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Dictionary of financier. Dictionary of financial terms and economic concepts

Indicators of the financial activity of the company: data characterizing various aspects of activities related to the formation and use of funds and savings. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic... ... Economic dictionary

Financial indicators- a set of indicators used to study the performance of a company and measure the degree of risk of its operations. Typically, four groups of indicators are distinguished: profitability, turnover, liquidity and structure ratios... ... Dictionary of business terms

financial indicators- A set of indicators (coefficients) used to study the performance of a company and measure the degree of risk of its operations. There are four groups of indicators: profitability ratios, turnover ratios, liquidity ratios and... ... Technical Translator's Guide

financial indicators- indicators of the financial activity of the company, data characterizing various aspects of activities related to the formation and use of monetary funds and savings... Dictionary of economic terms

FINANCIAL INDICATORS- data characterizing various aspects of activities related to the formation and use of funds and savings of enterprises...

Bank financial indicators- are used to assess the current state of a credit organization and forecast its development. For this purpose, the following data from the bank’s reporting is analyzed: the turnover sheet for the accounts of the credit organization (form 101); information... ... Banking Encyclopedia

FINANCIAL INDICATORS OF THE ENTERPRISE- reporting or calculation data characterizing various aspects of the enterprise’s activities related to the formation and use of its cash funds and savings. F.p.p. expressed in abs. and relates. (norms, coefficients) values.… … Financial and credit encyclopedic dictionary

OJSC "MTS": history of the company's development, financial indicators- Mobile TeleSystems OJSC (MTS), the largest Russian cellular operator, following an inspection by the Federal Tax Service of the Russian Federation, received tax claims for 2005-2006 in the amount of 1.13 billion rubles (or about 49... ... Encyclopedia of Newsmakers

FINANCIAL INDICATORS- (see FINANCIAL INDICATORS) ... Encyclopedic Dictionary of Economics and Law

Financial ratios- relative indicators of the financial condition of the enterprise, which express the relationship of some absolute financial indicators to others. Terminological dictionary of banking and financial terms. 2011… Financial Dictionary

FINANCIAL BUDGETS- Budgets containing planned and reporting indicators according to standard financial statements. Dictionary of business terms. Akademik.ru. 2001 ... Dictionary of business terms

Books

Key financial indicators for assessing the activities of an enterprise, Vladislav Masaev. The use of a system of key financial indicators (KFI) for the performance of a company is becoming more and more popular and relevant every year. Key financial system... Buy for 5790 RUR
Financial dimensions of corporate strategies. Stakeholder approach, I. V. Ivashkovskaya. The monograph proposes a new approach to the financial justification of corporate strategies, consistent with the transition to an innovative economy. Methodology and measurement tools have been developed...

According to Oxfam, 82% of the world's wealth is concentrated in the hands of 1% of the world's population. Even if you are not one of these lucky people, you definitely deal with money every day. Therefore, we hope that our English cheat sheet for economists will be useful to you.

If you work in the financial sector, we recommend checking out our short economics dictionary on banking, finance and accounting, taxation and auditing. Representatives of other professions may be interested in the section about investments, cryptocurrency and professional jargon of economists.

Even those of you outside the financial sector are encouraged to explore our carefully curated resources. They will help you keep track of your personal finances, explore the world of movie brokers, and always keep your finger on the pulse without waiting for news about the current economic situation to be translated into Russian.

Brief dictionary of economic terms

Let's look at the basic terminology of English for economists. At the beginning of our financial and economic dictionary, we present general terms from economic theory, which many of us began to study in school. Next are highly specialized industry concepts for employees of banks, accounting departments and auditing companies. For a snack - a short crypto-dictionary on the topic of the day and professional slang.

Basic terminology

Let's start with the ABCs of economic theory: let's study the most necessary terms.

Word/Phrase	Translation
a seller	salesman
a buyer	buyer
profit and loss	profit and loss
a margin	margin
costs: fixed costs variable costs	costs, expenses: fixed costs variable costs
a market	market
competition	competition
efficiency	efficiency
an exchange	exchange
trade	trade
an advantage	advantage, benefit
a disadvantage	disadvantage, damage
purchasing power	purchasing power
demand	demand
supply	offer
a demand curve	demand curve
a supply curve	supply curve
an incentive	driving motive
a production possibilities curve (PPC)	production possibilities curve
tax	tax
duty	duty
duty free	duty free
a subsidy	subsidy
an absolute price	absolute price
a relative price	relative price
a price floor	minimum price
the equilibrium price	equilibrium price
a price level	price level
a consumer price index	consumer price index
a minimum wage	minimum wage
surplus	excess, excess
shortage	shortage, deficit
a government budget	the state budget
gross domestic product (GDP)	gross domestic product (GDP)
gross national product (GNP)	gross national product (GNP)
foreign national debt	public external debt
The World Trade Organization (WTO)	World Trade Organization (WTO)
gold and currency reserves	gold reserves
inflation	inflation
devaluation	devaluation
a commodity bundle / a market basket	consumer basket
unemployment	unemployment
the poverty line	poverty line
financial crisis	financial crisis

Professions in economics and finance

Now let's look at the most common professions in the economic sector.

Word/Phrase	Translation
an economist	economist
an accountant	accountant
a business analyst	business analyst
a financial advisor	Financial Consultant
an investment consultant (adviser)	investment consultant
a comptroller	Financial Controller
a tax officer / a tax inspector	tax inspector
a broker	broker
a certified public accountant (Am.E.), a chartered accountant (Br.E.)	auditor
an actuary	actuary (insurance calculation specialist)
a treasurer	treasurer
a bank clerk	Bank clerk
a chief financial officer (CFO)	financial director

Banking

Let's look at the key terms for working in a bank.

Word/Phrase	Translation
a stock market	securities market, stock market
an interest	percent
an interest rate	interest rate
capitalization	capitalization
the capitalization rate	interest rate used when capitalizing income
a refinancing rate	refinancing rate
an encashment	collection
the International Monetary Fund	International Monetary Fund
a credit rating	credit rating
creditworthiness	creditworthiness
a credit history	credit history
a mortgage loan	mortgage credit lending
a payment guarantor	payment guarantor
a fine (a penalty)	penalty, fine
a general lien	right to seize the debtor's property
forgery	counterfeit (banknotes, banknotes)
a default	default

Finance and accounting

A selection of words for accountants will help you take into account income and expenses and balance debits and credits in English.

Word/Phrase	Translation
bookkeeping	accounting
financial planning	financial planning
accounting analysis, financial analysis	the financial analysis
accounting/accountancy	Accounting
financial statements (a financial report)	financial statements (financial report)
an accounting period	reporting period
an annual report	annual report
a balance sheet	balance sheet
a cash flow statement	cash flow statement
a fiscal year	fiscal year
account reconciliation	reconciliation of accounts
assets	assets
liabilities	liabilities
financial risk management	financial risk management
types of accounting ratios: liquidity ratios profitability ratios market value ratios activity analysis ratios	types of accounting ratios: liquidity ratios profitability ratios market value ratios company performance analysis coefficients
record keeping: accounts receivable accounts payable inventory records payroll records petty cash records	accounting documentation: accounts receivable accounts payable inventory accounting salary slips entertainment expenses, accountable amounts

Taxation and auditing

Let's move on to vocabulary for tax specialists.

Word/Phrase	Translation
a tax declaration	tax return
a tax payer	taxpayer
a fiscal period	taxable period
a tax base	object of taxation
a tax holiday	tax benefit
a tax rate	tax rate
direct taxes	direct taxes
indirect taxes	indirect taxes
an income tax	corporate income tax income tax
value added tax (VAT)	value added tax (VAT)
a tax counsel	tax advisor
an audit team	audit group
audit accounts	audited accounts
a tax haven	"tax paradise", offshore zone, territory with preferential tax regime
to levy	to tax

Business and investment

We present a business dictionary from the field of trade and investment.

Word/Phrase	Translation
stocks and shares	stocks and bonds
a shareholder	shareholder
a stock exchange	stock Exchange
a venture fund	venture fund
an investment portfolio	investment portfolio
flotation	corporatization
a nominal value	nominal cost
a share price slump	stock price collapse
a bull market	"bull market", a market with an upward trend
a bear market	"bear market", a market with a bearish trend
an advisory company	consulting company
a boom and a bust	rise and fall (in company development)
illegal business	illegal business
shadow economy	shadow economy
to accumulate capital	increase capital
to tie up a block of shares	invest in shares
to turn bankrupt	go bankrupt

Crypto industry

So we got to the most pressing topic - the crypto industry. Since many concepts are borrowed from English, we decided to provide not only a translation, but also a brief interpretation.

Word/Phrase	Translation
a cryptocurrency	cryptocurrency (digital currency that is created and controlled by cryptographic methods)
fiat currency, fiat money	fiat money (currency that the government establishes as legal tender)
a blockchain	blockchain (a digital register that stores information about all transactions, deals and concluded contracts)
a smart contract	smart contract, smart contract (computer algorithm for concluding and maintaining commercial contracts in the blockchain system)
a token	token (digital share of a company)
a token holder	token holder
mining	mining (the process of extracting tokens)
cloud mining	cloud mining (token mining in a cloud service)
an initial coin offering (ICO)	initial placement of tokens on the exchange
сrypto-bounty	crypto-bounty (provision of services in exchange for free tokens)

Professional jargon

Some concepts from the professional slang of English-speaking economists are alien to us. Therefore, we decided to explain them in more detail - it will be easier to remember.

Word/Phrase	Translation
a kickback	bribe, kickback
a skin	penniless man
turnover	staff turnover
a bankster (banker + gangster)	corrupt banker
nom-nomics	“nom-nomika” is a shortened and more appetizing version of the name of the economy :-)
a hard sell	hard sell - an aggressive product marketing strategy
leverage	financial leverage (financial leverage, financial leverage)
a chainsaw consultant	an outside expert brought in to reduce the number of employees, while “leaving management’s hands clean”

Useful Resources

Let's move on to useful resources that will make your work even more productive.

