Glossary Flashcards
Remember Vocab that you pick up (31 cards)
Quid Pro Quo
“This for That”
MD&A
Managers Discussion and Analysis
- the chat surrounding the footnotes in a set of accounts
SG&A
Sales of Goods and Admin Expenses
EV =
EqV + P + Total Debt + minority interests
less Cash, Cash Equuiveleants and
EV - items you might have forgotten
Short term debt
current portion of long term debt
it is JUST debt. i.e. no other liabiliities.
“normalised Dep&amort is generally going to be referring to..
an adjustment for the amort of goodwill - which has nothing to do with ongoing cash flow.
Can be thought of as ‘affordability analysis’ for a non-private equity buyer:
Is used to find the intrinsic value of a company:
Can be thought of as ‘affordability analysis’ for a private equity buyer:
Emphasizes relative valuation
Merger Consequence Analysis
DCF (as is a projection of the actual cash flows)
LBO model
comparables
Downtown generally refers to the
CBD
Repeat Sales
A purchase made by a consumer that replaces a previous purchase that has been consumed. Also called Replacement Sale.
Encumberances are
An element of contract that does not prohibit passing title to the asset but that diminishes its value.
e.g. Covenants (or loans secured against the asset I think)
Unencumbered refers to
assets with no contractual elements that diminish its value
SWF stands for…
Soverign Wealth Funds
Three institutions that invest long and illiquid
Pension Funds
Insurance Co.s
SWFs
ceteris paribus
Literally “With Other Things the Same”
e.g., “If Line Item A changes then Ceteris Paribus, the shareprice goes down”
Here Equity think..
Capital.
its money invested for ownership (as opposed to just contract (debt) )
Here Capital Think…
Equity
its money invested for ownership (as opposed to just contract (debt) )
SWF stands for…
Soverign Wealth Funds
Three institutions that invest long and illiquid
Pension Funds
Insurance Co.s
SWFs
Normalising is
What we do to income to make it representational (we remove the one-offs)
Negative Equity is
the rare circumstance where a properties value sinks below the amount of mortgage outstanding
CADS stands for
What is the similar metric?
Which is more severe?
Cash Available for Debt Servicing
Coverage Ratio
CADS
Eequation for CADS …
Cash&Equivelants over total debt service
Interest Coverage is also known as ..
Similar Metric is?
Which is more Severe?
Coverage
Time Interest Earned
CADS
CADS (can we meet next payment if it came today?)
Coverage Ratio equation …
EBIT over interest expense
