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