Tutorials:

Economics by R. Arnold - a textbook from California State University. The main convenience is that the terms are highlighted in blue and placed in the column on the left. This makes memorizing words much easier. In the Economics 24/7 section you will find articles on entertaining economics, supported by real-life and historical examples. At the end of each chapter there are sections Chapter summary and Key terms and concepts with a brief summary of information and basic definitions.
The Economics Book: Big Ideas Simply Explained by DK - the book talks about the development of economic thought, starting all the way with Aristotle. The key feature is that the material is presented in the form of colorful infographics, which makes it easier to understand complex economic terms. Among the authors and consultants of the manual are a World Bank employee, a participant in the Obama election campaign, and an adviser to the British Treasury.
Macmillan Guide to Economics by L. Raitskaya and S. Cochrane is a textbook from the Macmillan publishing house, compiled in English in collaboration with the Russian-speaking MGIMO teacher Liliya Raitskaya. The textbook contains special sections for the development of various language skills, including listening.
Professional English in Use Finance by I. MacKenzie is a textbook in the popular series about professional English from Cambridge University Press.
English for the Financial Sector by I. MacKenzie - not only basic terms from the financial sector are collected here, there are also exercises to develop language skills.
Oxford English for Careers: Finance by R.Clark and D. Baker - an Oxford textbook with sections on personal finance, banking, internal company finance, accounting and auditing, insurance and risks, etc.

Dictionaries:

Financial Dictionary by Farlex - 8,000 economic terms collected for you by financial expert Harvey Campbell and Duke University professor Paul Stich.
A Dictionary of Finance and Banking is a textbook and part-time dictionary from Oxford Press.
The Forbes Financial Glossary is a glossary from the world famous economic magazine.

Tools for work:

Financial Management - many templates for various types of financial documents in Excel and Word.
Top Excel Templates for Accounting - templates for different types of documents for accountants in Excel files.
AuditNet - templates for auditors.

Online magazines:

Forbes is a famous financial magazine, without which this material would not have been possible. Forbes has articles, some of the most popular being Forbes Lists, eBooks, Podcasts and video- interviews with entrepreneurs and materials about the richest people on the planet.
The Economist is a British economic magazine with a lot of sections to suit your every need: video, podcasts , an application for iOS and , newsletter , infographics World in Figures , materials about alternative history in general and economic thought in particular The World If , as well as stunningly convenient visual information from The Economist Films .
McKinsey Quarterly is one of the most authoritative business publications in the English-speaking world. And this is not surprising: articles have been published since 1964, and McKinsey Quarterly still holds its mark. Subscribe to the newsletter, download the application for iOS or Android and receive useful materials.
Bloomberg Businessweek is a business magazine from Bloomberg. The magazine has an impressive variety of , and .

For those who did not have the opportunity to study finance at prestigious foreign educational institutions, but strive for a career as a financier in Russia or abroad.
Specialties related to financial activities are popular and in demand both in Russia and in other countries. However, a diploma from a Russian higher educational institution is not always enough to get an interesting and promising job in your specialty, even in our country. In order not to vegetate in a low position, but to make a serious career in finance, financial English is almost always necessary.
The best financial textbooks, courses, books offered to the Russian-speaking audience are most often translated - these can be courses from well-known educational institutions or works of famous foreign financiers. And few will dispute the truth that it is better to read a financial English textbook in the original language.
You can master financial English with a confident command of the language in a few months through good courses with a native speaker who can explain financial terms in English and the intricacies of their use.

Financial terminology

The basis of professionalism in any business is mastery of terminology, and financial terminology is no exception. If you want to achieve heights, a dictionary of financial terms should become your reference book, just like the English financial dictionary. Only if you are completely sure that you understand the terms in English not just correctly, but in all the subtleties of their meaning and application, can you be just as sure that you correctly understand both what you read in the textbook and what you are going to say to a potential employer or to the client. You can confirm your knowledge of English terminology and general knowledge in the financial sector by obtaining one or more of various international certificates. A description of the most common exams and the possibility of taking them in Moscow can be found on the page dedicated to international certification.
If you are receiving an education in the field of finance, already have a diploma and want to connect your activities with finance in Russia and abroad, or are a practicing financier - articles for financiers in English will help you more fully understand issues related to various aspects of your chosen profession and global trends development of the financial sector. English-language resources and articles are an opportunity to receive information from the financial world “first-hand” without waiting for it to appear in the Russian-language segment of the Internet. And here the phrase said by one of the world’s most famous financiers Mayer Amschel Bauer (Rothschild) is quite appropriate: “Whoever owns the information owns the world.”

Aval

A bill of exchange guarantee in respect of which bill of exchange law is applied. This guarantee means a guarantee of full or partial payment of the draft if the debtor fails to fulfill his obligations on time. The aval is given on the front side of the bill and is expressed by the words: “Count as aval” or any other similar phrase and is signed by the avalist. Aval is given for any person responsible for the bill, so the avalist must indicate for whom he gives guarantee. In the absence of such an indication, the aval is considered to be issued to the drawer, i.e. not for the debtor, but for the creditor. The avalist and the person for whom he vouches are jointly and severally liable. Having paid the bill, the avalist acquires the right of recourse to the person for whom he issued the guarantee, as well as to those who are obliged to this person.

Prepaid expense

A sum of money issued against upcoming payments for material assets, work performed and services rendered.

Advice

In banking, commercial, accounting practice - a notice sent by one counterparty to another about changes in the state of mutual settlements or about the transfer of funds or the sending of goods. An advice note, as a document, has a legal nature.

Assets

Property of enterprises, which includes fixed assets, other long-term investments (including intangible assets), working capital, financial assets.

Acceptance

The agreement of the obligated person to pay the payment request and thus make settlements with the product supplier as provided for in the contract. The acceptance form of payment involves the presentation for payment for the supplied products of a payment request issued by the supplier of the goods.

Excise tax

An indirect tax included in the price of a product and paid by the buyer. The law of the Russian Federation establishes the procedure for imposing excise taxes on sold wine and vodka products, ethyl alcohol and food raw materials (except for those sold for the production of alcoholic beverages and wine products, beer, tobacco products, tires, cars, trucks with a carrying capacity of up to 1.25 tons, jewelry, diamonds, crystal products, carpets and rugs, fur products, as well as clothing made of genuine leather).

Stock

Securities issued by joint-stock companies and indicating the share of the owner (holder) in the capital of this company, giving their owner the right to receive profit in the form of a dividend, and also, depending on the type, capable of giving the right to vote at the general meeting of shareholders (simple registered) . This type of equity securities is not issued by government agencies; they are issued only by industrial, commercial and financial corporations. The price at which a share is sold on the market is called the share price.

Auditing activities

Activities of independent non-departmental financial control. Audit (independent financial control) is carried out by specialized audit firms and services. Audit firms provide control and consulting services to all enterprises and organizations on a paid basis. Audit firms are independent organizations designed to help improve the quality of control and its objectivity.

Correspondent banks

Banks that, on the basis of a correspondent agreement, carry out each other’s orders for payments and settlements through specially opened accounts or through accounts of correspondent banks in a third bank.

Bank guarantee

A written obligation given by a bank or other credit institution, or an insurance organization (guarantor), at the request of another person (principal), to pay the principal's creditor (beneficiary), in accordance with the terms of the obligation given by the guarantor, a sum of money upon presentation by the beneficiary of a written demand for its payment. The bank guarantee ensures the proper fulfillment by the principal of his obligation to the beneficiary (principal obligation). For issuing a bank guarantee, the principal pays a fee to the guarantor. The bank guarantee comes into force from the date of its issue, unless otherwise provided in the guarantee. The obligation of the guarantor to the beneficiary provided for by a bank guarantee does not depend in the relations between them on the main obligation to secure the fulfillment of which it was issued, even if the guarantee contains a reference to this obligation.

Bank transfer

An order from one person (the transferor) to the bank to transfer a certain amount in favor of another person (the transferee). The bank that has accepted the transfer order executes it through its correspondent.

Bankruptcy

The debtor’s inability to satisfy creditors’ demands for payment for goods (works, services), including the inability to ensure mandatory payments to the budget and extra-budgetary funds.

Barter deal

A non-currency, but valued and balanced exchange of goods, formalized by a single agreement (contract).

Cashless payments

Settlements between organizations made by the bank transferring the amount from the account of the debtor organization to the account of the creditor organization according to payment documents in a non-cash manner. Payments can be made with the consent (acceptance) of the payer and on his instructions.

Commodity exchange

A commercial enterprise, a regularly functioning market for homogeneous goods with certain characteristics.

Stock exchange

An organized and regularly functioning market for the purchase and sale of securities. The main functions of the stock exchange are the mobilization of temporarily free funds through the sale of securities and the establishment of the market value of securities.

Budget

The form of formation and expenditure of a fund of funds intended for financial support of the tasks and functions of the state and local government; an economic category represented by monetary relations that arise between the state and legal entities and individuals regarding the redistribution of national income in connection with the formation and use of the country's budget fund intended to finance the national economy, socio-cultural needs, defense needs and public administration.

Consolidated budget

Compilation of budgets of all levels of the budget system of the Russian Federation in the relevant territory.

Budget deficit

The excess of budget expenditures over its revenues.

Budget revenues

Funds received free of charge and irrevocably in accordance with the legislation of the Russian Federation at the disposal of state authorities of the Russian Federation, state authorities of constituent entities of the Russian Federation and local governments.

Budget surplus

The excess of budget revenues over its expenses.

Budget expenses

Funds allocated to financially support the tasks and functions of the state and local government.

Budget list

A document on the quarterly distribution of budget income and expenses and receipts from sources of financing the budget deficit, establishing the distribution of budget allocations between recipients of budget funds and compiled in accordance with the budget classification of the Russian Federation.

Budget system

Based on economic relations and legal norms, the totality of all types of budgets in the country that have relationships established by law with each other. The unity of the budget system is based on the interaction of budgets at all levels, carried out through the use of regulatory revenue sources, the creation of target and regional budget funds, and their partial redistribution. This unity is realized through a unified socio-economic, including tax, policy.

