- Income Stream – The flow of money generated by a business.
- Indirect Cost - The cost not directly attributable to the manufacturing of a product.
- Indirect Labor – Employees or workers (such as accountants, supervisors, security guards) who do not directly produce goods or services, but who make their production possible or more efficient. Indirect labor costs are not readily identifiable with a specific task or work order. They are termed indirect costs and are charged to overhead accounts.
- Intangible Asset - Something of value that cannot be physically touched, such as a brand, franchise, trademark, or patent.
- Internal Rate of Return – IRR. The rate of return that would make the present value of future cash flows plus the final market value of an investment or business opportunity equal the current market price of the investment or opportunity. also called dollar-weighted rate of return.
- Inventory Turnover – The ratio of a company’s annual sales to its inventory; or equivalently, the fraction of a year that an average item remains in inventory. Low turnover is a sign of inefficiency, since inventory usually has a rate of return of zero. For instance, if a company was able to generate $10 million in sales but averaged $5 million in inventory, the inventory turnover would be 10 million / 5 million = 2. This number indicates that there would be 2 inventory turns per year, meaning that it would take 6 months to sell all the inventory.
- Lead Time – The amount of time between the placing of an order and the receipt of the goods ordered.
- Liabilities – A liability is a financial obligation, debt, claim, or potential loss.
- Liquidity – The ability of an asset to be converted into cash quickly and without any price discount.
- Margin – The face value of a loan minus the value of the pledged collateral.
- Markup - The difference between the lowest current offering price among dealers and the higher price that a dealer charges to a customer.
- Market Share – The percentage of the total sales of a given type of product or service that are attributable to a given company.
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