What are Net Borrowed Reserves? Net Borrowed Reserves was one side of a statistic that was (until 2013) released in weekly Federal Reserve data showing the difference between the excess reserves banks held on account at the Fed and the liquid reserves the banks had borrowed from the Fed. When this difference (excess reserves—borrowings) was
What Is a Net Borrower? A net borrower is an entity that borrows more than it saves or lends out. Because many business entities both borrow and loan funds through various financial instruments and other means, it is the net difference between the amount borrowed and lent that is important and determines whether one is
What Is Net Cash? Net cash is a figure that is reported on a company’s financial statements. It is calculated by subtracting a company’s total liabilities from its total cash. The net cash figure is commonly used when evaluating a company’s cash flows. Net cash may also refer to the amount of cash remaining after
What Is a Net Charge-Off (NCO)? A net charge-off (NCO) is the dollar amount representing the difference between gross charge-offs and any subsequent recoveries of delinquent debt. Net charge-offs refer to the debt owed to a company that is unlikely to be recovered by that company. This “bad debt” often written off and classified as
What Is the Net Charge-Off Rate? The net charge-off rate is the annualized ratio of net charge-offs (NCOs) to average loans outstanding. NCOs are a lender’s gross charge-offs less recoveries of its delinquent debt. The net charge-off rate measures the proportion of debt owed to a company that is unlikely to be paid back to
What Is Net Debt? Net debt is a liquidity metric used to determine how well a company can pay all of its debts if they were due immediately. Net debt shows how much debt a company has on its balance sheet compared to its liquid assets. Net debt shows how much cash would remain if
What Is the Net Debt-to-EBITDA Ratio? The net debt-to-EBITDA (earnings before interest depreciation and amortization) ratio is a measurement of leverage, calculated as a company’s interest-bearing liabilities minus cash or cash equivalents, divided by its EBITDA. The net debt-to-EBITDA ratio is a debt ratio that shows how many years it would take for a company
What Is Net Exposure? Net exposure is the difference between a hedge fund’s long positions and its short positions. Expressed as a percentage, this number is a measure of the extent to which a fund’s trading book is exposed to market fluctuations. Net exposure can be contrasted with a fund’s gross exposure, which does not
What are Net Free Reserves? Net Free Reserves was one side of a statistic that was (until 2013) released in weekly Federal Reserve data showing the difference between the excess reserves banks held on account at the Fed and the liquid reserves the banks had borrowed from the Fed. When this difference (excess reserves –
What Is Net Income (NI)? Net income (NI), also called net earnings, is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other expenses. It is a useful number for investors to assess how much revenue exceeds the expenses of an organization. This number appears
