Accounting / August 3, 2018 / Sharon Hardin
Interest Expense This item reflects the costs of a company's borrowings. Sometimes companies record a net figure here for interest expense and interest income from invested funds.
The process of signing a commercial lease is usually initiated by the landlord, who will often offer you a "standard" lease. Don't sign this right away - the lease was most likely drafted by the landlord's lawyer and is designed to favor the landlord. If the landlord expresses concern about deviating from a "standard" lease, remind the landlord that the only thing constraining the landlord are promises made to other tenants which you are happy to respect.
Net Sales These terms refer to the value of a company's sales of goods and services to its customers. Even though a company's bottom line (its net income) gets most of the attention from investors, the top line is where the revenue or income process begins. Also, in the long run, profit margins on a company's existing products tend to eventually reach a maximum that is difficult on which to improve. Thus, companies typically can grow no faster than their revenues.
Net interest margin or NIM denotes the difference between the interest income earned and the interest paid by a bank or financial institution relative to its interest-earning assets like cash. Thanks to its frequent usage, it’s become a part of the banking and financial lexicon.
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