Termos Financeiros utilizados em Modelagem Financeira

July 26, 2019

Muitas vezes ao analisar uma Modelagem Financeira ou um Valuation,

nos deparamos com termos e abreviações em inglês que
desconhecemos. E, por mais que conhecemos as estruturas dos
modelos e relatórios, estes termos desconhecidos acabam nos
dificultando nas interpretações e análises.
Abaixo listamos os principais termos e definições em inglês. utilizados
em Valuation, Modelagem Financeira em Excel:
• A - Actual figure
Actual or present value/amount.
• ARPU - Average Revenue per User
Defined as the total revenue divided by the number of
subscribers.
• Assets
Things that are resources owned by a company and which
have future economic value that can be measured and can be
expressed in dollars. Examples include cash, investments,
 accounts receivable, inventory, supplies, land, buildings,
equipment, and vehicles.

Assets are part of the accounting equation and the balance

sheet, both of which are presented in this format:
- Assets = Liabilities + Stockholders' (or Owner's) Equity.
• Balance Sheet
Is one of the three fundamental financial statements and is
key to both financial modeling and accounting. The balance
sheet displays the company’s total assets, and how these
assets are financed, through either debt or equity. It can also
be referred to as a statement of net worth, or a statement of
financial position. The balance sheet is based on the
fundamental equation: Assets = Liabilities + Equity.
• Beta
Beta is a numeric value that measures the fluctuations of a
stock to changes in the overall stock market.
Beta measures the responsiveness of a stock's price to
changes in the overall stock market. On comparison of the
benchmark index for e.g. NSE Nifty to a particular stock
returns, a pattern develops that shows the stock's openness
to the market risk. This helps the investor to decide whether
he wants to go for the riskier stock that is highly correlated
with the market (beta above 1), or with a less volatile one (beta
below 1).
• B.O.T. - Build, Operate, and Transfer
A kind of Project that makes use of project finance structure.
• Break-even analysis
Break Even Analysis in economics, business, and cost
accounting refers to the point in which total cost and total
revenue are equal. A break even point analysis is used to
determine the number of units or dollars of revenue needed to
cover total costs (fixed and variable costs).
• CAC - Customer Acquisition Costs
Cost associated in convincing a customer to buy a
product/service.
• CAPEX - Capital Expenditures
 Money spent by a business or organization on acquiring or
maintaining fixed assets.
• CAPM - Capital Asset Price Model
It is used to calculate the predicted rate of return of any risky
asset. It compares the relationship between systematic risk
and expected return. Typically, it’s used on stocks. However,
CAPM can also be used throughout financial decision making
to price riskier investments. When pricing them, it’s important
to reach a balance between the price due to risk and the
expected return – thus, using CAPM can help.
The main idea and impulse behind using CAPM is that
investors need to be compensated for two things: the time
value of money and the risk they are assuming. CAPM takes
both into account.
• Cash Flow
Cash Flow (CF) is the increase or decrease in the amount of
money a business, institution, or individual has. In finance, the
term is used to describe the amount of cash (currency) that is
generated or consumed in a given time period.
There are several types of Cash Flow, so it’s important to have
a solid understanding of what each of them is. When someone
refers to CF, they could mean any of the types listed below,
so be sure to clarify which cash flow term is being used.
Types of cash flow include:
Cash from Operating Activities – Cash that is generated by
a company’s core business activities – does not include cash
flow from investing. This is found on the company’s Statement
of Cash Flows (the first section).
Cash from Investing Activities include cash activities
related to noncurrent assets. Noncurrent assets include long-
term investments; property, plant, and equipment; and he
principal amount of loans made to other entities.
Cash form Financing activities include cash activities
related to noncurrent liabilities and owners’ equity. Noncurrent
liabilities and owners’ equity items include the principal
amount of long-term debt, stock sales and repurchases, and
dividend payments.
Free Cash Flow to Equity (FCFE) – FCFE represents the
 cash that’s available after reinvestment back into the business
(capital expenditures).
Free Cash Flow to the Firm (FCFF) – This is a measure that
assumes a company has no leverage (debt). It is used in
financial modeling and valuation.
Net Change in Cash – The change in the amount of cash flow
from one accounting period to the next. This is found at the
bottom of the Cash Flow Statement.
• COGS - Cost of goods sold
Direct costs attributable to the production of the goods sold in
a company.
• Contribution Margin
A business’s contribution margin – also called the gross
margin – is the money left over from sales after paying all
variable expenses associated with producing a product.
Subtracting fixed expenses, such as rent, equipment leases,
and salaries from your contribution margin yields your net
income, or profit.
• CPC - Cost per Click
Also known as Pay per click, an internet advertising model
used to direct traffic to websites, in which an advertiser pays
a publisher (typically a website owner or a network of
websites) when the ad is clicked.
• Cum. - Cumulated
as is
• Current Asset
A current asset is an item on an entity's balance sheet that is
either cash, a cash equivalent, or which can be converted into
cash within one year. If an organization has an operating cycle
lasting more than one year, an asset is still classified as
current as long as it is converted into cash within the operating
cycle. Examples of current assets are:

