Business acronyms

A list of business acronyms that every consultant should know

Finance – Investments

CAPM Capital Asset Pricing Model
DCF Discounted Cash Flow
FCF Free Cash Flow
IRR Internal Rate of Return
NPV Net Present Value
ROI Return On Investment
WACC Weighted Average Cost of Capital

Finance – Deals

IPO Initial Placement Offer
LBO Leveraged Buy-Out
MBO Management Buy-Out
M&A Mergers and Acquisitions
NDA Non-Disclosure Agreement
PER Price/Earnings Ratio

Finance – Profitability

EBIT Earnings Before Interest and Tax
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation
EPS Earnings Per Share
GM% Gross Margin %
NOPLAT Net Operating Profit Less Adjusted Taxes
ROA Return on Assets
ROCE Return on Capital Employed
TSR Total Shareholder Return

Finance – Accounting

ABC Activity Based Costing
COGS Cost Of Goods Sold
GAAP Generally Accepted Accounting Principles

Operations

JIT Just In Time
QC Quality Control
SCM Supply Chain Management
TQM Total Quality Management
WIP Work In Progress

Economics

BRICs Brazil, Russia, India and China
FDI Foreign Direct Investment
GDP Gross Domestic Product
PPP Purchasing Power Parity

Marketing

CPC Cost Per Click
CPM Cost Per Mille (1000 views)
WOM Word of Mouth
ECR Efficient Consumer Response
RTM Route-To-Market
USP Unique Selling Proposition

Statistical

APR Annual Percentage Return
CAGR Composite Annual Growth Rate
YOY Year On Year

Strategic

BHAG Big Hairy Audacious Goal
B2B Business-to-Business
B2C Business-to-Consumer
BSC Balanced ScoreCard
CSR Corporate Social Responsibility
KPI Key Performance Indicator
KSF Key Success Factor
MNC Multi-National Corporation
OEM Original Equipment Manufacturer
PEST Political, Economic, Social, Technological
SME Small/Medium Enterprises
SWOT Strengths, Weaknesses, Opportunity, Threats

IT

API Application Programming Interface
BPO Business Process Outsourcing
BPR Business Process Re-engineering
CRM Customer Relationship Management
ERP Enterprise Resource Planning
P2P Peer-to-Peer
SAAS Software-As-A-Service
SDK Software Development Kit
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