FP&A Glossary

A complete library of terms, metrics, and calculations for your business.

Cash Flow

Cash Flow Break-Even Point

Your cash flow break-even point is the point where your operating cash inflows match your operating cash outflows.

Cash Flow From Financing Activities

Cash flow from financing activities are inflows and outflows of cash used to fund the business for a given period.

Cash Flow From Investing Activities

Cash flow from investing activities reports the amount of cash that has been generated or spent on various investment-related business activities.

Cash Flow From Operating Activities

Cash flow from operating activities is a measure of how much money your company brings in for its typical, ongoing business activities.

Cash Flow to Debt Ratio

Cash flow to debt ratio is a metric businesses use to understand its ability to pay down its debt based on its operating cash flow.

Discounted Cash Flow (DCF)

Discounted cash flow is a valuation method designed to estimate the future value of cash earned.

Free Cash Flow

Free cash flow is the amount of cash a company has generated after considering cash outflows for the period.

Free Cash Flow Margin

Free cash flow (FCF) margin shows the amount of revenue that is converted into free cash flow.

Free Cash Flow Yield

Free cash flow (FCF) yield is a financial solvency ratio that measures your free cash flow in relation to your market capitalization.

Incremental Cash Flow

Incremental cash flow is the additional operating cash flow that you will generate or lose from taking on a new venture, project, campaign, or investment.

Levered Free Cash Flow (LFCF)

Levered free cash flow is the amount of capital (cash) your business has for a given period after you’ve accounted for all payments to your financial obligations, both short-term and long-term.

Net Cash Flow

Net cash flow is the amount of money your company produced or lost during a given period.