57 Financial Management Abbreviations You Need To Know

Financial Management Abbreviations Onlinehyme

Financial management is a complex field that involves a wide range of concepts, tools, and techniques to help organizations effectively manage their finances. To make communication more efficient in this domain, various abbreviations are commonly used. These financial management abbreviations are essential for professionals working in finance, accounting, or related fields, as they streamline communication and ensure clarity.

In this article, we will explore some of the most common financial management abbreviations and their meanings.

1 ACP Average collection period
2 ADR American Depository Receipt
3 AFN Additional funds needed
4 APR Annual percentage rate
5 AR Accounts receivable
6 BEP Basic earning power
7 BVPS Book value per share
8 CAPM Capital Asset Pricing Model
9 CCC Cash conversion cycle
10 CF Cash flow
11 CFPS Cash flow per share
12 COGS Cost of goods sold
13 CR Capital requirement ratio
14 CR Conversion ratio
15 CV Coefficient of variation
16 D/E Debt-to-equity ratio
17 DCF Discounted cash flow
18 DPS Dividends per share
19 DRIP Dividend reinvestment plan
20 DRP Default risk premium
21 DSO Days sales outstanding
22 EAR Effective annual rate, EFF%
23 EBIT Earnings before interest and taxes; net operating income
24 EBITDA Earnings before interest, taxes, depreciation, and amortization
25 EPS Earnings per share
26 EVA Economic Value Added
27 FCF Free cash flow
28 INT Interest payment in dollars
29 IP Inflation premium
30 IPO Initial public offering
31 IRR Internal rate of return
32 LP Liquidity premium
33 M/B Market-to-book ratio
34 MIRR Modified Internal Rate of Return
35 MRP Maturity risk premium
36 MVA Market Value Added
37 NOPAT Net operating profit after taxes
38 NOWC Net operating working capital
39 NPV Net present value
40 OP Operating profitability ratio
41 P/E Price/earnings ratio
42 PI Profitability index
43 PM Profit margin
44 PMT Payment of an annuity
45 PPP Purchasing power parity
46 PV Present value
47 QBE Breakeven quantity
48 ROA Return on assets
49 ROE Return on equity
50 ROIC Return on invested capital
51 RR Retention rate
52 S Sales
53 SML Security Market Line
54 TIE Times interest earned
55 WACC Weighted average cost of capital
56 YTC Yield to call
57 YTM Yield to maturity

These financial management abbreviations play a crucial role in facilitating clear and concise communication in the world of finance and business.

By understanding and using these abbreviations, professionals can better analyze, report, and make informed decisions about financial matters. Whether you’re an experienced financial analyst or just starting your journey in the field of finance, mastering these abbreviations is essential for success.

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