APPENDIX A

Abbreviations

AFN

Additional funds needed

BEP

Basic earnings power

CAGR

Compound annual growth rate

CAPM

Capital asset pricing model

CCC

Cash flow conversion cycle

CFROI

Cash flow return on investment

DPO

Days payable outstanding

DSO

Days sales outstanding

EBIT

Earnings before interest and taxes

EBITDA

EBIT plus depreciation and amoritization

EV

Enterprice value

EVA

Economic value added

FCF

Free cash flow

GAAP

Generally accepted accounting principles

IRR

Internal rate of return

MIRR

Modified internal rate of return

MVA

Market value added

NOPAT

Net operating profit after taxes

NOWC

Net operating working capital

NPV

Net present value

OCF

Operating cash flow

PE Ratio

Price to earnings ratio ...

Get Financial Ratios for Executives: How to Assess Company Strength, Fix Problems, and Make Better Decisions now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.