accounting periods, 2^nd

accounting policies

accounts

cash flow statements, 2^nd, 3^rd

consolidated

see also balance sheets; profit and loss accounts

accounts payable, 2^nd

accounts payable days ratio, 2^nd

accounts receivable, 2^nd

accounts receivable days ratio, 2^nd, 3^rd, 4^th, 5^th

and asset turnover, 2^nd

and cash flow, 2^nd

acid test ratio, 2^nd, 3^rd

activity ratios

amortisation of loan

appropriation of profits, 2^nd

asset backing

see also book value of shares

asset turnover, 2^nd, 3^rd, 4^th, 5^th, 6^th, 7^th

asset utilisation ratios see activity ratios

asset value of shares see book value of shares

assets

total, 2^nd, 3^rd, 4^th

see also current assets; fixed assets; ROTA (return on total assets)

authorised share capital

average collection period see collection period ratio

average interest cost, 2^nd, 3^rd, 4^th, 5^th, 6^th

average tax rate, 2^nd, 3^rd

balance sheets, 2^nd, 3^rd, 4^th, 5^th

capital employed, 2^nd, 3^rd

company profiles, 2^nd

consolidated

current assets, 2^nd

current liabilities, 2^nd, 3^rd

five-box structure, 2^nd

fixed assets, 2^nd

long-term and short-term analysis, 2^nd

long-term loans, 2^nd, 3^rd

net worth, 2^nd

owners’ funds, 2^nd, 3^rd, 4^th

total assets, 2^nd, 3^rd

vertical layouts, 2^nd, 3^rd, 4^th

working capital, 2^nd, 3^rd, 4^th

bankruptcy

bear markets

bears

benchmarks

bonds

bonus issues

book value of shares, 2^nd, 3^rd, 4^th

borrowing ratio

bottom lines

bull markets

bullets

bulls

CA see current assets

capital employed, 2^nd, 3^rd, 4^th

ROCE (return on capital employed), 2^nd

capital expenditure

capital markets

capital reserves, 2^nd

capital structure

optimal

capital, working see working capital

cash

cash cycle

see also cash flow

cash flow, 2^nd, 3^rd

cash flow per share

and debt

and depreciation, 2^nd, 3^rd

non-operating cash inflows, 2^nd

non-operating cash outflows, 2^nd

operating cash outflows, 2^nd

and profit, 2^nd

see also corporate liquidity; working capital

cash flow statements, 2^nd, 3^rd

CE see capital employed

certificate of deposit

CL see current liabilities

collateral

collection period ratio, 2^nd, 3^rd, 4^th, 5^th

commercial paper

common shares see issued common stock

common size financial statements

company profiles, 2^nd

company value see corporate value

compensating balance

consolidated accounts

corporate liquidity, 2^nd, 3^rd

balancing short-term and long-term, 2^nd

company profiles, 2^nd

current ratio, 2^nd

overtrading, 2^nd, 3^rd

quick ratio, 2^nd, 3^rd

short-term

working capital days ratio, 2^nd, 3^rd

working capital to sales ratio, 2^nd, 3^rd

see also cash flow; working capital

corporate value, 2^nd

book value of shares, 2^nd, 3^rd, 4^th

corporate valuation model, 2^nd

dividend cover ratio, 2^nd, 3^rd

dividend yield ratio, 2^nd, 3^rd

dividends per share (DPS), 2^nd, 3^rd

earnings per share (EPS), 2^nd, 3^rd

earnings yield ratio, 2^nd, 3^rd, 4^th, 5^th, 6^th

internal return versus required return, 2^nd

leverage links between ROTA and ROE, 2^nd, 3^rd, 4^th

market to book ratio, 2^nd, 3^rd, 4^th, 5^th

