Investor Glossary-cyclicalInvestor Glossary-cyclicalInvestor Glossary-cyclicalInvestor Glossary-cyclicalInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Cyclical

The HTML to link to this page
 

When entire industries and the companies within them are characterized as cyclical or non-cyclical it is typically, but not always, with respect to the overall business cycle. (A cyclical pattern is one that has wave-like trends or cycles.) Demand for industrial products like heavy machinery and consumer durables are affected by macro-economic conditions, making companies in these sectors cyclical. In contrast, basic consumer necessities such as food and pharmaceuticals are non-cyclical. Mature companies and industries tend to be more cyclical than young ones. Debt causes earnings for the cyclical company to be even more volatile than the cyclical demand for the company's products because debt service increases fixed cost structure. Because cyclical companies tend to be mature and mature companies tend to keep at least some debt on their balance sheet, the earnings pattern of a cyclical company will often be the most cyclical characteristic of that company.



Rate this cyclical definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: FICO score, dividends payable, VIX, average price per share, deferred tax, inflation, liquidity ratio, 144a, in escrow, per diem, command economy, annual return, open position, quality assurance, labor relations, stock market close, retained earnings, FTSE, Zero Cost Collar, diluted share, deferred revenue, debt service coverage, irrevocable trust, LIBOR, implied volatility, 401a, risk management, current ratio, 1035 exchange, option premium, EBITDA, Key Rate Duration, minority interest, wholly-owned subsidiary, required rate of return, cancelled check, real GDP, reverse mortgage, ex-dividend date, margin rate, APR, covered put, stock split, ex-dividend, class C shares, limit order, 1031 exchange, phantom income, balance sheet


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use