The operating margin is also known as the EBIT margin or the operating margin. It is a financial ratio that expresses the profitability of a specific company, depending on the profits it has obtained, and before taxes are deducted and interests. In order to have this margin, it is necessary to divide the EBIT by … Read more
The concept of Aggregate Offer (OA) is referred to in macroeconomía to the production that companies would be willing to sell based on an average price level, certain costs and certain business expectations. Broadly speaking, companies will want to sell all their output at the highest possible prices. However, both production costs and business expectations … Read more
An obligation is a type of debt instrument that is not secured by physical assets. This type of financing is widely used by both governments and large companies in order to obtain funds or liquidity in the form of a loan. The obligations (debenture in English) are one of the most common forms of financing … Read more
Coming from the Greek, "oligo", few, and, "polio", seller, when in a market there is a small or limited number of producers, compared to all the plaintiffs, it is understood that there is an Oligopoly. Also in this case, the oligopolists are in a privileged situation, which allows them to obtain a greater margin of … Read more
Own funds are the part of the assets of the company that belongs to the owners. It is the part of resources belonging to the company or the company's own financing. The higher the equity of a company, it will have a better image in front of banks and creditors. Formerly known as a synonym … Read more
The definition of OPA refers to the acronym of takeover bid. It is a stock market operation for which a company or person makes an offer for the acquisition of all or part of the shares of a listed entity. bag at a specific price. OPAs are operations motivated by exceptional demands for shares and … Read more
Gross domestic product or GDP is an economic indicator that serves to reflect the total number of goods and services that have been produced by a country in a given period of time. Of course, GDP only takes into account final production, otherwise the accounting it would become double. Furthermore, GDP is limited to measuring … Read more
Generally Accepted Accounting Principles (GAAP) are the set of standards established to reflect the image of the company. Thus, by the concept of generally accepted accounting principles, we interpret that all companies manage their own community rules and regulations on accounting to keep track of their assets. On the other hand, the General accounting plan … Read more
The Gross National Product (GNP) is an estimate of the total final value of all products and services generated by the residents of a country in a given period. For its calculation, unlike what happens with the Gross Domestic Product, foreigners living in the country are excluded, but what is produced by nationals residing in … Read more
A substitute good is that good (or service) that is capable of satisfying the same need as another good. In that sense, it is the consumer's decision to be able to replace said good with another due to the functions it performs. The difference between choosing one or the other is the characteristics or the … Read more
