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Glossary

Glossary of terms, and definitions, of formulae I use

BSR - Buffett Solvency Ratio

CCC - Cash Conversion cycle xlink

EBIT - Earnings Before Interest and Tax - it includes operating profit together with some some non-operating profit, like Investment Income.
EBIT = Net Income + Interest Expense + Taxes
Source

EGP1 - Earnings Growth Projected yr 1

EGP2 - Earnings Growth Projected yr 2


EV - Enterprise Value - measures the "asset value" to operate the business. It shouldn't include cash because it's not necessary to operate the business.
Definition 1:

EV = (1) market cap + (2) value of debt financing + (3) other liabilities
(2) will include bonds and bank loans, but not items such as trade creditors
(3) such as pension deficit
Source
Definition 2:
EV = market cap + debt - cash (and usually, + prefs + minority interests)
Debt should only consist of interest-bearing liabilities
Source


FCF - Free Cash Flow - external link

FR - flow ratio - evaluates working capital

G-Score - Avoiding Falling Stars using Mohanram's G-Score External Link

GEAR - Gearing (including intangibles)

GG - Graham Gearing = 100 x (Shareholders Funds-Minorities-Prefs) / (Fixed Assets + Current Assets) Graham's Simplest Way

GR - Graham Ratio = MKT/NCAV More

IC - Interest cover

M - Beneish M-score - statistic for identifying earnings manipulation - External Link

MKT - market capitalisation

MCX - Maintenance Capital

NCASH - net cash

NVAC - net current asset value: Net Current Assets minus non current liabilities (including provisions)

O-Score - short-selling screen based on identifying firms with a high likelihood of earnings overstatement, as well as unrealistic market expectations, poor current operating cash flow, a history of merger activity, and recent / excessive issuances of stock. External Link

PBV - Price to Book Value

PER - P/E Ratio

PTBV - Price to Tangible Book Value

ROA - Return On Assets

ROCE - Return on Capital Employed

ROE - Return On Equity = Net Income/Total Assets

ROIC - Return On Invested Captial - xlink

SP - share price

TGEAR - tangible gearing ratio

YLD - yield percent

Z - z-score


Links to other sites

  • ifs glossary - defines such terms as capital expenditure to sales, debt to market capitalisation.
  • Money terms - explains many accounting and finance terms
    Author:  Mark Carter
    Created: 09-Nov-2010
    Updated: 23-Dec-2012