Budget system of the Russian Federation

Based on economic relations and the state structure of the Russian Federation, regulated by the rules of law, the totality of the federal budget, budgets of the constituent entities of the Russian Federation, local budgets and budgets of state extra-budgetary funds.

Budget loan

Budget funds provided to another budget on a repayable, gratuitous or reimbursable basis for a period of no more than six months within a financial year.

Budget structure

Based on economic relations and legal norms, the totality of all types of budgets in the country. The main document in building the budget system is the Constitution of the Russian Federation.

Budget law of the Russian Federation

A set of legal norms (mandatory rules of conduct) delimiting the scope of various budgets (for example, regional, regional, city, district, rural, township), defining the powers of individual government bodies in issuing a budget law, regulating the procedure for the preparation and implementation of this law.

Budget regulation

A system of redistribution of funds, consisting in the transfer of part of the resources of a higher budget to a lower one for the purpose of balance. The regulatory mechanism includes: subsidies; subventions; regulating income sources. Budget regulation is an integral part of the budget process.

Budget device

The set of principles on which the organization of the budget system is based.

Budget allocations

Budget funds provided for by the budget schedule to the recipient or manager of budget funds.

Budget loan

A form of financing budget expenditures, which provides for the provision of funds to legal entities on a repayable and reimbursable basis.

Budget process

The activities of state authorities, local self-government bodies and participants in the budget process, regulated by legal norms, in the preparation and consideration of draft budgets, draft budgets of state extra-budgetary funds, approval and execution of budgets and budgets of state extra-budgetary funds, as well as monitoring their implementation.

Currency

A monetary unit used to measure the value of goods, the concept of “currency” is used in the following meanings: the monetary unit of a given country (US dollar, Japanese yen), banknotes of foreign countries, as well as credit and payment instruments used in international payments, and international ( regional) monetary unit of account and means of payment (transferable ruble, EURO).

Freely convertible currency

A currency that can be freely and unrestrictedly exchanged for other foreign currencies.

Currency payments

A system for organizing and regulating payments for monetary claims and obligations in foreign currency arising during the implementation of foreign economic activity. Payments can be made in cash or on credit, i.e. with installment payment. Cash payment represents full payment for the goods before the due date or at the moment the goods or documents of title are transferred to the buyer’s disposal. Payment on credit or payment by installments has two forms: commercial credit (loan from the exporter to the importer) and advances from the importer to the exporter.

Exchange rate

The price of a monetary unit of a given national currency, expressed in monetary units of another country's currency.

Bill of exchange

A security certifying the unconditional obligation of the drawer (promissory note) or another payer specified in the bill of exchange (bill of exchange) to repay the borrowed sums of money upon the maturity of the bill of exchange; the relations of the parties to the bill of exchange are regulated by the law on bills of exchange and promissory notes. The Law of the Russian Federation “On the monetary system of the Russian Federation” (Article 13) considers a bill of exchange to be a payment document used in non-cash payments. Russia adheres to the Uniform Bill of Exchange Law, adopted in 1930 in Geneva.

Bill of exchange credit

A loan issued by issuing a bill of exchange to the importer, who accepts it upon receipt of shipping and payment documents.

Off-budget funds

A specific form of redistribution and use of financial resources attracted to finance certain public needs and used comprehensively on the basis of the organizational independence of funds.

Government loans

Credit relations between the state and legal entities and individuals, as a result of which the state receives certain amounts of money for a certain period for a certain fee, are carried out in the form of the sale of government securities, loans from extra-budgetary funds and in the procedure of obtaining loans from banks.

Government spending

Part of the financial relations, which is determined by the use of state revenues in connection with the implementation of its functions: security; defense; foreign economic relations; social; managerial.

Public finance

Monetary relations regarding the distribution and redistribution of the value of the social product and part of the national wealth, associated with the formation of financial resources at the disposal of the state and its enterprises and the use of public funds for the costs of expanding production, meeting the socio-cultural needs of society, the needs of defense and management. State budget revenues consist of many sources and revenues. The totality of all types of state revenues, which is formed by various methods, constitutes the state revenue system.

State extra-budgetary fund

The form of formation and expenditure of funds generated outside the federal budget and the budgets of the constituent entities of the Russian Federation.

State loan

Monetary relations arising between the state and legal entities and individuals in connection with the mobilization of temporarily free funds at the disposal of public authorities and their use to finance public expenditures.

Devaluation

Decrease in the exchange rate of a national or international (regional) currency in relation to the currencies of another country. Very often, devaluation reflects the depreciation of foreign currency as a result of inflation.

Denomination

Enlargement of the national monetary unit by exchanging old banknotes for new ones according to an established ratio in order to streamline monetary circulation, facilitate accounting and settlements in the country with simultaneous recalculation (in the same ratio) of prices, tariffs, wages, etc.

Depository

An organization conducting depository activities.

Depository activities

Providing services for storage (deposit) of securities, as well as “service of securities”, i.e. execution of the depositor's instructions to exercise the rights certified by the securities.

Deport

An exchange transaction for a period concluded on a stock exchange in the expectation of a decrease in the price of securities in order to obtain an exchange rate difference.

Deflation

Withdrawal by the state from circulation of part of the circulating surplus funds in order to reduce inflation.

Bank deposit agreement

An agreement under which one party (the bank), having accepted a sum of money (deposit) received from the other party (depositor) or received for it, undertakes to return the deposit amount and pay interest on it under the conditions and in the manner prescribed by the agreement. A bank deposit agreement in which the depositor is a citizen is recognized as a public contract. The rules on the bank account agreement apply to the relationship between the bank and the depositor on the account to which the deposit is made, unless otherwise provided by the rules of this chapter or follows from the essence of the bank deposit agreement.

Bank account agreement

An agreement under which the bank undertakes to accept and credit funds received to the account opened for the client (account owner), carry out the client’s orders to transfer and withdraw the corresponding amounts from the account and carry out other operations on the account. The bank can use the funds available in the account, guaranteeing the client’s right to freely dispose of these funds. The bank does not have the right to determine and control the direction of use of the client’s funds and establish other restrictions on his right to dispose of funds at his own discretion not provided for by law or the bank account agreement.

State loan agreement

An agreement under which the borrower is the Russian Federation, a subject of the Russian Federation, and the lender is a citizen or legal entity. Government loans are voluntary. A government loan agreement is concluded through the acquisition by the lender of issued government bonds or other government securities, certifying the lender’s right to receive from the borrower the funds loaned to him or, depending on the terms of the loan, other property, established interest or other property rights within the time limits provided for by the conditions issuing a loan into circulation. Changing the terms of a loan issued in circulation is not allowed. The rules on public loan agreements apply accordingly to loans issued by a municipality.

Loan agreement

An agreement under which one party (the lender) transfers into the ownership of the other party (the borrower) money or other things determined by generic characteristics, and the borrower undertakes to return to the lender the same amount of money (loan amount) or an equal number of other things of the same kind received by him and quality. The loan agreement is considered concluded from the moment the money or other things are transferred. A loan agreement between citizens must be concluded in writing if its amount exceeds at least ten times the minimum wage established by law, and in the case where the lender is a legal entity - regardless of the amount. In confirmation of the loan agreement and its terms, a receipt from the borrower or another document certifying the transfer by the lender of a certain amount of money or a certain number of things to him may be presented.

Surety agreement

An agreement under which the guarantor undertakes to be responsible to the creditor of another person for the latter’s fulfillment of his obligation in whole or in part. A surety agreement can also be concluded to secure an obligation that will arise in the future. The guarantee agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the guarantee agreement. In case of non-fulfillment or improper fulfillment by the debtor of the obligation secured by the guarantee, the guarantor and the debtor are jointly and severally liable to the creditor, unless the law or the guarantee agreement provides for the subsidiary liability of the guarantor.

Public external debt

Debt obligations of the Government of the Russian Federation to foreign states or international organizations, expressed in foreign currency.

State domestic debt

Debt obligations of the Government of the Russian Federation, expressed in the currency of the Russian Federation, to legal entities and individuals, unless otherwise established by regulations of the Russian Federation. Legal forms of debt obligations are loans received by the government, government loans obtained through the issuance of securities on behalf of the Government of the Russian Federation, and other debt obligations guaranteed by the Government of the Russian Federation.

Debtor, debtor enterprise

An enterprise that does not fulfill or in the near future will not be able to fulfill its obligations to creditors. The legislation of the Russian Federation introduced the concept of an insolvent debtor (bankrupt).

Subsidies

Budget funds provided to the budget of another level of the budget system of the Russian Federation on a gratuitous and irrevocable basis to cover current expenses.

Secured income

Revenues that are transferred in whole or in part to a certain type of budget.

Pledge

A civil action that gives the right to the creditor under the obligation secured by the pledge (pledgee), in the event of failure of the debtor to fulfill this obligation, to receive satisfaction from the value of the pledged property preferentially before other creditors. The pledgee has the right to receive, on the same basis, satisfaction from the insurance compensation for loss or damage to the pledged property, regardless of whose benefit it is insured, unless the loss or damage occurred for reasons for which the pledgee is responsible. The pledge of land, enterprises, buildings, structures, apartments and other real estate (mortgage) is regulated by the mortgage law. A pledge arises by virtue of a contract. A pledge also arises on the basis of law upon the occurrence of the circumstances specified therein.

Investment fund

An intermediary who, by issuing securities, attracts privatization certificates and funds from citizens for their subsequent investment in privatization objects, real estate and securities of other joint-stock companies. There are open and closed types of investment funds. Open-ended investment funds sell their securities with the obligation to buy them back at the first request of investors. Closed-end investment funds issue their securities with the obligation to redeem them at the end of the period for which the fund was established.

Investors

Business entities (government bodies that direct funds to cover urgent and long-term needs), persons who own securities by right of ownership (owners) or other property rights (owners).

Endorsement

Its essence is that on the reverse side of the bill or additional sheet (allonge) an endorsement is made, through which the right to receive payment is transferred to another person along with the bill. The person who transfers the bill by endorsement is called the endorser, and the person who receives it is called the endorser. The act of transferring a bill of exchange is called endorsing or indorsing. Endorsement can be made in favor of any person, including even in favor of the payer or drawer. It should be simple and unconditional. Partial endorsement, i.e. transfer of only part of the bill amount is not permitted. The endorser is responsible for acceptance and payment. He can relieve himself of responsibility by writing “No recourse to me.”

