Untitled Flashcard Set

Balance Sheet (BS)

A financial statement that shows the overall health of a company at a particular date.

Issued Bonds

Long-term liabilities where companies give cash to others and receive payment back with interest.

Equity

The value of a company, including capital stock and retained earnings.

Working Capital

Calculated as Current Assets (CA) minus Current Liabilities (CL); indicates liquidity.

Income Statement (IS)

A financial statement showing details behind profit, typically for a specific period.

Revenue Recognition

Revenue is recorded when a deal is done, regardless of cash flow.

Cash Inflow

Cash that is received by the company and recorded at the time of receipt.

Vertical Analysis

A method of financial analysis where items are expressed as a percentage of a total, often used in comparative financial statements.

Horizontal Analysis

Comparing a given item over time to identify trends.

Ratios

Used in financial analysis to compare numerical values and assess performance.

Profitability Ratios

Ratios that measure a company's ability to generate profit relative to sales, assets, or equity.

Liquidity Ratios

Ratios that measure a company's ability to meet short-term obligations.

Efficiency Ratios

Ratios that assess how effectively a company uses its assets.

Leverage Ratios

Ratios that evaluate the degree of a company's financing through debt.

Real Operating Loss

Indicates negative operating performance.

Earnings Before Tax (EBT)

Calculated as Operating Profit minus Financial Profit.

Earnings Before Interest and Tax (EBIT)

Indicates a company's profitability before interest and tax expenses.

Earnings Before Interest, Tax, Depreciation, Amortization (EBITDA)

A measure of a company's overall financial performance.

Proportionate Change

Calculated as (New # - Old #)/Old #, expressed as a percentage.