Return on Investment (ROI): A measure of the profitability of an investment, calculated as the ratio of the net profit to the initial cost of the investment.
Revenue: The total income generated by a business from its primary operations, such as sales of goods or services.
Profit Margin: A ratio of profitability calculated as net income divided by revenue, expressing the percentage of profit earned from total sales.
Earnings Before Interest and Taxes (EBIT): A measure of a company’s profitability that excludes interest and income tax expenses.
Balance Sheet: A financial statement that provides a snapshot of a company’s financial position at a specific point in time, showing its assets, liabilities, and shareholders’ equity.
Income Statement: A financial statement that summarizes a company’s revenues, expenses, and profits over a specific period of time.
Cash Flow: The net amount of cash and cash equivalents being transferred into and out of a business.
Accounts Receivable: The amount of money owed to a company by its customers for goods or services delivered but not yet paid for.
Accounts Payable: The amount of money that a company owes to its suppliers or creditors for goods or services received but not yet paid for.
Dividend: A distribution of a portion of a company’s earnings to its shareholders.
Capital Expenditure (CapEx): Money spent by a company to acquire, upgrade, and maintain physical assets such as property, buildings, or equipment.
Liquidity: The ability of a company to meet its short-term financial obligations and convert assets into cash quickly.
Debt-to-Equity Ratio: A financial ratio that indicates the proportion of debt used to finance a company’s assets relative to shareholders’ equity.
Risk Management: The identification, assessment, and prioritization of risks, and the application of resources to minimize or control the impact of these risks.
Hedging: A strategy used to reduce or offset the risk of adverse price movements in assets or liabilities.
Amortization: The process of spreading the cost of an intangible asset over its useful life.
Financial Statement Analysis: The process of reviewing and evaluating a company’s financial statements to make informed business decisions.