Collection

A form of payment in which the bank (issuing bank) undertakes, on behalf of the client, to carry out actions at the client’s expense to receive payment and (or) acceptance of payment from the payer. The issuing bank that has received the client’s order has the right to attract another bank (executing bank) to carry it out. The procedure for making collection payments is regulated by law, the banking rules established in accordance with it and the business customs used in banking practice.

Limitation of actions

Time limit for protecting the right to a person’s claim. whose right has been violated. The general limitation period is set at three years. For certain types of claims, the law may establish special limitation periods, shorter or longer than the general period. The limitation period, in particular, does not apply to depositors’ claims to the bank for the issuance of deposits.

Commercial banks

Private and public banks that carry out universal lending operations to industrial, commercial and other enterprises, mainly at the expense of the monetary capital that they receive in the form of deposits.

Commercial loan

A loan provided in commodity form by sellers to buyers in the form of deferred payment for goods sold. It is provided against the obligation of the debtor (buyer) to repay both the principal amount and the accrued interest within a certain period of time. There are five main ways to provide a commercial loan: bill method; open account; discount provided payment is made within a certain period of time; seasonal loan; consignment.

Bankruptcy estate

The property of the debtor, which may be foreclosed upon during bankruptcy proceedings.

Bankruptcy proceedings

A procedure aimed at the forced or voluntary liquidation of an insolvent enterprise (i.e. bankrupt).

Bankruptcy creditor

An individual or legal entity that has property claims against the debtor and is not a holder of security rights.

Consignment

A method of lending in which a retailer can simply obtain inventory without obligation. If the goods are sold, then payment will be made to the manufacturer, and if not, the retailer can return the goods to the manufacturer without paying a penalty. Consignment is usually used when selling new, atypical goods, the demand for which is difficult to predict. An example is the practice of producing and selling new textbooks for institutions. Book publishers send their books to institute bookstores with the condition that they be returned if they are not sold.

Loan agreement

An agreement under which a bank or other credit organization (lender) undertakes to provide funds (loan) to the borrower in the amount and on the terms stipulated by the agreement, and the borrower undertakes to return the amount of money received and pay interest on it. The loan agreement must be concluded in writing. Failure to comply with the written form entails the invalidity of the loan agreement. Such an agreement is considered void. The lender has the right to refuse to provide the borrower with the loan provided for in the loan agreement, in whole or in part, if there are circumstances clearly indicating that the amount provided to the borrower will not be repaid on time. The borrower has the right to refuse to receive a loan in whole or in part by notifying the lender before the deadline established by the agreement for its provision, unless otherwise provided by law, other legal acts or the loan agreement. If the borrower violates the obligation for the intended use of the loan provided for in the loan agreement, the lender also has the right to refuse further lending to the borrower under the agreement.

Leasing

It is a special form of financial investment for the purchase of equipment, durable goods or real estate. Participants in leasing operations are, as a rule, three parties: the enterprise - the manufacturer of the leased object; leasing company - lessor; as well as the enterprise - the tenant (lessee).

Broker

An intermediary in concluding transactions on stock and commodity exchanges, who acts on behalf of clients and at their expense.

Minimum budgetary provision

The minimum acceptable cost of state or municipal services in monetary terms provided by state authorities or local governments per capita at the expense of the relevant budgets.

Minimum state social standards

Public services, the provision of which to citizens on a gratuitous and irrevocable basis through funding from the budgets of all levels of the budget system of the Russian Federation and the budgets of state extra-budgetary funds, are guaranteed by the state at a certain minimum acceptable level throughout the Russian Federation.

Tax

A mandatory, individually gratuitous payment levied on organizations and individuals in the form of alienation of funds belonging to them by right of ownership, economic management or operational management, for the purpose of financial support for the activities of the state and (or) municipalities. Signs of a tax: compulsory nature; gratuitousness; non-equivalence.

Tax inspections

Bodies of operational financial control. The system of tax authorities is headed by the Ministry of Taxes and Duties of the Russian Federation. The tasks of tax services are: a) monitoring compliance with tax legislation, ensuring the completeness and timeliness of tax payments to the budget; b) carrying out inspections of the financial condition of enterprises and organizations, regardless of departmental subordination and their organizational and legal form; c) control over the correct determination of taxable profit (income) in order to prevent its understatement; d) registration of all subjects, as well as real and potential objects of taxation; e) accounting, evaluation and sale of confiscated, ownerless property, property transferred to the state, treasures. Tax inspectorates have the right to: receive the necessary documents and information from organizations of various forms of ownership, with the exception of those that constitute a commercial secret determined by law; monitor compliance with legislation on citizen entrepreneurship; inspect all premises used for generating income; suspend all operations of enterprises and citizens in case of failure to provide documents; seize documents indicating concealment of income; apply sanctions and fines; bring claims to court and arbitration for the liquidation of enterprises and recognition of transactions as invalid.

Immovable things (real estate, real estate)

Land plots, subsoil plots, other objects and everything that is firmly connected to the land, that is, objects whose movement without disproportionate damage to their purpose is impossible, including forests, perennial plantings, buildings, structures. Immovable property also includes aircraft and sea vessels, inland navigation vessels, and space objects subject to state registration. The law may classify other property as immovable property.

Penalty (fine, penalty)

The amount of money determined by law or contract that the debtor is obliged to pay to the creditor in the event of non-fulfillment or improper fulfillment of an obligation, in particular in case of delay in performance. Upon a claim for payment of a penalty, the creditor is not required to prove that he suffered losses. The creditor has no right to demand payment of a penalty if the debtor is not responsible for non-fulfillment or improper fulfillment of obligations.

Government bonds

Securities issued by the state in order to attract part of borrowed funds to the state budget. Income received from government securities, unlike corporate securities, has preferential taxation. Currently, the Ministry of Finance of the Russian Federation, on behalf of the Government of the Russian Federation, is attracting short-term borrowed funds from legal entities and the population under bond issues. The most common short-term loan is a loan against the issue of government short-term zero-coupon bonds (GKOs).

Corporate bonds

Mortgage bonds (backed by physical assets) unmortgaged bonds (direct debt obligations that do not create a property claim against the corporation) bonds secured by other securities of the company (backed by shares or debentures of the company) convertible bonds (give the investor the right to purchase common shares of the same company at a certain price for a certain period) income bonds (they earn interest only when income is earned).

Municipal bonds

Issued for the purpose of raising funds for the construction or repair of public facilities: roads, bridges, water supply systems, etc. They are divided into the following types of general obligation bonds (backed by the good faith of the issuer) bonds for project income (repaid from income from projects for financing of which they are issued).

Bond

A security certifying the right of its holder to receive from the person who issued the bond, within the period specified by it, the nominal value of the bond or other property equivalent. The bond also provides its holder with the right to receive a fixed percentage of the nominal value of the bond or other property rights.

Cash liabilities

Must be expressed in rubles. A monetary obligation may stipulate that it is payable in rubles in an amount equivalent to a certain amount in foreign currency or in conventional monetary units (ecus, for example). In this case, the amount payable in rubles is determined at the official exchange rate of the relevant currency or conventional monetary units on the day of payment, unless a different rate or another date for its determination is established by law or by agreement of the parties.

Overdraft

A negative balance on the client’s current account, which sometimes acquires the status of a loan, i.e. a form of short-term loan, the provision of which is carried out by debiting funds from the client’s account by the bank in excess of the balance in the account, resulting in the formation of a debit balance. With an overdraft, all amounts credited to the client’s current account are used to repay the debt; therefore, the volume of the loan changes as funds are received, which distinguishes an overdraft from regular loans. Interest will be charged at existing or agreed rates.

Option

The right to choose the method of fulfilling an obligation granted by one of the parties to the contract, its terms, or the right to refuse to fulfill an obligation under certain conditions.

Option loan

A loan with an option is a form of loan or debt obligation in which the lender, within certain limits, is given the right to choose repayment.

Offeror

The person making the offer.

Offer

A formal proposal to a specific person to enter into a transaction, indicating all the conditions necessary for its conclusion.

Liabilities

Liabilities (except for subventions, subsidies of own funds and other sources) of an enterprise consisting of borrowed and raised funds, including accounts payable.

Bill of exchange (draft)

Issued and signed by the creditor (drawer). It contains an order to the debtor (drawee) to pay within the specified period the amount indicated in the bill of exchange to a third party (remitee).

Payment order

The payer's order to the bank to transfer a certain amount of money to the account of the person specified by the payer in this or another bank within the period provided for by law or established in accordance with it, unless a shorter period is provided for in the bank account agreement or is not determined by the customs of business transactions applied in banking practice at the expense of funds on his account.

Policy

A document from the insurance authority confirming the existence of a concluded insurance transaction.

Fees

Amounts of money collected by specially authorized institutions for actions performed in favor of an enterprise or individuals.

Company

A property complex used for business activities. In general, an enterprise as a property complex is recognized as real estate. The composition of the enterprise as a property complex includes all types of property intended for its activities, including land plots, buildings, equipment, inventory, raw materials, products, claims, debts, as well as rights to designations that individualize the enterprise its products, works and services (company name, trade marks) marks, service marks) and other exclusive rights, unless otherwise provided by law or contract.

Profit (loss) from sales of products and goods

Defined as the difference between revenue from the sale of products (works, services) in current prices without value added tax and excise taxes, as well as for its production and sale

Promissory note (solo bill)

It is written and signed by the debtor and contains his unconditional obligation to pay the creditor a certain amount at a specified time and in a certain place.

Regulatory revenues

Revenues that are intended to support the lower budget, respecting the chain of command. The list of assigned and regulating income is fixed by special tax laws and codes.

Reserves

Part of the financial resources that is intended to finance needs that arise unexpectedly and are aimed at both simple and expanded reproduction and consumption. Insurance reserves are part of the financial resources aimed at compensating for damages in insured events. Insurance financial reserves are the financial reserves of insurance companies. These reserves are needed when current funds are not enough to pay.

