Financial Ratios for Executives: How to Assess Company Strength, Fix Problems, and Make Better Decisions

APPENDIX A

Abbreviations

AFN	Additional funds needed
BEP	Basic earnings power
CAGR	Compound annual growth rate
CAPM	Capital asset pricing model
CCC	Cash flow conversion cycle
CFROI	Cash flow return on investment
DPO	Days payable outstanding
DSO	Days sales outstanding
EBIT	Earnings before interest and taxes
EBITDA	EBIT plus depreciation and amoritization
EV	Enterprice value
EVA	Economic value added
FCF	Free cash flow
GAAP	Generally accepted accounting principles
IRR	Internal rate of return
MIRR	Modified internal rate of return
MVA	Market value added
NOPAT	Net operating profit after taxes
NOWC	Net operating working capital
NPV	Net present value
OCF	Operating cash flow
PE Ratio	Price to earnings ratio ...