Brian Feroldi
I demystify the stock market | Author, Speaker, Creator | 100,000+ investors read my free newsletter (see link)
- Report this post
Investing Abbreviations Cheat SheetIf you want to invest, you MUST understand the lingo.Use this mega-list of investing abbreviations as a handy cheat sheet:1H– First half of the year24/7–24 hours a day, seven days a weekAOP–Adjusted Operating ProfitAP–Accounts payableAR–Accounts receivableARPU–Average revenue per userBLS–Balance sheetBOM–Bill of materialsB2B–Business-to-businessB2C–Business to ConsumerB2G–Business-to-governmentCAGR–Compound annual growth rateCAPEX–Capital ExpenditureCAPM–Capital asset pricing modelCEO–Chief executive officerCFA–Chartered Financial AnalystCFO–Chief Financial OfficerCOE–Cost of EquityCOGS–Cost of Goods SoldCPI–Consumer Price IndexDPO–Days Payable OutstandingDSO–Days Sales OutstandingEAY–Effective Annual YieldEBIT - Earnings before Interest & TaxesEBT - Earnings before TaxesEBITA–Earnings before interest and taxes and amortizationEBITDA–Earnings before Interest, Taxes, Depreciation, and AmortizationEPS–Earnings per shareFIFO–First In, First OutFY–Fiscal yearorFinancial yearGAAP–Generally Accepted Accounting PrinciplesGDP–Gross Domestic ProductGP–Gross ProfitG&A–General and Administration expenseIE–Interest expenseIPO–Initial public offeringIRR–Internal Rate of ReturnKPI–Key Performance IndicatorLIFO–Last In, First OutLLC–Limited Liability CompanyLTV–Loan to ValueMoM– Month on Month / Month over MonthMTD–Month-to-dateNAV–Net asset valueNOPAT–Net Operating Profit After TaxNYSE–New York Stock ExchangeOKR–Objectives and key resultsP&L–Profit and LossP/E–Price-to-earnings ratioPEG–Price-to-earnings growth ratioPP&E–Property, plant, and equipmentQTD–Quarter-to-dateRE–Retained EarningsREIT–Real Estate Investment TrustROA–Return on assetsROCE–Return on Capital EmployedROE–Return on EquityROI–Return on InvestmentROIC–Return on Invested CapitalR&D–Research and DevelopmentS&M– Sales & MarketingSAAS–Software-as-a-ServiceSAM– Serviceable Addressable MarketSEC–Securities and Exchange CommissionSG&A–Sales, General, and Administrative expensesTSR–Total shareholder returnTTM– Trailing Twelve MonthsVC–Venture CapitalWACC–Weighted average cost of capitalYTD–Year-to-date***P.S. Want to understand how the stock market works (for free)?Enroll in my 5-day email course: https://lnkd.in/eBUBw8FbEach day, I'll email you 1 lesson that demystifies the stock market. I'll explain what the stock market is, how it works, and how to get started investing.If you found this post useful, please repost ♻️ to share with your audience.
515
29 Comments
Lucas Bean
Cofounder & CEO @ Social Proof | Leader, Ai, Adtech, Analytics, AiO, Fintech, Games, Entertainment, Web3, Creator Economy | ex Atari, Sony, Experian, Deloitte | User Acquisition Expert | speaker, advisor, ENTP
4mo
- Report this comment
Great cheat sheet here Brian bookmarked
4Reactions 5Reactions
Brian Salcetti, AIF®, CIMA®
CEO, Managing Partner at Sandbox Financial Partners ** Fiduciary ** Forbes Best-in-State Wealth Advisor
4mo
- Report this comment
This is the key or navigating the financial world. Thank you for sharing!
3Reactions 4Reactions
Blake Millard, CFA®
Director of Investments, Sandbox Financial Partners
4mo
- Report this comment
These are super helpful for reports, discussions, and make informed investment decisions. Thank you for this great post!
