Glossary of Financial Terms

A

AARRR

AARRR

AARRR

Accounts Payable (AP)

Accounts Payable (AP)

Accounts Payable (AP)

Accounts Payable Turnover

Accounts Payable Turnover

Accounts Payable Turnover

Accounts Receivable (AR)

Accounts Receivable (AR)

Accounts Receivable (AR)

Accruals

Accruals

Accruals

Accrued Revenue

Accrued Revenue

Accrued Revenue

Actuals

Actuals

Actuals

Annual Contract Value (ACV)

Annual Contract Value (ACV)

Annual Contract Value (ACV)

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR)

Audit Readiness Checklist

Audit Readiness Checklist

Audit Readiness Checklist

Average Revenue Per User (ARPU)

Average Revenue Per User (ARPU)

Average Revenue Per User (ARPU)

B

C

CAC Payback Period

CAC Payback Period

CAC Payback Period

CAC-LTV Ratio

CAC-LTV Ratio

CAC-LTV Ratio

Capital expenditures (CAPEX)

Capital expenditures (CAPEX)

Capital expenditures (CAPEX)

Cash Conversion Cycle (CCC)

Cash Conversion Cycle (CCC)

Cash Conversion Cycle (CCC)

Cash Inflows

Cash Inflows

Cash Inflows

Cash Outflows

Cash Outflows

Cash Outflows

Chart of Accounts (COA)

Chart of Accounts (COA)

Chart of Accounts (COA)

Churn

Churn

Churn

Clinical Operations Finance

Clinical Operations Finance

Clinical Operations Finance

Clinical Trial Costing

Clinical Trial Costing

Clinical Trial Costing

Compound Average Growth Rate (CAGR)

Compound Average Growth Rate (CAGR)

Compound Average Growth Rate (CAGR)

Consolidated Invoicing

Consolidated Invoicing

Consolidated Invoicing

Contracted Annual Recurring Revenue (CARR)

Contracted Annual Recurring Revenue (CARR)

Contracted Annual Recurring Revenue (CARR)

Corporate Performance Management (CPM)

Corporate Performance Management (CPM)

Corporate Performance Management (CPM)

Cost Center Management

Cost Center Management

Cost Center Management

Cost of Good Sold (COGS)

Cost of Good Sold (COGS)

Cost of Good Sold (COGS)

Cost-Per-Hire (CPH)

Cost-Per-Hire (CPH)

Cost-Per-Hire (CPH)

Credit Notes

Credit Notes

Credit Notes

CRO Invoicing

CRO Invoicing

CRO Invoicing

Current Ratio

Current Ratio

Current Ratio

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC)

Customer Renewal Rate (CRR)

Customer Renewal Rate (CRR)

Customer Renewal Rate (CRR)

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT)

Customer Satisfaction Score (CSAT)

D

Data Consolidation

Data Consolidation

Data Consolidation

DAU Ratio

DAU Ratio

DAU Ratio

Deferred Revenue

Deferred Revenue

Deferred Revenue

E

Earnings Per Share (EPS)

Earnings Per Share (EPS)

Earnings Per Share (EPS)

EBIT

EBIT

EBIT

EBITDA

EBITDA

EBITDA

Efficiency

Efficiency

Efficiency

Email Open Rate & Email Click-Through Rate

Email Open Rate & Email Click-Through Rate

Email Open Rate & Email Click-Through Rate

Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP)

F

G

General Ledger

General Ledger

General Ledger

Grandfathering

Grandfathering

Grandfathering

Grant Accounting

Grant Accounting

Grant Accounting

Gross Profit Margin

Gross Profit Margin

Gross Profit Margin

H

Headcount Planning

Headcount Planning

Headcount Planning

Rolling Forecast

Rolling Forecast

Rolling Forecast

I

Intercompany Elimination

Intercompany Elimination

Intercompany Elimination

Interest Coverage Ratio

Interest Coverage Ratio

Interest Coverage Ratio

Internal Rate of Return

Internal Rate of Return

Internal Rate of Return

J

K

L

Lead Velocity Rate (LVR)

Lead Velocity Rate (LVR)

Lead Velocity Rate (LVR)

