weighted average cost

简明释义

加权平均成本

英英释义

例句

1.To evaluate project feasibility, we need to analyze the weighted average cost 加权平均成本 of all resources used.

为了评估项目的可行性，我们需要分析所有资源使用的weighted average cost 加权平均成本。

2.Understanding the weighted average cost 加权平均成本 of different suppliers can help in negotiating better terms.

了解不同供应商的weighted average cost 加权平均成本可以帮助谈判更好的条款。

3.Investors often look at the weighted average cost 加权平均成本 of capital to assess financial health.

投资者通常关注资本的weighted average cost 加权平均成本来评估财务健康。

4.The company calculated the weighted average cost 加权平均成本 of its inventory to determine pricing strategies.

公司计算了其库存的weighted average cost 加权平均成本以确定定价策略。

5.The finance team reported a decrease in the weighted average cost 加权平均成本 of goods sold over the past quarter.

财务团队报告称，过去一个季度商品的weighted average cost 加权平均成本有所下降。

作文

In the world of finance and accounting, understanding various cost metrics is crucial for effective decision-making. One such important concept is the weighted average cost, which plays a significant role in determining the overall cost of capital for a company. The weighted average cost (加权平均成本) is essentially the average cost of capital, where each category of capital is weighted according to its proportion in the total capital structure. This means that different sources of financing, such as debt and equity, contribute differently to the overall cost based on their relative sizes.To grasp the importance of weighted average cost, let us consider a hypothetical company that finances its operations through both equity and debt. Suppose the company has $1 million in equity and $500,000 in debt. The cost of equity is 10%, while the cost of debt is 5%. To calculate the weighted average cost, we first need to determine the weights of equity and debt in the total capital structure.The total capital is $1 million (equity) + $500,000 (debt) = $1.5 million. The weight of equity would therefore be $1 million / $1.5 million = 0.67 (or 67%), and the weight of debt would be $500,000 / $1.5 million = 0.33 (or 33%). Now, we can apply these weights to the respective costs:Weighted average cost = (Weight of Equity * Cost of Equity) + (Weight of Debt * Cost of Debt)Plugging in the numbers:Weighted average cost = (0.67 * 10%) + (0.33 * 5%)= 6.7% + 1.65%= 8.35%This weighted average cost (加权平均成本) of 8.35% represents the average rate that the company must pay to finance its assets, taking into account the relative proportions of debt and equity.Understanding the weighted average cost is essential for making informed financial decisions. For instance, when evaluating potential investment projects, companies often use this metric to assess whether the expected return on an investment exceeds the weighted average cost. If the return is higher, the project may be deemed worthwhile; if it is lower, it could indicate a poor investment choice.Moreover, the weighted average cost can also influence a company's capital structure decisions. Firms may choose to adjust their levels of debt and equity to optimize their weighted average cost and enhance shareholder value. By minimizing the weighted average cost, a company can increase its profitability and create more value for its investors.In conclusion, the weighted average cost (加权平均成本) is a vital financial metric that helps businesses understand their cost of capital. By calculating and analyzing this figure, companies can make better strategic decisions regarding investments and financing. It serves as a benchmark for evaluating the feasibility of projects and plays a key role in shaping a firm's overall financial strategy. As such, mastering the concept of weighted average cost is essential for anyone involved in finance or business management.