Long Term Mindset on LinkedIn: Investing Abbreviations Cheat Sheet If you want to invest, you MUST… (2024)

These are basically accounting terms that have been abbreviated. If you store this on your computer you will be able to identify the various management positions, CFO, CEO etc. I find these abbreviated symbols very annoying myself, and the writers do not seem to realize that the reader loses interest once the reader does not understand the significance of the abbreviation.

Investing Abbreviations Cheat SheetIf you want to invest, you MUST understand the lingo.Use this mega-list of investing abbreviations as a handy cheat sheet:1H– First half of the year24/7–24 hours a day, seven days a weekAOP–Adjusted Operating ProfitAP–Accounts payableAR–Accounts receivableARPU–Average revenue per userBLS–Balance sheetBOM–Bill of materialsB2B–Business-to-businessB2C–Business to ConsumerB2G–Business-to-governmentCAGR–Compound annual growth rateCAPEX–Capital ExpenditureCAPM–Capital asset pricing modelCEO–Chief executive officerCFA–Chartered Financial AnalystCFO–Chief Financial OfficerCOE–Cost of EquityCOGS–Cost of Goods SoldCPI–Consumer Price IndexDPO–Days Payable OutstandingDSO–Days Sales OutstandingEAY–Effective Annual YieldEBIT - Earnings before Interest & TaxesEBT - Earnings before TaxesEBITA–Earnings before interest and taxes and amortizationEBITDA–Earnings before Interest, Taxes, Depreciation, and AmortizationEPS–Earnings per shareFIFO–First In, First OutFY–Fiscal yearorFinancial yearGAAP–Generally Accepted Accounting PrinciplesGDP–Gross Domestic ProductGP–Gross ProfitG&A–General and Administration expenseIE–Interest expenseIPO–Initial public offeringIRR–Internal Rate of ReturnKPI–Key Performance IndicatorLIFO–Last In, First OutLLC–Limited Liability CompanyLTV–Loan to ValueMoM– Month on Month / Month over MonthMTD–Month-to-dateNAV–Net asset valueNOPAT–Net Operating Profit After TaxNYSE–New York Stock ExchangeOKR–Objectives and key resultsP&L–Profit and LossP/E–Price-to-earnings ratioPEG–Price-to-earnings growth ratioPP&E–Property, plant, and equipmentQTD–Quarter-to-dateRE–Retained EarningsREIT–Real Estate Investment TrustROA–Return on assetsROCE–Return on Capital EmployedROE–Return on EquityROI–Return on InvestmentROIC–Return on Invested CapitalR&D–Research and DevelopmentS&M– Sales & MarketingSAAS–Software-as-a-ServiceSAM– Serviceable Addressable MarketSEC–Securities and Exchange CommissionSG&A–Sales, General, and Administrative expensesTSR–Total shareholder returnTTM– Trailing Twelve MonthsVC–Venture CapitalWACC–Weighted average cost of capitalYTD–Year-to-date***P.S. Want to understand how the stock market works (for free)?Enroll in my 5-day email course: https://lnkd.in/eBUBw8FbEach day, I'll email you 1 lesson that demystifies the stock market. I'll explain what the stock market is, how it works, and how to get started investing.If you found this post useful, please repost ♻️ to share with your audience.