3Reactions 4Reactions
Muhammad Shahjahan
Accounts Executive |Income Tax and Vat |Budget Management |Financial Analyst | HR Management |Data analyst |Store Management
4mo
- Report this comment
Nice post
2Reactions 3Reactions
Dave Ahern
Helping Simplifying Finance | 17k+investors read our free Nuggets (see link)
4mo
- Report this comment
Learning to invest is like learning a new language. This cheat sheet will go a long ways towards helping decipher the language of money. 👏👏
1Reaction
Clint Murphy
I simplify psychology, success and money by sharing advice from mentors, expert authors and my life. CFO | Creator | Investor| Entrepreneur
4mo
- Report this comment
This is a fantastic reference! Investing can be overwhelming with all the jargon, and this cheat sheet is like a decoder for the financial world.
1Reaction
Ewaz Ali Haidari
Student at Bangalore University
4mo
- Report this comment
Please can you assist me in Cash Flow Statement?Really I need help as MBA students I have serious faced difficulty in financial Accounting 😞
1Reaction 2Reactions
Richard Bejarano
Accounts Receivable Manager / Credit Manager / Accounting & Finance / Operations Management / Entrepreneur
4mo
- Report this comment
I am saving this and also printing it out for my office.
1Reaction
Dave Kline
Training leaders on the playbook for leading high-performance teams. Entrepreneur | Writer | Speaker | Coach | 175K+ Social Media followers.
4mo
- Report this comment
The periodic table of investing?
1Reaction 2Reactions
To view or add a comment, sign in
More Relevant Posts
-
Niraj Patel
Attended Leeds Beckett University
- Report this post
explained in detail......
See AlsoBasics of Financial AccountingLike CommentTo view or add a comment, sign in
-
Long Term Mindset
12,981 followers
- Report this post
Profit Ratios every investor should know: 💸Accounting is the language of business.Level up your business & investing skills by memorizing these ratios:1: Gross Margin➡️What: The percentage of revenue that is translated into gross profit.🟰 Formula: Gross Profit / Sales2: EBITDA Margin➡️What: The percentage of sales that turns into profit before interest, taxes, depreciation, and amortization are subtracted.🟰 Formula: EBITDA / Sales3: Operating Margin➡️What: The percentage of sales that turn into operating income.🟰 Formula: Operating Income / Sales4: EBIT Margin➡️What: The percentage of sales that turns into profit before interest & taxes are subtracted.🟰 Formula: Earnings Before Interest & Taxes / Sales5: EBT Margin (Pre-Tax Margin)➡️What: Percentage of sales that turn into operating income.🟰 Formula? Earnings Before Taxes / Sales6: Net Profit Margin➡️What: Percentage of sales that remains as profit after all costs are subtracted.🟰 Formula: Net Income / Sales7: Free Cash Flow Margin➡️What: The percentage of sales translated into free cash flow.🟰 Formula: Free Cash Flow / Sales8: Earnings Per Share (EPS)➡️What: How much money a company makes for each share outstanding.🟰 Formula: Net Income / Shares Outstanding9: Return On Assets (ROA)➡️What: How much profit a company generates from its total assets.🟰 Formula: Net Income / Total Assets10: Return On Equity (ROE)➡️What: Measures how profitable a company is in relation to its equity (the money shareholders have invested in the business).🟰 Formula: Net Income / Equity11: Return On Invested Capital (ROIC)➡️What: Shows you how efficiently a company is allocating capital.🟰 Formula: NOPAT / Total Invested Capital12: Return On Capital Employed (ROCE)➡️What: Measures the profitability of a company and the efficiency with which it uses its capital.🟰 Formula: EBIT / Long-Term Debt + Equity13: Free Cash Flow Conversion➡️What: Measures how much earnings are translated into free cash flow🟰 Formula: Free Cash Flow / Net Income14: Owner's Earnings➡️What: Measures how much cash can be taken out of the business and given to owners🟰 Formula: Net Income + (Depreciation & Amortization) +/- Non Cash Charges - Maintenance Capex +/-Changes in working capitalWhat ratios do you track before making an investment? Let me know in the comments section below!FollowLong Term Mindset for more content like this.***Want to master the basics of accounting (for free)?Enroll in our free, 5-day, email-based course that explains the Balance Sheet, Income Statement, and Cash Flow Statement in plain English.Check it out here (It's free) →https://lnkd.in/eKbRV7g6If this post was helpful, repost it ♻️ to share with your audience.
