CFO Glossary
A bilingual glossary of the terms CFOs use in financing, valuation, cash, working capital, risk and macroeconomics — with formulas, examples, articles and calculators.
30 core terms every CFO should know
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13-Week Cash Forecast
13 Haftalık Nakit Bütçesi
The 13-week cash forecast is a rolling weekly plan of collections, payments and debt service. It shows the trough that monthly P&L and ratios miss.
Cash Flow Full explanation →Accretion
Artırıcı Etki
Accretion is the deal lifting EPS (or FCF per share) above the stand-alone. It is not a proxy for value creation; accounting earnings can skip cash and the ROIC hurdle.
M&A Full explanation →Acquisition
Satın Alma
An acquisition is control changing hands for cash, shares or a mix. Price walks from enterprise value down to equity value via net-debt and NWC adjustments.
M&A Full explanation → APVAdjusted Present Value
Düzeltilmiş Bugünkü Değer
Adjusted present value discounts the project as if all-equity financed, then adds financing side effects such as the shield and distress. It is used when the debt profile breaks WACC’s constant-weight assumption.
Capital Budgeting Full explanation →After-Tax Cost of Debt
Vergi Sonrası Borç Maliyeti
After-tax cost of debt is all-in interest after the cash tax shield on the deductible part. It is the debt leg of WACC; without a shield, Kd stays as is.
Tax Full explanation →After-Tax Kd in WACC
WACC’te Vergi Sonrası Kd
After-tax cost of debt is all-in Kd after the shield. It is WACC’s debt leg; if T cannot be used the multiplier tends toward 1.
Cost of Capital Full explanation →All-in Cost
All-in Maliyet
All-in cost converts the reference rate, margin, fees and compensating balances into one annual rate. That is the decision number, not the coupon line.
Banking Full explanation →Altman Z-Score
Altman Z-Skoru
The Altman Z-score squeezes a few balance-sheet and profit ratios into one bankruptcy index. It is a screen; it is not a universal threshold under Turkish cash and inflation accounting.
Financial Stress Full explanation →Amortisation
İtfa
Amortisation spreads the cost of intangibles (licences, software, customer contracts; goodwill in some GAAPs) over time. It is not cash; it is added back with depreciation in EBITDA.
Financial Statements Full explanation →Amortising Loan
Amortismanlı Kredi
An amortising loan repays principal in instalments over the tenor (equal principal or annuity). Period debt service is higher than a bullet; the wall at final maturity is lower.
Debt Full explanation →Arrangement Fee
Düzenleme Ücreti
An arrangement fee is paid to the bank that structures the pack (arranger/agent). It can overlap with the upfront fee; in a syndicate an agency fee also runs annually.
Banking Full explanation →Balance Sheet
Bilanço
The balance sheet is a stock snapshot of assets, liabilities and equity at a date. It does not measure period profit; many items mix historical cost and fair value.
Financial Statements Full explanation →Balloon Payment
Balloon Ödeme
A balloon payment is a large residual principal due at maturity on a partially amortising loan. It is a hybrid wall between a full bullet and full amortisation.
Debt Full explanation →Basis Risk
Baz Riski
Basis risk is the hedge instrument and the hedged item not moving one-for-one in opposite directions. Tenor, grade, pair or fixing mismatch leaves an open amount under “we are hedged”.
Risk Management Full explanation → βBeta
Beta
Beta is the share’s systematic sensitivity to the market portfolio. In CAPM the risk premium is β × ERP. 1.0 moves with the market; leverage lifts beta.
Cost of Capital Full explanation →Book Equity
Defter Özkaynağı
Book equity is the sum of share capital and reserves on the balance sheet. It is not market or DCF equity; inflation, goodwill and revaluation create the gap.
Financial Statements Full explanation →Book Value
Defter Değeri
Book value is equity recorded on the balance sheet (or a line’s carrying amount). It is not market or DCF value; inflation, intangibles and accounting policy pull book away from price.
Valuation Full explanation → BEBreak-Even
Başabaş Noktası
Break-even is the volume or sales at which contribution exactly covers fixed cost. It is the EBIT-zero operating point; cash break-even still needs interest, principal and maintenance cash.
Leverage Full explanation →Breakpoint
Kırılma Noktası
A breakpoint is the investment scale at which a financing rung (retained earnings, a cheap line) is used up and the marginal cost of capital jumps. The IOS–MCC intersection sets the last accepted project.
Financial Stress Full explanation →Bridge Loan
Köprü Kredi
A bridge loan is a short, expensive facility used until permanent financing (take-out, asset sale, equity) closes. It is not a solution; it pulls the maturity wall forward.
Banking Full explanation →Bullet Loan
Bullet Kredi
A bullet loan pays (usually) interest only during the tenor and repays principal in one shot at maturity. Interim DSCR looks easy; maturity day is a refinancing or cash shock.
Debt Full explanation →Cannibalization
Kannibalizasyon
Cannibalisation is a new product or channel eating existing sales and cash. Incremental cash is after the net shift, not gross new sales.
Capital Budgeting Full explanation → CURCapacity Utilization
Kapasite Kullanım Oranı
Capacity utilization is how much of the installed plant is actually used. High utilization supports price and delivery power; low utilization pressures break-even and unit fixed cost.
Macroeconomics Full explanation → CAPMCapital Asset Pricing Model
Sermaye Varlıklarını Fiyatlama Modeli
CAPM sets the cost of equity as the risk-free rate plus beta times the equity risk premium. It is a one-factor skeleton; country, size and liquidity premia are separate, single-count add-ons.
Cost of Capital Full explanation → CapExCapital Expenditure
Sermaye Harcaması
Capital expenditure is a cash outlay for a long-lived asset. It does not hit profit immediately; it reduces cash and free cash flow and capitalises an asset.
Capital Budgeting Full explanation →Capital Rationing
Sermaye Rasyonlaması
Capital rationing is an internal or external ceiling that stops the firm doing every positive-NPV job. The scarce resource may be cash, debt capacity, collateral or management time.
Capital Budgeting Full explanation →Capital Structure
Sermaye Yapısı
Capital structure is the mix of debt and equity that funds the operations. WACC weights, the tax shield and distress costs come from this mix; book leverage is not a proxy for the target structure.
Capital Structure Full explanation →Cash Buffer
Nakit Tamponu
A cash buffer is the reserve held above the minimum-cash floor for shocks and forecast error. It is held for payment continuity, not for yield maximisation.
Cash Flow Full explanation →Cash Burn
Nakit Yakma
Cash burn is the net decline in cash over a period, with or without financing. It is not an accounting loss; a profitable firm can burn cash in inventory and receivables.
Cash Flow Full explanation →Cash Concentration
Nakit Konsantrasyonu
Cash concentration is sweeping group account balances daily into a central account. It is the operational engine of cash pooling; it is not the same as legal set-off.
Treasury Full explanation →Cash Conversion
Nakit Dönüşümü
Cash conversion is how much of accrual profit (often EBITDA) becomes operating cash. Below 1 is an NWC, provision or earnings-quality problem.
Cash Flow Full explanation → CCCCash Conversion Cycle
Nakit Dönüş Süresi
The cash conversion cycle is how many days cash stays in the operating cycle after supplier credit. CCC = DIO + DSO − DPO.
Working Capital Full explanation →Cash Flow Statement
Nakit Akış Tablosu
The cash-flow statement splits the change in cash and cash equivalents into operating, investing and financing activities. It is the bridge between accrual profit and the cash balance.
Financial Statements Full explanation →Cash Pooling
Nakit Havuzlama
Cash pooling manages group balances as one pot, by physical sweeping or notional netting, so surplus in one entity offsets a deficit in another and cuts external debt and interest.
Cash Flow Full explanation →Cash Runway
Nakit Pisti
Cash runway is how long available cash lasts at the current net cash-outflow rate. It is a treasury metric in growth and loss-making phases. In a cash-generative firm an “infinite runway” still misses the maturity wall.
Cash Flow Full explanation →Cash Sweep
Nakit Süpürme
A cash sweep is mandatory prepayment of defined excess CFADS. In LBOs and project finance it cuts leverage fast and restricts dividends and investment.
Debt Full explanation → CFADSCFADS
Borç Servisine Uygun Nakit Akışı
CFADS is cash that can be used to pay interest and principal. A practical bridge is EBITDA less cash tax, mandatory maintenance capex and working-capital need. There is no universal formula; the facility defines it.
Cash Flow Full explanation → ΔNWCChange in NWC
Net İşletme Sermayesi Değişimi
ΔNWC is the period-to-period change in net working capital. An increase is a cash outflow, a decrease an inflow. Valuation and CFADS use this change, not the stock of NWC.
