List of business and finance abbreviations

This is a list of business and finance abbreviations.

A

ARPU Average revenue per user
Average revenue per user
Average revenue per user usually abbreviated to ARPU is a measure used primarily by consumer communications and networking companies, defined as the total revenue divided by the number of subscribers....
ASP Average selling price
Average Selling Price
The average sales price of goods or commodities is the average price at which a particular product or commodity is sold across channels or markets. The term is especially used in the retail sector and technology distribution....
ASAP (As soon As Possible)
agcy. (agency)
agt. (agent)
assn. (assistant)

B

BRU Business Recovery Unit
B2B Business to Business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
B2C Business to Consumer
bldg. (building)

C

CAO Chief Accounting Officer
CAGR Compound annual growth rate
Compound annual growth rate
Compound annual growth rate is a business and investing specific term for the smoothed annualized gain of an investment over a given time period...
CAPEX Capital Expenditure
Capital expenditure
Capital expenditures are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year...
CAPM Capital asset pricing model
Capital asset pricing model
In finance, the capital asset pricing model is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well-diversified portfolio, given that asset's non-diversifiable risk...
CA Collateralized Debt Obligation
Collateralized debt obligation
Collateralized debt obligations are a type of structured asset-backed security with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand...
CDS Credit Default Swap
Credit default swap
A credit default swap is similar to a traditional insurance policy, in as much as it obliges the seller of the CDS to compensate the buyer in the event of loan default...
CEO Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
CFA Chartered Financial Analyst
Chartered Financial Analyst
The Chartered Financial Analyst Program is a graduate level self-study program offered by the CFA Institute to investment and financial professionals...
CFC Consumption of fixed capital
Consumption of fixed capital
Consumption of fixed capital is a term used in business accounts, tax assessments and national accounts for depreciation of fixed assets...
CFCT Cash Flow Cycle Time
CFM Certified Financial Manager
Certified Financial Manager
Certified Financial Manager certification program was established by IMA - The Association for Accountants and Financial Professionals in Business in June of 1996, and 4,940 financial professionals have earned the CFM designation....
CFO PEX Capital Expenditures
CFO Chief Financial Officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
CFS Consolidated Financial Statement
CIA Certified Internal Auditor
CIF Cost Insurance With Freight
CIMA Chartered Institute of Management Accountants
Chartered Institute of Management Accountants
The Chartered Institute of Management Accountants is a United Kingdom-based professional body offering training and qualification in management accountancy and related subjects, focused on accounting for business; together with ongoing support for members.CIMA is one of a number of professional...
CISA Certified Information Systems Auditor
CMA Certified Management Accountant
Certified Management Accountant
The title Certified Management Accountant is used by various professional bodies around the world to designate their different professional certifications....
CMO Chief Marketing Officer
Chief marketing officer
Chief Marketing Officer is a corporate title referring to an executive responsible for various marketing activities in an organization...
COB Close of Business
COGS Cost of Goods Sold
Cost of goods sold
Cost of goods sold refers to the inventory costs of those goods a business has sold during a particular period. Costs are associated with particular goods using one of several formulas, including specific identification, first-in first-out , or average cost...
COO Chief Operating Officer
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
CPA Certified Public Accountant
Certified Public Accountant
Certified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
CPP Certified Payroll Professional
Certified Payroll Professional
The Certified Payroll Professional designation is an exam-based payroll certification attained by individuals who possess a high level of professional competency through both the acquisition of knowledge and direct payroll experience....
CSO Chief Security Officer
Chief security officer
A chief security officer is a corporation's top executive who is responsible for security.The CSO generally serves as the business leader responsible for the development, implementation and management of the organization’s corporate security vision, strategy and programs...
CRM Customer Relationship Management
Customer relationship management
Customer relationship management is a widely implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing,...
CVP Cost Volume Profit
CTO Chief Technology Officer
C&F Cost With Freight

D

DDA Depletion Depreciation
Depreciation
Depreciation refers to two very different but related concepts:# the decrease in value of assets , and# the allocation of the cost of assets to periods in which the assets are used ....

