• Financial Income

    This includes for example interest income of various types.

  • Financial Items

    Refers to interest income, share dividends, and interest expenses.

  • Financial Strength

    This expresses the company's level of financial exposure or risk over the longer term, usually in ratio form. It is normally calculated by placing shareholder's equity in relation to total capital.

  • Fixed Assets

    Assets that are intended to be in use for longer than one year. It is common to distinguish between tangible fixed assets (machines, buildings, vehicles, etc.), intangible fixed assets (goodwill, leases, etc.) and financial fixed assets (such as shares, liabilities, and long-term receivables).

  • Fixed Cost

    A cost that is independent of changes in the volume of production or sales (within the existing range of capacity).

  • Goods in Stock

    This item represents raw materials, work in process, and finished products, and, in the case of service companies, ongoing work.

  • Gross Income

    Income after manufacturing costs (invoicing sales minus the cost of goods sold).

  • Gross Margin

    Corresponds to the gross income as a percentage of invoiced sales.

  • Income

    The value that remains after costs and expenses has been subtracted from the revenue. Also used terminology is Profit if the value is positive or Loss if negative.

  • Income Statement

    The income statement describes accumulated revenues and accumulated costs for a certain period, such as for example a fiscal year. It shows if the company is making a profit or a loss during this period.

  • Indirect Cost

    A cost that cannot be directly assigned to a particular product, project or order. It is instead accumulated for the department where it has arisen and then allocated according to a standard rule.

  • Intangible assets

    Assets that are not tangible, most common are Goodwill, Patents, licenses.

  • Internal Rate of Return

    An expression for the percentage yield of an investment. Internal rate of return can for example be used in the comparison of the profitability of various investment projects.

  • Inventory Turnover Rate

    A measure of how many times a company's average inventory has turned over during a year.

  • Investment

    An outlay for the acquisition of genuine assets. These assets will then be the object of depreciation over their economic lives.

  • Investment Calculation

    An estimate of all inflows and outflows of cash that arise in connection with the purchase of a particular fixed asset. The calculation can be carried out in several different ways, such as for example the pay-off method and the net present value (NPV) method.

  • Ledger

    A summary register of accounts receivable for each customer and accounts payable for each supplier.

  • Liabilities

    See short-term versus long-term liabilities.

  • Liquidity

    The readiness of the company to pay, that is, its ability to use its liquid assets in the short-run.

  • Long-Term Liabilities

    Liabilities that come due for payment after more than one year.