Working Capital Full explanation →Collateral
Teminat
Collateral is the asset or right that secures debt: a charge, mortgage, assignment of receivables, cash block. Limit and spread are set off enforcement cash, not book value.
Banking Full explanation →Combined Leverage
Birleşik Kaldıraç
Combined leverage is operating times financial leverage: the compound effect of a sales change on net income/EPS. When both layers are high, a small top-line miss hits profit and covenants together.
Leverage Full explanation →Commercial Loan Rate
Ticari Kredi Faizi
The commercial loan rate is the cash-loan price the bank charges the firm. It is policy plus funding, capital, risk and competition — not a one-for-one copy of the CBRT decision.
Macroeconomics Full explanation →Commitment Fee
Taahhüt Ücreti
A commitment fee accrues on the undrawn balance. It is the price of limit insurance; cash leaves even with no draw.
Banking Full explanation →Commodity Prices
Emtia Fiyatları
Commodity prices are international market prices of standard inputs — energy, metals, agri. They move variable cost, inventory cash and sometimes the selling price together.
Macroeconomics Full explanation →Comparable Companies
Karşılaştırılabilir Şirketler
Comparable companies are listed or transacted firms used as peers in a multiples valuation. Sector alone is not a peer set; margin, growth, cycle, accounting and control must be screened.
Valuation Full explanation → CPIConsumer Price Index
Tüketici Fiyat Endeksi
CPI is the price change of the household basket. It indexes wages, rent and some contracts; the firm’s input inflation can diverge from PPI.
Macroeconomics Full explanation →Contribution Margin
Katkı Payı
Contribution margin is sales minus variable costs — what remains to cover fixed cost and profit. Unit contribution is the pricing floor; it need not equal gross margin.
Leverage Full explanation →Control Premium
Kontrol Primi
A control premium is the amount paid above the minority market price to take control of the firm. Synergies, cash-flow control and dividend policy are the economic case for the premium.
Valuation Full explanation →Corporate Tax
Kurumlar Vergisi
Corporate tax is the levy on taxable corporate profit. Advance and instalment tax split cash timing from P&L expense; the tax base diverges from IFRS profit through disallowances and exemptions.
Tax Full explanation →Cost of Debt
Borç Maliyeti
The cost of debt (Kd) is the pre-tax all-in yield on marginal debt. It is not the historic coupon; it is the price of borrowing today. WACC uses this Kd.
Cost of Capital Full explanation →Cost of Equity
Özkaynak Maliyeti
The cost of equity is the return shareholders require for systematic risk. It is not an accounting cost; FCFE and dividends are discounted at this rate, not FCFF.
Cost of Capital Full explanation → COGSCost of Goods Sold
Satışların Maliyeti
COGS is the direct cost of goods or services sold. Inventory movement, production cost and, depending on policy, manufacturing depreciation sit here — not opex.
Financial Statements Full explanation →Counterparty Risk
Karşı Taraf Riski
Counterparty risk is the loss of a hedge, a collection or a deposit when the other side fails. It is the credit-risk face of derivatives and bank deposits.
Risk Management Full explanation → CRPCountry Risk Premium
Ülke Risk Primi
Country risk premium is the slice of local default, transfer and macro risk added to a developed-market Rf + global ERP skeleton. If local Rf already embeds that risk, CRP is not added again.
Cost of Capital Full explanation →Covenant
Covenant
A covenant is a financial or non-financial undertaking in the facility. A breach can trigger default, a rate step-up, a draw stop or acceleration; it is not a soft target.
Covenants Full explanation →Covenant Breach
Covenant İhlali
A covenant breach is a break of a financial or non-financial undertaking. It can be an automatic default or a default after notice and cure; draws stop, the rate may step up, debt may accelerate.
Covenants Full explanation →Covenant Headroom
Covenant Marjı
Covenant headroom is the gap to the financial test’s cap or floor. Liquidity headroom is a cash cushion; this is a ratio cushion. They tend to break together.
Covenants Full explanation →Covenant Holiday
Covenant Tatili
A covenant holiday is a period when a financial covenant is not tested or the threshold is eased. It is used to breathe after an acquisition, a build or a shock; it does not retire the debt.
Covenants Full explanation →Credit Conditions
Kredi Koşulları
Credit conditions are the non-price terms of bank credit: collateral, tenor, covenants, limits, documentation. Tightening cuts quantity and flexibility even if the rate is unchanged.
Banking Full explanation →Credit Conditions (Macro)
Kredi Koşulları (Makro)
Macro credit conditions are whether banks are tight or loose on standards, collateral, tenor and limits. Price (the rate) is one channel; quantity (is there a line?) is another.
Macroeconomics Full explanation → CDSCredit Default Swap
Kredi Temerrüt Takası
A CDS is the premium for protection against default on a reference credit. Sovereign CDS floors a Turkish firm’s external funding and FX-loan spread; it is a market proxy for ratings, not the same object.
Macroeconomics Full explanation →Credit Limit
Kredi Limiti
A credit limit is the contractual maximum principal. The drawable amount sits below that cap where collateral, covenants or internal bank authority are tighter.
Banking Full explanation →Credit Rating
Kredi Notu
A credit rating is an agency’s letter grade of willingness and ability to pay. It is a crude, slow, opaque PD proxy; it can diverge from CDS and the cash model.
Financial Stress Full explanation →Credit Risk
Kredi Riski
Credit risk is expected loss if the obligor does not pay in full on time. Expected loss ≈ exposure × PD × (1 − recovery). Receivables, guarantees and unfunded lines sit in the same family.
Risk Management Full explanation →Credit Risk Premium
Kredi Risk Primi
The credit risk premium is the extra yield lenders require above the risk-free rate for default and expected loss. The observed credit spread embeds this premium and may also carry liquidity and tenor premia.
Cost of Capital Full explanation →Credit Spread
Kredi Marjı
The credit spread is the issuer- and deal-specific premium over the reference rate. Credit quality, collateral, tenor, sector and the bank’s capital cost set it; it is not the policy rate.
Banking Full explanation →Cross-Acceleration
Çapraz Muacceliyet
Cross-acceleration lets this pack be accelerated if another debt is actually accelerated. It triggers later than cross-default; it still merges the maturity wall into one day.
Covenants Full explanation →Cross-Default
Çapraz Temerrüt
Cross-default makes a default on another debt a default on this pack. It turns one miss into a group wall; a threshold can carve out small debts.
Covenants Full explanation →Cure Period
İyileştirme Süresi
A cure period is the contractual window to fix a breach before it is a default. Payment default and ratio breach often have different clocks; equity cure is a separate right.
Covenants Full explanation →Currency Exposure
Döviz Maruziyeti
Currency exposure is the map of which cash flow or balance-sheet item is tied to which rate at which tenor. Risk is size × shock × residual after hedge.
Risk Management Full explanation →Currency Swap
Para Swapı
A currency swap exchanges principal and interest in two currencies. It maps FX debt into a local-currency cash profile (or the reverse); the legal loan may stay as is.
Treasury Full explanation →Current Account
Cari İşlemler Dengesi
The current account is the net of goods, services, income and current transfers. A deficit creates an external financing need and FX pressure; a surplus the reverse.
Macroeconomics Full explanation →Current Ratio
Cari Oran
The current ratio is current assets divided by current liabilities. It is a stock liquidity cut; it does not show intra-period cash peaks or how long inventory takes to become cash.
Financial Statements Full explanation → DIODays Inventory Outstanding
Stokta Kalma Süresi
DIO is how many days of COGS sit in inventory. It blends raw, WIP and finished goods into one average and does not separate surplus from stock-outs.
Working Capital Full explanation → DPODays Payable Outstanding
Borç Ödeme Süresi
DPO is the average number of days trade payables remain outstanding. It measures the tenor of supplier credit and hides early-payment discounts and supply risk in one number.
Working Capital Full explanation → DSODays Sales Outstanding
Alacak Tahsil Süresi
DSO is the average number of days sales take to become cash. It is average trade receivables over credit sales, times days in the period. Ageing is hidden inside one average.
Working Capital Full explanation →Debt Burden
Borç Yükü
Debt burden is how much interest and principal take of operating cash or of sales. It is close to the inverse of DSCR; a heavy burden cuts cash left for capex and dividends.
Debt Full explanation →Debt Capacity
Borç Kapasitesi
Debt capacity is the stock of debt — or the annual debt service — that can be carried given cash flow, tenor, collateral and covenants. It is not a single EBITDA multiple; lender appetite and cash-flow stability move the cap.
Debt Full explanation →Debt Financing
Borç Finansmanı
Debt financing is outside capital with a tenor, a coupon and covenants. It supplies a shield and discipline; cash service, collateral and lost flexibility are the cost.
