What are Defensive Industries? Defensive industries are companies whose revenues and earnings are relatively insensitive to economic cycles. These businesses provide essential goods and services…
Deleveraging – Definition, Techniques, Meaning and Advantages
What is Deleveraging? Deleveraging is the practice of reducing the leverage ratio or the percentage of debt in a single economic entity’s balance sheet. It’s…
Digital Wallet – Definition, Working, Types and Advantages
What Is a Digital Wallet? A digital wallet is a mobile application, software, or online service that allows people or companies to make transactions, store…
Downtrend – Definition, Identification and Examples
What is a downtrend? A downtrend is defined as a series of lower lows and lower highs in the price or value of a stock…
Dupont Analysis – Definition, Formula and Calculation
What Is Dupont Analysis? Dupont analysis is a performance assessment framework that measures a company’s financial performance by breaking down its return on equity (ROE)…
Deferred Tax Asset – Definition, Calculation and Examples
A deferred tax asset is an accounting term that refers to a situation where a company has paid more taxes than what is currently required….
Deferred Tax Liability – Definition, Importance, Calculation and Examples
Deferred tax liability is a tax obligation that has been deferred to a future period. This means that the tax liability has not yet been…
Degree of Total Leverage – Definition, Calculation, and Importance
The degree of total leverage is a ratio that compares the rate of change in earnings per share (EPS) to the rate of change in…
Degree of Operating Leverage – Definition, Calculation and Importance
The degree of operating leverage (DOL) is a measurement that indicates the change in a company’s operating income in response to a change in sales….
Discounted Cash Flow – Definition, Formula, Pros and Cons
Discounted cash flow is a financial method used to estimate the future value of an investment. The discounted cash flow (DCF) method discounts all future…
Divestment – Definition, Types and Examples
Divestment is the opposite of investment. It is the act of selling off assets, usually in order to reduce risk. For example, a company might…
Deferred Annuity – Definition, Types, Pros and Cons
A deferred annuity is an insurance product that allows you to save for retirement or other long-term goals. With a deferred annuity, you can make…
Default Risk – Definition, Types and Factors
Default risk is the possibility that a borrower will be unable to meet its financial obligations. This can happen for a variety of reasons, including…
Degree of Combined Leverage – Definition, Formula, Calculation and Examples
The degree of combined leverage is the degree to which a company’s operations are financed by borrowed funds. It is calculated by dividing the sum…
Deferred Interest – Definition, Risks, Pros and Cons
Deferred interest is a type of financing that allows consumers to make large purchases now and pay for them over time, without accruing interest charges…
