Net financing cost

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Net financing cost

Also called the cost of carry or, simply carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned.

Net Financing Cost

1. In interest rate futures, the difference between the cost of purchasing an instrument and its yield. See also: Profit, Loss.

2. Fees a firm charges for making a loan. The largest single net financing cost is the interest, but it also includes charges such as an origination fee or an application fee. See also: All-in cost.
References in periodicals archive ?
Moving down the income statement, net financing costs escalated 40.
6 million customers, enhanced mobile Internet usage, the implementation of greater operating efficiencies throughout the business and lowered net financing costs and resulted a further 15 percent reduction in net loss".
Net financing costs were 34mn lira in the first quarter compared to net financing income of 160mn lira a year earlier.
The company, which runs an industrial free zone on the outskirts of Dubai, incurred net financing costs of AED243.
SG&A added 16% YoY in dollar terms while flat gross debt and increasing net financing costs (due to BEF losing $70mn in cash over the year) drove its net loss to $42mn.
4% increase in earnings before depreciation and amortisation, net financing costs, income tax and specific non-recurring expenses for the three months to 31 March 2011.
Net financing costs will be higher but we are confident of good progress in earnings for the full year.
The result was burdened by net financing costs, which were some EUR400,000 higher than in the corresponding period last year.
But net financing costs ballooned 170% in the quarter to $4.
Net financing costs in the fourth-quarter of 2009 were $6 million versus $5 million last year, as lower net interest expense was offset by an unfavorable foreign currency swing of $7 million.
Net financing costs are expected to be approximately 125 million in constant currencies.
Net financing costs rose to $706 million from debt taken on to fund last year's Grolsch acquisition.