186
2 Comments
Like CommentTo view or add a comment, sign in
-
Robert Moskowitz
- Report this post
Reasons Change – So Can YouByRobert MoskowitzThere’s a financial system calledZero-Based Budgeting, once extremely fashionable and still used in some companies, that requires every recurring expenditure to be fully reconsidered each time it comes up. In other words, just because a company spent a certain amount on an item last year doesn’t mean it should spend that same amount – or any amount – again this year. The idea is to start at zero and justify every dollar of spending.It’s an interesting principle you can apply far more widely than dollars and cents:https://lnkd.in/giU6H-TZ
Like CommentTo view or add a comment, sign in
-
Nafees Ul Hassan ✨Financial Controller Expert📌Virtual Bookkeeper✨
Empowering Small & Medium Businesses, CEOs, Founders, and Agencies to Optimize Portfolios for Success | Strategic Portfolio Streamlining Expert | Financial Reporting & Analysis Expert | QuickBooks & Xero Pro 📊💼✨
- Report this post
14 Profit Ratios every investor should know: 💸Accounting is the language of business.Level up your business & investing skills by memorizing these ratios:1: Gross Margin➡️What: The percentage of revenue that is translated into gross profit.🟰 Formula: Gross Profit / Sales2: EBITDA Margin➡️What: The percentage of sales that turns into profit before interest, taxes, depreciation, and amortization are subtracted.🟰 Formula: EBITDA / Sales3: Operating Margin➡️What: The percentage of sales that turn into operating income.🟰 Formula: Operating Income / Sales4: EBIT Margin➡️What: The percentage of sales that turns into profit before interest & taxes are subtracted.🟰 Formula: Earnings Before Interest & Taxes / Sales5: EBT Margin (Pre-Tax Margin)➡️What: Percentage of sales that turn into operating income.🟰 Formula? Earnings Before Taxes / Sales6: Net Profit Margin➡️What: Percentage of sales that remains as profit after all costs are subtracted.🟰 Formula: Net Income / Sales7: Free Cash Flow Margin➡️What: The percentage of sales translated into free cash flow.🟰 Formula: Free Cash Flow / Sales8: Earnings Per Share (EPS)➡️What: How much money a company makes for each share outstanding.🟰 Formula: Net Income / Shares Outstanding9: Return On Assets (ROA)➡️What: How much profit a company generates from its total assets.🟰 Formula: Net Income / Total Assets10: Return On Equity (ROE)➡️What: Measures how profitable a company is in relation to its equity (the money shareholders have invested in the business).🟰 Formula: Net Income / Equity11: Return On Invested Capital (ROIC)➡️What: Shows you how efficiently a company is allocating capital.🟰 Formula: NOPAT / Total Invested Capital12: Return On Capital Employed (ROCE)➡️What: Measures the profitability of a company and the efficiency with which it uses its capital.🟰 Formula: EBIT / Long-Term Debt + Equity13: Free Cash Flow Conversion➡️What: Measures how much earnings are translated into free cash flow🟰 Formula: Free Cash Flow / Net Income14: Owner's Earnings➡️What: Measures how much cash can be taken out of the business and given to owners🟰 Formula: Net Income + (Depreciation & Amortization) +/- Non Cash Charges - Maintenance Capex +/-Changes in working capitalWhat ratios do you track before making an investment? Let me know in the comments section below!-----------Hi 👋 - thanks for reading!________➕ Follow meNafees Ul Hassan ✨Virtual Bookkeeping and Ecom Expert✨for more content like this.________#entrepreneur#finance#business#bookkeeping#accounting#professionalgrowth#personalgrowthjourney#bookkeepingservices#accountant#bookkeeper#growthmindset#trendingtopic#balancesheet#financialadviser#financialanalysis#financialcheatsheet#cashflow#financialstatements#corporate
5
Like CommentTo view or add a comment, sign in
-
Ali Akbar
Lead Mechanical Engineer - Engineering Services - TSD at OQ RPI
- Report this post
Heads and Leaders should aware….
