Fixed Cost Definition

Below please find a definition of “Fixed Cost”

Financial Analysis Training & Glossary TermsFixed Cost: A cost that is not affected by the variation of a business volume is termed as fixed cost. It is typical for a company to have varying expenditures for items like building lease costs, staff wages etc but a fixed cost always remains the same regardless of the changing production costs.

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Fixed Assets Definition

Below please find a definition of “Fixed Assets”

Financial Analysis Training & Glossary TermsFixed Assets: Often times a company chooses to hold some of its assets towards long-term use and these assets are termed as fixed assets. These fixed assets are not meant for sale or cash conversion.

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Dividend Definition

Below please find a definition of “Dividend”

Financial Analysis Training & Glossary TermsDividend: A portion of money that is paid out to the shareholders of a company is a defined as a dividend. This portion of money is dependent on the profit the company makes during a fiscal year.

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Current Liabilities Definition

Below please find a definition of “Current Liabilities”

Financial Analysis Training & Glossary TermsCurrent Liabilities: Current liabilities are an indispensable part of a balance sheet. Any kind of debt or obligation that is due to paid within a year of the balance sheet date is termed as a current liability.

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Current Ratio Definition

Below please find a definition of “Current Ratio”

Financial Analysis Training & Glossary TermsCurrent Ratio: Often termed as liquidity ratio, current ratio is used to determine whether a company has the ability to pay-off short-term debts. It is most certainly a measure of a company’s capability of surviving in the near term.

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Current Assets Definition

Below please find a definition of “Current Assets”

Financial Analysis Training & Glossary TermsCurrent Assets: Cash or any other asset that can be converted to cash within a period of one year are termed as current assets. It is to be noted that this conversion has to take place within a year of the balance sheet date.

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Cost of Sales Definition

Below please find a definition of “Cost of Sales”

Financial Analysis Training & Glossary TermsCost of Sales: Cost of Sales is also often termed as Cost of Goods Sold. It refers to the cost of those particular goods that have been sold over a particular period of time. These costs generally are inclusive of all costs of purchase and other related costs that have been incurred for getting the inventory to the current location.

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Cost of Debt Ratio Definition

Below please find a definition of “Cost of Debt Ratio”

Financial Analysis Training & Glossary TermsCost of Debt Ratio: There may be various ways of defining the phrase but in simple terms when the cost of interest is divided by the average outstanding debt, it is termed as cost of debt ratio.

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Cashflow Statement Definition

Below please find a definition of “Cashflow Statement”

Financial Analysis Training & Glossary TermsCashflow Statement: A cashflow statement enables investors to determine a company’s operations, as to where the money is being generated from and how it is being spent. It is mandatory for a company to include the cashflow statements in its financial reports.

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Cash Flow Definition

Below please find a definition of “Cash Flow”

Financial Analysis Training & Glossary TermsCash Flow: Although cash flow would generally be a reflection of the company’s stability, the term can be interpreted in several ways depending on the context. While cash flow can relate to owner’s equity accounts, it can also relate to acquisition and selling of investments.

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