Knowledge Base & Terms

FP&A Glossary: business finance terms

Build your financial planning and analysis vocabulary with clear definitions, formulas, and insights for metrics that drive business decisions.

Categories:
Alphabet:
A

Accounts Receivable Turnover

Balance Sheet

Accrued Payroll

Balance Sheet

Annual Operating Plan

Planning

Annual Recurring Revenue

SaaS Metrics

AR aging

Balance Sheet

ARR bridge

SaaS Metrics

ASC 606 Revenue Recognition

Accounting

Average Revenue per User

SaaS Metrics
B

Billings-to-Collections ratio

Cash Flow

Bookings vs Billings vs Revenue

SaaS Metrics

Burn rate

Cash Flow
C

Cash Conversion Cycle

Working Capital

Chart of Accounts

Accounting

Churn (logo churn vs. revenue churn)

SaaS Metrics

Closing rate

Sales Metrics

Compounded Annual Growth Rate

Growth Metrics

Current ratio (quick ratio and acid-test ratio)

Balance Sheet

Customer Acquisition Cost

SaaS Metrics

Customer Lifetime Value

SaaS Metrics
D

Days Inventory Outstanding

Working Capital

Days Payable Outstanding

Working Capital

Days Sales Outstanding

Working Capital

Debt-to-equity ratio

Financial Health

Deferred Revenue

Accounting

Discounted Cash Flow (DCF)

Valuation
E

EBIT, EBITDA, EBIT margin and EBITDA margin

Profitability

Expansion Revenue

SaaS Metrics
F

Free cash flow

Cash Flow

Fully Burdened Labor Rate

Cost Analysis
G

Gross Dollar Retention (GDR / GRR)

SaaS Metrics

Gross Merchandise Value (GMV)

E-commerce

Gross Revenue Retention (GRR)

SaaS Metrics
H

Headcount Efficiency Ratio (ARR per FTE)

Efficiency
I

Incremental Budgeting

Planning

Interest Coverage Ratio (ICR / TIE)

Financial Health
M

Month-End Close Process

Accounting

Monthly Recurring Revenue (MRR)

SaaS Metrics

SaaS Magic Number

SaaS Metrics
N

Net Present Value (NPV)

Valuation

Net Profit Margin

Profitability

Net Revenue Retention (NRR)

SaaS Metrics
O

Operating Cash Flow (OCF)

Cash Flow

Operating Leverage

Financial Strategy

Opportunity Cost

Economics
P

Payback Period (PP)

Planning

Pipeline Coverage Ratio (PCR)

Sales Metrics

Pipeline Velocity (PV)

Sales Metrics

Pre-Money Valuation, Post-Money Valuation, and Enterprise Value (EV)

Valuation

Product Qualified Lead (PQL)

Sales Metrics
R

Renewal Rate, Renewal Uplift, and Renewal Pipeline

SaaS Metrics

Return on Investment (ROI)

Profitability

Revenue Forecasting Methods

Planning

Revenue Run Rate

SaaS Metrics

Rolling Forecast

Planning

Rule of 40

SaaS Metrics
Q

Sales Quota Attainment

Sales Metrics
S

Sensitivity Analysis

Planning
V

Vertical Analysis

Analysis
W

Weighted Average Cost of Capital (WACC)

Valuation
Z

Zero Based Budgeting

Planning
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