Explore tens of thousands of sets crafted by our community.
Corporate Finance Acronyms
40
Flashcards
0/40
ROI
Return on Investment - measures the profitability of an investment
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization - indicates a company's financial performance
DCF
Discounted Cash Flow - a valuation method used to estimate the value of an investment
NPV
Net Present Value - calculates the present value of projected cash flows minus initial investment
IRR
Internal Rate of Return - the discount rate that makes the net present value of all cash flows equal to zero
EPS
Earnings Per Share - indicates how much money a company makes for each share of its stock
P/E
Price-to-Earnings Ratio - measures a company's current share price relative to its per-share earnings
WACC
Weighted Average Cost of Capital - the average rate of return a company is expected to pay its security holders
CAGR
Compound Annual Growth Rate - the mean annual growth rate of an investment over a specified time period
LBO
Leveraged Buyout - the acquisition of another company using a significant amount of borrowed money
CAPEX
Capital Expenditures - funds used by a company to acquire, upgrade, and maintain physical assets
M&A
Mergers and Acquisitions - the consolidation of companies or assets through various financial transactions
EBIT
Earnings Before Interest and Taxes - measures a firm's profit that includes all incomes and expenses except interest and taxes
FCF
Free Cash Flow - cash a company generates after cash outflows to support operations and maintain its capital assets
EV
Enterprise Value - an economic measure reflecting the market value of a whole business
P/B
Price-to-Book Ratio - compares a company's market value to its book value
EBIT
Earnings Before Interest and Taxes - measures a firm's profit that includes all incomes and expenses except interest and taxes
PV
Present Value - the current value of a future amount of money or stream of cash flows given a specified rate of return
ROA
Return on Assets - indicates how profitable a company is in relation to its total assets
ROE
Return on Equity - measures the profitability of a corporation in relation to stockholders' equity
ROCE
Return on Capital Employed - a financial ratio that measures a company's profitability and the efficiency with which its capital is employed
CR
Current Ratio - a liquidity ratio that measures a company's ability to pay short-term obligations
AR
Accounts Receivable - money owed to a company by its debtors
AP
Accounts Payable - short-term obligations or money owed by a company to its creditors
COGS
Cost of Goods Sold - the direct costs attributable to the production of the goods sold in a company
SG&A
Selling, General and Administrative Expenses - combined payroll costs of all non-production employees and other costs not tied to a specific product
GPM
Gross Profit Margin - a financial metric used to assess a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold
NPM
Net Profit Margin - shows how much of each dollar earned by the company is translated into profits
LTV
Loan to Value Ratio - a financial term used by lenders to express the ratio of a loan to the value of an asset purchased
D/E
Debt-to-Equity Ratio - a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity
TIE
Times Interest Earned - a measure of a company's ability to honor its debt payments
OOE
Operating Operating Efficiency - a measure of how much profit a company makes with its present assets and its level of operational efficiency
PER
Price-to-Earnings Ratio - a ratio for valuing a company that measures its current share price relative to its per-share earnings
PEG
Price/Earnings to Growth Ratio - a stock's P/E ratio divided by the growth rate of its earnings
SOP
Standard Operating Procedure - a set of step-by-step instructions compiled by an organization to help workers carry out routine operations
CF
Cash Flow - the net amount of cash and cash-equivalents being transferred into and out of a business
EBITDAR
Earnings Before Interest, Taxes, Depreciation, Amortization and Rent - a financial performance measure that adds rent and lease payments to EBITDA
FCFF
Free Cash Flow to the Firm - a measure of a company's financial flexibility that is often used in DCF analysis
FCFE
Free Cash Flow to Equity - a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt repayments
VBM
Value-Based Management - a management approach that ensures corporations are run consistently on value
© Hypatia.Tech. 2024 All rights reserved.