List of Finance Acronyms
So many... (as of Apr 2024)
This post is updated in Jul 2025.
After doing this for >20 years, I find it sometimes amazing that we can have so many acronyms. Not just in finance but everywhere! It must also be frustrating and confusing for people not in tuned with them. This is an attempt to put down a non-exhaustive list of finance acronyms for everyone since I use them a lot myself and will direct new readers here in the future.
Bold acronyms are those used most often on this substack.
AML = Anti-Money laundering
ALM = Asset Liability Management
BRICs = Brazil, Russia, India and China which led the growth in emerging market economies
BS = Balance Sheet (not the other BS…)
Capex = Capital Expenditure
CF = Cashflow (from CF statement
COGS = Cost of Goods Sold
DE Ratio = Debt-to-Equity Ratio
DM = Developed Markets
DPS = Dividend Per Share
DVD = Dividend
EBIT = Earnings before interest and tax
EBITDA = Earnings before interest and tax, depreciation and amortization
EM = Emerging Markets
EPS = Earnings Per Share
ESG = Environment, Social and Governance
EV = Enterprise Value
FAANGs = Refers to the Facebook, Apple, Amazon, Netflix and Google
FCF = Free Cashflow
FOMO = Fear of Missing Out
FX or Forex = Foreign Exchange
FY = Financial Year or Fiscal Year
GFC = Great Financial Crisis of 2008-2009
GIGO = Garbage In Garbage Out
GPM = Gross Profit Margin
HHI = Herfindahl-Hirschman Index, common measure of market concentration
IRR = Internal Rate of Return, an important return calculation methodology in the PE world
IV = Intrinsic Value
LIFO = Last In First Out, one of the accounting terms
M&A = Merger and Acquisition
MOIC = Multiple on Invested Capital, another measure of return used in PE and VC (see below)
Mag7 = Refers to Magnificent Seven, the top seven companies evolved from the FAANGs mentioned above. They are Alphabet / Google, Amazon, Apple, Meta Platforms / Facebook, Microsoft, Nvidia and Tesla.
MOS = Margin of Safety
NAV = Net Asset Value, often used used in conjunction with IRR calculation.
NI = Net Income
OP = Operating Profits which is similar to EBIT
OPEX = Operating Expenses
OPM = Operating Profit Margin
PBR = Price-to-Book Ratio
PE = Private Equity
PER = Price Earnings Ratio
PL = Profit and Loss Statement
RE = Real Estate
ROA = Return on Assets
ROE = Return on Equity
ROIC = Return on Invested Capital
SGA = Sales, General and Administrative Expenses
TAM = Total Addressable Market
TMT = Tech, Media and Technology, often used to described the 1999-2000 IT bubble, a.k.a. the TMT bubble
VC = Venture Capital
That's all for now, but this will be updated as new acronyms come along.
Huat Ah!
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