Finance Glossary of key terms, what they mean and how they are used.
- Solvency – A company’s ability to meet it’s long-term financial obligations.
- Indebtedness – An obligation to pay money to another party.
- Profit Margins – The ratio gross profits divided by net sales, usually displayed as a percentage. For example, if a company’s net sales equal £100,000 and their gross profits add up to £25,000, their profit margin would be 25%.
- Cash Flow – Cash that moves into, or leaves a person or company’s account.
- Market Share – The percentage of a sector or industry that a single company controls.
- Personal Survival Budget – A finance plan that allocates future personal income towards expenses, savings and debt repayment.
- Overhead Costs – The expenses of a business that result from having and maintaining a business and are not attributed directly to the production or sale of goods.
- Cash Flow Forecast – Predicting what is going to happen with regards to cash flow…
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