Underlying: Difference between revisions
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imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Add comparable definition. Source: FT Lexicon http://lexicon.ft.com/Term?term=underlying-basis) |
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1. | 1. | ||
A measure which is comparable between different periods or organisations, after removing distorting effects from one-off items, or other distorting items such as exchange rate changes. | |||
Underlying revenue and profitability are common examples. | |||
Underlying measures should however be treated with caution, as management may - consciously or unconsciously - be influenced to present figures in a way that reflect well on its own performance. | |||
Inflation is sometimes quoted on an 'underlying' or 'core' basis - excluding certain items considered non-typical - as well as the on the usual 'headline' basis. | |||
2. | |||
Underlying asset. | Underlying asset. | ||
3. | |||
Underlying price. | Underlying price. | ||
4. | |||
A risk exposure being hedged, often by the use of a derivative instrument. | A risk exposure being hedged, often by the use of a derivative instrument. | ||
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== See also == | == See also == | ||
* [[Derivative instrument]] | * [[Derivative instrument]] | ||
* [[Inflation]] | |||
* [[Like for like]] | |||
* [[Profit]] | |||
* [[Revenue]] | |||
* [[Underlying asset]] | * [[Underlying asset]] | ||
* [[Underlying currency]] | * [[Underlying currency]] | ||
* [[Underlying price]] | * [[Underlying price]] | ||
Revision as of 05:40, 22 August 2017
1.
A measure which is comparable between different periods or organisations, after removing distorting effects from one-off items, or other distorting items such as exchange rate changes.
Underlying revenue and profitability are common examples.
Underlying measures should however be treated with caution, as management may - consciously or unconsciously - be influenced to present figures in a way that reflect well on its own performance.
Inflation is sometimes quoted on an 'underlying' or 'core' basis - excluding certain items considered non-typical - as well as the on the usual 'headline' basis.
2.
Underlying asset.
3.
Underlying price.
4.
A risk exposure being hedged, often by the use of a derivative instrument.
