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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
Accrued Payroll
Average Revenue per User
Billings-to-Collections ratio
Burn 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
EBIT, EBITDA, EBIT margin and EBITDA margin
Free cash flow
Fully Burdened Labor Rate
Gross Dollar Retention
Headcount Efficiency Ratio
Incremental Budgeting
Interest coverage ratio
Magic Number
Net Present Value
Net Revenue Retention
Operating Leverage
Operating cash flow
Opportunity Cost
Payback Period
Pipeline Coverage Ratio
Product Qualified Lead
Return on Investment
Rule of 40
Weighted Average Cost of Capital
What is gross merchandise value?
What is pre-money valuation, post-money valuation and enterprise value?
Zero Based Budgeting