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You are here: Home » Financial Concepts

Financial Concepts Dictionary

Below is a list of financial concepts with their definitions, examples, and a quote from our book Financial Intelligence.  Use these financial concepts as a quick reference guide, a way to further your own education, or as a resource to train others.  If there is a concept that you are looking for that we haven’t addressed, drop us a line and we’ll add it.

All | A B C D E F G H I L M N O P Q R S T V W
There are currently 20 names in this directory
A
Above the Line, Below the Line

Accounts Payable

Accounts Receivable

Accruals

Acid Test

Acquisitions

Acronyms

Allocations

Amortization

Assets

B
Balance Sheet

Breakeven

Buying Back Stock

C
Capital

Capital Expenditures (CapEx)

Cash

Cash Flow Statement

Conservatism

Contribution Margin

Cost of Goods Sold & Cost of Services

Current Assets

Current Liabilities

Current Ratio

D
Days in Inventory

Days Payable Outstanding

Days Sales Outstanding

Debt to Equity Ratio

Depreciation

Dividends

E
Earnings per Share

EBIT or Operating Profit

EBITDA

Equity, Owners Equity

Expenses

Expensing vs Capitalizing

F
Financing A Company

Fiscal Year

Fixed Costs

Free Cash Flow

G
GAAP

Goodwill

Gross Profit

Gross Profit Margin

H
Historical Value

I
Income, Profit, Bottom Line

Income Statement

Intangible Assets

Inventory

Inventory Turns

L
Language of Finance

Liabilities

M
Matching Principle

Materiality

N
Net Income, Net Profit, Net Earnings

Net Profit Margin

Non-GAAP Financials

Noncash Expense

O
Operating Expenses

Operating Profit Margin

Operating Profit or EBIT

Opportunity Cost

Owner Earnings

Owners Equity

P
Profit, Income, Bottom Line

Profit and Loss Statement, P&L Statement

Property, Plant & Equipment Turnover

Q
Quick Ratio

R
Reconciliation

Research and Development (R&D)

Retained Earnings

Return on Assets

Return on Equity

Return on Investment ROI

Revenue Growth

Revenue, Sales, Top Line

S
SG&A, Selling, General & Administrative Expenses

Smoothing Earnings

Statement of Cash Flows

Statement of Earnings, Statement of Operations

Stockholders' Equity

T
Total Asset Turnover

V
Variable Costs

W
Working Capital

Financial Concepts in a Comic Book?

Financial Intelligence Comic Exerpt

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We wrote the book on Finance!

Financial Intelligence Books

Financial Intelligence takes you through all the financial statements and financial jargon giving you the confidence to understand what it all means and why it matters.

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