Capital Structure Full explanation →Debt Headroom
Borç Marjı
Debt headroom is how much more debt can still be drawn inside the current pack and cash capacity. It is the tightest of undrawn limit, the covenant cap and the CFADS/DSCR cap.
Debt Full explanation →Debt Maturity
Borç Vadesi
Debt maturity is when principal is contractually due or must be refinanced. Average maturity can hide a stacked maturity wall in one number.
Debt Full explanation →Debt Service
Borç Servisi
Debt service is cash interest plus principal (and mandatory fees the contract counts) paid in the period. Accrued interest is not cash service; principal does not appear on the P&L.
Debt Full explanation → DSCRDebt Service Coverage Ratio
Borç Servisi Karşılama Oranı
DSCR is CFADS divided by total debt service for the same period. It is cash-paying power for interest and principal; accrual profit or EBITDA alone is not DSCR.
Debt Full explanation →Debt Sustainability
Borç Sürdürülebilirliği
Debt sustainability is whether debt can be carried without exploding, given rates, growth, primary cash surplus and tenor. A green single-period DSCR is not sustainability; it is a path.
Debt Full explanation → D/EDebt-to-Equity
Borç / Özkaynak Oranı
Debt-to-equity is financial debt over equity. It is a stock leverage measure; gross versus net and book versus market follow the contract and the analysis.
Capital Structure Full explanation →Deductibility
İndirilebilirlik
Deductibility is whether an expense (especially interest and FX) can be taken off the corporate tax base. It is the legal precondition of the shield; if no cash tax arises, the economic shield is still zero.
Tax Full explanation →Default
Temerrüt
Default is a breach of a payment or covenant obligation in the contract. Payment default is missing cash; covenant (technical) default often triggers acceleration and cross-default.
Financial Stress Full explanation →Deferred Tax
Ertelenmiş Vergi
Deferred tax books the future tax effect of temporary differences between IFRS profit and the tax base. It is not a cash in- or outflow; it is timing.
Tax Full explanation → DCLDegree of Combined Leverage
Birleşik Kaldıraç Derecesi
The degree of combined leverage (DCL) is the percentage change in EPS for a percentage change in sales. It equals DOL × DFL, or contribution over EBIT minus interest.
Leverage Full explanation → DFLDegree of Financial Leverage
Finansal Kaldıraç Derecesi
The degree of financial leverage (DFL) is the percentage change in EPS/net income for a percentage change in EBIT. It is EBIT / (EBIT − interest); a heavier interest load raises DFL.
Leverage Full explanation → DOLDegree of Operating Leverage
Faaliyet Kaldıraç Derecesi
The degree of operating leverage (DOL) is the percentage change in EBIT for a percentage change in sales. It is also contribution margin over EBIT; more fixed operating cost raises DOL.
Leverage Full explanation →Depreciation
Amortisman
Depreciation spreads a tangible asset’s cost over its useful life. It is not a cash outflow; it reduces EBIT and the tax base and is added back to EBITDA.
Financial Statements Full explanation →Dilution
Sulandırma
Dilution is a new share or convertible shrinking existing holders’ claim on profit, cash and control. EPS dilution is not the same as economic-value dilution.
M&A Full explanation → DCFDiscounted Cash Flow
İndirgenmiş Nakit Akımı
DCF discounts expected free cash flows at a rate that reflects risk. Use FCFF and WACC for firm value, FCFE and Ke for equity; do not mix them.
Valuation Full explanation →Discounted Payback Period
İskontolu Geri Ödeme Süresi
Discounted payback is the time until discounted incremental cash recovers the outlay. It adds time value to payback; it still ignores cash after the cut-off.
Capital Budgeting Full explanation →Drawn Debt
Çekilmiş Borç
Drawn debt is principal actually taken under a facility. It is not the limit; it is the stock that accrues interest. The undrawn part accrues a commitment fee.
Debt Full explanation →DSCR Covenant
DSCR Covenant’ı
A DSCR covenant requires CFADS / debt service not to fall below a contractual floor. The floor is not universal; cash-flow stability, sector and the lender set it.
Covenants Full explanation → DDDue Diligence
Durum Tespiti
Due diligence is the testing of financial, legal, tax, operational and commercial assumptions before a deal. It is a stress test of the price deck.
M&A Full explanation →Duration
Durasyon
Duration is the weighted tenor that measures how cash flows respond to a rate change. Modified duration approximates the percent price change when yield moves; it is the ruler for rate risk on debt and bonds.
Treasury Full explanation →Earn-out
Kazanca Bağlı Ek Bedel
An earn-out defers part of the price to a post-close target (EBITDA, sales, cash). It spreads disagreement over time and creates an accounting-definition and control fight.
M&A Full explanation →Earn-out Risk
Earn-out Riski
Earn-out risk is variance and conflict from the definition, control and cash timing of contingent consideration. For the buyer it is a hidden maturity wall; for the seller an uncollectible receivable.
M&A Full explanation → EBITEBIT
FVÖK
EBIT is earnings before interest and tax. Because it deducts D&A, it is a stricter operating measure than EBITDA and is largely independent of capital structure.
Financial Statements Full explanation → EBITDAEBITDA
FAVÖK
EBITDA is earnings before interest, tax, depreciation and amortisation. It adds back non-cash D&A to operating profit; it does not measure tax, working-capital or investment cash outflows.
Financial Statements Full explanation →EBITDA Margin
FAVÖK Marjı
EBITDA margin is EBITDA divided by revenue. It shows scale, the price–cost gap and cash opex load as a rate; it does not measure cash conversion.
Financial Statements Full explanation → EBITDAREBITDAR
FAVÖKAR
EBITDAR is EBITDA before rent. It is used to compare operators who lease with those who own (retail, airlines, hotels). It does not remove the cash rent outflow.
Financial Statements Full explanation →Economic Exposure
Ekonomik Maruziyet
Economic exposure is the way FX moves competition, demand and long-run cash — future business not yet invoiced. It is not closed with a forward; it is run with pricing, sourcing and market choice.
Risk Management Full explanation → EIREffective Interest Rate
Etkin Faiz Oranı
The effective interest rate is the IRR of the loan cash flows (draws, fees, interest, principal). It sits above coupon or reference+margin because upfront fees and compensating balances cut net cash.
Banking Full explanation → ETREffective Tax Rate
Efektif Vergi Oranı
The effective tax rate is tax expense over pre-tax profit. It is not the statutory corporate rate; exemptions, disallowances and deferred tax create the gap.
Tax Full explanation → EVEnterprise Value
İşletme Değeri
Enterprise value is the value of the operations to all capital providers (equity and net debt). It corresponds to FCFF discounted at WACC; equity value is EV minus net debt.
Valuation Full explanation →Equity Financing
Özkaynak Finansmanı
Equity financing is putting capital in via new shares, convertibles or retained earnings. It has no maturity or mandatory coupon; dilution, control and dividend expectations are the cost.
Capital Structure Full explanation → ERPEquity Risk Premium
Piyasa Risk Primi
The equity risk premium is the extra return expected on the equity market above the risk-free rate. CAPM multiplies it by β. Historical averages, implied premia and surveys disagree; there is no single “true ERP”.
Cost of Capital Full explanation →Equity Value
Özkaynak Değeri
Equity value is what remains for owners after net debt and NCI are taken out of EV. It can match FCFE discounted at Ke or P/E × net income; those are different assumption sets.
Valuation Full explanation → EAAEquivalent Annual Annuity
Eşdeğer Yıllık Annuite
Equivalent annual annuity converts NPVs of mutually exclusive projects with different lives into a common annual cash slice. It answers “which machine do we replace forever?” under a repeatable chain.
Capital Budgeting Full explanation →EV / EBITDA
FD / FAVÖK
EV/EBITDA is enterprise value over EBITDA. It is a coarse operating multiple independent of capital structure; it ignores cash tax, capex and ΔNWC.
Valuation Full explanation →EV / Sales
FD / Satış
EV/sales is enterprise value over revenue. It is used when the name is loss-making or EBITDA is not yet settled; it hides the margin assumption in the multiple.
Valuation Full explanation →Excess Cash
Fazla Nakit
Excess cash is the balance left after minimum cash, the policy buffer and restricted/trapped cash. Only this slice should be subtracted as cash in net debt and enterprise value.
Cash Flow Full explanation →Exit Multiple
Çıkış Çarpanı
An exit multiple values the firm at the horizon with a market turn. Extending today’s multiple freezes the cycle and the rate regime.
Valuation Full explanation →Facility Utilization
Limit Kullanım Oranı
Facility utilization is the share of a revolving or general limit that is actually drawn. Low use wastes commitment fee; very high use consumes liquidity headroom and bank appetite.