3
Like CommentTo view or add a comment, sign in
-
The Accounting Detective
144 followers
- Report this post
💎 Are you looking to gain a better understanding of a company's profitability and performance?💎 Do you know what EBITDA stands for? It stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and is a financial metric that provides a comprehensive view of a company's profitability.🛑 EBITDA is not a standardized accounting measure, but it is widely used in many industries to help evaluate and benchmark companies. It focuses solely on a company's core operations and can provide a clearer picture of its ability to generate profits.🛑 It is important to note that EBITDA has its limitations. While it provides a useful measure of operational performance, it does not reflect a company's cash flow or its ability to generate sustainable long-term profits.💎 EBITDA can be particularly useful when analyzing companies with different capital structures. By excluding interest expenses, EBITDA provides a clearer view of a company's operating performance, regardless of its debt levels or financing decisions.💎 EBITDA can also be a valuable tool for investors and analysts when assessing the financial health of a company. By providing a clearer view of a company's operating performance, EBITDA helps to identify potential areas of improvement or areas of concern.💎 EBITDA allows for easier comparisons between companies within the same industry. Since EBITDA eliminates the impact of different tax rates, financing structures, and depreciation policies, it provides a standardized metric for benchmarking and evaluating operational efficiency.Read our blog to learn more about the benefits of tracking EBITDA!https://lnkd.in/gkN79aqX#finance#accountingquestions#founders#businessowners#EBITDA#accounting#controllerservices
1
Like CommentTo view or add a comment, sign in
-
Chris Reilly (Financial Modeling Education)
I will help you become a Financial Modeling expert without spending a fortune on traditional education.
- Report this post
An easy way to forecast capex ↓Here's my favorite part about the budgeting process:It's late October... Revenue and EBITDA look good,you're about to hit submit, and then from the shadows someone yells,"𝙬𝙖𝙞𝙩, 𝙬𝙝𝙖𝙩 𝙖𝙗𝙤𝙪𝙩 𝙘𝙖𝙥𝙚𝙭?"Everyone looks around and then the "ohhhhh whoops" feeling sets in.We forgot capex. Completely.Why? It's not part of the P&L so it often gets overlooked until the end.The truth is —𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗘𝘅𝗽𝗲𝗻𝗱𝗶𝘁𝘂𝗿𝗲𝘀 𝗼𝗿 "𝗖𝗮𝗽𝗲𝘅" 𝗶𝘀 𝗶𝘁'𝘀 𝗼𝘄𝗻 𝘀𝗲𝗽𝗮𝗿𝗮𝘁𝗲 𝗯𝘂𝗱𝗴𝗲𝘁.It just happens to hit the Balance Sheet (& therefore Cash Flow Statement) instead of the P&L.———There's good news, however — it's actually a fairly easy process.But first, what is "capex"?"𝗖𝗮𝗽𝗲𝘅" 𝗶𝘀 𝗰𝗮𝘀𝗵 𝘄𝗲 𝘀𝗽𝗲𝗻𝗱 𝘁𝗼𝗱𝗮𝘆 (𝘁𝗼 𝗮𝗰𝗾𝘂𝗶𝗿𝗲 𝗮𝗻 𝗮𝘀𝘀𝗲𝘁) 𝘁𝗵𝗮𝘁 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝘂𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲.We depreciate the 𝗰𝗼𝘀𝘁 in the future to satisfy the "matching principle"Why depreciate?Well if I buy a delivery truck, that truck will help me generate Revenue over the next [7] years or so (by making deliveries).So, I need to "match" its cost against the Revenue it helps me generate.———So with that in mind, here's how we can build it:Take a look at the image below...I've got two identical sections (in terms of layout) that do slightly different things.The first is the "capex" section, and this is where I list the actual project and what it will cost.So the very first entry, I'm saying, "I'd like to buy a $75,000 truck in February of 2027 and I think it will last me 8 years (the "useful life")."And you can see over to the right the 𝗰𝗮𝘀𝗵 𝗶𝗺𝗽𝗮𝗰𝘁 -- $75,000 goes out in February of 2027.