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Investing Abbreviations Cheat SheetIf you want to invest, you MUST understand the lingo.Use this mega-list of investing abbreviations as a handy cheat sheet:1H– First half of the year24/7–24 hours a day, seven days a weekAOP–Adjusted Operating ProfitAP–Accounts payableAR–Accounts receivableARPU–Average revenue per userBLS–Balance sheetBOM–Bill of materialsB2B–Business-to-businessB2C–Business to ConsumerB2G–Business-to-governmentCAGR–Compound annual growth rateCAPEX–Capital ExpenditureCAPM–Capital asset pricing modelCEO–Chief executive officerCFA–Chartered Financial AnalystCFO–Chief Financial OfficerCOE–Cost of EquityCOGS–Cost of Goods SoldCPI–Consumer Price IndexDPO–Days Payable OutstandingDSO–Days Sales OutstandingEAY–Effective Annual YieldEBIT - Earnings before Interest & TaxesEBT - Earnings before TaxesEBITA–Earnings before interest and taxes and amortizationEBITDA–Earnings before Interest, Taxes, Depreciation, and AmortizationEPS–Earnings per shareFIFO–First In, First OutFY–Fiscal yearorFinancial yearGAAP–Generally Accepted Accounting PrinciplesGDP–Gross Domestic ProductGP–Gross ProfitG&A–General and Administration expenseIE–Interest expenseIPO–Initial public offeringIRR–Internal Rate of ReturnKPI–Key Performance IndicatorLIFO–Last In, First OutLLC–Limited Liability CompanyLTV–Loan to ValueMoM– Month on Month / Month over MonthMTD–Month-to-dateNAV–Net asset valueNOPAT–Net Operating Profit After TaxNYSE–New York Stock ExchangeOKR–Objectives and key resultsP&L–Profit and LossP/E–Price-to-earnings ratioPEG–Price-to-earnings growth ratioPP&E–Property, plant, and equipmentQTD–Quarter-to-dateRE–Retained EarningsREIT–Real Estate Investment TrustROA–Return on assetsROCE–Return on Capital EmployedROE–Return on EquityROI–Return on InvestmentROIC–Return on Invested CapitalR&D–Research and DevelopmentS&M– Sales & MarketingSAAS–Software-as-a-ServiceSAM– Serviceable Addressable MarketSEC–Securities and Exchange CommissionSG&A–Sales, General, and Administrative expensesTSR–Total shareholder returnTTM– Trailing Twelve MonthsVC–Venture CapitalWACC–Weighted average cost of capitalYTD–Year-to-date________________________Original Content Creator: Brian Feroldi (give him a follow)

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𝐘𝐨𝐮𝐫 𝐆𝐨-𝐓𝐨 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐊𝐏𝐈: Gross Margin, EBITDA, Net Profit, or EVA? When it comes to tracking success, every financial pro has their favorite KPI. Some swear by Gross Margin for that revenue health check, while others dive into EBITDA for operational insight. Net Profit's a classic, but EVA (Economic Value Added) brings that extra depth to the table.What's your financial flavor? 🍬 Do you swear by one of these KPIs or mix and match? #Finance #KPIs #GrossMargin #EBITDA #NetProfit #EconomicValueAdded #FinancialInsights #DecisionMaking

المنشور اضافة مهمة كمعلومات مهنية، او تحديث للمعلومات التي لدينا.1) Gross profit margin = Gross profit / Revenuethe higher percentage is better.2) Expense Ratio (Direct operating or Indirect operating) =Direct operating or Indirect operating / RevenueThe lower percentage is better.3) Effective tax ratio = total tax / Earning before taxshow how the company manages its taxes 4) Tax Burden = Net income / Earning before taxالعبء الضريبي " shows how much is left for shareholders after tax "5) EBITDA Margin = EBITDA / Revenuesto measure a company's profitability from operations.6) EBIT Margin = EBIT / RevenuesLower EBIT Margins indicate lower profitability from a company"allows investors to understand true business costs of running a company"7) EBT Margin = EBT / Revenuesreflect a firm's performance when compared with industry peersIt is the money retained internally by a company before deducting tax expenses8) Net profit margin = Net Income / Revenuesmeasures how much net income or profit is generated as a percentage of revenue.#financialratios

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Budgeting for stability versus growthDid you already start your budget?Should you budget for growth or stability?Whether you are part of an industrial company that focuses more on conservative scenarios or a SaaS company that needs to bet on growth, you need to have a clear vision.Here are the main points to consider when budgeting optimistically vs staying conservative.1. Budgeting for Growth:• Focuses on investing in new opportunities and expanding the business• Assumes a willingness to take on additional risk• Prioritizes future potential over current stability• Often requires higher levels of fundingPros:• Can lead to long-term success and expansion,• May attract new investors• Can help companies stay ahead of the competitionCons:• Assumes a willingness to take on additional risk• Requires higher levels of funding (and according planning)• May result in short-term financial instability2. Budgeting for Stability:• Focuses on maintaining the current level of operations and minimizing risk• Assumes a more conservative approach to finances• Prioritizes current stability over future potential• Often requires lower levels of fundingPros:• Provides a sense of security and predictability• Reduces the risk of financial instability• More appropriate for companies in uncertain environmentsCons:• May limit competitive advantage• Can result in missed opportunities for growth and expansion

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