Banking Full explanation →Factoring
Faktoring
Factoring is the assignment of trade receivables to a factor for cash today. It may be with recourse (risk stays) or without (risk transfers); accounting and covenant effects differ.
Working Capital Full explanation →Financial Constraints
Finansal Kısıtlar
Financial constraints are the firm’s inability to fund a positive-NPV job at an internal price. An external finance premium, collateral, covenants and credit standards produce the constraint.
Capital Structure Full explanation →Financial Covenant
Mali Covenant
A financial covenant is a numerical test: DSCR, net debt/EBITDA, ICR, minimum cash, a net-worth floor. The calc is in the contract; a GAAP line does not bind automatically.
Covenants Full explanation →Financial Distress
Finansal Sıkıntı
Financial distress is debt service, covenants or liquidity breaking so the firm is pushed into expensive, constrained, value-destroying decisions. It starts before default; customer, supplier and talent flight can cost more than cash interest.
Financial Stress Full explanation → FDDFinancial Due Diligence
Finansal Durum Tespiti
Financial DD tests whether earnings quality, net debt, NWC and cash conversion support the close price. It is the bridge from management EBITDA to bank CFADS.
M&A Full explanation →Financial Flexibility
Finansal Esneklik
Financial flexibility is room to move in a shock or an opportunity without burning equity or borrowing at fire-sale prices. It is unused debt capacity, the cash buffer and covenant headroom together.
Capital Structure Full explanation →Financial Leverage
Finansal Kaldıraç
Financial leverage is the way a fixed finance cost (interest, finance-like leases) amplifies an EBIT change into net income and ROE. Debt lifts ROE in a good year and breaks ICR and DSCR in a bad one.
Leverage Full explanation →Financial Resilience
Finansal Dayanıklılık
Financial resilience is staying out of default and fire sales in a shock while cash, covenants and operations continue. It is the flexibility stock plus the business still producing cash under stress.
Financial Stress Full explanation →Financial Risk
Finansal Risk
Financial risk is how the funding structure (debt, rate type, tenor, covenants) turns operating-cash volatility into default, dilution or lost flexibility. It sits on top of operating risk.
Leverage Full explanation →Financial Slack
Finansal Yedek
Financial slack is the combined room from the cash buffer, committed lines and unused debt capacity. It is the first stock used in a shock or an opportunity; it is not a P&L reserve.
Capital Structure Full explanation →Fixed Cost
Sabit Maliyet
A fixed cost does not change with volume inside a relevant range. Accrual timing need not match cash; rent, salaries, depreciation and interest are “fixed” in different ways.
Leverage Full explanation →Forward
Forward (Vadeli Sözleşme)
A forward is a commitment to buy or sell at a set rate or price on a future date. It is OTC, tailored on tenor and amount. It starts at zero value; at maturity the gap to spot becomes cash.
Treasury Full explanation → FCFFree Cash Flow
Serbest Nakit Akımı
Free cash flow is cash left after the business has funded its investments. In loose usage it is OCF minus net capex; FCFF and FCFE split on financing items.
Cash Flow Full explanation → FCFEFree Cash Flow to Equity
Özkaynağa Serbest Nakit Akımı
FCFE is free cash flow left for equity holders after debt service and net borrowing. It is discounted at Ke, not at WACC.
Cash Flow Full explanation → FCFFFree Cash Flow to Firm
Firmaya Serbest Nakit Akımı
FCFF is unlevered free cash flow belonging to all capital providers, before interest payments. It is discounted at WACC; interest is not deducted in FCFF.
Cash Flow Full explanation →Futures
Vadeli İşlem Sözleşmesi (Futures)
A futures contract is a standardised forward traded on an exchange. Unlike an OTC forward it has daily margin, standard size and a clearing house as counterparty.
Treasury Full explanation →FX Risk
Kur Riski
FX risk is the way a change in exchange rates disturbs cash, profit or equity value. It comes from open positions, tenor and currency mismatch — not from a view that the rate is “high” or “low”.
Risk Management Full explanation →FX Shock
Kur Şoku
An FX shock is a large, often one-way move in a pair over a short window. It hits the open book, inventory cost, price and FX debt service together.
Financial Stress Full explanation →Going Concern
İşletmenin Sürekliliği
Going concern is the assumption the firm will continue without liquidation for the foreseeable future. Accounts and the audit rest on it; cash and the maturity wall can break it.
Financial Stress Full explanation →Goodwill
Şerefiye
Goodwill is the excess of purchase price over the fair value of identifiable net assets. Cash left at close; keeping it as an asset does not mean value was kept.
M&A Full explanation →Gordon Growth Model
Gordon Büyüme Modeli
The Gordon model values a cash flow growing at a constant rate forever as C_1/(r−g). g should not exceed the economy’s nominal growth cap and must sit below r.
Valuation Full explanation →Government Bond Yield
Devlet Tahvili Getirisi
The government bond yield is the yield to maturity on Treasury paper. Local WACC usually takes rf from this curve, not from the policy rate.
Macroeconomics Full explanation →Gross Debt
Brüt Borç
Gross debt is the stock of financial debt before subtracting cash. It is drawn principal; undrawn commitments are not gross debt — they are liquidity headroom.
Debt Full explanation → GDPGross Domestic Product
Gayri Safi Yurt İçi Hasıla
GDP is the value of goods and services produced in the country. It is a coarse demand-cycle measure; your order book diverges via sector and capacity.
Macroeconomics Full explanation →Gross Margin
Brüt Marj
Gross margin is gross profit over revenue — the percentage spread between price and direct cost.
Financial Statements Full explanation →Gross Profit
Brüt Kâr
Gross profit is revenue less cost of goods sold. It is the spread between selling price and direct cost; it excludes opex, interest and tax.
Financial Statements Full explanation →Growth CapEx
Büyüme Yatırımı
Growth capex is spend for extra capacity, a new product or a new market. It does not protect current EBITDA; it creates incremental cash, working-capital and financing need.
Capital Budgeting Full explanation →Growth Financing Gap
Büyüme Finansman Açığı
The growth financing gap is the slice of asset growth, implied by the sales target, not covered by retained profit and target new debt. It is closed with equity, extra debt or a growth cut.
Growth Full explanation →Guarantee
Garanti
A guarantee is a third party’s (parent, sponsor, individual) promise to perform the borrower’s obligation. Unlike collateral it is not an asset but a payment promise; it leaks into group leverage and cross-default.
Banking Full explanation →Hedging
Korunma (Hedge)
Hedging is the deliberate reduction of an open market or cash risk with a derivative or a contract. The aim is not speculative profit; it is a narrower band for cash and covenants.
Treasury Full explanation →Hurdle Rate
Eşik Getiri Oranı
The hurdle rate is the minimum return required to accept a project. It is often WACC; riskier lines add a risk adjustment on top. IRR above the hurdle is not an automatic yes.
Capital Budgeting Full explanation →ICR Covenant
ICR Covenant’ı
An ICR covenant requires EBIT or EBITDA / interest not to fall below a floor. It does not test principal; on amortising and balloon loans it is looser than DSCR.
Covenants Full explanation →Illiquidity Discount
Likidite İskontosu
An illiquidity (marketability) discount is the value cut because the share cannot be turned into cash in a reasonable time. Listing status, lock-ups, a thin market and sale restrictions grow it.
Valuation Full explanation →Income Statement
Gelir Tablosu
The income statement reports accrued revenues, expenses and profit (or loss) for a period. Period profit is not a cash measure; receivables, inventory, capex and financing cash flows do not appear here.
Financial Statements Full explanation →Incremental Cash Flow
Artımsal Nakit Akışı
Incremental cash flow is the firm’s cash with the project minus cash without it. Accrual profit, allocated overhead and sunk cost are not that difference.
Capital Budgeting Full explanation →Incurrence Covenant
Incurrence Covenant
An incurrence covenant is tested only at a deal moment (new debt, dividend, acquisition). The ratio can deteriorate between tests without a breach; the deal gate shuts.
Covenants Full explanation →Independent Projects
Bağımsız Projeler
Independent projects are jobs where accepting one does not materially change the other’s cash or resource use. Each passes its own NPV/IRR screen; without a ceiling, all can be done.
Capital Budgeting Full explanation →Industrial Production
Sanayi Üretim Endeksi
Industrial production tracks physical output in manufacturing and related sectors. It is a more frequent, earlier activity signal than GDP and a macro input to inventory and shift decisions.
Macroeconomics Full explanation →Inflation
Enflasyon
Inflation is a sustained rise in the general price level. It inflates nominal profit, raises the cash working-capital need and cuts or turns real rates negative.
