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What Is Net Unrealized Appreciation? Some companies offer the benefit of employees owning stock in the employer company. The idea is that this creates an ownership mentality in the employees, even if they own a very small percentage of total shares. The net unrealized appreciation (NUA) is the difference in value between the average cost

What Is a Nest Egg? A nest egg is a substantial sum of money or other assets that have been saved or invested for a specific purpose. Such assets are generally earmarked for longer-term objectives, the most common being retirement, buying a home, and education. The term can also refer to money kept aside as

What Is Net Profit Margin? The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.

What Is Net Advantage to Leasing (NAL)? Net advantage to leasing (NAL) refers to the total monetary savings that would potentially result from a person or a business choosing to lease an asset as opposed to purchasing it outright. The benefits of leasing are usually determined by comparing the net present value of purchasing the

What Is Netback? Netback is a summary of all costs associated with bringing one unit of oil to the marketplace and the revenues from the sale of all the products generated from that same unit. It’s expressed as gross profit per barrel. Netback is calculated by taking the revenues from the oil, less all costs

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