Glossary

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L

Liabilities: Balance Sheet account classification. Amounts owed to the creditors of a business.

Liabilities and Owners' Equity: Balance Sheet account classification. The sum of Liabilities and Owners' Equity, which always equals Total Assets.

Line of Credit: Balance Sheet account. A credit facility, either unsecured or secured (secured
usually by the pledge of Accounts Receivable and Inventory), provided usually by a financial institution (e.g., commercial bank, finance company, etc.)

Loans Outstanding: Finance statistic. For purposes of the analyses contained on this site, the total of Line of Credit; Current Maturities; and Term Loan outstanding.

Long Term Liabilities as % of Total Assets: Finance statistic. Total Long Term Liabilities, divided by Total Assets.


N

Net Earnings: Statement of Net Earnings account. Net Sales recognized in an accounting period, minus all of the costs and expenses (including income taxes) incurred in the accounting period.

Net Earnings as % of Net Sales: Finance statistic. Net Earnings, divided by Net Sales.

Net Earnings Per Share: Finance term. Net Earnings, divided by Common Shares Outstanding (Fully Diluted).

Net Property, Plant and Equipment: Balance sheet statistic. Property, Plant and Equipment, minus Accumulated Depreciation.

Net Sales: Statement of Net Earnings account. For accrual-based businesses, the dollar amount of revenue earned (net of allowance accounts) during an accounting period.

Net Working Capital: Finance statistic. Current Assets, minus Current Liabilities.

Net Working Capital Turnover: Finance statistic. Net Sales, divided by Net Working Capital.

Net Worth: Balance Sheet account classification. The business owners' ownership interest in the Total Assets of a business.

Non-Senior Interest Expense: Finance statistic. Interest expense on Subordinated Debt.

Number of Days Cost of Goods Sold in Accounts Payable: Finance statistic. Accounts Payable, divided by Cost of Goods Sold, divided by 365.

Number of Days Cost of Goods Sold in Inventory: Finance statistic. Inventory, divided by Cost of Goods Sold, divided by 365.

Number of Days Operating Expenses in Accrued Expenses: Finance statistic. Accrued Expenses, divided by Operating Expenses, divided by 365

Number of Days Sales in Accounts Receivable: Finance statistic. Accounts Receivable, divided by Net Sales, divided by 365.


O

Operating Earnings: Statement of Net Earnings statistic. For businesses which have Cost of Goods Sold, Operating Earnings equal Gross Margin, minus Operating Expenses. For businesses which do not have Cost of Goods Sold, Operating Earnings equal Net Sales, minus Operating Expenses.

Operating Earnings %: Finance statistic. Operating Earnings, divided by Net Sales.

Operating Expenses: Statement of Net Earnings account. Costs and expenses (in addition to Cost of Goods Sold) recognized in an accounting period. Usually consists principally of administrative, sales and marketing expenses.

Operating Expenses as a % of Net Sales: Finance statistic. Operating Expenses, divided Net Sales.

Other Assets: Balance Sheet account. Long term assets of a business not elsewhere classified ( e.g., long term amounts receivable, amount of expenses prepaid beyond one year, etc.).

Other Current Assets: Balance Sheet account. Various other Assets expected to be converted into cash or otherwise liquidated within one year.

Other Current Liabilities: Balance Sheet account. Various other Liabilities payable within one year.

Other Current Obligations: Balance Sheet account. Various other Liabilities payable within one year.

Other Equity: Balance Sheet account. Other Owners' Equity account(s) not elsewhere defined (e.g., foreign currency translation).

Other Income (Expense): Statement of Net Earnings account. Net amount of other income and expense items not elsewhere defined (e.g., gain on sale of assets, interest income, etc.).

Other Liabilities: Balance Sheet account. Various other Liabilities, not elsewhere classified, payable after twelve months from the Balance Sheet date (e.g., non-current deferred taxes).

Other Long Term Obligations: Balance Sheet account. Various other Liabilities, not elsewhere classified, payable after twelve months from the Balance Sheet date (e.g., non-current portion of deferred compensation obligations).

Owners' Equity: Balance Sheet account classification. The cumulative dollar value of ownership's investment and earnings retained in a business. For purposes of the analyses contained on this site, Owners' Equity equals the sum of the following accounts: Common Stock; Preferred Stock; Treasury Stock; Retained Earnings; Other Equity; and Contributed Capital.