HomeDefinitionsCompareDebt Margin of safetyThe financial definition for Margin of safety:With respect to working capital management, the difference between (1) the amount of long-term financing and (2) the sum of fixed assets and the permanent component of current assets. Similar MatchesBuy on marginBuy on marginBorrowing to buy additional shares, using the shares themselves as collateral. Contribution marginContribution marginThe difference between variable revenue and variable cost. Effective margin (EM)Effective margin (EM)Used with SAT performance measures, the amount equal to the net earned spread, or margin of income, on assets in excess of financing costs for a given interest rate and prepayment rate scenario. Further SuggestionsGross profit marginInitial margin Initial margin requirement Maintenance margin Margin Margin account (stocks) Margin requirement Click to compare definitions of Margin of safety Click to view definitions beginning ma |