• Cash, including foreign currency

• Investments, except for investments that cannot be easily
liquidated
• Prepaid expenses
 • Accounts receivable
• Inventory
• Current Liabilities
Current (or short-term) liabilities are liabilities that a company
is required to settle within the next twelve months or which it
expects to settle within its normal operating cycle.
Liabilities are financial obligations which require transfer of
assets (mainly cash) for settlement. They are classified into
current and non-current liabilities based on the urgency of
their settlement. Comparison of current liabilities with current
assets helps creditors, debt-holders and investors assess a
company’s liquidity position.
Here is a list of typical current liabilities:
• Accounts payable
• Salaries payable
• Short-term debt payable
• Short-term notes payable
• Current lease liability
• Interest payable
• Current tax payable
• Accrued expenses
• Dividends payable
• D&A - Depreciation & Amortization
Used to determine the depreciation costs for both tangible and
intangible assets.
Depreciation is the reduction in the utility of the fixed asset like
plant & machinery, furniture & fixtures, vehicles, buildings, etc.
because of obsolescence through technology or market
conditions, natural wear and tear, the passage of time,
exhaustion of subject matter and so on.
• DCF - Discounted Free Cash Flows
Method of valuing a project, company, or asset using the
concepts of the time value of money.
• DPO - Days’ Payable Outstanding
A ratio used to measure a company’s ability to pay its invoices
or bills to its suppliers, vendors or creditors.
• DSI - Days’ Sales in Inventory
 Also known as Days in Inventory, A ratio used to measure the
average number of days a company was able to sell the
average number of inventories they held during that time
period of year.
• DSO - Days’ Sales Outstanding
Also known as Days in Receivable, A ratio used to calculate
the estimation of a company’s average collection period or in
other words, used to assess a company’s management
condition of their accounts receivables.
• EBIT - Earnings before interest and taxes
Measure of a firm’s profit that includes all expenses except
interest and income tax expenses.
• EBITDA - Earnings before interest, taxes, depreciation and
amortization
An accounting measure calculated using a company’s net
earnings, before interest expenses, taxes, depreciation, and
amortization are subtracted, as a proxy for a company’s
current operating profitability.
• Equity
In accounting equity is the value attributable to the owners of
a business. The book valuae of equity is calculated as the
difference between assets and liabilities on the company’s
balance sheet, while the market value of equity is based on
the current share price (if public) or a value that is determined
by investors or valuation professionals. The account can also
be called shareholders/owners/stockholders equity or net
worth.
There are generally two types of equity:
- Book value
- Market value
• F - Forecasted figure
Forecasted value/amount
• Fixed Expenses
Fixed expenses are those expenses that do not change when
there is a change in production or sales level. Expenses like
rent, insurance, payment on loans, management salaries,
advertising are examples of fixed expenses. They change
over a period of time.
• FTE - Full Time Equivalent
Also known as whole time equivalent (WTE), it is a unit that
indicates the workload of an employed person.
• GP - Gross Profit
The profit a company makes after deducting the costs
associated with making and selling its products, or the costs
associated with providing its services.
• Income Statement
is one of the three important financial statements used for
reporting a company's financial performance over a specific
accounting period, with the other two key statements being
the balance sheet and the statement of cash flows.
• Inflation Premium
The inflation premium is a method used in investing and
banking to calculate the normal rate of return on an asset or
investment when the general cost of goods and services rises
over time, known as inflation. The real return, therefore, or real
rate of return, on an investment is reduced by the inflation
premium, and this reduction tends to be greater the longer that
the investment takes to mature. An example of this would be
a government bond that yields a 6% return on the investment
in one year, but with an inflation premium over the course of
the same year of 2% for the increase in prices. This reduces
the real return of the bond to 4% by the end of the year.
• Interest Rate
Is percentage, is the amount charged by a lender that a
borrower must pay for using the lender’s principal. In other
words, this is the extra amount beyond the premium that the
borrow must repay the lender.
• IRR - Internal rate on return
Metric used in capital budgeting to estimate the profitability of
potential investments.
• KPI - Key Performance Indicator
Measurable value that demonstrates how effectively a
company is achieving a defined key business objectives.
• Liabilities
Liabilities in Accounting is an account in which the company
maintains all its records like such as debts, obligations,
 payable income taxes, customer deposits, wages payable,
expenses occurred. Liability accounts will normally have a
credit balance.
• Loans
A sum of money that a company borrow
• M/Y - Month/Year
as is
• MRR - Monthly Recurring Revenues
Income that a business can count on receiving every single
month.
• Net Profit
This is the bottom line of the income statement. It is the
mathematical result of revenues and gains minus the cost of
goods sold and all expenses and losses (including income tax
expense if the company is a regular corporation) provided the
result is a positive amount. If the net amount is a negative
amount, it is referred to as a net loss.

