List of Financial Terms
Acronym | Expanded form | Definition/explanatory note |
“kd” | Cost of debt | Average cost of debt, measured as interest expense divided by average debt outstanding in a period |
“t” | Income tax rate | Average tax rate applicable to the firm, measured as Tax provision divided by pretax profit for the period |
ATR | Asset turnover ratio | Measures how well assets are utilized, calculated as revenues for the period divided by average operating assets employed. Higher the ratio, better is asset utilization. |
Capex | Capital expenditure | Investment in long-term operating assets during a period, this is recorded in the cash flow statement |
C-D ratio | Credit-to-deposits ratio | Ratio of loans and advances outstanding to deposits held ... |
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