(Also blue chip companies) The ‘footsie’ is the share index of the 100 largest companies listed on the London Stock Exchange, and this index is revised quarterly.
A future estimate of performance using historical data and assumptions.
Expenses not affected by the volume of output (goods & services) of output over a period of time.
(Also known as Non Current Asset) used on a continuing basis in a business and usually referred to as PPE (Property, Plant and Equipment).
Refers to government finance i.e. the borrowing, spending and taxation activities. If a government is concerned that it is borrowing excessively, it can raise taxes and/or cut spending (austerity measures). However, if it is concerned that there might be a recession, it can cut taxes, raise borrowing and/or spending (fiscal stimulus)
To continue to produce a profit, pay debts as they fall due and continue to survive.
The effective and competent management of the finances of a business to achieve its financial objectives, mainly to be profitable.
Assessment of a company’s financial situation to help identify areas that need further attention, discussion and improvement. But it is not all about the negatives, Healthchecks also help to identify opportunities to achieve better financial outcomes and develop solutions to improve performance. EFM’s financial healthcheck is targeted at companies. Take the heathcheck now.
An accounting expert who supervises the quality of accounting and financial reporting of a business whilst also overseeing and monitoring internal controls and countersigning expenses.