Leverage

Leverage

Leverage

Lifetime Value (LTV)

Lifetime Value (LTV)

Lifetime Value (LTV)

Liquidity

Liquidity

Liquidity

M

Marketing Qualified Leads (MQL)

Marketing Qualified Leads (MQL)

Marketing Qualified Leads (MQL)

Milestone-Based Budgeting

Milestone-Based Budgeting

Milestone-Based Budgeting

Milestone-Based Budgeting (Clinical Milestones: IND, NDA Stages)

Milestone-Based Budgeting (Clinical Milestones: IND, NDA Stages)

Milestone-Based Budgeting (Clinical Milestones: IND, NDA Stages)

Modeling

Modeling

Modeling

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR)

N

Net Monthly Recurring Revenue (MRR) Growth Rate

Net Monthly Recurring Revenue (MRR) Growth Rate

Net Monthly Recurring Revenue (MRR) Growth Rate

Net Present Value (NPV)

Net Present Value (NPV)

Net Present Value (NPV)

Net Profit Margin

Net Profit Margin

Net Profit Margin

Net Promoted Score (NPS)

Net Promoted Score (NPS)

Net Promoted Score (NPS)

Net Revenue Retention (NRR)

Net Revenue Retention (NRR)

Net Revenue Retention (NRR)

O

Operating Cash Flow (OCF)

Operating Cash Flow (OCF)

Operating Cash Flow (OCF)

Operating Expense (OPEX)

Operating Expense (OPEX)

Operating Expense (OPEX)

Order to Cash

Order to Cash

Order to Cash

P

Payback Period

Payback Period

Payback Period

Percentage of Completion (POC)

Percentage of Completion (POC)

Percentage of Completion (POC)

Pipeline Coverage

Pipeline Coverage

Pipeline Coverage

Product Activation Rate

Product Activation Rate

Product Activation Rate

Product Qualified Leads (PQL)

Product Qualified Leads (PQL)

Product Qualified Leads (PQL)

Profitability

Profitability

Profitability

Q

Quick Ratio or Acid Test Ratio (ATR)

Quick Ratio or Acid Test Ratio (ATR)

Quick Ratio or Acid Test Ratio (ATR)

R

S

T

Tech Stack

Tech Stack

Tech Stack

The Rule of Forty (RO40)

The Rule of Forty (RO40)

The Rule of Forty (RO40)

Three Financial Statements

Three Financial Statements

Three Financial Statements

Time to Value (TTV)

Time to Value (TTV)

Time to Value (TTV)

Total Contract Value (TCV)

Total Contract Value (TCV)

Total Contract Value (TCV)

Total Debt-to-Asset Ratio

Total Debt-to-Asset Ratio

Total Debt-to-Asset Ratio

Total Debt-to-Equity Ratio

Total Debt-to-Equity Ratio

Total Debt-to-Equity Ratio

Trial Balance

Trial Balance

Trial Balance

Trial Phase Budgeting

Trial Phase Budgeting

Trial Phase Budgeting

Trial Phase Costing (Phase I, II, III)

Trial Phase Costing (Phase I, II, III)

Trial Phase Costing (Phase I, II, III)

Trial Site Budgeting

Trial Site Budgeting

Trial Site Budgeting

U

V

Valuation

Valuation

Valuation

Value Added Tax (VAT)

Value Added Tax (VAT)

Value Added Tax (VAT)

Value-based Pricing

Value-based Pricing

Value-based Pricing

Variance Analysis in Life Sciences

Variance Analysis in Life Sciences

Variance Analysis in Life Sciences

Volume Discounting

Volume Discounting

Volume Discounting

W

Website Conversion Rate

Website Conversion Rate

Website Conversion Rate

Willingness to Pay (WTP)

Willingness to Pay (WTP)

Willingness to Pay (WTP)

Win Rate

Win Rate

Win Rate

Working Capital

Working Capital

Working Capital

X

xP&A

xP&A

xP&A

New Guide: Lessons from the Trenches for Scaling Companies in 2026

New Guide: Lessons from the Trenches for Scaling Companies in 2026

New Guide: Lessons from the Trenches for Scaling Companies in 2026

FP&A glossary

FP&A glossary

FP&A glossary

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

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