market value of shares, 2^nd

nominal value of shares, 2^nd

pay-out ratio, 2^nd, 3^rd

price to earnings ratio (P/E), 2^nd, 3^rd

ROE as driver of, 2^nd

costs

as drivers of profit margin, 2^nd

fixed

on profit and loss accounts, 2^nd

variable

covenants, restrictive

credit periods

see also debtor days ratio

current assets, 2^nd, 3^rd

current ratio, 2^nd

miscellaneous, 2^nd

quick ratio, 2^nd, 3^rd

current liabilities, 2^nd, 3^rd, 4^th

current ratio, 2^nd

and debt

quick ratio, 2^nd, 3^rd

current market values

current ratio, 2^nd

debentures

debt

definitions of, 2^nd

levels of

refinancing

debt to equity ratio (D/E), 2^nd, 3^rd, 4^th, 5^th

calculating, 2^nd

definitions of debt, 2^nd

effects of different levels, 2^nd, 3^rd, 4^th, 5^th, 6^th

importance of

purpose of

debt to total assets ratio

debtor days ratio, 2^nd, 3^rd, 4^th, 5^th

departmental ratios

deposit, certificate of

depreciation, 2^nd

and cash flow, 2^nd, 3^rd

dilution

distributable profits

distribution of profits

dividend cover ratio, 2^nd, 3^rd

dividend policies

dividend yield ratio, 2^nd, 3^rd

dividends, 2^nd, 3^rd, 4^th, 5^th

dividends per share (DPS), 2^nd, 3^rd

dividend cover ratio, 2^nd, 3^rd

dividend yield ratio, 2^nd, 3^rd

pay-out ratio, 2^nd, 3^rd

earnings after tax see EAT (earnings after tax)

earnings before interest and tax see EBIT (earnings before interest and tax)

earnings before tax see EBT (earnings before tax)

earnings growth

earnings per share (EPS), 2^nd, 3^rd

dilution

dividend cover ratio, 2^nd, 3^rd

earnings yield ratio, 2^nd, 3^rd, 4^th, 5^th, 6^th

pay-out ratio, 2^nd, 3^rd

price to earnings ratio (P/E), 2^nd, 3^rd

earnings yield ratio, 2^nd, 3^rd, 4^th, 5^th, 6^th

EAT (earnings after tax)

in calculation of ROE, 2^nd, 3^rd

earnings per share ratio, 2^nd

EBIT (earnings before interest and tax)

in calculation of profit margin

in calculation of ROCE

in calculation of ROTA, 2^nd

interest cover ratio, 2^nd, 3^rd

EBITDA (earnings before interest, tax, depreciation and amortisation)

EBT (earnings before tax)

average tax rate, 2^nd, 3^rd

in calculation of ROE

employee ratios

EPS see earnings per share (EPS)

equipment

equity, 2^nd

see also debt to equity ratio (D/E); owners’ funds; ROE (return on equity)

equity gearing

example company data, 2^nd, 3^rd

FA see fixed assets

face value of shares, 2^nd

factoring

financial engineering see financial leverage

financial leverage, 2^nd, 3^rd

average interest cost, 2^nd, 3^rd, 4^th, 5^th, 6^th

average tax rate, 2^nd, 3^rd

effects of different levels, 2^nd, 3^rd, 4^th

links between ROTA and ROE, 2^nd, 3^rd, 4^th

risks, 2^nd, 3^rd

see also debt to equity ratio (D/E)

financial statements

cash flow statements, 2^nd, 3^rd

common size

see also balance sheets; profit and loss accounts

financial strength

interest cover ratio, 2^nd, 3^rd

see also debt to equity ratio (D/E)

fixed assets, 2^nd, 3^rd

and asset turnover, 2^nd

querying value of

sale of

sales to fixed assets ratio

valuation of

fixed costs

floating rate note (FRN)

