A to Z · 1055 Terms

Real estate & finance, demystified.

The jargon can be exhausting. Here’s a plain-English glossary covering real estate, lending, investment, and the business-finance ecosystem that surrounds them.

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Business Finance

Gross Profit Margin

Gross profit as a percentage of revenue — a basic profitability measure.

Business Finance

Income Statement

A financial report showing revenues, expenses, and profit over a period.

Business Finance

Inventory Turnover

Cost of goods sold divided by average inventory — measures how fast inventory sells.

Business Finance

Net Profit Margin

Net income as a percentage of revenue.

Business Finance

Operating Lease

A lease treated as a rental expense, off-balance-sheet under old standards.

Business Finance

Operating Margin

Operating income divided by revenue, showing core business profitability.

Business Finance

Post-Money Valuation

A company’s value immediately after a new investment round closes.

Business Finance

Pre-Money Valuation

A company’s value before a new investment round closes.

Business Finance

Quick Ratio

Liquid assets (excluding inventory) divided by current liabilities.

Business Finance

Revenue Recognition

Accounting principles for when and how revenue is recorded.

Business Finance

Runway

The number of months a business can operate at its current burn rate before running out of cash.

Business Finance

Working Capital

Current assets minus current liabilities — a measure of short-term liquidity.