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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

Average Revenue per User
Burn rate
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
Free cash flow
Fully Burdened Labor Rate
Gross Merchandise Value
Interest coverage ratio
Magic Number
Net Present Value
Net Revenue Retention
Operating Leverage
Operating cash flow
Opportunity Cost
Payback Period
Pipeline Coverage Ratio
Pre-money valuation, post-money valuation and enterprise value
Return on Investment
Rule of 40
Weighted Average Cost of Capital