Macroeconomics Full explanation →Inflation Expectations
Enflasyon Beklentileri
Inflation expectations are households’, markets’ and the firm’s forward price-rise views. They move wages, rates and price lists before realised CPI.
Macroeconomics Full explanation →Inorganic Growth
Inorganik Büyüme
Inorganic growth is sales and profit added via merger or acquisition. Goodwill, debt and integration add layers on top of organic NWC risk.
Growth Full explanation → ICRInterest Coverage Ratio
Faiz Karşılama Oranı
Interest cover is operating profit (usually EBIT or EBITDA) divided by interest. It excludes principal, so it is a looser paying-power metric than DSCR.
Debt Full explanation →Interest Expense
Faiz Gideri
Interest expense is the period cost of financial debt. Accrual (P&L) and cash paid can diverge; capitalised interest defers the cash outlay, while DSCR wants cash interest.
Debt Full explanation → IRSInterest Rate Swap
Faiz Swapı
An interest-rate swap exchanges fixed for floating in the same currency. Principal does not change hands; only the interest difference is paid. It maps a floating loan toward a budgeted fixed cost.
Treasury Full explanation →Interest-Rate Risk
Faiz Riski
Interest-rate risk is a market or policy rate move disturbing cash interest, asset value or refinancing price. Floating loans, the maturity wall and the duration gap are three separate channels.
Risk Management Full explanation → IGRInternal Growth Rate
İçsel Büyüme Oranı
The internal growth rate is the growth cap that can be funded only with retained earnings and no new debt. It sits below SGR because leverage does not rise.
Growth Full explanation → IRRInternal Rate of Return
İç Verim Oranı
IRR is the discount rate that sets a project’s NPV to zero. Above the hurdle (often WACC) an independent project looks acceptable; IRR does not settle scale, reinvestment or sign-change problems.
Capital Budgeting Full explanation →Inventory
Stoklar
Inventory is raw material, WIP and finished goods held for sale or production. Cash is tied here before it becomes a non-current asset; the costing method shifts period profit.
Working Capital Full explanation →Inventory Turnover
Stok Devir Hızı
Inventory turnover is how many times inventory is sold as COGS in a year. It is the inverse of DIO: turns = 365 / DIO. Higher turns tie less cash and can hide stock-outs.
Working Capital Full explanation → ICInvested Capital
Yatırılan Sermaye
Invested capital is the capital tied in operations: operating NWC plus net PPE, or equity plus net debt (excess cash out). It is the ROIC denominator.
Valuation Full explanation → L/CLetter of Credit
Akreditif
A letter of credit is a bank’s payment undertaking against documents; a guarantee letter pays if a specified obligation is not performed. Neither is a cash loan, but both eat limit and sometimes cash collateral.
Banking Full explanation → LBOLeveraged Buyout
Kaldıraçlı Satın Alma
A leveraged buyout pays a large slice of the price with debt supported by the target’s CFADS. Equity is thin, debt is thick; covenants, cash sweep and interest cover sit at the centre of the design.
M&A Full explanation →Levered Beta
Kaldıraçlı Beta
Levered beta is the equity beta after financial leverage has been mapped into shareholders’ systematic risk. CAPM Ke uses this beta; it is not the asset beta.
Cost of Capital Full explanation →Liquidity
Likidite
Liquidity is the ability to meet obligations as they fall due with cash or immediately available resources. It is not profitability or solvency; it is a timing problem.
Cash Flow Full explanation →Liquidity Crisis
Likidite Krizi
A liquidity crisis is the inability to turn a due obligation into payable cash. Solvency is separate: assets can exceed debt and the till can still empty.
Financial Stress Full explanation →Liquidity Headroom
Likidite Marjı
Liquidity headroom is unrestricted cash plus a truly drawable commitment, minus near-term mandatory outflows. It is tighter than the cash line; an undrawable limit does not count.
Cash Flow Full explanation →Liquidity Risk
Likidite Riski
Liquidity risk is the risk of not turning obligations into cash on time, or only at a fire-sale price. Solvency is separate: assets can exceed debt and cash timing can still break.
Risk Management Full explanation →Loan Pricing
Kredi Fiyatlaması
Loan pricing combines a reference rate, a credit margin and fees into an all-in cost. The policy rate is not the commercial loan price; bank funding, risk, capital and competition add a margin.
Banking Full explanation →Maintenance CapEx
Bakım Yatırımı
Maintenance capex is the capital spend needed to keep current capacity and safety. It does not create growth; it is deducted in FCF and CFADS before EBITDA is treated as sustainable.
Capital Budgeting Full explanation →Maintenance Covenant
Bakım Covenant’ı
A maintenance covenant requires the ratio to stay inside the cap/floor every test period (usually quarterly). A breach can occur with no deal; it is the standard bank-loan regime.
Covenants Full explanation →Margin of Safety
Güvenlik Marjı
Margin of safety is how far actual (or budget) volume sits above break-even. It shows how much sales can fall before profit hits zero; read it with DOL.
Leverage Full explanation →Market Interest Rate
Piyasa Faiz Oranı
A market interest rate is the traded yield on bills, swaps and money markets. Its gap to the policy rate carries liquidity, expectations and risk premium.
Macroeconomics Full explanation →Market Risk
Piyasa Riski
Market risk is the effect of FX, rates, commodities and equities on cash or value. Commercial inventory, open FX and floating debt are the corporate face of that family.
Risk Management Full explanation →Maturity Wall
Vade Duvarı
A maturity wall is principal and refinancing obligations bunched in a window (e.g. 12–24 months). Total debt can be unchanged while bunching gaps liquidity and refinancing risk.
Debt Full explanation →Maximum Leverage
Azami Kaldıraç
Maximum leverage is the highest net debt/EBITDA (or similar) allowed by policy or by the facility. It is not a universal “right” gearing; stress and the refinancing window set it.
Covenants Full explanation →Merger
Birleşme
A merger is two firms becoming one legal entity. Unlike an acquisition it is often a share exchange with shared control; a cash outflow is not required.
M&A Full explanation →Mezzanine
Mezzanine Finansman
Mezzanine is the hybrid layer between senior debt and equity. It is junior, often with PIK or warrants; the cash coupon looks dearer than senior and more “disciplined” than equity.
Debt Full explanation →Mid-Year Convention
Yıl Ortası Varsayımı
The mid-year convention pulls the discount exponent half a year forward by treating annual cash as arriving at mid-year, not year-end. If cash accrues evenly, year-end discounting understates value.
Valuation Full explanation →Minimum Cash
Asgari Nakit
Minimum cash is the treasury floor that cash must not breach. It covers daily operations, collateral, covenants and a shock pad — not a “zero cash is fine” assumption.
Cash Flow Full explanation →Minimum Liquidity Covenant
Asgari Likidite Covenant’ı
A minimum-liquidity covenant requires cash and/or drawable commitment not to fall below a floor. It is a legal floor distinct from the internal minimum-cash policy; the tighter one binds.
Covenants Full explanation →Minority Discount
Azınlık İskontosu
A minority discount is the inverse of a control premium: a non-controlling slice is worth less because it cannot steer cash and strategy. The rate is not universal; rights, dividends and company-law protection set it.
Valuation Full explanation →Minority Interest
Azınlık Payı
Minority interest is the book or economic claim of holders who do not (fully) control. In the EV–equity bridge, treating it as debt-like or equity-like moves price.
M&A Full explanation → MIRRModified Internal Rate of Return
Düzeltilmiş İç Verim Oranı
MIRR evaluates interim cash at a separate reinvestment (and, if needed, finance) rate rather than at the IRR. It makes IRR’s hidden reinvestment assumption explicit.
Capital Budgeting Full explanation →Mutually Exclusive Projects
Karşılıklı Dışlayan Projeler
Mutually exclusive projects compete for the same scarce resource or the same job, so accepting one rules out the other. The ranking rule is NPV (EAA if lives differ); IRR is not enough.
Capital Budgeting Full explanation →Natural Hedge
Doğal Korunma
A natural hedge shrinks an open position by matching cash, costs or debt in the same currency and tenor without derivatives. It is a product of invoicing, sourcing and borrowing policy.
Treasury Full explanation →Negative Pledge
Negative Pledge
A negative pledge is an undertaking not to grant security to another creditor except for listed carve-outs. It protects the unsecured creditor against a later secured stack.
Covenants Full explanation →Net Debt
Net Borç
Net debt is gross financial debt minus cash and cash equivalents (usually excess/unrestricted cash). It is the bridge from enterprise value to equity value and the numerator of leverage ratios.
