Finances Glossary

Decode the buzzwords of the finances space
THE LANGUAGE OF FINANCES
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Startup Glossary  | Finanshels

Glossary

A comprehensive guide to understanding and communicating key startup concepts. Your Go-To Resource for Startup Terminology: A Glossary of Key Metrics, Definitions, and Formulas

Profit and loss statement

A profit and loss statement, also known as an income statement or a statement of operations, is a financial statement that summarizes a company's revenues, expenses, and profits over a specific period of time.

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Profit calculation

To calculate profit, you need to subtract a company's expenses from its revenue.

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Profit margin

Profit margin is a measure of a company's profitability.

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Profit margin calculation

To calculate profit margin, you need to divide the company's net income by its revenue and multiply the result by 100% to express it as a percentage.

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Qualified Small Business Stock (QSBS)

Qualified small business stock (QSBS) refers to stock in a qualified small business that is held by the original purchaser for more than five years.

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Quick Ratio

The quick ratio, also known as the acid-test ratio, is a measure of a company's liquidity and ability to meet its short-term financial obligations.

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Ramp Time

Ramp time is the amount of time it takes for a system or process to reach its full operating capacity.

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Repeat Customer Rate

The repeat customer rate is the percentage of customers who make repeat purchases from a business.

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Retention

Retention refers to the ability of a company to keep its employees, customers, or other stakeholders over time.

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Revenue Recognition

Revenue recognition is the process of identifying and recording revenue in the financial statements of a business.

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Right of First Refusal (ROFR)

A right of first refusal (ROFR) is a legal term that refers to the right of a person or entity to have the first opportunity to purchase or acquire something before it is offered to others.

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Roll-Up Vehicle (RUV)

A roll-up vehicle, also known as a RUV, is a company that is created specifically for the purpose of acquiring and consolidating smaller companies in a particular industry or market.

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