My Nguyen
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Articles
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Equity
FormalA number of uses:The net worth of a business OR, A term for Ordinary Shares ‘Equity Stock’ OR, Capital that is invested for the long termReal-world ExampleA founder gives up 40% of their comp...
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Equity Rental
FormalA term used in some industries to describe a blend of two types of acquisition method - rental and purchase. Typically the customer or equipment user will commence making rental / staged paym...
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EVA %
FormalThe difference between the IRR of an investment proposal and the business’s own minimum Minimum return (pa%) - with the answer expressed as a percentage. Put differently, it refers to the exc...
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Economic Value Add (EVA)
FormalAn identical term for NPV commonly used by management consultancies. It stands for ‘Economic Value Add’ but means the same as the ‘Net Present Value’ definition. It is an investment appraisal...
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Extension Rentals
FormalBusinesses that don’t want to buy equipment outright usually lease or rent. A commitment is made for a ‘primary rental period’ - let’s say this is 36 months - and at the end of this period th...
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Factoring
FormalThis is a process where a Bank effectively buys the debts of a business and lends monies to the business using the debts as security. This process provides businesses with cash ‘ahead’ of the...
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Finance Lease
Formal(also known as a ‘Capital Lease’) A lease where the user: Owns the equipment at the end of the lease period OR, Lease term represents more than 75% of the useful life of an asset OR, The cu...
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Financial Returns
FormalA broad, catch-all term for a family of financial measures that show the value or performance of an outcome. Common examples include:Net Profit % to SalesR.O.C.E,R.O.I,NPV,…and many more.Stra...
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Fixed Assets
FormalAssets expected to be used by a business for a considerable length of time, e.g. vehicles, drilling rigs, IT equipment, land and buildings.Real-world ExampleA factory's fixed assets include i...
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Floating Charge
FormalA charge (see also Charge definition) over the non-fixed assets of an enterprise, ensuring a higher level of security for providers of finance to businesses, e.g. banks.Real-world ExampleA le...