Debt Full explanation →Net Debt / EBITDA
Net Borç / FAVÖK
Net debt/EBITDA is net financial debt over operating EBITDA. It is a coarse leverage metric and the backbone of many maintenance covenants; it does not measure cash-paying power as directly as DSCR.
Debt Full explanation →Net Debt / EBITDA Covenant
Net Borç / FAVÖK Covenant’ı
A net debt/EBITDA covenant requires leverage not to exceed a cap. The cap is not a universal “3x”; sector, collateral and lender policy write it.
Covenants Full explanation →Net Debt Adjustment
Net Borç Düzeltmesi
The net-debt adjustment is cash and financial debt (plus debt-like items) taken off EV to reach the equity price. The definition fight moves price as much as the multiple.
M&A Full explanation →Net Income
Net Kâr
Net income is the period result after all income and expense, including finance and tax, that accrues to equity holders. It is an accounting ceiling on dividends, not cash dividend capacity.
Financial Statements Full explanation → NPVNet Present Value
Net Bugünkü Değer
NPV discounts a project’s incremental cash flows at the hurdle rate and subtracts the initial outlay. A positive NPV says the project creates value at that rate; it does not by itself solve financing, collateral or intra-year cash timing.
Capital Budgeting Full explanation →Net Profit Margin
Net Kâr Marjı
Net profit margin is net income over revenue. It compresses operations, finance and tax into one rate, so it moves when capital structure moves.
Financial Statements Full explanation → NWCNet Working Capital
Net İşletme Sermayesi
Net working capital is current assets minus current liabilities. In valuation and ROIC, cash and financial debt are stripped out to operating NWC; otherwise net debt is double-counted.
Working Capital Full explanation → NOLNOL Carryforward
Zarar Mahsubu
An NOL carry-forward deducts prior tax losses from future taxable income. It is an asset that defers cash tax; time, transfer and merger rules restrict use.
Tax Full explanation →Nominal Interest Rate
Nominal Faiz
The nominal rate is the unadjusted rate in the contract and in the payment. Loan instalments, coupons and CBRT announcements are nominal; the real burden is a separate calculation.
Macroeconomics Full explanation → NCINon-Controlling Interest
Kontrol Gücü Olmayan Paylar
Non-controlling interest (NCI) is the IFRS slice of consolidated equity not owned by the parent. It is the reporting name for minority interest; cash rights and valuation remain separate.
M&A Full explanation → NOPATNOPAT
Vergi Sonrası Faaliyet Kârı
NOPAT is operating profit after a finance-independent tax. It is the numerator of FCFF and ROIC; it may differ from cash tax paid.
Financial Statements Full explanation →Open Position
Açık Pozisyon
An open position is the net amount still sensitive to a rate (FX or interest) after hedges and natural offsets. Zero open is not zero risk: basis, tenor and cash timing remain.
Treasury Full explanation → OCFOperating Cash Flow
İşletme Nakit Akışı
Operating cash flow is cash generated or consumed by the core business in the period. Indirect method: start from net income, add non-cash charges, subtract ΔNWC. IAS 7 leaves interest classification optional.
Cash Flow Full explanation → OPEXOperating Expenses
Faaliyet Giderleri
OPEX is the accrued and cash cost taken after gross profit to reach operating profit: selling, G&A, R&D and, depending on presentation, depreciation. It is separate from COGS.
Financial Statements Full explanation →Operating Leverage
Faaliyet Kaldıracı
Operating leverage is the way fixed operating costs amplify a sales change into a larger EBIT change. High leverage lifts profit fast on volume gains and cuts it as fast on losses.
Leverage Full explanation →Operating Margin
Faaliyet Marjı
Operating margin is operating profit over revenue — profitability after opex, before finance and tax.
Financial Statements Full explanation →Operating Profit
Faaliyet Kârı
Operating profit is profit from the core business: gross profit less operating expenses. Finance income/expense and tax sit below; it may not equal EBIT in every report.
Financial Statements Full explanation →Operating Risk
Faaliyet Riski
Operating risk is the way sales, cost and competition move EBIT even with no debt. Operating leverage amplifies it; demand and input prices are the source.
Leverage Full explanation → OWCOperating Working Capital
Operasyonel İşletme Sermayesi
Operating working capital is trade receivables plus inventory minus trade payables. Cash and financial debt are out; it measures cash tied in the procure–make–collect cycle.
Working Capital Full explanation →Opportunity Cost
Fırsat Maliyeti
Opportunity cost is the cash value of the best alternative forgone by committing a resource to this project. Land, cash, licences and management time are not free.
Capital Budgeting Full explanation →Optimal Capital Structure
Optimal Sermaye Yapısı
Optimal capital structure is the debt–equity mix that balances tax shield, distress cost and lost flexibility. There is no universal D/E; sector cash, collateral and the credit market move it.
Capital Structure Full explanation →Option
Opsiyon
An option is the right, not the obligation, to buy (call) or sell (put) at a strike. Premium is paid up front; it floors or caps the bad scenario and leaves the good one open.
Treasury Full explanation →Organic Growth
Organik Büyüme
Organic growth is the existing business growing through volume, price and mix, without an acquisition. Cash need comes from NWC and maintenance/growth capex; no goodwill is created.
Growth Full explanation →Overtrading
Aşırı Büyüme (Overtrading)
Overtrading is sales growing faster than working capital and the cash buffer can support. Profit rises while cash and lines shrink; AR and inventory bloat, DPO is stretched.
Working Capital Full explanation →Pari Passu
Pari Passu
Pari passu means claims sit in the same rank and sharing order. New debt stuffed into that rank dilutes existing senior recovery.
Debt Full explanation →Payables Turnover
Borç Devir Hızı
Payables turnover is how many times trade payables are settled in a year. It is the inverse of DPO. Low turns mean long tenor — cash ease or supplier stress.
Working Capital Full explanation →Payback Period
Geri Ödeme Süresi
Payback is the time until incremental cash recovers the initial outlay. It is a crude liquidity and political-risk screen; it ignores time value and cash after recovery.
Capital Budgeting Full explanation → PIKPayment-in-Kind
Ayni Faiz (PIK)
PIK is interest added to principal instead of paid in cash. It eases the cash DSCR denominator for a while and grows the debt stock and exit leverage.
Debt Full explanation →Pecking Order
Finansman Hiyerarşisi
Pecking-order says that, because of asymmetric information, the firm uses internal cash first, then debt, and new equity last. It is a hierarchy of adverse-selection cost, not a target D/E.
Capital Structure Full explanation →Permanent Working Capital
Kalıcı İşletme Sermayesi
Permanent working capital is the structural OWC floor still tied at the seasonal trough. Funding it continuously with short loans is a maturity mismatch.
Working Capital Full explanation →Policy Rate
Politika Faizi
The policy rate is the central bank’s administered short rate that steers the money market. It is not the commercial loan rate; bank funding, risk and credit standards sit in between.
Macroeconomics Full explanation → P/BPrice / Book
Fiyat / Defter
P/B is equity market value over book equity. It coarsely reflects ROE versus Ke; historical cost and goodwill break the denominator.
Valuation Full explanation → P/EPrice / Earnings
Fiyat / Kazanç
P/E is equity value over net income. Leverage, tax and one-offs break the denominator; it is more fragile than EV/EBITDA.
Valuation Full explanation →Principal Repayment
Anapara Ödemesi
Principal repayment is the cash outflow that cuts the debt stock. It is not a P&L expense; it sits in financing cash flow and in the DSCR denominator.
Debt Full explanation → PDProbability of Default
Temerrüt Olasılığı
Probability of default is the chance of hitting the contract’s default definition over a stated horizon. Ratings and CDS are market/agency proxies; the cash model produces another PD.
Financial Stress Full explanation → PPIProducer Price Index
Yurt İçi Üretici Fiyat Endeksi
PPI (Turkish Yİ-ÜFE) is the producer-price change of domestically produced goods. It is a macro proxy for input and inventory cost; pass-through into CPI can be lagged and incomplete.
Macroeconomics Full explanation → PIProfitability Index
Kârlılık Endeksi
The profitability index is the present value of inflows over the scarce outlay. PI > 1 lines up with NPV > 0; under capital rationing it ranks value per unit of scarce capital.
Capital Budgeting Full explanation →Project Finance
Proje Finansmanı
Project finance is an SPV structure where lenders rely mainly on project cash (CFADS) and security, with limited sponsor recourse. It is a different DSCR and account-lock regime from a corporate balance-sheet loan.
Banking Full explanation →Purchase Accounting
Satın Alma Muhasebesi
Purchase accounting allocates the price to identifiable assets at fair value and writes the rest as goodwill (PPA). Post-close depreciation and margin no longer look like the target’s historic P&L.