Amortization
Amortization
Amortization is the process of decreasing, or accounting for, an amount over a period. The word comes from Middle English amortisen to kill, alienate in mortmain, from Anglo-French amorteser, alteration of amortir, from Vulgar Latin admortire to kill, from Latin ad- + mort-, mors death.When used...

,
DI Dispatch information
disc. (discount)
dept. (department)

E

EAR Effective annual rate
EAY Effective Annual Yield
EBIT Earnings before interest and taxes
Earnings before interest and taxes
In accounting and finance, earnings before interest and taxes is a measure of a firm's profit that excludes interest and income tax expenses. Operating income is the difference between operating revenues and operating expenses...
EBITDA Earnings before Interest, Taxes, Depreciation, and Amortization
EDI Electronic Data Interchange
Electronic Data Interchange
Electronic data interchange is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e...
EFTPOS Electronic Funds Transfer at Point of Sale
EFTPOS
EFTPOS is the general term used for debit card based systems used for processing transactions through terminals at points of sale. In Australia and New Zealand it is also the brand name of the specific system used for such payments...
EPS Earnings per share
Earnings per share
Earnings per share is the amount of earnings per each outstanding share of a company's stock.In the United States, the Financial Accounting Standards Board requires companies' income statements to report EPS for each of the major categories of the income statement: continuing operations,...
EXP Export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...

F

FOB Freight On Board
FIFO First In, First Out
FIFO and LIFO accounting
FIFO and LIFO Methods are accounting techniques used in managing inventory and financial matters involving the amount of money a company has tied up within inventory of produced goods, raw materials, parts, components, or feed stocks....
FL Financial leverage
FP&A Financial Planning & Analysis
FPO Follow on public offer
FIX Financial Information Exchange
FX Foreign exchange market
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...

G

GAAP Generally Accepted Accounting Principles
Generally Accepted Accounting Principles
Generally Accepted Accounting Principles refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards...
GAAS Generally Accepted Audit Standards
GDP Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....
GFCF Gross fixed capital formation
Gross fixed capital formation
Gross fixed capital formation is a macroeconomic concept used in official national accounts such as the UNSNA, NIPAs and the European System of Accounts . The concept dates back to the NBER studies of Simon Kuznets of capital formation in the 1930s, and standard measures for it were adopted in the...
GRN Goods Receipt Note
GP Gross Profit
Gross profit
In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments...
GL General Ledger
General ledger
The main accounting record of a business which uses double-entry bookkeeping. It will usually include accounts for such items as current assets, fixed assets, liabilities, revenue and expense items, gains and losses. Each General Ledger is divided into debits and credits sections. The left hand...

I

ICB Industry Classification Benchmark
Industry Classification Benchmark
The Industry Classification Benchmark is an industry classification taxonomy developed by Dow Jones and FTSE. It is used to segregate markets into sectors within the macroeconomy...
ICRM Innovative Customer Relationship Management
IE Interest expense
Interest expense
Interest expense relates to the cost of borrowing money. It is the price that a lender charges a borrower for the use of the lender's money. Interest expense is different from OPEX and CAPEX, for it relates to the capital structure of a company. Interest expense is usually tax-deductible....
IMP Import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
IPO Initial Public Offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
IR Interest Rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...

- typically referring to an IR derivative product

J-journal

L

LC Letter of credit
Letter of credit
A standard, commercial letter of credit is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking....
LIBOR London Interbank Offered Rate
London Interbank Offered Rate
The LIBOR rate is the average interest rate that leading banks in London charge when lending to other banks. It is an acronym for London Interbank Offered Rate Banks borrow money for one day, one month, two months, six months, one year etc. and they pay interest to their lenders based on...
LIFO Last In, First Out
FIFO and LIFO accounting
FIFO and LIFO Methods are accounting techniques used in managing inventory and financial matters involving the amount of money a company has tied up within inventory of produced goods, raw materials, parts, components, or feed stocks....
LLC Limited Liability Company
Limited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
LBO Leveraged Buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...

