Net financing cost

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 ?
Net financing cost has reduced by 11 per cent over the first half of 2013 due payment of regular loan instalments.
The early settlement of a R1,3 billion loan, together with other loan redemptions ahead of time, resulted in the net financing cost for the year being reduced by R1,462 billion, a decrease of 28 percent when compared to that of the previous year.
Included in the net financing cost is net interest expense which increased by $33 million to $296 million for the three months ended June 30, 2007, as compared to $263 million for the three months ended March 31, 2007.
352 Financial income from cash activities 117 199 291 Financing expenses (4) (4) (8) Net financing cost 113 195 283 Other financing income / expenses (150) 405 560 Profit before tax 308 2,069 4,195 Income tax expenses (115) (515) (1,134) Profit from operations 193 1,554 3,061 Minority interest 0 0 0 Net income / (loss) - Group's share 193 1,554 3,061 1er 1st semester semester Earning / (loss) per share 2006 2005 Year 2005 (6 month) (6 month) On the basis of the average number of shares in circulation: - Number of common shares 9,903,610 9,833,695 9,848,095 - Euros per share 0.
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.