Business Terminology

Capital Structure

How a company finances its operations and growth, typically through a mix of debt (loans) and equity (ownership).

EBITDA

Stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's profitability before certain expenses.

P&L (Profit and Loss Statement)

A financial report that shows a company's revenues, costs, and profits over a specific period.

Cash Flow

The net amount of cash being transferred into and out of a business. Positive cash flow means a company is generating more cash than it is spending.

Balance Sheet

A financial statement that lists a company's assets, liabilities, and shareholders' equity at a specific point in time.

Forecasting

Predicting future financial outcomes based on historical data and expected trends.

Variance Analysis

Comparing actual financial performance against budgeted or forecasted results to understand why differences (variances) occurred.

Ad-Hoc Reporting

Creating custom, one-time reports that answer specific business questions.

Credit Analysis

Evaluating the ability of a company or individual to repay loans or debts.

Distressed Assets

Assets or companies that are in financial trouble, often sold at a discount because of bankruptcy or financial struggles.

Capital Markets

Markets where buyers and sellers engage in trading financial securities like stocks and bonds.

Private Equity

Investments in companies that are not publicly traded. These are often long-term investments in companies with the potential for significant growth.

Leverage

The use of borrowed money (debt) to increase the potential return on investment.

Portfolio Monitoring

The process of tracking and reviewing the performance of a group of investments or assets.

Relative Value

A method of comparing the value of one asset or investment to another to identify the better investment.