CFO Concept: CFO is the acronym of the English expression Chief Financial Officer that is equivalent to Financial Director/Manager, being responsible…

Clients Rotation Ratio Concept Clients rotation ratio or indicator is an activity ratio that seeks to measure the efficiency level with which the company is managing its clients’ credit policy. The higher the clients rotation ratio value, bigger the efficiency of the credit policy. Clients’ rotation ratio is calculated by the division of the total […]

Commodity is the term used to refer to products of primary origin that are traded on commodity exchanges.

Contribution Margin Concept: Contribution margin corresponds to the amount by which a company’s income exceeds its variable costs…

Costs Centre Concept: A Costs Centre is a company’s unit (a section, department, person or process) with direct costs…

Defensive assets mean assets for which the effects of inflation and currency devaluation are minimized. This term refers, in particular, to real assets such as real estate and precious metals such as gold.

Discount Rate Concept: Discount rate designates the interest rate charged by the Central Banks in the loans given to the commercial banks through…

EBIT Concept EBIT (acronym of the English expression “earnings before interest and taxes”), also designated by operational result, is a financial-economical indicator that seeks to evaluate the company’s capacity to generate results from its operational activity. For that, the costs are purged from the results (and eventually profits) that are not related with the company’s […]

EBITDA Concept EBITDA (acronym of the English expression “earnings before interest, taxes, depreciation and amortization”), also designated as operational cash-flow, is a financial-economical indicator that seeks to evaluate the company’s capacity in auto financing new investments and cope with the charges with the debts, through its operational activity. Likewise, allows to evaluate the potential of […]

Financial Autonomy Concept Financial autonomy indicates the part of the company’s total applications, namely goods and investment applications, financial applications, stocks applications, credit granted to clients, etc., which was supported by capitals owned by the company self, this is, the called equity. This concept is extremely useful on the long term financial risk evaluation since […]