Decision to issue securities

A written document registered with the state registration authority and containing data sufficient to establish the scope of rights certified by the security.

Ruble

Currency of the Russian Federation, legal tender mandatory for acceptance at face value throughout the Russian Federation.

Stocks and bods market

Part of the loan capital market where the issue and purchase and sale of securities takes place. Through the securities market (banks, special credit institutions and the stock exchange), monetary savings of legal entities, individuals and the state are accumulated and directed to productive and non-productive investment of capital. There is a distinction between the primary securities market, where the issue and initial placement of securities takes place, and the secondary market, where the purchase and sale (circulation) of previously issued securities is carried out.

Savers

Legal entities and individuals accumulating funds due to the fact that expenses are less than the accumulated funds concentrated in the hands of individuals or in bank accounts (population, enterprises and the state).

Savings (deposit) certificate

A security certifying the amount of the deposit made to the bank and the right of the depositor (certificate holder) to receive, upon expiration of the established period, the amount of the deposit and the interest stipulated in the certificate from the bank that issued the certificate or from any branch of this bank. Deposits can be on demand (they give the right to withdraw certain amounts upon presentation of a certificate) and time deposits (which indicate the period for withdrawal of the deposit and the amount of interest due).

Collection

A mandatory contribution levied on organizations and individuals, the payment of which is one of the conditions for the execution in the interests of payers of fees by state bodies, local governments, other authorized bodies and official types of securities. Financial market participants: savers, investors, issuers.

Financial plan

A systemic set of measures to materially mediate the functioning of the state. It is drawn up for a period of 1 to 5 years and is included in the budget. In form, a financial plan is a statement of goals, figures and organizational proposals for the planned period. In an enterprise, planning is based on taking into account the law of value, and planning acts as an economic category. Financial plans have all links of the financial system of enterprises and organizations operating on a commercial basis, they draw up balances of income and expenses, institutions engaged in non-commercial activities - estimates, cooperative organizations, public associations and insurance companies - financial plans, government bodies - budgets of different levels . The object of financial planning is the financial activities of business entities and the state, and the final result is the preparation of financial plans, ranging from the estimate of an individual institution to the consolidated financial balance of the state. Each plan defines income and expenses for a certain period, connections with parts of the financial and credit systems (social insurance contributions, payments to the budget, fees for a bank loan, etc.). Financial plans are available at all levels of the financial system; enterprises and organizations operating on a commercial basis draw up a “balance of income and expenses”, enterprises and organizations operating on a non-commercial basis draw up an “estimate”, a plan for public associations - a “financial plan”, government bodies make up the “budget” (at different levels: central, local, subjects of the Federation).

Financial return

The amount of profit received from invested resources. The main task is to reduce financial intensity and increase financial productivity in social production. It must be remembered that an important reserve for the growth of financial resources is the improved reproductive structure of financial resources and the value of the social product.

Finance

A set of objectively determined economic relations that have a distributive nature, a monetary form of expression and are materialized in cash income and savings, formed in the hands of the state and business entities for the purposes of expanded reproduction, material incentives for workers, and satisfaction of social and other needs. The condition for the functioning of finance is the availability of money, and the reason for the emergence of finance is the need of business entities and the state for resources that support their activities.

Stock Exchange

A specialized organization that brings together professional participants in the securities market, creating conditions for the concentration of supply and demand, as well as for increasing the liquidity of the market as a whole. An exchange is a specific trading organization that is subject to special rules and procedures. During the process of exchange trading meetings, the market price (rate) of the Central Bank is established using special methods, information about which, along with information about the volumes of completed transactions, becomes available to a wide range of investors. In this regard, the stock exchange can be likened to a sensitive device that signals the state of the stock market, and through it, the state of affairs in the economy as a whole.

Forfaiting

This is a credit operation in which the exporter, having received drafts (bills of exchange) accepted by the importer from the importer, sells them at a discount to a bank or specialized financial firm. When the draft payment becomes due, the importer usually repays his debt in semi-annual payments. Traditionally, large banks are usually involved in lending to foreign trade companies on the basis of forfeiting. By resorting to forfeiting, the exporter has the opportunity to additionally mobilize funds and reduce receivables. An exporter turns to the forfeiting market if he is unable to obtain a guarantee from a government institution, or his foreign trade contract is not creditworthy enough, or his own financial situation does not allow him to divert funds for a long time.

Futures, or futures contract

A standard agreement for the supply of goods in the future at a price determined by the parties when making a transaction.

Security

A document certifying, in compliance with the established form and required details, property rights, the exercise or transfer of which is possible only upon presentation. With the transfer of a security, all rights certified by it are transferred in the aggregate. In cases provided for by law, or in the manner established by it, for the exercise and transfer of rights certified by a security, it is sufficient evidence of their recording in a special register (regular or computerized). Securities include government bonds, bonds, bills of exchange, checks, deposits and savings certificates, bearer bank savings book, bill of lading, shares, privatization securities and other documents that are classified as securities by securities laws or in the manner established by them. When purchasing a security, an investor can count on at least two types income: investment and exchange rate.

Registered securities

Securities for which investor information must be available to the issuer at the security registry firm.

Bearer securities

Securities, the transfer of rights to which and the exercise of rights certified by them do not require mandatory identification of the name of the investor.

Securities circulation

Concluding civil transactions involving the transfer of ownership of securities.

Securities release form

A form of securities issue in which the investor is identified on the basis of presentation of a properly executed security certificate or, in the case of deposit of such, this certificate and an entry in the securities account.

Central banks

Banks that issue banknotes and are centers of the credit system. They occupy a special place in it and are, as a rule, government institutions.

Check

A security containing an unconditional order from the drawer to the bank to pay the amount specified in it. Only a bank where the drawer has funds that he has the right to dispose of by issuing checks can be indicated as the payer of a check. Cancellation of a check before the expiration of the period for its presentation is not permitted. The issuance of a check does not extinguish the monetary obligation for which it was issued. The form of the check and the procedure for filling it out are determined by law and the banking rules established in accordance with it.

Emission rights

A set of legal rules governing the release of money into circulation.

Emission

Issue of banknotes into circulation. On the territory of the Russian Federation, the monopoly right to issue banknotes into circulation belongs to the Central Bank of the Russian Federation.

Issuers

Legal entities that can issue securities. With the help of the financial market, the cash savings of savers are attracted to invest costs for the development of production, the implementation of state and regional target programs and other needs. An objective prerequisite is the discrepancy between the needs for financial resources of business entities and the availability of sources of financial resources.

Entity

An organization that has separate property in ownership, economic management or operational management and is liable for its obligations with this property can, on its own behalf, acquire and exercise property and other non-property rights, bear responsibilities, and be a plaintiff and defendant in court. Legal entities must have an independent balance sheet or budget and be registered as a legal entity. Legal entities can be organizations that pursue profit-making as the main goal of their activities (commercial organizations) or do not set profit-making as such a goal and do not distribute the profits between participants (non-profit organizations).

account	check
assets	assets
ATM (cash machine)	ATM
audit	audit, control check
auditing	Accounting
balance	balance
balance of payments	payment balance
balance of trade	trade balance
balance sheet	balance sheet
purchase	purchase
cargo	cargo
cash	cash
Chamber of Commerce	Chamber of Commerce
client/customer	customer
collateral	pledge
commodity turnover, circulation	trade turnover
Common Market	Common Market
competition	competition
competitive	competitive
competitor	competitor
consumer; ~goods	consumer; ~skie goods
consumption	consumption
consumption, accumulation fund	consumption fund
convertible, hard	convertible, solid
costs	costs
cover expenses	bear the expenses
credit terms	Credit terms
currency	currency
damage	damage
deal/transaction	deal
delivery	supply
deposit	contribution
depreciation	impairment, amortization
discount	discount
dividends	dividends
domestic market	domestic market
efficiency	Efficiency (coefficient of efficiency)
employee	employee
employer	employer
enterprise	company
entrepreneur	entrepreneur
expenditures/expenses	costs/expenses
export earnings	export earnings
external debt	external debt
factory assets/funds	enterprise funds
find/turn out to be defective/ substandard	reject
GDP (Gross Domestic Product)	GDP (gross domestic product)
GNP (Gross National Product)	GNP (gross national product)
growth rate	rates of growth
incentive	stimulus
in charge of economic policy	responsible for economic policy
income tax	income tax
insurance	insurance
interest rate	interest rate
International Monetary Fund (IMF)	International Monetary Fund (IMF)
investor	investor, investor
joint venture/enterprise	joint venture
labor intensive	labour intensive
lender, borrower	lender, recipient
letter of credit	letter of credit
liabilities	liabilities
limited liability	limited liability
loan	loan, loan
loan agreement	loan agreement
long-term, medium-term, current plans	long-term, medium-term, current plans
management, administration	leadership, management, management
manpower	work force
mortgage	mortgage
natural resources	Natural resources
output	release, volume (of production)
payments	deductions
per capita	per capita
personnel turnover	staff turnover
planned, market economy	planned/market economy
portfolio	briefcase
price list	price-list
producer	manufacturer
production/prime cost/cost price	cost price
profit	profitable, profitable
profitability	profit
advantageous	profitable
ratio	coefficient
raw materials	raw materials
retail	retail
revenue	receipts
sales and purchase	sales (sale) and purchase
savings	saving
scarce, rare	in short supply
securities	securities
self-financing	self-financing
share	share
shortage, deficit	deficit
small, medium enterprise	small, medium enterprise
spare parts	spare parts
State Bank	State bank
stock	promotion
stock company	Joint-Stock Company
stock exchange	stock exchange
exchange rate	exchange rate
business slowdown	business decline
stock market	stock market
stockholder	shareholder
supplier	provider
supply and demand	supply and demand
tariff	duty
tax, property ~	tax
terms of delivery	delivery conditions
terms of payment	conditions of payment
to be in demand	be in demand
to deliver/supply	supply
to fulfill/overfulfill a plan	fulfill/exceed the plan
to manage, run (e.g. a firm, hotel)	exploit
to patent	patent
to save on something/economize	saving, saving
trade representative	trade representative
trial order	test order
turnover	trade turnover
value added tax (VAT)	value added tax (VAT)
warehouse/storehouse	stock
wholesale	wholesale
World Trade Organization (WTO)	World Trade Organization (WTO)
discount rate, bank rate	discount rate
accounting and reporting	accounting and reporting
agent, intermediate	intermediary
arrears	debt
be listed on stock market	be quoted
bid, tender	bidding, bid, proposal, tender
bill (of exchange)	bill of exchange, bills of exchange
bill of lading	bill of lading
invoice	invoice
bond	bond
break-even point	breakeven point
broker	stockbroker
budget cuts	sequestration
capital flight	capital flight
capital intensive	capital intensive
capital investment	capital investments, investments
chartering	chartering
cost accounting	self-financing
cost recovery	self-sufficiency
deduct, write off from taxes	deduct, write off taxes
equity capital	share capital
equity investment	net worth
European Bank for Reconstruction and Development (EBRD, World Bank)	European Bank for Reconstruction and Development (EBRD)
fixed capital	main capital
freely convertible currency	freely convertible currency (FCC)
freight	freight
government, treasury bonds (T-bills)	State treasury bond (GKO) mutual fund
grant	free subsidy
insolvency	insolvency, insolvency
installation payment plan	installment payment
issue	emission
listing	quotation
Loading Unloading
maturity	maturity
means of production	means of production
military-industrial complex	military-industrial complex (MIC)
Ministry of Foreign Economic Ties	MVES (Ministry of Foreign Economic Relations)
money supply	money supply
negotiated instrument	negotiable instrument
non-collected taxes	arrears
oil field	field
oil pipeline	pipeline
oil rig	drilling rig
oil wells	production wells
overheads	overheads
pipeline	pipeline
procurement	purchase
self-subsidizing	self-sustaining
pumping	pumping
raise labor productivity	increase labor productivity
rate of reimbursement	reimbursement rate
repayment of credit	loan repayment
risk management	risk management
savings (e.g. in savings bank account)	production sharing agreement (PSA)
subcontractor	contractor
submit dispute to arbitration	submit the case to arbitration
tax code	tax code
tax collection	tax collection
tax evasion	tax avoidance
tax privileges, tax relief	tax benefits
tax return	tax return
taxable	taxable
taxation	taxation
tax-exempt, tax free	tax-exempt, tax-free
to file taxes	submit a declaration
trade mission	trade mission
trade/commercial consultant	trading advisor
trade surplus	active trade balance

