The expression Acid Test, also known as quick ratio, is an indicator of liquidity of a very short term that seeks to evaluate the company’s capacity to cope with its short term financial compromises using only their net financial resources, this is, without the need of existences sales or debt receipts from clients and other […]

Discount Rate Concept: Discount rate designates the interest rate charged by the Central Banks in the loans given to the commercial banks through…

Fully Indexed Interest Rate Concept: Fully Indexed Interest Rate designates an interest rate normally used in loan contracts (especially in the…

IRR (Internal Rate of Return) Concept: Internal Rate of Return (IRR) represents the profitability generated by a certain investment (a lot used with one of…

Tier 1 Concept: Tiers were a way found by the Basel Committee to categorize the equity elements of the financial…

Toxic asset is an expression that popularized certain financial products following the financial crisis started with the subprime in the USA.

Update or Discount Rate Concept The update rate concept (also known as discount rate) is associated to the companies’ appreciation, of business and investment projects, being the rate applied to the future income or cash-flows as a way to obtain its current value. Being indifferently used as update rate of future incomes or as capitalization […]