ADP Q1 FY2027 Earnings: Interest on Client and Corporate Funds Drove Half of Profit Growth
ADP Q1 FY2027 pre-tax earnings rose $147M, $75M of it from interest on client and corporate funds, while those holdings lost $855M pre-tax in OCI.
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Interest
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Capitalized Interest, Explained: How to Compute Avoidable Interest on Self-Constructed Assets
Avoidable interest on self-built assets is capitalized to the asset — tier rates over WAAE, capped at actual interest; tax follows Section 263A.
The Effective Interest Method, Explained: How Bond Discounts and Premiums Amortize Into Interest Expense
Interest expense equals carrying value times the market rate at issuance — the gap to the coupon amortizes the discount or premium each period.
The Significant Financing Component, Explained: When Advance Payments and Deferred Billing Hide Interest Inside Your Revenue
Under ASC 606, a payment gap over one year splits interest from revenue: advance payments accrete interest expense, deferred billing earns interest income.
Accrued Interest, Explained: The Interest You Book Before Cash Moves — Receivable vs. Payable, Day-Count Math, and Bond Coupons
Accrued interest is interest earned or owed but not yet paid; borrowers book Interest Payable, lenders book Interest Receivable, each at month-end.
Bond Ratings, Explained: How S&P, Moody's, and Fitch Grade Default Risk
BBB- (S&P/Fitch) or Baa3 (Moody's) is the lowest investment-grade bond rating — fall below it and forced selling reprices your bonds.
The Capital Asset Pricing Model (CAPM), Explained: How Beta Turns Market Risk Into an Expected Return
CAPM sets your required return at the risk-free rate plus beta times the equity risk premium — three inputs that tell you what any risky asset must earn.
Brokered CDs vs. Bank CDs: Why the Same Bank Pays Different Rates Through Your Brokerage
Brokered CDs can beat bank CD rates, but pay simple interest, are often callable, and exit at market prices — compare APY to APY first.
T+1 Settlement, Explained: Your Stock Trades Now Settle the Next Business Day
T+1 means your stock trades settle the next business day — less margin float, a smaller good-faith-violation window, and ex-dates shifted one day earlier.
Short Sales, Explained: How the IRS Taxes Your Short Selling
A short sale is taxed when you cover, almost always as a short-term gain — and dividends you pay mid-trade face a 45-day deductibility test.
TIPS, Explained: How U.S. Treasury Inflation-Protected Securities Adjust Principal to CPI
TIPS raise your bond principal with CPI-U and pay a fixed rate on the higher base — but the IRS taxes each year’s adjustment as phantom income.
Business Loan Prepayment Penalties, Explained: the SBA 7(a) 5-3-1 Rule, the 504 Declining Penalty, and Yield-Maintenance Math
SBA 7(a) loans charge 5-3-1% on early payoffs in years 1-3; 504 penalties decline over half the term — price yours before you refinance.