Stock (Shares) – a document confirming the rights of its owner to the income and property of the company that is their issuer. There are ordinary (voting) and preferred (non-voting) shares, the totality of which constitutes the authorized capital of the company.

Preferred shares (Preferred Stock) – rights to the capital of an organization secured in a special way, presupposing the preferential receipt of a rate of return fixed at the time of issue on investments in capital in the presence of profit.

Ordinary shares (Ordinary Stock) – shares, the owners of which have the right to the net assets of the company, have the right to participate in the development of fundamental decisions for the development of the company related to its business activities (election of the Board of Directors, approval of annual reporting and monitoring of financial results, etc.). Owners of ordinary shares bear all risks related to the financial and economic activities of the company. In addition, the general meeting of shareholders approves the decision on the amount of dividends, which are paid from net profit after payment of dividends on preferred shares.

Assets (Assets) – property rights of an economic entity to various types of property, including funds in circulation. There are current assets (or working capital), hard-to-sell assets (fixed capital) and intermediate assets (financial investments);

resources controlled by the owners of the company and acquired as a result of past business transactions, used by management to obtain future economic benefits.

Non-current assets (Fixed Assets, Non— Current Assets, F.A.) – company assets that transfer their value to products over a period exceeding one year and (or) several operating cycles, and (or) formed to obtain long-term benefits. This group includes fixed assets, intangible assets, construction in progress, long-term financial investments and some other assets that meet the above criteria.

Liquid/quick assets (Liquid Assets) – cash and other highly liquid assets that the company can, without a significant loss of value and in a short time, convert into cash to fulfill its urgent obligations.

Current assets, current assets (Current Assets, C.A.) – the company’s assets in continuous circulation include cash and short-term investments in securities, short-term accounts receivable, work in progress, inventories of materials and goods ready for sale. Common to a group of assets is the principle of a one-time transfer of its value to manufactured products, and the expected period of transformation of assets into cash within one year, or a period not exceeding one operating cycle, if its duration exceeds one year.

Depreciation (Amortization, Depreciation) – periodic accruals reflecting the decrease in the accounting (i.e., residual) value of depreciable non-current assets made during the estimated service life of the asset. For fixed assets (funds) – depreciation, and other depreciable assets, for example, intangible assets – amortization.

The following are distinguished: depreciation methods:

straight line method:

Declining balance method;

method of writing off cost by the sum of the numbers of years of useful use of the depreciable asset (sum-of-the-year-digits method);

method of writing off cost in proportion to the volume of production (units-of production method).

Balance (external) (Public Soft) – balance sheet of companies compiled for external publication, that is, for shareholders, creditors, the public and tax authorities.

Book value (Book Value) – the value of an asset element reflected on the balance sheet. As a rule, it is formed as the difference between the original cost of the asset minus depreciation, revaluation, or depreciation taking into account market value.

Book value of the share (Book Value per Share) – share price calculated based on the book value of equity.

Bank overdraft (Bank Overdraft) – a loan provided to the borrower on a current account, repayable on demand. The maximum loan amount for an overdraft is determined in advance by the agreement, and interest is accrued only on the used part of the loan daily.

Bankruptcy (Bankruptcy) – a procedure regulated by the legislator for transferring the assets of a legal entity or individual to arbitration managers for the formation of a bankruptcy estate in order to fully or partially satisfy the claims of creditors, with the subsequent release of the debtor from further prosecution.

Accounting (financial) statements (Financial Statement) – prepared, in accordance with the requirements established by the financial market regulator, reporting of an economic entity, characterizing:

financial position of the entity as of a certain date (Balance Sheet, Balance Sheet);

financial results of its activities (profit and loss statement, Profit & Loss Statement);

movement of cash flows for the reporting period (cash flow statement, Cash— Flow Statement);

state and structure of equity capital (statement of changes in equity capital, Reconciliation of Movements in Shareholders’ funds);

additional explanations (appendices) that increase the level of transparency of reporting, taking into account the peculiarities and specifics of the conditions for carrying out operating, investment and financial activities.

Accounting profit (Accounting Profit) - the difference between the volume of revenue and expenses attributed to revenue, calculated in accordance with accepted accounting principles for a certain period (usually for a year, quarter, month).

Budgetary control— a management process that links the responsibility of performers with the requirements of the company’s policy in the field of operating, investment and financial activities, which involves continuous monitoring of budget parameters on the basis of a comparative plan-fact analysis. Its implementation pursues the task of ensuring the fulfillment of set goals, and determining the moment in time at which there is a need for their revision or adjustment.

Gross costs, total costs (Total Cost)– the sum of variable and fixed costs in the business process under study.

Gross Profit (GP)– the difference between sales revenue and the cost of products, goods and services sold.

Gross Margin, GM— the difference between sales revenue (income) and variable production costs per unit of output.

Earnings before interest and taxes, EBIT(Operating profit)– earnings before interest and taxes.

Promissory Note- a written promissory note in the form established by the legislator, issued by the borrower (drawer of the bill) giving the holder of the bill the right to demand from the borrower the amount fixed on the bill of exchange for payment within a specified period.

Non-operating income, other income (Extraordinary Income, Other Income) – income received from transactions in securities, from participation in the capital of subsidiaries and affiliates, from exchange rate differences on transactions in foreign currency.

Non-operating expenses, other expenses (Other Expenses)– costs associated with the production and sale of main products, but attributable to the financial results of economic activities.

Guaranteed placement, underwriting (Underwriting)– purchase by a financial institution of a large package of securities at the rate established by agreement between the company and the institution, with subsequent resale (placement) on the open market at a free rate.

Geographical segment- a dedicated component of an economic entity that is involved in the production of goods or the provision of services in a specific economic environment and that is exposed to risks and receives income that is different from the risks and income of other components of this entity operating in different economic conditions.

Accounts receivable, accounts receivable (Accounts Receivable, AR) – obligations of counterparties accompanying the current activities of the organization. (Receivables) - debt arising to an entity from counterparties and other persons as a result of concluding business agreements for transactions and (or) other operations determined by law.

Cash expenses, expenses (Expenditure)- the amount of money spent by a business entity on the purchase of raw materials, goods and services.

Cash– cash on hand and bank deposits payable on demand, including deposits in foreign currency. The absolutely liquid part of the company's assets, consisting of cash balances, funds in the current bank account, and highly liquid securities that have free circulation along with cash.

Equity instrument– any document confirming the right to the share of the company’s assets remaining after the repayment of all obligations.

Accounts payable- the amount of claims that the company must pay to counterparties by virtue of agreements concluded with them (for example, supply or service agreements, after they have fulfilled their obligations under these agreements).

Loan Capital– bonds and other types of long-term loans to the organization.

Inflation– a general increase in prices, leading to a decrease in the purchasing power of the monetary unit.

Capitalization of dividends (Scrip or bonus Issue)– issue of new shares for free distribution among shareholders (for the payment of dividends), in proportion to the previously established shares of shares.

Bond- a financial instrument, which is a form of market-quoted long-term borrowing of funds by a company on the financial market. Object of financial investment; A debt security that gives its owner the right to receive periodic payments and repayment of the principal balance at a predetermined date over the medium or long term.

Current liabilities, short-term (Current liabilities, CL)– the amount of funds to be paid during the next reporting period (within the year). Includes non-interest liabilities (on commercial loans), current tax payments, and dividends declared and payable. They also include amounts on bank loans subject to repayment during the reporting period (short-term loans and borrowings).

Long-term liabilities, Long-term debt obligations (Long-Term Liabilities, LTL, LTD)– pledges, pledges, as well as other obligations (credits and borrowings) that are subject to repayment in more than 1 year (abroad - more than 10 years) from the date these obligations are reflected in the balance sheet.

