Amortisation is another kind of Depreciation. All these other items reduce the final profit. Some companies, such as supermarkets, like to show EBITDAR where the “R” is rent. Sainsburys, who own less property and so pay more rent than Tescos, like to compare EBITDAR because it makes them look better. EBIT is profit after D&A but Before Interest and Tax.
EBITDA is the cash profit and actually stands for Earnings Before Interest Tax Depreciation and Amortisation (“D&A”).
When Interest Rates (IR) are high (i.e. borrowing is expensive) consumers pay more for their mortgages, loans and credit, so have less disposable income and spend less…inflation goes down.
You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt.
Another word for duration could be the average life of a bond. Most bonds pay annual or semi-annual coupons and have a redemption date. So whilst a bond maturing in three years and with a £5 annual…
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