Research and Development (R&D) involves investigative activities conducted by companies or organizations to innovate, create, and improve products, processes, or services.
Return on Assets (ROA) is a financial ratio that measures a company's profitability by assessing the efficiency of its use of assets to generate earnings.
Scenario planning involves a strategic method for anticipating and preparing for the future by constructing and analyzing various plausible, potential situations or scenarios.
In a business context, "scope" refers to the defined boundaries, objectives, and the range of work to be accomplished within a project or a particular task.
Selling, general, and administrative (SG&A) expenses include marketing, advertising, sales support, and administrative costs such as legal services and employee benefits.
Sensitivity analysis is a financial technique used to assess how variations in an input variable impact the outcome in a model, determining the sensitivity of the model's results to changes in the input.
A straddle is an options trading strategy involving the simultaneous purchase of a call and a put option with the same strike price and expiration date, anticipating significant price volatility.
Tax is a financial charge imposed by the government on individuals, businesses, or entities based on their income, profits, or transactions to fund public services and government operations.
Tax shield refers to the reduction in taxable income through the use of allowable deductions, credits, or other provisions within tax laws, resulting in a decrease in taxes owed by an individual or business.
Taxable income refers to the portion of an individual or entity's income that is used to calculate how much tax they owe to the government after accounting for deductions, exemptions, and credits.
Top-Down Budgeting is a strategic financial planning approach where higher management establishes overall spending limits and targets, which are then disseminated throughout the organization.
A trial balance is a financial statement that lists the balances of all general ledger accounts to ensure the total debits equal the total credits before preparing financial statements.
The US Dollar Index is a measure that evaluates the strength of the United States dollar against a basket of major world currencies, primarily comprising the euro, yen, pound sterling, Canadian dollar, Swedish krona, and Swiss franc.
A Value Driver Tree is a visual management tool that breaks down a company's value drivers and their impact on financial performance in a hierarchical structure.
Value at Risk (VaR) is a statistical technique used in risk management to estimate the potential maximum loss in a portfolio or investment over a specified time horizon with a certain level of confidence.
Volatility is a statistical measure that quantifies the degree of variation or fluctuation in the price of a financial asset, typically calculated as the standard deviation of returns.
WACC (Weighted Average Cost of Capital) represents the average rate of return a company is expected to pay to all its stakeholders for using their capital.
The Weighted Average Cost of Capital (WACC) represents the average rate a company is expected to pay to finance its assets, calculated by weighing the cost of equity and debt.
What-If Analysis involves exploring different scenarios and outcomes by changing variables to understand their potential impact on a particular situation or decision.
Working capital is the measure of a company's operational liquidity, calculated as current assets minus current liabilities, reflecting its ability to meet short-term financial obligations.