M&A Full explanation →Purchase Price
Satın Alma Bedeli
Purchase price is the equity amount paid for the shares. It is derived from headline EV via net debt, NWC and other adjustments; that is the cash that leaves at close (except earn-out).
M&A Full explanation → PMIPurchasing Managers’ Index
Satın Alma Yöneticileri Endeksi
PMI is a diffusion index from a survey of purchasing managers on orders, output, jobs and deliveries. The 50 line splits expansion from contraction; it is a direction signal, not a level.
Macroeconomics Full explanation →Rate Shock
Faiz Şoku
A rate shock is a short-window move in policy, market or credit spread that shifts debt service and the discount rate. Floating loans and the maturity wall are two separate doors.
Financial Stress Full explanation → REERReal Effective Exchange Rate
Reel Efektif Döviz Kuru
The real effective exchange rate is a trade-weighted nominal rate adjusted for relative inflation. It is a step toward measuring competitiveness without being stuck on one pair (USD/TRY).
Macroeconomics Full explanation →Real Interest Rate
Reel Faiz
The real rate is the nominal rate after inflation. Ex ante (expected inflation) is the decision measure; ex post (realised) is the outcome. It is the borrower’s real burden and the saver’s real return.
Macroeconomics Full explanation →Receivables Turnover
Alacak Devir Hızı
Receivables turnover is how many times receivables are collected in a year. It is the inverse of DSO. High turns mean fast collections or a cash-heavy mix.
Working Capital Full explanation →Recovery Rate
Tahsilat Oranı
Recovery is how much of exposure the creditor gets back in cash after default. LGD is its complement. Seniority, collateral and the legal path set it.
Financial Stress Full explanation →Reference Rate
Referans Faiz
The reference rate is the market or benchmark rate (TLREF, SOFR, EURIBOR) to which a floating loan adds a margin. It may move with the policy rate; it is not the same thing. The facility’s screen, day-count and floor bind.
Banking Full explanation →Refinancing
Refinansman
Refinancing replaces existing debt with new debt or equity. The aim is to extend tenor, change cost, reset covenants or clear a bullet — not automatically “cheaper debt”.
Debt Full explanation →Refinancing Risk
Refinansman Riski
Refinancing risk is the chance that maturing debt cannot be rolled at then-prevailing rates, limits, covenants and market conditions — or only on punitive terms. The maturity wall is this risk put on a calendar.
Debt Full explanation →Retained Earnings
Dağıtılmamış Kârlar
Retained earnings are the slice of period profit not paid as dividend and accumulated in equity. They are the source of internal finance; they are not a cash asset, only the balance-sheet trace of accrual profit.
Capital Structure Full explanation → ROAReturn on Assets
Aktif Kârlılığı
ROA is net income over average total assets. It is the accounting return on the asset base; it does not isolate capital structure as ROE does.
Financial Statements Full explanation → ROEReturn on Equity
Özkaynak Kârlılığı
ROE is net income over average equity. It is the accounting return to owners and embeds both operating profitability and financial leverage.
Financial Statements Full explanation → ROICReturn on Invested Capital
Yatırılan Sermaye Getirisi
ROIC is NOPAT over invested capital. It measures the return on capital tied in the business, independent of financing; the spread to WACC is the basic value-creation test.
Financial Statements Full explanation →Revenue
Satış Gelirleri
Revenue is the consideration accrued when performance obligations are satisfied (IFRS 15). It is not collection; returns, discounts and agency presentation change net sales.
Financial Statements Full explanation →Reverse Factoring
Tedarikçi Finansmanı (Reverse Factoring)
Reverse factoring is early payment by a bank to a supplier on an invoice the buyer has approved. The buyer may extend DPO; the supplier collects cheaper off the buyer’s credit.
Working Capital Full explanation → RCFRevolving Credit Facility
Rotatif Kredi Tesisi
An RCF is a committed facility that can be drawn and repaid during the tenor, with a swinging balance. It is designed for a liquidity buffer and seasonal peaks, not for permanent working capital.
Banking Full explanation →Risk-Free Rate
Risksiz Faiz
The risk-free rate is taken as the yield on a government bond that is treated as free of default and reinvestment risk. It is the floor of Ke and WACC; it is not the policy rate or the loan reference.
Cost of Capital Full explanation →Rolling Forecast
Yuvarlanan Tahmin
A rolling forecast keeps the horizon constant and adds a new slice each period. It stops the annual budget going stale; the 13-week cash view is the short-horizon version.
Growth Full explanation →Salvage Value
Hurda Değeri
Salvage is the net cash from selling (or the cost of dismantling) the asset at the end of the project life. It is the last NPV cash flow — after tax, not book value.
Capital Budgeting Full explanation →Scalability
Ölçeklenebilirlik
Scalability is unit cost falling as volume rises and contribution turning into FCF. Operating leverage is required but NWC and capex ceilings can break scale.
Growth Full explanation →Scenario Analysis
Senaryo Analizi
Scenario analysis compares cash and covenant outputs under coherent assumption sets (base, down, severe). Unlike one-variable sensitivity, FX, rates, demand and collections move together.
Financial Stress Full explanation →Secured Loan
Teminatlı Kredi
A secured loan is debt backed by a charge over receivables, inventory, property or shares. Spread and limit follow collateral quality; unsecured creditors are pushed down the waterfall.
Banking Full explanation →Senior Debt
Kıdemli Borç
Senior debt is the layer at the front of collateral and the payment waterfall in default. Bank term loans and RCFs usually sit here; the lowest coupon and tightest covenants sit here too.
Debt Full explanation →Sensitivity Analysis
Duyarlılık Analizi
Sensitivity analysis measures how one or two inputs move value, NPV or a ratio. It does not delete uncertainty; it shows which assumption turns the decision.
Valuation Full explanation → SPAShare Purchase Agreement
Pay Alım Sözleşmesi
The share purchase agreement locks transfer terms, the price bridge, warranties and indemnities. It is the legal box around price; it writes who wears a cash miss versus the model.
M&A Full explanation →Size Premium
Büyüklük Primi
A size premium is the extra return small firms are assumed to require above CAPM. The evidence is contested; it must not double-count the same risk already in an illiquidity discount or noisy beta.
Cost of Capital Full explanation →Solvency
Borç Ödeme Gücü
Solvency is assets being worth enough, economically, to cover liabilities. It is a stock concept different from liquidity; it does not solve cash timing.
Financial Stress Full explanation →Sovereign Risk
Ülke Riski
Sovereign risk is how state solvency, transfer, FX and policy shocks hit firm cash and the discount rate. It is a ceiling separate from firm risk.
Macroeconomics Full explanation →Stress Testing
Stres Testi
Stress testing measures the effect of low-probability but coherent shocks (FX, rates, demand, collections) on cash, covenants and debt service. It is a tail tool, separate from budget variance and VaR.
Financial Stress Full explanation →Subordinated Debt
Tali Borç
Subordinated debt is the layer recovered after senior creditors in default. It carries a higher coupon, weaker collateral and higher LGD.
Debt Full explanation →Sunk Cost
Batık Maliyet
A sunk cost is cash or a commitment already spent and no longer recoverable. It does not enter forward NPV; only avoidable cash and opportunity cost do.
Capital Budgeting Full explanation →Supplier Financing
Tedarikçi Kredisi
Supplier financing is trade credit from buying on terms. Interest does not appear as a line; it is paid as lost discounts, list price and supply risk.
Working Capital Full explanation → SGRSustainable Growth Rate
Sürdürülebilir Büyüme Oranı
The sustainable growth rate is the sales growth that can be funded internally without breaking the target capital structure and the dividend policy. Growth above it needs debt or equity.
Growth Full explanation →Swap
Swap
A swap is a contract to exchange defined cash flows (rate, FX, principal) for a period. It changes the rate or currency profile without retiring the loan.
Treasury Full explanation →Syndicated Loan
Sendikasyon Kredisi
A syndicated loan is a facility shared by several banks under one contract. It is used for size, risk sharing and market discipline; documentation is heavier than a bilateral line.
Banking Full explanation →Synergy
Sinerji
Synergy is the assumption that the combined firms will produce more cash than the sum of the standalones. Cost, revenue, tax and financing synergy are separate proofs; not all of them are EBITDA.
M&A Full explanation →Target Capital Structure
Hedef Sermaye Yapısı
Target capital structure is the debt-equity mix the firm plans to carry through the medium term. WACC and beta relevering are built on these weights; transitory book leverage is not the target.
Capital Structure Full explanation →Target Leverage
Hedef Kaldıraç
Target leverage is the debt band management aims to hold over the medium term (often net debt/EBITDA or D/E). It is a band, not a point; the credit market and the cash cycle allow a miss.