———Now, the second section:You can see that same new truck is listed at the top, but over to the right it's different...In February 2027 you see $781 that continues monthly.That is the 𝗱𝗲𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻 = $75,000 / 8 years / 12 months = $781 per month.Effectively, the depreciation makes an accounting adjustment to my cash cost so that the expense of the asset 𝙢𝙖𝙩𝙘𝙝𝙚𝙨 the Revenue it helps create.———From there, it's just a link-up to my 3 Statement Model:✅ (1) the Capex links to the Fixed Asset account like this:◼️ Prior Period balance 𝘱𝘭𝘶𝘴 the new Capex(if done correctly, this will let me see the $75,000 in the Cash Flow Statement)✅ (2) the Depreciation links to my Income Statement, and;✅ (3) it gets captured on my Balance Sheet in Accumulated Depreciation◼️ Prior Period balance 𝘱𝘭𝘶𝘴 the new Depreciation(if done correctly, this will zero out any "cash impact" of Depreciation in my Cash Flow Statement)———The net impact of it all?I'm showing the cash out the door today, but also have the correct accounting treatment of depreciating the cost in the future 👍𝙒𝙖𝙣𝙩 𝙩𝙝𝙚 𝙩𝙚𝙢𝙥𝙡𝙖𝙩𝙚?Download it for free in the comments below 🔽
350
13 Comments
Like CommentTo view or add a comment, sign in
-
Peter Cullen
Director of Finance and Administration at Macnica Americas
- Report this post
Unlock Growth for Small Businesses with Budgeting: Learn how budgeting isn't just for finance teams but a tool for the whole organization. Perfect for accountants and business owners looking to maximize growth potential. https://oal.lu/TpxFl #QuickBooksSolutionProvider
Like CommentTo view or add a comment, sign in
-
Richard Hankins
Named Account Executive | USMC Veteran | Veteran Advocate | FMR S&P Global
- Report this post
Knowing where things are in a budget plan is pretty important as we begin trudging through FY25.I don't just mean, "did my cool product make the cut for Q2 this year?"I mean which categories & departments will be bear the financial cost too.I'm no finance guru, but I do know that which bucket of funds my solution is pulling from is going to have an impact.Is my solution in the Marketing team's budget?I once had a CEO describe the marketing budget as a black hole, so this may be under real time scrutiny in a down market.Am I a part of the Operations budget?This can be pretty cool actually, my understanding is that when reporting, this one doesn't always get line by line expenditure scrutiny until strategic times in the year.Also, operations budget almost always has built in room for growth, so all-in-all not a bad area to target.Sales, Product, IT, Finance (yes, even the CF-No's team) will all have their funds and have a different set of "keys" for unlocking access to them.Knowing personas remains extremely important, but also knowing how things are reported can allow more flexibility, especially mid-cycle.Taking this a step further, if my target company issues earning statements or is publicly traded with the required reporting, I take good hard looks at those resources.Explicit goals are listed for each part of the business, and the vision overall for the company.This allows the potential of multiple teams being involved and spread loading budget for any future solutions.I'm no expert, and I am quite often wrong.This is just what I've learned over time and what helps me plan.
5
Like CommentTo view or add a comment, sign in
-
Judy Thornell
President and Founder \ Accounting & Business Solution Leader \ Building relationships and fostering internal energy that pays dividends for our enterprise customers & partners
- Report this post
Unlock Growth for Small Businesses with Budgeting: Learn how budgeting isn't just for finance teams but a tool for the whole organization. Perfect for accountants and business owners looking to maximize growth potential. https://oal.lu/f3A7i #BaytekLLC
Like CommentTo view or add a comment, sign in
130,385 followers
- 3000+ Posts
View Profile
FollowExplore topics
- Sales
- Marketing
- Business Administration
- HR Management
- Content Management
- Engineering
- Soft Skills
- See All