free borrowing percentage

gearing

see also financial leverage

general reserve see revenue reserves

gilts, 2^nd

goodwill

government grants

government stocks

growth, 2^nd, 3^rd, 4^th, 5^th

income see revenue

inflation

intangible assets, 2^nd

interest, 2^nd, 3^rd, 4^th, 5^th

average interest cost, 2^nd, 3^rd, 4^th, 5^th, 6^th

interest cover ratio, 2^nd, 3^rd

interest rates, 2^nd, 3^rd

internal return versus required return, 2^nd

inventories, 2^nd

and asset turnover, 2^nd

inventory days ratio, 2^nd, 3^rd, 4^th, 5^th

querying value of

investment fund managers, 2^nd

investments, 2^nd, 3^rd

investor ratios

book value of shares, 2^nd, 3^rd, 4^th

dividend cover ratio, 2^nd, 3^rd

dividend yield ratio, 2^nd, 3^rd

dividends per share (DPS), 2^nd, 3^rd

earnings per share (EPS), 2^nd, 3^rd

earnings yield ratio, 2^nd, 3^rd, 4^th, 5^th, 6^th

market to book ratio, 2^nd, 3^rd, 4^th, 5^th

market value of shares, 2^nd

nominal value of shares, 2^nd

pay-out ratio, 2^nd, 3^rd

price to earnings ratio (P/E), 2^nd, 3^rd

issued common stock, 2^nd, 3^rd, 4^th, 5^th

book value, 2^nd, 3^rd, 4^th

dividend cover ratio, 2^nd, 3^rd

dividend yield ratio, 2^nd, 3^rd

dividends per share (DPS), 2^nd, 3^rd

earnings per share (EPS), 2^nd, 3^rd

earnings yield ratio, 2^nd, 3^rd, 4^th, 5^th, 6^th

market to book ratio, 2^nd, 3^rd, 4^th, 5^th

market value, 2^nd

nominal value, 2^nd

pay-out ratio, 2^nd, 3^rd

price to earnings ratio (P/E), 2^nd, 3^rd

lease finance versus lease

leverage see financial leverage

leveraged buy-out

liabilities

long-term loans, 2^nd, 3^rd, 4^th, 5^th, 6^th

querying value of

see also current liabilities; owners’ funds

LIBOR (London InterBank Offered Rate)

liquidity

see also corporate liquidity

loan repayments, 2^nd

loans

long-term, 2^nd, 3^rd, 4^th, 5^th, 6^th

short-term, 2^nd, 3^rd, 4^th, 5^th

long-term assets see fixed assets

long-term funds

miscellaneous

see also long-term loans; owners’ funds

long-term loans, 2^nd, 3^rd, 4^th, 5^th, 6^th

LTL see long-term loans

margin on sales, 2^nd, 3^rd, 4^th, 5^th, 6^th

market capitalisation, 2^nd, 3^rd, 4^th

market to book ratio, 2^nd, 3^rd, 4^th, 5^th

market to book ratio, 2^nd, 3^rd, 4^th, 5^th

market value of shares, 2^nd

marketing department ratios

matching principle

minority interests

miscellaneous current assets, 2^nd

miscellaneous long-term funds

net fixed assets

net working capital see working capital

net worth, 2^nd, 3^rd, 4^th

nominal value of shares, 2^nd

non-current assets see fixed assets

non-operating cash inflows, 2^nd

non-operating cash outflows, 2^nd

NW see net worth

OF see owners’ funds

off-balance sheet

operating expenses, 2^nd

operating performance see performance drivers

optimal capital structure

ordinary funds see owners’ funds

overtrading, 2^nd, 3^rd

owners’ funds, 2^nd, 3^rd, 4^th, 5^th

market to book ratio, 2^nd, 3^rd, 4^th, 5^th

net worth, 2^nd, 3^rd, 4^th

value of, 2^nd

see also debt to equity ratio (D/E); ROE (return on equity)

paid borrowing percentage

par value of shares, 2^nd, 3^rd

PAT (profit after tax), 2^nd

see also EAT (earnings after tax)

pay-out ratio, 2^nd, 3^rd

PBIT (profit before interest and tax), 2^nd

see also EBIT (earnings before interest and tax)

PBITD (profit before interest, tax and depreciation)

PBT (profit before tax), 2^nd

see also EBT (earnings before tax)

pension fund managers, 2^nd

performance drivers

asset turnover, 2^nd, 3^rd, 4^th, 5^th, 6^th, 7^th

model variations, 2^nd

operating profit model, 2^nd

profit margin, 2^nd, 3^rd, 4^th, 5^th, 6^th

preference capital

preferred creditors

price to earnings ratio (P/E), 2^nd, 3^rd

production department ratios

profit after tax (PAT), 2^nd

see also EAT (earnings after tax)

profit and loss accounts, 2^nd, 3^rd

accounting periods, 2^nd

appropriation of profits, 2^nd

and cash flow

costs, 2^nd

EAT (earnings after tax)