Capital Structure Full explanation →Tax Capacity
Vergi Kapasitesi
Tax capacity is the taxable-income and cash-tax ceiling against which interest and similar deductions can actually cut cash tax. Above that ceiling the shield is zero.
Tax Full explanation →Tax Shield
Vergi Kalkanı
The tax shield is the cash tax saved because interest reduces taxable profit. In WACC, (1−T) maps that saving onto Kd; T is meaningful only if the shield can actually be used.
Tax Full explanation →Taxable Income
Vergiye Tabi Kazanç
Taxable income is the base on which corporate tax is assessed. It is not IFRS net income; disallowances, exemptions, revaluations and timing build the bridge.
Tax Full explanation →Temporary Working Capital
Geçici İşletme Sermayesi
Temporary working capital is the OWC peak above the floor from season, campaigns or projects. Funding it with a short line and a cash buffer is closer to a tenor match.
Working Capital Full explanation →Term Loan
Vadeli Kredi
A term loan is a non-revolving facility with a set principal, tenor and repayment schedule. It is the spine of capex and acquisition finance; the balance does not swing freely.
Banking Full explanation → TVTerminal Value
Terminal Değer
Terminal value is the (horizon) value of cash flows after the explicit forecast. It is built with Gordon growth or an exit multiple; a large share of EV means dependence on the long-term assumption.
Valuation Full explanation →Thin Capitalization
Örtülü Sermaye
Thin capitalisation is the slice of related-party debt that exceeds a statutory debt-to-equity (or similar) cap. Interest on the excess is not deductible; the shield is cut and the slice may be treated as a hidden distribution.
Tax Full explanation →Trade Credit
Ticari Kredi
Trade credit is the payment term a supplier grants on goods and services. It looks cheaper than a bank loan and is the dearest finance when the relationship is cut.
Working Capital Full explanation →Trade Payables
Ticari Borçlar
Trade payables are amounts owed to suppliers for goods and services. They are short-term finance that looks interest-free; the price is tenor, discounts and supply continuity.
Working Capital Full explanation →Trade Receivables
Ticari Alacaklar
Trade receivables are amounts due from customers on credit sales. Revenue has been accrued; cash has not yet arrived. The allowance for expected credit losses cuts the net balance.
Working Capital Full explanation →Trade-off Theory
Denkleştirme Teorisi
Trade-off theory balances the tax-shield benefit of debt against distress and bankruptcy costs. It implies an interior leverage band; it is a rival narrative to pecking-order.
Capital Structure Full explanation →Trading Multiples
İşlem Gören Çarpanlar
Trading multiples are EV/EBITDA, P/E, EV/sales turns taken from listed peers’ current market prices. They are a minority, liquid share price; they do not include a control premium.
Valuation Full explanation →Transaction Multiples
İşlem Çarpanları
Transaction multiples are turns taken from completed M&A prices. Control premium and expected synergies are embedded; they sit above trading multiples.
Valuation Full explanation →Transaction Risk
İşlem Riski
Transaction risk is the FX move, between invoice or commitment and settlement, that disturbs cash. The cash rate on collection or payment day diverges from the invoice rate.
Risk Management Full explanation → TPTransfer Pricing
Transfer Fiyatlandırması
Transfer pricing tests related-party prices for goods, services, licences and finance against arm’s length. A gap shifts the tax base and can create double tax or penalties.
Tax Full explanation →Translation Risk
Çeviri Riski
Translation risk is FX differences in equity and profit when foreign-currency statements are converted into the reporting currency. It is not a cash outflow; it does not break cash covenants or dividends unless the contract says so.
Risk Management Full explanation →Trapped Cash
Kısıtlı Nakit
Trapped cash is cash the group or parent cannot freely use for dividends, debt service or investment. It arises from law, tax, FX, collateral or shareholder restrictions — and still sits in the cash line.
Cash Flow Full explanation →Treasury Management
Hazine Yönetimi
Treasury management is the day-to-day and medium-term running of cash, liquidity, funding, FX and rate risk. It manages solvency of payments and open positions, not accounting profit.
Treasury Full explanation →Undrawn Commitment
Kullanılmamış Taahhüt
An undrawn commitment is the unused part of a signed facility. It counts as liquidity only if it is truly drawable that day; covenants, collateral and MAC can cut it.
Debt Full explanation →Unlevered Beta
Kaldıraçsız Beta
Unlevered (asset) beta is systematic operating risk with financial leverage stripped out. It is the common denominator for peer comparison; Ke is not computed on this beta directly.
Cost of Capital Full explanation →Unsecured Loan
Teminatsız Kredi
An unsecured loan is not backed by a specific asset charge; it relies on the firm’s general paying power (and covenants). Spread is usually wider than secured; flexibility is higher.
Banking Full explanation →Unused Debt Capacity
Kullanılmayan Borç Kapasitesi
Unused debt capacity is the gap between actual debt and the target or covenant cap in which stressed DSCR still holds. Not all undrawn lines are capacity.
Capital Structure Full explanation →Upfront Fee
Peşin Ücret
An upfront fee is paid at signing or first draw and must be spread over the tenor. It does not cut the coupon; it cuts net proceeds and lifts EIR.
Banking Full explanation →USD/TRY
USD/TL Kuru
USD/TRY is the lira price of one US dollar. It is the reference pair for many contracts, inventories and loans; competitiveness and “fair value” are not read from this line alone.
Macroeconomics Full explanation → VaRValue at Risk
Riske Maruz Değer
Value at risk is a loss threshold at a chosen horizon and confidence: “worse losses are rare under the assumed distribution.” It is a limit tool; it does not size the tail disaster.
Risk Management Full explanation →Value-Creating Growth
Değer Yaratıcı Büyüme
Value-creating growth is growth on which invested capital earns a cash return above WACC. Growing when ROIC < WACC raises EBITDA and cuts value.
Growth Full explanation →Variable Cost
Değişken Maliyet
A variable cost moves with volume in the relevant range. Materials, piece-rate labour and turnover commissions are typical; semi-variable items (energy, logistics) break a linear DOL assumption.
Leverage Full explanation →Waiver
Waiver
A waiver is the lender’s agreement not to exercise a contractual right for a specified breach or deal. It does not delete the right; it suspends it for that event and window. The price can be spread, collateral or a dividend lock-up.
Covenants Full explanation → WACCWeighted Average Cost of Capital
Ağırlıklı Ortalama Sermaye Maliyeti
WACC is the weighted cost of equity and debt at the target capital structure. FCFF is discounted at this rate; interest is not deducted again in FCFF.
Cost of Capital Full explanation →Working Capital
İşletme Sermayesi
Working capital is current assets minus current liabilities. It nets the resources tied in inventory, receivables and cash against supplier and short-term funding.
Working Capital Full explanation →Working Capital Financing
İşletme Sermayesi Finansmanı
Working-capital financing is the mix that funds the OWC need: trade payables, factoring, revolvers, the cash buffer and equity. Tenor should match whether the need is permanent or seasonal.
Working Capital Full explanation →Working Capital Loan
İşletme Sermayesi Kredisi
A working-capital loan funds the OWC need on a short tenor (spot, revolving, discount). Rolling the permanent floor every year is a maturity mismatch.
Banking Full explanation → WCRWorking Capital Requirement
İşletme Sermayesi İhtiyacı
The working-capital requirement is the operating cash that must stay tied in the cycle. It is derived from target DSO, DIO and DPO and from sales/COGS; cash and financial debt are out.
Working Capital Full explanation →Working-Capital Adjustment
İşletme Sermayesi Düzeltmesi
A working-capital adjustment puts the gap between closing NWC and an agreed target into the price. It stops the seller leaving after destocking and not collecting.
M&A Full explanation →Working-Capital Drag
İşletme Sermayesi Sürüklemesi
Working-capital drag is receivables and inventory tying up more cash than supplier credit when sales grow. EBITDA can rise while free cash flow turns negative.
Growth Full explanation → XIRRXIRR
Düzensiz Tarihli İç Verim Oranı
XIRR is the internal rate of return when cash flows are discounted on actual calendar dates, not equal periods. Milestone billing, tax instalments and FX conversions break the even-period IRR.
Capital Budgeting Full explanation → XNPVXNPV
Düzensiz Tarihli Net Bugünkü Değer
XNPV discounts cash flows on actual calendar dates rather than even periods. Milestones, tax and closing dates break year-box NPV.
Capital Budgeting Full explanation →Yield Curve
Getiri Eğrisi
The yield curve is yield by tenor for the same credit quality. The short end carries policy and liquidity; the long end inflation and growth expectations.
Macroeconomics Full explanation →CFO abbreviations
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Definitions are educational. They are not investment, credit or tax advice.