Option- a financial instrument that gives its owner the right, but not the obligation, to buy or sell a specified quantity and quality of an asset at a predetermined rate on or before the expiration of a specified period.

Industry segment- a business component separately allocated by an economic entity, which is involved in the production of a separate type (homogeneous group) of goods or services and which is subject to its own risks and receives income that differs from the risks and income of other industry components.

Deferred tax, deferred tax liabilities (Deferred Tax)– the amount of accrued income taxes reflected in the income statement, but not actually paid in the reporting period. It is formed as a result of a discrepancy in time between calculations when generating financial and tax reporting.

Revaluation of Fixed Assets– revaluation of the initial cost of fixed assets in order to determine their replacement cost (reproduction cost) in current prices at the time of revaluation. Produced on the initiative of company managers to optimize taxation and conditions for the reproduction of the company’s fixed capital.

Solvency– the company’s availability of funds to fulfill its financial obligations on time.

Profit (Income, Profit)– the difference between sales proceeds (income) and expenses attributed to this revenue.

Tangible Assets– all assets reflected on the company’s balance sheet, with the exception of intangible assets.

Own shares on the company’s balance sheet (Treasure Stock)– ordinary shares that were purchased from shareholders, not redeemed and reflected on the balance sheet at the cost of their acquisition (or other value).

Own funds, net worth of the company, net assets (Net Assets, NTA)– the amount of assets after subtracting from them the amount of all the company’s liabilities. In the Russian Federation it is carried out on the basis of Order of the Ministry of Finance No. 10-. The result of the calculations is given at the end of the reporting year in the certificate to the Statement of Changes in Capital (Form No. 3).

Equity capital, Net worth, EQ– book value, or market value, which determines the amount of claims of holders of ordinary and preferred shares of the company. Can be defined as the difference between the value of an organization's assets and liabilities. In Russia, it includes authorized capital, retained earnings from previous years, additional capital and reserve capital.

Total Assets (TA)– the sum of fixed assets, intangible assets, financial investments and working capital.

Authorized Share Capital (ASC)– the amount of contributions of its founders determined by the company’s Charter can be changed only on the basis of a decision of the meeting of founders (shareholders) and after the re-registration of the company.

Authorized capital (Capital Stock)– capital, the amount of which is fixed in the company’s constituent documents and which is formed from funds received by the company as a result of the issue of capital.

Factoring– a method of financing business activities through the assignment of rights to claim (sale) of the company’s receivables to banks or specialized factoring organizations.

Futures Contract– an obligation to buy or sell a financial asset at an agreed rate and within a predetermined time frame.

Net profit (Net profit, Net Income, NP, N1)– the difference between all income (including other and extraordinary) and the corresponding costs and expenses, including taxes, for a certain period.

Net Loss– the excess of all expenses over income during the reporting period.

Net Total Assets (NTA)– all balance sheet assets minus liabilities, including debt capital. In Russia, they are determined in accordance with Order of the Ministry of Finance No. 10-n, according to which, the assets accepted for accounting do not include own shares on the balance sheet, debt of the founders for contributions to the authorized capital of the company and some types of intangible assets. The entire value of the company's external liabilities is deductible from this assessment.

Securities issue– issuance of issue-grade securities (shares, bonds, other debt obligations) by industrial, commercial and financial investment companies for the formation of financial capital.

Economic analysis, budget planning, forecasting financial results.

Annuity- a uniform sequence of payments or receipts over a certain number of periods.

Vertical balance analysis, structural analysissheetanalysis)– determination and interpretation of the structure of final financial indicators, identifying the impact of each reporting item on the result (currency, balance sheet) as a whole.

Replacement Cost– a method for assessing fixed capital, based on the costs (costs) of replacing retired fixed capital with capital of similar quality that provides similar services.

Sales revenue (Receipts)– funds received from the sale of manufactured products, provision of services or elements of capital to a third party.

Horizontal analysis, time analysis (Analysis of Time)– comparison of each position of the financial statements with the previous period to determine the directions and patterns of their changes.

Break-even chart- a graphical image demonstrating the dependence of operating profit on sales volume, which determines the sales volume sufficient to compensate for the full operating costs (variable and fixed costs).

Cash Flow– receipts in the form of cash payments, certified checks and other documents with high liquidity. Continuous receipts and expenditures of funds in the process: current (operational); investment; and financial activities. The amount of profit (before taxes), depreciation and reserves of various kinds, taken into account in accounting, but not paid in the form of cash to the party.

Cash Flow from Operating Activities (CF)oper) – cash flow generated from ordinary activities for the period. In the absence of a statement of cash flows, it can be calculated as profit from ordinary activities less taxes payable, but adjusted for cost elements that do not generate related cash flows (for example, depreciation).

Cash Flow from Investing Activities (CF)inv) – cash flow generated as a result of investment activities. Defined as the net change in permanent (non-current) assets.

Cash Flow from Financing Activities (CF)fin) - cash flow in the process of carrying out the financial activities of the company is formed by attracting new sources of capital of the company (issue of shares plus new interest obligations), minus paid dividends and repaid interest obligations.

Dividend– a share of profit allocated to pay profitability to the company’s shareholders. If there is net profit, mandatory payment of dividends on preferred shares is made, within the limits of the pre-agreed profitability during the issue. The yield on common (voting) shares is not guaranteed and depends on the company's dividend policy and the amount of cash it has available. The size of dividends is usually determined at the company's annual general meeting of shareholders.

Dividend per Share (DPS)– the actual amount of cash payments made by the company to shareholders per share. Determined based on the ratio of the amount of dividends paid to the number of ordinary shares outstanding, according to financial statements.

Dividend Yield– current income of shareholders as a result of paying them dividends, defined as the ratio of the amount of dividends per share and the average market price of the share (Div/P).

Dividend Policy- the company’s policy in the field of using net profit, which is formed by the board of directors, determines what share of the profit will be paid to shareholders in the form of dividends, and what will remain as retained earnings and reinvested.

Present Value– reflection of the value of assets at the discounted value of the future net cash inflow (which will be generated by the asset in the current state of financial and economic activities. The basic principle of IFRS when assessing current assets on the company’s balance sheet.

Discounted cash flow (DCF)– the result of applying the discounting method when evaluating investment projects, the use of which reduces the cost of future receipts and payments against payments made at the time of making a management decision.

Duration of the financial cycle (Working Capital Days)– an indicator characterizing the period of immobilization of funds into the current activities of the company, calculated as the sum of the storage period of inventory, the duration of the repayment period for receivables minus the duration of the repayment period for accounts payable.

Economic Value Added (EVA)– represents the difference between the company’s revenue for the period and all expenses incurred, including capital expenses.

Market Value Added (MVA)– a performance assessment indicator representing the difference between the book value of the company’s capitalization and its current market value.

Profitability, profitability (Rate of return)– actual or calculated level of income for a certain period for the project.

Return Of Equity (ROE)– a characteristic of the efficiency of use of equity capital by the company’s management, determined on the basis of the ratio of net profit and the average cost of equity capital for the period of analysis.

Earnings per Share (EPS)– the ratio of net profit to distribution to the number of ordinary shares on which dividends are expected to be paid.

Financial safety margin– the ratio of the difference between the current (forecast) sales volume and the sales volume at the break-even point to the current (forecast) sales volume, expressed as a percentage.

Safety Area– an indicator characterizing the difference between the actual (planned) and critical (break-even) sales levels.

Profitability Index (PI)– shows the effectiveness of investments, which is the ratio given: the value of all proceeds from the project to the present value of all cash expenses associated with it.

Indirect method J Cash-Flow Statement– a method for determining net cash flow by adjusting the net profit indicator by the amount of change in the current act and liabilities, as well as non-cash items of cash write-off.

Beta Value– an indicator of the risk of shares of a given company, assessed on the basis of comparative monitoring of share price volatility in relation to the volatility of the financial market. Used by business analysts to determine the fair market value of shares.

Dividend Yield (DY)– shows the percentage ratio of dividend income (after tax) to the market value of the stock.

Dividend Payout Ratio (DPR)– the share of distributed profits allocated for the payment of dividends.

Liquidity Ratio (LR)– a group of financial ratios showing the ability of an enterprise to fulfill its short-term (financial and non-financial) obligations. For the balance sheet, a company is defined as the ratio of various groups of liquid assets to current liabilities.

current or total liquidity, coverage ratio (Current ratio, CR)– a liquidity indicator demonstrating the relationship between the balance sheet assessment of total current assets and current liabilities of the company. Shows the extent to which the company's current debt is covered by liquid assets. Depending on the specifics of the business and the stage of its economic development cycle, it ranges from 1 to 3.

quick (quick) liquidity, intermediate coverage ratio, litmus test ratio (Acid test, Quick Ratio, QR) - a liquidity indicator that is the ratio of liquid working capital (cash and cash equivalents, as well as short-term receivables) to current liabilities . Depending on the specifics of the business and the stage of its economic development cycle, it ranges from 0.5 to 1.

absolute liquidity, critical liquidity ratio (Absolute ratio, AR)– liquidity indicator, defined as the ratio of the company’s most liquid assets (cash and highly liquid securities) to current liabilities. Shows how much of the short-term debt the organization can repay in the near future. The standard value of dependence on the industry specifics of the business and the stage of the economic development cycle lies in the range from 0.1 to 0.5.

Own funds maneuverability ratio (Own Current Assets Ratio, KN.W.C.) – the ratio of net working capital (the company’s own working capital) to the total cost of working capital.

Inventory Turnover (IT)– the relationship between the average cost of inventories and the cost of production of goods sold for a certain period.

Assets Turnover (TAT)– the ratio of sales revenue to the average value of the company’s assets for the period.

Current Assets Turnover Ratio, CAT) – the ratio of revenue from sales of products, works and services to the average value of the enterprise’s current assets for the period.

Dividend Coverage Ratio– the relationship between the company’s profit after tax and the amount of dividends on ordinary (or ordinary and preferred) shares.

