Zora Covered interest rate parity (CIRP) is an important concept in international finance that states that the forward exchange rate between two currencies equals the spot exchange rate adjusted for the interest rate differential between the two countries. In other words, CIRP ensures that there is no arbitrage opportunity between the two currencies. The covered interest … Read more
A mutual fund liquidity ratio is a measure of how well a mutual fund can meet investor redemptions without having to sell holdings at a discount or disrupting the overall portfolio. The higher the ratio, the more liquid the fund. To calculate a mutual fund’s liquidity ratio, divide the value of its holdings that can … Read more
EBIAT is a metric used to evaluate a company’s financial performance. It is calculated by taking a company’s earnings before interest and taxes (EBIT) and adding back any interest expense incurred. The resulting figure is a company’s net income before taxes (NIBT). EBIAT is often used to compare a company’s financial performance to that of … Read more