EBIT (earnings before interest and tax)

EBT (earnings before tax)

retained earnings

revenue, 2^nd

profit and loss appropriation accounts

profit before interest and tax (PBIT), 2^nd

see also EBIT (earnings before interest and tax)

profit before interest, tax and depreciation (PBITD)

profit before tax (PBT), 2^nd

see also EBT (earnings before tax)

profit margin, 2^nd, 3^rd, 4^th, 5^th, 6^th

property

public utility companies, 2^nd

quick ratio, 2^nd, 3^rd

rates of return

RE see retained earnings

recession, 2^nd

reconciliation

reserves

capital, 2^nd

revenue, 2^nd

retained earnings, 2^nd

see also revenue reserves

retention policies

return on assets (ROA)

see also ROTA (return on total assets)

return on capital employed (ROCE), 2^nd

return on equity (ROE) see ROE (return on equity)

return on investment (ROI), 2^nd

see also ROE (return on equity); ROTA (return on total assets)

return on total assets (ROTA) see ROTA (return on total assets)

revenue, 2^nd

revenue reserves, 2^nd

rights issue

ROA see return on assets (ROA)

ROCE (return on capital employed), 2^nd

ROE (return on equity), 2^nd, 3^rd, 4^th, 5^th, 6^th

as driver of corporate value, 2^nd

and leverage, 2^nd, 3^rd, 4^th

leverage links with ROTA, 2^nd, 3^rd, 4^th

pre-tax version, 2^nd, 3^rd

on V chart, 2^nd

ROI see return on investment (ROI)

ROTA (return on total assets), 2^nd, 3^rd, 4^th, 5^th

drivers of, 2^nd, 3^rd, 4^th

leverage links with ROE, 2^nd, 3^rd, 4^th

on V chart, 2^nd

salaries/wages, 2^nd

sale of fixed assets

sales

accounts payable days ratio, 2^nd

accounts receivable days ratio, 2^nd, 3^rd, 4^th, 5^th

asset turnover, 2^nd, 3^rd, 4^th, 5^th, 6^th, 7^th

inventory days ratio, 2^nd, 3^rd, 4^th, 5^th

profit margin, 2^nd, 3^rd, 4^th, 5^th, 6^th

sales to fixed assets ratio

working capital to sales ratio, 2^nd, 3^rd

seasonal variation

senior debt

share holdings

share premium

shareholders see investor ratios

shareholders’ funds

see also owners’ funds

shares, issued see issued common stock

short-term assets see current assets

short-term liabilities see current liabilities

short-term loans, 2^nd, 3^rd, 4^th, 5^th

snapshots, 2^nd

spontaneous financing

stability, 2^nd, 3^rd, 4^th

statutory reserves

STL see short-term loans

stock days ratio, 2^nd, 3^rd, 4^th, 5^th

stock, issued see issued common stock

stock market, 2^nd, 3^rd

see also investor ratios

stocks see inventories

subsidiary companies, 2^nd

sundry accruals

TA see total assets

tangible assets

tax, 2^nd, 3^rd, 4^th, 5^th

average tax rate, 2^nd, 3^rd

technology companies, 2^nd

term loan

total assets, 2^nd, 3^rd, 4^th

see also ROTA (return on total assets)

total equity see owners’ funds

total tangible assets

trade debtors see accounts receivable

treasury stock

V chart, 2^nd, 3^rd

variable costs

VAT

WC see working capital

window dressing

working capital, 2^nd, 3^rd, 4^th, 5^th

cash flow, 2^nd

working capital days ratio, 2^nd, 3^rd

working capital to sales ratio, 2^nd, 3^rd

yield ratios

dividend yield ratio, 2^nd, 3^rd

earnings yield ratio, 2^nd, 3^rd, 4^th, 5^th, 6^th