Discounting and Earnings: Difference between pages

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1. ''Discounted cash flow (DCF).''
1.  
In relation to a UK firm, its profits available for distribution to ordinary shareholders. 
Also known as Net Profit.


In the context of DCF analysis, discounting is the process of calculating present values for expected future cash flows.
2.  
 
In relation to firms more generally, their profits.
 
2. ''Trade finance.''
 
In trade finance, discounting techniques allow suppliers to receive earlier payment, but for smaller amounts than the full face value of the related invoices or bills of exchange.
 
 
3.
 
More broadly, any deduction from the full or usual price of something.
 
For example in retail.


3.
In relation to individuals, their earned income, for example salary. 
Distinguished from their investment income and their capital gains.  This distinction is important in relation to individual taxation and in relation to pensions.


== See also ==
== See also ==
* [[Bill discounting]]
* [[Dividend payout ratio]]
* [[Discount house]]
* [[Earnings cap]]
* [[Discount rate]]
* [[Earnings multiples]]
* [[Discounted cash flow]]
* [[EBIT]]
* [[Internal rate of return]]
* [[Lower earnings limit]]
* [[Invoice discounting]]
* [[Multiples valuation]]
* [[Net present value]]
* [[Owner earnings]]
 
* [[PAT]]
 
* [[Shareholders cash flow]]
===Other links===
[http://www.treasurers.org/node/8445 Masterclass: Discounted cash flow, ''Will Spinney'', The Treasurer]


[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Trade_finance]]

Revision as of 14:19, 23 October 2012

1. In relation to a UK firm, its profits available for distribution to ordinary shareholders. Also known as Net Profit.

2. In relation to firms more generally, their profits.

3. In relation to individuals, their earned income, for example salary. Distinguished from their investment income and their capital gains. This distinction is important in relation to individual taxation and in relation to pensions.

See also


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