CSIMarket


Terms Beginning with M
                       
                       
 M1 Money Supply   Mark To Market Exposure   Matte  
 M2 Money Supply   Marker   Maximum Dwell Time  
 m3   Marker Casino   Maximum Tolerated Dose  
 MACD   Market Cap, Market Capitalization   MBbls  
 MACT   Market Liquidity Risk    MBd  
 Mammography   Mass Market Player   Mbf  
 Managed Credit Card Receivables   Mast Cells   MBS Mortgage Backed Securities  
 Managed Receivables   Master Netting Agreement   Mcf  
 Manufacturers Manufacturing   Match Funding   Mcfe  
 Mark To Market   Material Adverse Effect   MDF Medium density fibreboard  
                 
                  next arrow
 
 
       
       
 

Minority Interest

Financial Term


Minority Interest, also known as Non-Controlling Interest (NCI), refers to the ownership interest in a subsidiary company that is not owned by the parent company or the majority shareholder. In other words, it represents the ownership of a fraction of a subsidiary company by a third-party investor.

In the financial industry, minority interest is used to measure the proportion of the subsidiary company's net assets that are held by the third-party investor. This figure is reported on the balance sheet of the parent company as a liability, indicating that the minority interest holder has a claim on a percentage of the subsidiary's assets and earnings.

The calculation of minority interest is based on the percentage of ownership held by the third-party investor, as well as the subsidiary's net assets. For example, if a parent company owns 80% of a subsidiary and a third-party investor owns 20%, the parent company will report 80% of the subsidiary's net assets on its balance sheet, while the minority interest holder will report 20% of the net assets.

Minority interest is important in financial analysis as it allows investors and analysts to understand the level of control and influence that the parent company has on the subsidiary's operations. It also provides an indication of the potential risks and benefits associated with the subsidiary's operations for the third-party investor.

Overall, minority interest is a key concept in the financial industry that helps in understanding the ownership structure of a subsidiary company, and its impact on the parent company's financial statements.




   
     

Minority Interest

Financial Term


Minority Interest, also known as Non-Controlling Interest (NCI), refers to the ownership interest in a subsidiary company that is not owned by the parent company or the majority shareholder. In other words, it represents the ownership of a fraction of a subsidiary company by a third-party investor.

In the financial industry, minority interest is used to measure the proportion of the subsidiary company's net assets that are held by the third-party investor. This figure is reported on the balance sheet of the parent company as a liability, indicating that the minority interest holder has a claim on a percentage of the subsidiary's assets and earnings.

The calculation of minority interest is based on the percentage of ownership held by the third-party investor, as well as the subsidiary's net assets. For example, if a parent company owns 80% of a subsidiary and a third-party investor owns 20%, the parent company will report 80% of the subsidiary's net assets on its balance sheet, while the minority interest holder will report 20% of the net assets.

Minority interest is important in financial analysis as it allows investors and analysts to understand the level of control and influence that the parent company has on the subsidiary's operations. It also provides an indication of the potential risks and benefits associated with the subsidiary's operations for the third-party investor.

Overall, minority interest is a key concept in the financial industry that helps in understanding the ownership structure of a subsidiary company, and its impact on the parent company's financial statements.




Related Financial Terms


Help

About us

Advertise

CSIMarket Company, Sector, Industry, Market Analysis, Stock Quotes, Earnings, Economy, News and Research. 
   Copyright © 2024 CSIMarket, Inc. All rights reserved.

Intraday data delayed per exchange requirements. All quotes are in local exchange time. Intraday data delayed 15 minutes for Nasdaq, and other exchanges. Fundamental and financial data for Stocks, Sector, Industry, and Economic Indicators provided by CSIMarket.com