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Glossary of Credit Management Terms. Letter
G
Gearing:
Accounting ratio of money borrowed compared
with unencumbered capital. A company is said to be highly geared
if a high proportion of their working capital is borrowed rather
than invested.
Generic scorecard:
A scorecard which has been designed rather
than statistically derived. These usually apply in situations where
there is no (or insufficient) data available from which to develop
a statistical scorecard. This is typically for new product launches.
Also known as Start-up
scorecards.
Goodwill/intangibles:
Goodwill only features in a company’s
balance sheet after it has made an acquisition. It represents the
excess of the purchase price over the net worth of the acquisition
and is depreciated on the balance sheet over a five-year period.
Intangibles include such items as patents, trademarks, formulae
etc. and represent the value determined by the Directors for these
items.
Gross profit:
Net sales less costs.
Guarantee:
A promise by one person to carry out the
contractual commitments of another in the event of default. Must
be in writing.
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