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


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
©2004-2015 Investor Glossary - All rights reserved - Terms of Use