Glossary
496 terms an analyst uses
Each term gets a plain definition and a worked example in rupees and dollars, written for someone who's meeting it for the first time. Each one also links to the module where it's taught. It's 62,031 words in all.
A
- Accounting equation
- Accrual accounting
- Accrual ratio
- Acquisition accounting
- Additional surveillance measure
- Adjusted gross revenue
- Airline yield
- Alpha
- Altman Z-score
- Amortisation
- Anchor investor
- Anchoring
- Annual recurring revenue
- Annual report
- Annual report on Form 10-K
- Annualised premium equivalent
- Answer-first storyline
- Asset allocation
- Asset liability management
- Asset turnover
- Asset-light
- Assets under management
- Assumption cell
- Attrition
- Audit committee
- Auditor resignation
- Auditor's report
- Availability heuristic
- Average daily rate
- Average length of stay
- Average order value
- Average revenue per occupied bed
- Average revenue per user
- Average transaction value
B
- Back of the envelope
- Backtest
- Bad debt provision
- Balance of payments
- Balance sheet
- Bargaining power of buyers
- Bargaining power of suppliers
- Base case
- Base rate
- Basis for issue price
- Bear case
- Benchmarking
- Beneish M-score
- Beta
- Big bath
- Bill and hold
- Board of directors
- Bombay Stock Exchange
- Bond price and yield
- Bonus issue
- Book building
- Book to bill
- Book value per share
- Break-even
- Bull case
- Business cycle
- Business model
- Business model teardown
- Buyback
C
- CAC payback
- Calibration
- Capital adequacy ratio
- Capital allocation
- Capital asset pricing model
- Capital cycle
- Capital employed
- Capital expenditure
- Capital flows
- Capital intensity
- Capital work in progress
- Capitalisation rate
- Capitalising expenses
- CASA ratio
- Case mix
- Cash and cash equivalents
- Cash conversion cycle
- Cash flow from operations
- Cash flow statement
- Cash reserve ratio
- Catalyst
- Channel check
- Channel stuffing
- Churn
- Circuit limits
- Circular reference
- Cohort retention
- Combined ratio
- Commercial paper
- Commoditisation
- Common equity tier 1
- Communication toolkit
- Comparable company analysis
- Competitive rivalry
- Compound annual growth rate
- Compounding
- Confirmation bias
- Consensus estimate
- Consolidated accounts
- Constant currency growth
- Consumer price index
- Contingent asset
- Contingent liability
- Contribution margin
- Contribution margin per order
- Control premium
- Conversion rate
- Convexity
- Cookie jar reserves
- Core inflation
- Corporate governance
- Corporate governance report
- Correlation
- Cost advantage
- Cost of debt
- Cost of equity
- Cost of funds
- Cost of goods sold
- Cost per available seat kilometre
- Cost to income ratio
- Country risk premium
- Credit cost
- Credit cycle
- Credit growth
- Credit spread
- Credit-deposit ratio
- Crowding out
- Current account deficit
- Current asset
- Current liability
- Current ratio
- Current report on Form 8-K
- Current yield
- Customer acquisition cost
- Cut-off
- Cyclically adjusted price to earnings
D
- Days inventory outstanding
- Days payable outstanding
- Days sales outstanding
- Debt cycle
- Debt service coverage ratio
- Debt to equity
- Decision journal
- Deep dive
- Deferred revenue
- Deferred tax
- Deleveraging
- Delisting
- Demat account
- Demerger
- Deposit franchise
- Depository
- Depreciation
- Diluted earnings per share
- Direct assignment
- Disbursement
- Discount rate
- Discounted cash flow
- Disposition effect
- Disruption
- Distribution yield
- Diversification
- Dividend discount model
- Dividend payout ratio
- Dividend yield
- Domestic institutional investor
- Double-entry bookkeeping
- Draft red herring prospectus
- Driver
- DuPont analysis
- Duration
E
- Earnings call
- Earnings per share
- Earnings yield
- EBITDA
- EBITDA margin
- Economic value added
- EDGAR
- Effective tax rate
- Efficient frontier
- Efficient scale
- Embedded option
- Embedded value
- Endowment effect
- Enterprise value
- Equity risk premium
- Equity value
- ESOP dilution
- EV to EBIT
- EV to EBITDA
- EV to EBITDAR
- EV to sales
- Exceptional items
- Exchange rate
- Exit multiple method
- Expected shortfall
- Expected value
- Expense ratio
- Explicit forecast period
F
- Face value
- Fade period
- Financial leverage
- Fiscal deficit
- Five questions
- Fixed asset turnover
- Fixed costs
- Float
- Follow-on public offer
- Footfall
- Foreign exchange reserves
- Foreign portfolio investor
- Forensic red flags
- Forward price to earnings
- Free cash flow
- Free cash flow to equity
- Free cash flow to the firm
- Free cash flow yield
