Plain-language definitions of the financial metrics and concepts that matter for business growth, valuation, and capital readiness.
The process of determining the economic value of a business or company.
The number of days it takes to convert inventory and resource investments into cash from sales.
Measures a business's ability to service its debt, the ratio of operating income to total debt obligations.
Earnings Before Interest, Taxes, Depreciation, and Amortisation, a measure of operating profitability.
EBITDA expressed as a percentage of total revenue, shows how much of each dollar of revenue translates to operating profit.
The total value of a business including debt and excluding cash, the theoretical takeover price.
Revenue minus cost of goods sold, expressed as a percentage, shows the profitability of core product/service delivery.
The difference between current assets and current liabilities, measures short-term liquidity and operational efficiency.