| Capital Expenditure (CapEx) |
| Funds spent by a business to acquire, upgrade, or maintain physical assets like equipment or property. | |
| Combined Leverage (DCL) |
| Overall sensitivity of earnings per share (EPS) to changes in sales revenue. | |
| Degree of Financial Leverage (DFL) |
| Sensitivity of net earnings to changes in operating income due to fixed debt interest costs. | |
| Degree of Operating Leverage (DOL) |
| Sensitivity of operating income (EBIT) to revenue changes caused by fixed operating costs. | |
| Debt Service Coverage Ratio (DSCR) |
| Measures available operating income to pay annual principal and interest debt payments. | |
| Human Capital ROI (HCROI) |
| Financial return generated per dollar invested in employee compensation and benefits. | |
| Net Interest Margin (NIM) |
| Profitability metric for financial institutions measuring net yield on interest-earning assets. | |
| Operating Expenditure (OpEx) |
| Ongoing operational costs incurred in day-to-day business management. | |
| Risk-Adjusted Return on Capital (RAROC) |
| Profitability assessment framework factoring risk exposure into capital return calculations. | |
| Additional Funds Needed (AFN) |
| External financing required to support projected top-line revenue growth. | |
| Adjusted Present Value (APV) |
| Project valuation model separating core project NPV from financing side effects like tax shields. | |
| Capital Asset Pricing Model (CAPM) |
| Model estimating required return on equity based on systematic market risk. | |
| Capital Intensity |
| Amount of capital assets required to generate a single dollar of revenue. | |
| Cost of Capital |
| Minimum rate of return a company must earn to satisfy capital providers. | |
| Coverage Ratio |
| General solvency metric assessing ability to cover fixed interest obligations. | |
| Current Ratio |
| Standard liquidity ratio evaluating short-term obligation coverage using assets convertible within a year. | |
| Customer Concentration Ratio |
| Percentage of total revenue generated by a small group of top clients. | |
| Debt-to-Equity Ratio |
| Financial leverage metric comparing total borrowed debt to shareholder equity capital. | |
| Debt-to-Service Ratio |
| Proportion of operational cash flow required to fulfill total debt principal and interest obligations. | |
| Duration |
| Measures sensitivity of fixed-income assets to changes in interest rates. | |
| Earnings Before Interest and Taxes (EBIT) |
| Operational income generated before accounting for capital structure interest and taxes. | |
| Earnings Before Taxes (EBT) |
| Pre-tax income available after deducting operating expenses and financing costs. | |
| Equity Multiplier |
| Financial leverage metric measuring proportion of assets funded by shareholder equity. | |
| Market Penetration Index |
| Percentage of total addressable target market customers captured by a brand. | |
| Market-to-Book Ratio |
| Valuation ratio comparing equity market valuation to accounting balance sheet book value. | |
| Marketing Efficiency Ratio (MER) |
| High-level performance metric measuring total top-line revenue generated per dollar spent on marketing. | |
| Net Income After Taxes (NIAT) |
| Final bottom-line net profit remaining after deducting operating, interest, and tax expenses. | |
| Net Operating Profit After Taxes (NOPAT) |
| Theoretical operational cash profit assuming zero financial leverage and debt interest. | |
| Net Working Capital (NWC) |
| Operating liquidity buffer measuring available capital to fund day-to-day operations. | |
| Penetration |
| Percentage adoption rate of a product or service within a defined customer target market. | |
| Plowback Ratio |
| Percentage of net income retained in the business to fund future expansion. | |
| Price-Earnings Ratio (P/E) |
| Standard market valuation metric comparing share price to annual per-share net earnings. | |
| Quick Ratio |
| Strict liquidity ratio measuring capability to settle short-term obligations without selling inventory. | |
| Return on Capital Employed (ROCE) |
| Efficiency ratio evaluating pre-tax operating earnings generated relative to long-term capital employed. | |
| Return on Equity (ROE) |
| Core profitability metric measuring net income generated per dollar of shareholder equity capital. | |
| Return on Invested Capital (ROIC) |
| Percentage yield earned on total capital invested by debt and equity holders. | |
| SaaS Quick Ratio |
| SaaS growth health metric measuring recurring revenue gains relative to lost recurring revenue. | |
| SPELL Framework | | Diagnostic framework analyzing Solvency, Profitability, Efficiency, Liquidity, and Leverage. | |
| Times Interest Earned Ratio (TIE) |
| Solvency ratio measuring ability to pay interest charges out of operating profits. | |
| Total Debt Ratio |
| Proportion of total company assets financed through debt obligations. | |
| Weighted Average Cost of Capital (WACC) |
| Blended average cost of capital across equity and after-tax debt financing sources. | |
| Working Capital |
| Short-term operational cash reserve available to cover day-to-day commitments. | |
| Security Market Line (SML) |
| Graphical representation of CAPM showing expected asset return relative to systematic market risk. | |
| Compa-Ratio |
| Human resources metric comparing individual compensation against competitive market midpoints. | |
| DAU/MAU Stickiness Ratio |
| Product engagement metric measuring user retention and habit formation. | |
| Days Payables Outstanding (DPO) |
| Average number of days a company takes to pay back supplier invoices. | |
| Dividend Payout Ratio (DPR) |
| Percentage of net profit distributed to shareholders as dividend payouts. | |
| DEI Index | | Composite score measuring workplace diversity, equity, and inclusion performance. | |
| EBITDAR |
| Earnings metric adding back rent/lease expenses to evaluate companies with major leased facility structures. | |
| Enterprise Value to Invested Capital (EV/IC) |
| Valuation multiple comparing total enterprise value to capital invested in core business operations. | |
| Fixed-Charge Coverage Ratio (FCCR) |
| Solvency ratio assessing capability to meet fixed obligations including leases, insurance, and debt service. | |
| General & Administrative Expense Ratio |
| Proportion of top-line revenue spent on general corporate overhead expenses. | |
| Human Capital Value Added (HCVA) |
| Profitability metric measuring average financial value generated per full-time employee. | |
| Internal Rate of Return on Equity (IRRE) |
| Discount rate equating initial equity investment with the present value of future equity cash flows. | |
| Management Ratio |
| Percentage of total operational expenditure allocated to executive and managerial compensation. | |
| Marginal Cost of Capital (MCC) |
| Incremental cost incurred by a company to raise an additional dollar of capital. | |
| Net Operating Working Capital (NOWC) |
| Operational working capital excluding non-operating cash holdings and interest-bearing debt liabilities. | |
| Overall Operations Effectiveness (OOE) |
| Comprehensive operational efficiency metric evaluating asset availability, performance speed, and output quality. | |
| Price to Book Ratio (P/B) |
| Valuation ratio comparing stock market value to per-share accounting book value. | |
| Weighted Average Cost of Debt (WACD) |
| Effective after-tax borrowing cost weighted across all corporate debt instruments. | |
