Showing posts with label EBIT. Show all posts
Showing posts with label EBIT. Show all posts

Monday, September 4, 2023

Terminonolgies in Finance

 It is important to keep up to date with financial Terminologies to avoid being caught off guard in any conversation. A few here and will be added

 

EBT - Earnings before Tax (same as PBT)

EBITDA - Earning before Interest, Tax, Depreciation and Amortization

BAAP - Relating to investment - Buy At Any Price

GARP - Relating to investment - Growth At Reasonable Price

PAT- Profit after Tax

COGS- Cost of Goods Sold

Operating Margin (as a %age) - (Revenue- COGS)/Revenue

EPS - Earnings per Share

P/E Ratio - Price to Earning ratio (Market Price per share/Earnings per share)

PEG Ratio- Price to Earning Growth Ratio - (P/E)/Growth in EPS. Thus if P/E is 15 and Growth in EPS is expected to be 10% then PEG Ratio is 15/10 =1.5

FCF- Free Cash Flow

 NOPAT- Net Operating Profit After Tax- Same as Profit after Tax, excluding other incomes and expenses not relating to operations.

PPE- Property Plant and Equipment

Other financial terms:

ROU- Rental payments converted to assets and liabilities

Lease liabilities- Part of above

XBRL-eXtensible Business Reporting Language. global, machine readable, std reporting. Mostly for listed companies reporting

IFRS- International Financial Reporting System - way financials are audited and presented.

REIT- Real Estate investment Trust- pooling of assets and paying you dividends out of rental asset or gain on sale of RE.