Interest yield is money earned as a percent of the investment, where the return comes from interest earned on money lent, usually bonds, and not from dividends in a company or cash from an intracompany project. It’s important to analyze this definition through the lens of types of investments. There are three main types of investment returns: pre-established interest rates …

A bank’s profit is equal to its interest income minus any interest it pays on loans or customer deposits and operating expenses, and minus taxes. A company’s profit is equal to revenue and interest income (if present), minus CoS, operational costs, interest expense, and taxes due.

This article defines other income, shows how it appears on financial statements, provides a comprehensive list of detailed examples, and discusses several nuances surrounding the topic.

The other interest earnings come from fixed-income securities (usually bonds), while the interest expense relates to payments on long-term loans. This description is not detailed, so we need to use industry knowledge of interest-bearing instruments to “guess” what these items may be.

When debt principle payments and interest are included in the calculation, FCF is said to be levered. When interest expenses and principle are excluded, FCF is said to be unlevered. The nuance is that when FCF includes interest expense but excludes principle payments, it’s called simple free cash flow.

The tax base of interest receivable is easy. It behaves exactly like accounts receivable, only there is rarely a bad debt associated with interest income, so the carrying amount and tax base are almost always equal.

It’s rare for a secured card to make money because few of them have rewards, and inflation on your deposit (a cost, typically about 2%) eats away all interest on deposit (an income, typically <1%).

Fixed assets are not the same as total assets. Succinctly, the difference between fixed assets and total assets is that total assets are the sum of fixed and current assets. While fixed assets usually constitute a majority of total assets (roughly 55%) in a …

Enterprise Value/Revenue While in many cases finance people refer to revenue and sales as the same thing, they can be different. Sales is the value received from direct exchange of the company’s core product or service, whereas revenue can include sales and other operating revenue such as gains from disposals, interest income, and dividend ...

Total Interest Formula Total Interest Excel Calculators You can get the Excel used in the article below. It has every loan schedule you’ll ever need (variable rate, additional payments, compounding unpaid interest, and revolvers) and a built-in total interest calculator so you can easily compare options.