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

Current ratio (quick ratio and acid-test ratio)
Customer Acquisition Cost
Days Inventory Outstanding
Days Sales Outstanding
Debt-to-equity ratio
EBIT, EBITDA, EBIT margin and EBITDA margin
Fully Burdened Labor Rate
Interest coverage ratio
Net Present Value
Operating Leverage
Operating cash flow
Opportunity Cost
Payback Period
Pipeline Coverage Ratio
Return on Investment
Rule of 40
Weighted Average Cost of Capital