Protected Cell Company (PCC).

A protected cell company (PCC) is a corporate structure used in the insurance industry that allows for the segregated management of risk within a single legal entity. Each “cell” within the PCC is treated as a separate account, meaning that the assets and liabilities of one cell are not available to creditors of another cell. … Read more

Profit before Tax (PBT).

Profit before tax (PBT) is a financial measure that shows a company’s profits before taxes are deducted. This measure is often used to assess a company’s profitability and financial health. PBT is calculated by subtracting a company’s total expenses from its total revenues. Is net profit EBIT? No, net profit is not EBIT. EBIT is … Read more

Last Fiscal Year (LFY) Definition.

The term “Last Fiscal Year (LFY)” definition refers to the period of time between a company’s last two fiscal years. This period is typically used to compare a company’s financial performance over time. What is LYF stand for? LYF is a brand of mobile phones by Jio, a subsidiary of Reliance Industries. The name is … Read more

The Ins and Outs of Service Charges.

Service charges are fees that a company charges for providing a service. They are typically used to cover the costs of the service, such as labor, materials, and overhead. Service charges can also be used to generate revenue for the company. Service charges are often added to the bill for a service, such as a … Read more

Income From Continuing Operations.

The term “Income From Continuing Operations” refers to the net income that a company generates from its ongoing, regular business activities. This excludes any one-time or unusual items that might distort the company’s overall financial picture. Income from continuing operations is often the most important measure of a company’s financial health, since it gives the … Read more

Avoidable Cost.

The term “avoidable cost” refers to a company’s opportunity cost associated with a particular decision. In other words, avoidable cost is the cost that could have been avoided if the company had chosen a different course of action. There are two types of avoidable cost: sunk cost and variable cost. Sunk cost is a cost … Read more

What Is an Interest Rate Gap?

An interest rate gap is the difference between the interest rates that a financial institution pays on its liabilities and the interest rates that it earns on its assets. The interest rate gap is a key metric for assessing a financial institution’s interest rate risk. A financial institution’s interest rate risk is the risk that … Read more

What is a decision support system (DSS) and how do businesses use them?

What Is a Decision Support System (DSS)? A decision support system (DSS) is a computerized information system used to support decision-making in organizations. DSSs are designed to help decision makers use data and information to solve problems and make better decisions. DSSs are used in a variety of businesses and organizations, including healthcare, government, and … Read more

Sales Mix.

Sales mix is the term used to describe the composition of a company’s sales. The sales mix can be expressed in terms of products, services, geographic regions, or customer types. The sales mix is an important factor in financial planning and analysis, as it can have a significant impact on a company’s revenue and profitability. … Read more

What Is a Special Purpose Vehicle (SPV) and Why Companies Form Them.

A Special Purpose Vehicle/Entity (SPV/SPE) is a legal entity (usually a limited company of some type or, sometimes, a partnership) created to isolate financial risk. SPVs are typically used by companies to raise capital by issuing debt securities. The proceeds from the sale of the securities are used to finance the company’s activities, without putting … Read more