FP&A Glossary

The quintessential source for definitions and examples relevant to the corporate finance community

Financial planning and analysis (FP&A) is a core function of corporate and organizational finance whose responsibility it is to understand an organization's current financial situation and have a reasoned approach to predicting future financial performance. It must have the systems of measurement, data, process, and reporting capabilities to provide strategic advice to the CFO and other business leaders who are making important decisions with a financial impact to the organization.

Below is a list of terms and their definitions commonly used by FP&A professionals.

The Debt Ratio is a financial ratio that compares a company's total liabilities to its total assets to measure the amount of leverage a company has. It can be used to determine how solvent a company may be and how well it can cover its debt and expenses using its existing assets.

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