• Non-Current Asset
Asset that is not to be converted to cash within 12 months of
the balance sheet date.
Resource that is not expected to be consumed or sold within
the normal operating cycle of a firm, such as equipment,
machinery, and plant.
• Noncurrent liabilities
Are those obligations not due for settlement within one year.
These liabilities are separately classified in an entity's balance
sheet, away from current liabilities. Examples of noncurrent
liabilities are:
• Long-term portion of debt payable
• Long-term portion of bonds payable
• NOPLAT -Net Operating Profit Less Adjusted Taxes
A measure of profit that includes the costs and tax benefits of
debt financing. Put another way, NOPLAT is earnings before
interest and taxes (EBIT) adjusted for the impact of taxes.
• NPV - Net Present Value
 The value in the present of a sum of money, in contrast to
some future value it will have when it has been invested at
compound interest.
• OPEX - Operating costs
The expenses which are related to the operation of a
business, or to the operation of a device, component, piece of
equipment or facility.
• P&L - Profit and Loss
Also known as Income statement. A report of the
comprehensive income, expenses, and profits or losses of a
company.
• Rev - Revenues
Income or Sales
• Risk-free rate
The risk-free interest rate is the rate of interest paid on the
least risky financial instruments, normally considered to be the
shortest-dated risk-free bond. For instance, in the U.S. the
risk-free interest rate is generally assumed to be that paid on
a three-month Treasury bill.

• Risk premium
Those who take on riskier investments are compensated with
a greater return. The risk premium is the amount the investor
should expect to receive for risking the loss of his or her
money for making the investment.
The risk premium is the rate of return on an investment over
and above the risk-free or guaranteed rate of return.
• ROA - Return on Assets
Sometimes referred to as return on investment, it is a ratio
used to assess a company’s ability to earn profit relative to its
overall resources.
• ROCE - Return on Capital Employed
A ratio which compares a company’s Net Operating Profit
Less Adjusted Taxes (NOPLATI to the capital it employs. The
beauty of this ratio is that the financing structure does not
matter and one can compare that ratio to other businesses or
to the business’ cost of capital.
• ROE - Return on Equity
 The amount of net income returned as a percentage of
shareholders’ equity.
• ROIC - Return on Invested Capital
Same as ROCE (as Capital Employed = Invested Capital)
• SPE/SPV - Special Purpose Entity / Vehicle
A subsidiary company with an asset/liability structure and
legal status that makes its obligations secure even if the
parent company goes bankrupt.
• t - Tax rate %
Percentage at which an individual or corporation is taxed.
• TV - Terminal Value
The present value of all future cash flows, with the assumption
of perpetual stable growth in some cases.
• Valuation
Valuation refers to the process of determining the present
value of a company or an asset. It can be done using a
number of techniques. Analysts that want to place value on a
company normally look at the management of the business,
the prospective future earnings, the market value of the
company’s assets, and its capital structure composition
• Unlevered Free Cash Flow
A firm’s cash flow shown to investor’s as a measure of
performance that doesn’t take into account interest payments
on debts outstanding.
• USD - United States Dollar
USA currency
• Variable Expenses
A variable cost is an expense that rises or falls in direct
proportion to production volume. Variable costs differ from
fixed costs, which remain the same even as production and
sales volume changes.
Common variable costs include:
- Raw materials
- Sales commissions
- Packaging
- Shipping
- Labor directly associated with production
- Credit card fees
• WACC
WACC stands for the weighted average cost of capital. It
represents the rate of return a company must make on the
money it has invested to stop investors putting their money
elsewhere. In short, it is the company’s cost of money.
• Working Capital
Working capital is money available to a company for day-to-
day operations. Simply put, working capital measures a
company's liquidity, efficiency, and overall health. Because it
includes cash, inventory, accounts receivable, accounts
payable, the portion of debt due within one year, and other
short-term accounts, a company's working capital reflects the
results of a host of company activities, including inventory
management, debt management, revenue collection, and
payments to suppliers.
• WTE - Whole Time Equivalent
Another name for full time equivalent, a unit that indicates the
workload of an employed person.