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User Guide
Financial Glossary
- APR - Annual Percentage Rate
- Administration
- Amortisation
- Annual Report
- Approving a Sale
- Assurance
- Authorisation Process
- Balance Sheet
- Balloon Payment
- Base Rate
- Benefits
- Bill Of Exchange
- CAGR - Compound Annual Growth Rate
- CAPEX - Capital Expenditure
- CEO - Chief Executive Officer
- CFO - Chief Financial Officer
- CIO - Chief Information Officer
- COO - Chief Operating Officer
- CTO - Chief Technology Office
- Capital
- Capital Goods
- Capital Lease
- Capital Spend
- Cash Burn
- Chairman
- Chapter 11
- Charge
- Chinese Walls
- Churn
- Cockroach Effect
- Contract Hire
- Cost Of Capital
- Cost Savings
- Covenant
- Credit Scoring
- Credit Search
- Creditors
- Cross Charging
- DCF - Discounted Cash Flow Analysis
- DSO
- Debentures
- Debtors
- Depreciation
- Directors' Report
- Discount Rate (pa%)
- Dividend
- Dividend Yield
- EBITDA
- EPS - Earnings Per Share
- EVA %
- EVA - Economic Value Add
- Earnings
- Efficiency Improvements
- Ego
- Endorsement
- Equity
- Equity Rental
- Extension Rentals
- FD - Finance Director
- FRS 17
- Factoring
- Finance Lease
- Financial Returns
- Fixed Assets
- Floating Charge
- Forward Multiple
- Fraud Reduction
- Funds Flow Statement
- Gearing
- Goodwill
- Gross Profit Percentage
- Hire Purchase
- Hurdle Rate
- IPO - Initial Public Offering
- IRR - Internal Rate Of Return
- Impairment Charge
- Incoterms
- Infrastructure
- Initial Lease Period
- Insider Trading
- Insolvency
- Intangible Asset
- Inventory
- Investment Appraisal
- LIBOR - London Inter Bank Offered Rate
- Lease Purchase
- Leasing
- Leverage
- Like-for-like
- Liquidation
- Liquidity
- Liquidity Ratio
- Loaded Cost
- Loans
- Loss
- MD - Managing Director
- MMC - Monopolies and Mergers Commission
- Margin
- Marginal Cost
- Mark Up
- Market Capitalisation
- Market Value
- Minimum return (pa%)
- Monthly Costs (averaged)
- Multiple
- NPV - Net Present Value
- Net Asset Value
- Net Asset Value (per share)
- Non-Executive Director
- OPEX
- Off Balance Sheet Financing
- Offshore
- On Balance Sheet
- Operating Lease
- Outright Purchase
- Outsourcing
- Ownership - Risks
- Ownership Rewards
- P/E Ratio
- Payback
- Private Limited Company
- Profit
- Profit and Loss Account
- Prospective Earnings
- Prospectus
- Public Company
- Quoted Company
- ROCE - Return On Capital Employed
- ROI - Return On Investment
- Rate Of Return
- Regulatory Costs
- Renting
- Residual Value
- Results
- Return On Assets (ROA)
- Return On Equity (ROE)
- Return On Investment Capital (ROIC)
- Return On Net Assets (RONA)
- Return On Sales (ROS)
- Revaluation
- Revenue
- Review period
- SLA - Service Level Agreement
- Security
- Share Capital
- Shareholder Value
- Shareprice
- Spend Deferment
- Stock
- Substance Over Form
- Sweating the Assets
- TCO
- Target Price
- Tax Avoidance
- Tax Evasion
- The Market
- Time Is Of The Essence
- Tranche
- VAE - Value Added (Economic)
- VAE%
- Volatility
- WDA - Writing Down Allowance
- Weighted Average Cost Capital (WACC)
- Whole Useful Life
- Window Dressing
- Wooden Dollars
- Working Capital
- Write Downs
International Trade Glossary
Working Capital
A term describing a range of shorter term company Assets and Liabilities that allows the business to trade. Included in here are cash balances, debtors, stock, which are all ‘assets’, and creditors, short term loans and other obligations which are ‘liabilities’. If assets exceed liabilities then the company has positive working capital and has the ability to trade. More liabilities than assets means that the company could run out of cash, and trade could stop. Therefore - a key measure for company health and survival.
Straight Talk
The cash and funds that allow businesses to work from day to day. Cash and Stock is needed to pay people and supply goods. Debtors and Creditors arise from goods and services supplied that are not yet paid for. This term describes refers to the aggregation of all these different ingredients. Where the net of these is positive - it provides the ability to trade in healthy and structured fashion, whereas a negative result could mean that bills cannot be paid, supplies could stop, and business halts.