where securities are traded by professional stockbrokers. In other words, the economic market where stocks are traded is termed as the securities market.

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Salvage Value Definition

Below please find a definition of “Salvage Value”

Financial Analysis Training & Glossary TermsSalvage Value: The market value of an asset at the end of its economic life is termed as the salvage value of the asset. This salvage value is the estimated value of the property. For example, when we donate a car, we get a tax deduction for it. The value of the deduction depends on the salvage value or the current value of the car.

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Risk Analysis Definition

Below please find a definition of “Risk Analysis”

Financial Analysis Training & Glossary TermsRisk Analysis: Any business has the potential risk of failing due to unidentified factors. The process of analyzing the probable factors that can jeopardize the business is termed as risk analysis. Risk analysis not only defines the risks involved but can also suggest benefits for the success of the organization.

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Return on Equity Definition

Below please find a definition of “Return on Equity”

Financial Analysis Training & Glossary TermsReturn on Equity: Return on equity is used to determine how efficiently a company used its reinvested earnings to generate additional income. It is typical of investors to be on the lookout for companies that have high return on equity.

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