Plain-English definitions of the financial terms that matter most — from AR aging to WACC.
Money owed to a company by its customers for goods or services delivered but not yet paid for. AR aging categorizes these receivables by how long they've been outstanding: 0–30 days, 31–60 days, 61–90 days, and 90+ days.
See how FinTel tracks AR aging →EBITDA with additional add-backs for non-recurring items, owner-related expenses above market rate, and other normalizing adjustments. Used in M&A transactions to represent the true recurring earning power of a business.
See how FinTel handles QoE adjustments →A comparison of planned financial performance (the budget) against what actually occurred (the actuals). Variance analysis identifies where and why the business deviated from plan.
See how FinTel automates BvA →The rate at which a company spends its cash reserves, typically expressed as a monthly figure. Gross burn is total monthly cash outflow. Net burn is total outflow minus total inflow.
See how FinTel projects cash runway →A spreadsheet or ledger that shows the equity ownership structure of a company, including all shareholders, share classes, option grants, SAFEs, convertible notes, and their respective ownership percentages.
See how FinTel manages cap tables →The number of months a company can continue operating at its current burn rate before running out of cash. Calculated as: current cash balance divided by monthly net burn rate.
See how FinTel projects 3-scenario runway →The average number of days it takes a company to collect payment after a sale. Calculated as: (accounts receivable / total credit sales) × number of days. Lower is better.
A valuation method that estimates the value of a business based on the present value of its projected future cash flows, discounted at a rate that reflects the risk of those cash flows (WACC).
See how FinTel runs DCF valuations →Earnings Before Interest, Taxes, Depreciation, and Amortization. A widely used measure of operating profitability that strips out the effects of financing decisions, tax environments, and non-cash charges.
A valuation visualization that displays the implied enterprise value range from multiple valuation methodologies (DCF, comparable companies, precedent transactions) as horizontal bars on a single chart. The overlap zone shows where methods agree.
See how FinTel generates football fields →A part-time or contract Chief Financial Officer who serves multiple companies simultaneously, providing strategic financial leadership without the cost of a full-time hire. Typically serves companies in the $2M–$50M revenue range.
Read: What Is a Fractional CFO? →The function within a company responsible for budgeting, forecasting, financial modeling, and providing analytical support for strategic decision-making.
See how FinTel powers FP&A →Revenue minus Cost of Goods Sold (COGS), expressed as a percentage of revenue. Measures how much profit a company makes after accounting for the direct costs of producing its goods or services.
Current assets minus current liabilities, excluding cash and debt. In M&A transactions, the NWC "peg" is the agreed-upon normalized working capital level used to adjust the purchase price at closing.
Forward-looking financial projections that model what a company's financials would look like under a specific set of assumptions. Used for business planning, fundraising, and transaction preparation.
See how FinTel builds pro forma projections →A due diligence analysis performed during M&A transactions that examines the sustainability, accuracy, and quality of a company's reported earnings. Identifies non-recurring items, owner add-backs, and normalizing adjustments to arrive at adjusted EBITDA.
See how FinTel automates QoE analysis →A structured framework that projects future revenue based on underlying drivers: pricing, volume, customer count, contract values, pipeline probability, marketing attribution, and seasonality.
See how FinTel builds revenue models →The process of modeling multiple possible future outcomes (base case, upside, downside) to understand the range of financial impact from different decisions or market conditions.
See how FinTel models scenarios →A linked financial model consisting of the Income Statement (P&L), Balance Sheet, and Cash Flow Statement, where changes in one statement automatically flow to the others. The gold standard of financial modeling.
See how FinTel builds three-statement forecasts →The blended rate of return required by all of a company's capital providers (debt and equity), weighted by their respective proportions in the capital structure. Used as the discount rate in DCF valuations.
See how FinTel calculates WACC →