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Margin of safety

The 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 Matches

Buy on margin

Buy on margin
Borrowing to buy additional shares, using the shares themselves as collateral.


Contribution margin

Contribution margin
The 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 Suggestions

Gross profit margin
Initial margin
Initial margin requirement
Maintenance margin
Margin
Margin account (stocks)
Margin requirement


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