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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
The narrowed loss was due to revenue growth, as well as a slight reduction in net financing costs to USD255.6 million from USD259.8 million.
Nevertheless, the delay in interest rate cuts has more than offset the benefits resulting from company's deleveraging strategy, filtering through to higher net financing costs, which, in addition to our updated estimates, leave our 2019--23e EPS estimates c26% lower, on average."
Moving down the income statement, net financing costs escalated 40.3% to $10.2 million, holding pretax income to a 23.3% increase to $181.7 million.
Commenting on the Q3, 2013 results, Fahd bin Ibrahim Al-Deghaither, chairman of the Board of Directors of Zain KSA, said: "Q3, 2013 performance was primarily driven by a healthy 24 percent customer growth, reaching a total of 8.6 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 AED243.8m for the first half, an increase of 40 percent from the same period last year when such costs were AED173.5m.
The company, which runs an industrial free zone on the outskirts of Dubai, incurred net financing costs of 243.8 million dirhams for the first half, an increase of 40 percent from the same period last year when such costs were 173.5 mln dirhams.
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.
Sydney Airport announced on Wednesday a 3.4% 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.
Stifel Nicolaus analyst Mark Swartzberg pointed to the company's "better-than-expected volume, especially in Brazil, continued price discipline across geographies, moderating trade down in the U.S., and a gain in noncash net financing costs."
Net financing costs will be higher but we are confident of good progress in earnings for the full year."