FP&A Glossary: Business finance terms

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FP&A Glossary: Business finance terms

Build your financial planning and analysis vocabulary with clear definitions of the metrics and concepts that drive business decisions.

Core finance terms

AR aging
ARR bridge
ASC 606 Revenue Recognition
Accounts Receivable Turnover
Accrued Payroll
Annual Operating Plan
Average Revenue per User
Billings-to-Collections ratio
Bookings vs Billings vs Revenue
Burn rate
Cash Conversion Cycle
Chart of Accounts
Churn (logo churn vs. revenue churn)
Closing rate
Compounded Annual Growth Rate
Current ratio (quick ratio and acid-test ratio)
Customer Acquisition Cost
Customer Lifetime Value
Days Inventory Outstanding
Days Sales Outstanding
Debt-to-equity ratio
Deferred Revenue
Discounted Cash Flow (DCF)
EBIT, EBITDA, EBIT margin and EBITDA margin
Expansion Revenue
Free cash flow
Fully Burdened Labor Rate
Gross Dollar Retention
Gross Merchandise Value
Headcount Efficiency Ratio
Incremental budgeting
Interest coverage ratio
Magic Number
Month-End Close Process
Monthly Recurring Revenue
Net Present Value
Net Profit Margin
Net Revenue Retention
Operating Leverage
Operating cash flow
Opportunity Cost
Payback Period
Pipeline Coverage Ratio
Pipeline Velocity
Pre-money valuation, post-money valuation and enterprise value
Product Qualified Lead
Quota Attainment
Renewal rate, Renewal uplift and Renewal pipeline
Return on Investment
Revenue run rate
Rule of 40
Sensitivity Analysis
Vertical analysis
Weighted Average Cost of Capital
What are revenue forecasting methods?
Zero Based Budgeting