Sustainable Growth Rate (SGR)- growth in sales of products ensured by an increase in assets that do not lead to a loss of financial stability of the company;

a calculated analytical indicator that determines the possible rate of increase in company sales, provided that the main business indicators (capital structure, business activity, profitability of turnover, etc.) are maintained in the near future.

Margin of Financial Safety– the share of net assets in the total assets of the company. Shows what portion of assets is financed by equity capital.

Liquidity– a characteristic of the ease of sale and conversion of material or other assets into cash to cover current financial obligations.

Liquidity of Balance statement– a characteristic of the balance sheet, defined as the degree to which liabilities are covered by assets, the period of transformation of which into monetary form corresponds to the period of repayment of liabilities.

Liquid Assets– assets that can be converted into cash without significant loss of value within a short period of time.

Marginal profit (Profit Margin, РМ, Contribution Margin, CM)– the difference between sales revenue and cost of goods sold in value terms, or as a percentage of revenue.

Insolvency- an economic situation in which the value of the assets owned by the company is less than the value of its liabilities, leading to the impossibility of the company fulfilling its financial obligations.

Turnover– a group of indicators characterizing the rapid turnover of funds or liabilities. The turnover rate for a given type of funds or liabilities can be calculated as the quotient of 365 days divided by their turnover period.

Assets Turnover (AT)– the ratio of the company’s net revenue for the period and the average value of assets, characterizing the efficiency of its financial and economic activities.

Accounts receivable turnover, accounts receivable turnover ratio (Accounts Receivable Turnover, ART) is an analytical indicator reflecting the ratio of revenue from sales of products (works and services) to the average amount of accounts receivable for the period. Shows forced or voluntary expansion or contraction of commercial credit provided to customers and other counterparties by the company.

Capital Turnover- an indicator characterizing the number of capital turnover per year, or sales revenue per unit of capital used.

Accounts Payable Turnover, Accounts Payable Turnover Ratio (Accounts Payable Turnover, A P.T.) – the accounts payable turnover ratio is calculated as the ratio of the amount of goods and raw materials purchased by the organization on the terms of accounts payable to the average cost of accounts payable for commodity and other transactions. Characterizes the effectiveness of the company's use of supplier funds to cover the needs of financing working capital.

Inventory Turnover– a group of indicators reflecting the rate of use of stocks of raw materials and finished products:

for a situation where only public reporting data is available, the ratio of the value of ending inventory to the cost of sales for the year, and (or) the volume of sales for a certain period to the average amount of inventory for the same period, which shows the number of inventory turns for the period.
Inventory utilization efficiency indicators (based on management reporting)

— finished goods inventories/average weekly shipments;

— stocks of raw materials and materials / average weekly use of raw materials and materials;

- work in progress / average weekly production volume

Working Capital TurnoverWCT)– the relationship between sales volume and the average cost of working capital, showing the number of turnovers of liquid assets for the same period.

Net Working Capital (NWC)– a calculated analytical indicator defined as the difference between the company’s working capital and its current liabilities. Characterizes the capital available to the company to finance current activities.

Cash flow from operating activities (CF)op) – the most important characteristic of operational performance. It is determined (indirectly) as the sum of net profit and depreciation minus the increase in own working capital (except cash) for the period.

Operational Leverage (OL)– the ratio of fixed and total costs of an operating business unit. The higher the leverage value, the more advantages the organization has when sales volume increases, and vice versa, the higher the risk of incurring an operating loss when sales volume decreases.

Operating leverage effect (Degree Operating Leverage, DOL)– the effect of changing the dynamics of operating profit due to the presence of a constant part in the structure of costs associated with current activities. It is defined as the ratio of the contribution to covering fixed costs (Contribution margin, CM) to the operating profit (EBIT).

Accounts Receivable Days (ARD) turnover period– an analytical indicator characterizing the terms of commodity lending by a company to its customers. Determined based on the ratio of the average accounts receivable account to the average daily revenue for the period.

Accounts Payable Turnover Period (Accounts Payable I APT)– an indicator characterizing the terms of commodity lending to the company by suppliers. Determined based on the ratio of the average amount from accounts payable to the average daily amount of costs for the period (product cost).

Payback Period (PP)– the time interval during which the total undiscounted cash inflows from the project cover the initial investment in the project.

Full Cost– the totality of the company’s accounting costs for the production and sale of products, expressed in monetary form.

Earnings Yield– earnings per share as a percentage of the market value of the share.

Cash Flow (C-F)– the difference between the receipt jv of funds in cash and cash payments (salaries, taxes, payment of supplier bills, acquisition of fixed assets and intangible assets, etc.) for a certain period of time.

Present value (PV)– a time-consistent sum of cash flows reduced to the time of making a management decision, obtained on the basis of a discounting operation.

Profitability– a group of relative indicators of the efficiency of a company’s financial and economic activities, characterizing the level of return on costs incurred and (or) the degree of use of funds.

Return on assets, return on total assets (Return on assets, ROA, Return on total assets, ROTA)– the ratio between profit before interest payments on loans and borrowings and income tax and the average value of all assets (possibly operating assets). This allows us to neutralize the influence of the enterprise’s capital structure and compare the efficiency of using assets of companies with different capital structures. If the numerator uses net profit, then the indicator is known as profitability of the company (Return on Firm).

Return on Capital Employed (ROCE)– the ratio of earnings before interest and taxes (EBIT). The denominator is defined as the chronological average value of the capital used for the period.

Return on Invested Capital (ROIC)– the ratio between earnings before interest but after tax (EBIAT) and the amount of invested capital (capitalization) on average for the period. It is used as an indicator of the efficiency of capital use, leveling the capital structure.

Return on Investment (ROI)– the ratio between net profit after tax and the book value of assets on average for the analyzed period.

Return on investment in the form of cash flow (Cash Flow Return on Investment, CFROl) – the ratio of net cash flow from ordinary activities to the average value of the assets generating them.

Sales Margin (ROS)– the ratio of profit from product sales (operating profit, EBIT) to sales volume (revenue from Sales) for the period under review.

Product profitability, product profitability (Profitability of Output) – the ratio of profit from sales to the costs incurred for its production distribution.

Return on equity, return on net assets (RONA)– the ratio of the profit received by the company for the period to the average level of equity capital.

The ratio between earnings before interest but after tax (EBIAT) and net assets, used as an indicator of the efficient use of equity capital, eliminating the influence of the financing structure.

Return on equity (ROE)– the relationship between profit after tax and the accounting value of share capital. If a company has preference shares as part of its share capital, then dividends on them should be deducted from profit after tax - in the numerator, and the capital contributed by these shareholders - in the denominator of the calculation.

Market Capitalization– the total market value of equity, calculated based on the latest stock price quote, which is multiplied by the number of shares outstanding.

Production Cost– direct costs of production (manufacturing) plus distributed manufacturing overhead costs. It is possible to determine only on the basis of direct costs.

Payback Period (PP)- the period of time over which the cash flows generated by an investment must fully recoup the initial investment.

Term (period) of repayment of receivables (Debtor Days Ratio)– the average period of payment by buyers for sales made on credit. Defined as the ratio of the average value of accounts receivable to sales revenue under the terms of a trade credit.

Term (period) of repayment of accounts payable (Creditor Days Ratio)– average payment period for purchases made on credit (in calendar days). It is defined as the ratio of the average value of accounts payable to the average amount of accounts payable for settlements with suppliers and contractors.

Inventory Days– an indicator reflecting the period in days that working capital is in inventory. Typically, the average cost of inventory is used as the numerator, and the average daily sales revenue is used as the denominator. Can be calculated separately for raw materials, work in progress and finished goods.

Current stock yield (Dividend Yield)– the return on the stock, calculated by dividing the actual dividends paid by the stock price.

Break even; minimum sales volume to cover all expenses (Break-even point, BEP)– the volume of sales of products (goods, services), at which current (variable and fixed) costs are fully covered by sales revenue, however, the profit from sales is zero.

Trend Analysis– collection and processing of data for various periods of time and comparison of each reporting item with a number of previous periods in order to determine the trend, that is, the main trend in the dynamics of the indicator, cleared of random influences and individual characteristics of individual periods.

Financial Analysis– a set of methods and algorithms for determining the financial consequences of implementing certain management decisions.

Assessment of key parameters and ratios that represent an objective picture of the company’s financial condition, in particular, its profits and losses, changes in the structure of liabilities and assets, settlements with creditors and debtors, current and future solvency and financial stability.

Financial leverage, leverage (Financial Leverage, Financial Gearing, FL) – the ratio of debt and equity capital in the structure of business financing sources. Indirectly characterizes the risk of the company's financial activities.

Financial Cycle (FC)– the turnover period, which is equal to the interval between the inflow and outflow of working capital.

Working Capital (WC)– current assets of the company, as well as non-current and intangible assets accompanying the current activities of the enterprise.

Net Discounted Income– the difference between income for a certain period of time and the costs incurred to obtain this income, reduced to the current value of the base period.

Net return on equity (Net Profitability of Equity, ROE)– the ratio of net profit for a certain period to the average value of equity capital.

Net Working Capital (NWC)– calculated analytical indicator, part of the company’s working capital financed from sustainable sources, that is, the excess of the cost of equity capital and long-term loans and borrowings over the cost of non-current assets.

Economic value added (EVA)– the excess of the enterprise’s profit over the total cost of capital. The most important indicator for assessing the financial attractiveness of an intra-company division or strategic business unit using the residual income indicator. EVA is defined as profit after tax for the period minus all costs of capital.

Operational leverage effect, production leverage effect (Degree of operational leverage, DOL)– the estimated increment in operating profit obtained as a result of an increase in product sales, obtained due to the behavior of individual cost groups that do not respond to this increment (conditionally constant).

Effect of financial leverage (Degree of Financial Leverage, DOFL)– the effect of changes in return on equity under the influence of changes in the share of borrowed funds in the company’s sources of long-term financing, formed as a result of relative savings on payments for the use of borrowed capital (loan interest) compared to costs for the use of equity capital (dividends). The effect of financial leverage is an estimated increase in the company's return on equity capital due to additional borrowings, despite their cost.

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