M

MTD Month-to-date
Month-to-date
Month-to-date is a period starting at the beginning of the current month and ending at the current date. Month-to-date is used in many contexts, mainly for recording results of an activity in the time between a date and the beginning of the current month.In the context of finance, MTD is often...
MOQ Minimum Order Quantity
MSOD Monthly Statement of Select Operational Data
mfg. (manufacturing date)

N

NAV Net Asset Value
Net asset value
Net asset value is a term used to describe the value of an entity's assets less the value of its liabilities. The term is most commonly used in relation to open-ended or mutual funds because shares of such funds registered with the U.S. Securities and Exchange Commission are redeemed at their net...
NCND Non-Circumvent and Non-Disclosure
NDA Non-Disclosure Agreement
Non-disclosure agreement
A non-disclosure agreement , also known as a confidentiality agreement , confidential disclosure agreement , proprietary information agreement , or secrecy agreement, is a legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties...
NOA Net Operating Assets
Net Operating Assets
Net operating assets are a businesses operating assets minus its operating liabilities. NOA is calculated by reformatting the balance sheet so that operating activities are separated from financing activities. This is done so that the operating performance of the business can be isolated and...
NOPAT Net Operating Profit After Tax
NOPAT
In corporate finance, net operating profit after tax or NOPAT is a company's after-tax operating profit for all investors, including shareholders and debt holders. It is equal to NOPLAT and is defined as follows:An alternative formula is as follows...
NPV Net Present Value
Net present value
In finance, the net present value or net present worth of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values of the individual cash flows of the same entity...

P

PMAC Period Moving Average Cost
PO Profit Objective
PO Purchase Order
Purchase order
A purchase order is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer. Sending a purchase order to a supplier constitutes a legal offer to buy products or services...
PP&E Property, plant, and equipment
P&L Profit and Loss
P/E Price-to-earnings ratio
P/E ratio
The P/E ratio of a stock is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share...
PPP Purchasing power parity
Purchasing power parity
In economics, purchasing power parity is a condition between countries where an amount of money has the same purchasing power in different countries. The prices of the goods between the countries would only reflect the exchange rates...
PR Purchase Requisition

R

RE Retained Earnings
Retained earnings
In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or...
ROA Return on assets
ROCE Return On Capital Employed
ROE Return on Equity
Return on equity
Return on equity measures the rate of return on the ownership interest of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity . ROE shows how well a company uses investment funds to generate earnings growth...
ROI Return on Investment
Return on investment
Return on investment is one way of considering profits in relation to capital invested. Return on assets , return on net assets , return on capital and return on invested capital are similar measures with variations on how “investment” is defined.Marketing not only influences net profits but also...
ROIC Return on Invested Capital
RONA Return on net assets
Return on net assets
The return on net assets is a measure of financial performance of a company which takes the use of assets into account.-Formula:Return on net assets = Profit after tax /...
ROS Return on Sales
RR Resource rent
Resource rent
In economics, rent is a surplus value after all costs and normal returns have been accounted for, i.e. the difference between the price at which an output from a resource can be sold and its respective extraction and production costs, including normal return...
R&D Research and Development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

S

S_t Sales (during time period t)
SCM Supply Chain Management
Supply chain management
Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers...
SG&A Sales, General, and Administrative expenses
SIR Stores Issuance Requisition
SIOP Sales Inventory and Operations Plan
SIV Structured Investment Vehicle
Structured investment vehicle
A structured investment vehicle was an operating finance company established to earn a spread between its assets and liabilities like a traditional bank...
SOHO Small Office/Home Office
Small office/home office
Small office/home office, or SOHO, refers to the category of business or cottage industry which involves from 1 to 10 workers. SOHO can also stand for single office/home office....
SOX Sarbanes-Oxley

W

WACC Weighted average cost of capital
Weighted average cost of capital
The weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to finance its assets....
WC Working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
wk week
Week
A week is a time unit equal to seven days.The English word week continues an Old English wice, ultimately from a Common Germanic , from a root "turn, move, change"...
wrk work
Work
Work may refer to:Human labor:* Employment* House work* Labor , measure of the work done by human beings* Manual labor, physical work done by people* Wage labor, in which a worker sells their labor and an employer buys it...
wo work order

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