- Free float
- Fulcrum security
- Funds from operations
G
- Gearing
- Going concern
- Goodwill
- Gordon growth model
- Grey market premium
- Gross domestic product
- Gross margin
- Gross margin return on inventory
- Gross merchandise value
- Gross non-performing assets
- Gross operating profit per available room
- Gross profit
- Gross revenue retention
- Growth capital expenditure
- Guidance
H
I
- Illiquidity discount
- Impairment
- Income statement
- Incremental return on capital
- Independent director
- Inflation
- Information ratio
- Initial public offering
- Insider trading
- Insolvency and bankruptcy code
- Intangible assets
- Intangible assets as a moat
- Interest coverage ratio
- Interest paid versus interest expense
- Interest rate risk
- Internal rate of return
- Intrinsic value
- Inventory
- Inventory turnover
- Inverted yield curve
- Invested capital
- Investment policy statement
- Investment thesis
- Issue tree
L
M
- Maintenance capital expenditure
- Management discussion and analysis
- Margin of safety
- Marginal tax rate
- Market capitalisation
- Market share
- Market sizing
- Market timing
- Matching principle
- Maximum drawdown
- Mean-variance optimisation
- MECE
- Mental accounting
- Mid-cycle earnings
- Mid-year convention
- Minimum public shareholding
- Minority discount
- Moat
- Model audit
- Monetary policy committee
- Money supply
- Monthly recurring revenue
N
- Narrative fallacy
- National Company Law Tribunal
- National Stock Exchange
- Net debt
- Net debt to EBITDA
- Net interest income
- Net interest margin
- Net non-performing assets
- Net operating income
- Net present value
- Net profit
- Net profit margin
- Net revenue
- Net revenue retention
- Network effects
- Nifty 50
- Non-banking financial company
- Non-cash charges
- Non-controlling interest
- Non-convertible debenture
- NOPAT
- Notes to accounts
O
P
- Passenger load factor
- Payback period
- PEG ratio
- Penetration
- Perpetuity growth method
- Persistency ratio
- Porter's five forces
- Portfolio construction
- Position sizing
- Pre-mortem
- Precedent transactions
- Preferential allotment
- Present value
- Price band
- Price elasticity
- Price to book
- Price to earnings
- Price to embedded value
- Price to sales
- Pricing power
- Primary source
- Priority sector lending
- Priority waterfall
- Process versus outcome
- Promoter
- Promoter pledge
- Property, plant and equipment
- Provision coverage ratio
- Provisions
- Purchasing power parity
Q
R
- Real gross domestic product
- Real interest rate
- Rebalancing
- Receivables turnover
- Recency bias
- Record date
- Reinvestment rate
- Related party transactions
- Repo rate
- Reserves and surplus
- Residual income model
- Restatement
- Restructured loans
- Retained earnings
- Retention ratio
- Retrieval-augmented generation
- Return on assets
- Return on assets for a bank
- Return on capital employed
- Return on embedded value
- Return on equity
- Return on invested capital
- Revenue deficit
- Revenue growth
- Revenue per available room
- Revenue per available seat kilometre
- Revenue per employee
- Revenue recognition
- Reverse DCF
- Reverse repo rate
- Rights issue
- Risk-free rate
- Risk-weighted assets
- Rule of 40
- Rupee cost averaging
- Rupee depreciation
S
- S-curve
- Sales per square foot
- Same-store net operating income growth
- Same-store sales growth
- Sanity check
- Scenario analysis
- Scheme of arrangement
- Screening
- Scuttlebutt
- Securities premium
- Securitisation
- Segment analysis
- Segment capital employed
- Segment margin
- Segment reporting
- Selling discipline
- Sensex
- Sensitivity analysis
- Serviceable addressable market
- Share capital
- Share-based compensation
- Shareholders' equity
- Shareholding pattern
- Sharpe ratio
- Slippage ratio
- Solvency ratio
- Sortino ratio
- Source stack
- Sovereign rating
- Special mention accounts
- Spectrum
- Spread over cost of capital
- Standard deviation
- Statutory liquidity ratio
- Steady state
- Stock split
- Strategic asset allocation
- Stress testing
- Subscriber churn
- Sum of the parts
- Sunk cost fallacy
- Survivorship bias
- Sustainable growth rate
- Switching costs
- Systematic investment plan
T
- T+1 settlement
- Tactical asset allocation
- Take rate
- Takeover code
- Tangible book value
- Teardown
- Term premium
- Terminal value
- Threat of new entrants
- Threat of substitutes
- Three-statement model
- Tier 1 capital
- Time value of money
- Total addressable market
- Total contract value
- Tracking error
- Trade payables
- Trade receivables
- Trailing price to earnings
- Treasury stock method
- Trial balance