Glossary
The finance terms used in these reports
Terms that recur across FP&A reports, with the Thai equivalent and the meaning as this pack uses it.
- FP&A การวางแผนและวิเคราะห์ทางการเงิน
- Financial Planning & Analysis: using financial information to support business decisions.
- Latest Estimate ประมาณการล่าสุด
- The latest forecast, combining closed-month actuals with an estimate for the remaining months.
Used in 02
- YTD ยอดสะสมตั้งแต่ต้นปี
- Year to date: cumulative flows, such as revenue, from the start of the year to the selected month.
Read more Year to date versus full-year forecast: what each number answers
- FY ปีบัญชี
- Full financial year. The example pack uses January to December.
Read more Year to date versus full-year forecast: what each number answers
- Forecast ประมาณการ
- An estimate updated using current information and assumptions.
Read more Year to date versus full-year forecast: what each number answers
- Variance ผลต่างจากงบประมาณ
- The difference between actual and budget, calculated as Actual − Budget. Read its direction according to the line type.
Read more Reading a budget variance: favourable, unfavourable, and what to check next
- pp จุดเปอร์เซ็นต์
- Percentage points: a change from 30% to 32% is an increase of 2 percentage points.
- Gross margin อัตรากำไรขั้นต้น
- Gross profit divided by revenue. An aggregate margin must be calculated from totals, not by averaging percentages.
- EBITDA กำไรก่อนดอกเบี้ย ภาษี ค่าเสื่อมราคา และค่าตัดจำหน่าย
- Earnings before interest, tax, depreciation and amortisation. It is not cash flow.
- COGS ต้นทุนขาย
- Cost of goods sold, which is different from total purchases during the month.
- OPEX / SG&A ค่าใช้จ่ายในการดำเนินงาน
- Operating expenses: selling and administrative payroll, marketing, freight and office costs. Factory payroll sits in production cost instead.
- FTE จำนวนพนักงานเทียบเต็มเวลา
- Full-time equivalent: for example, two half-time employees equal one FTE.
- CFO กระแสเงินสดจากการดำเนินงาน
- Operating cash flow: net profit plus depreciation, adjusted for changes in receivables, inventory and payables.
- Working capital เงินทุนหมุนเวียน
- Trade working capital = receivables + inventory − payables: the cash tied up in day-to-day operations.
Used in 06
Read more DSO, DIO, DPO and the cash conversion cycle, worked through
- CAPEX รายจ่ายลงทุน
- Capital expenditure on assets expected to provide benefits over multiple periods.
- Depreciation ค่าเสื่อมราคา
- Spreading an asset's cost over its useful life as an expense. It is not a cash payment.
- DSO ระยะเวลาเก็บเงินจากลูกหนี้
- Days sales outstanding: an approximation of how long receivables take to convert into cash.
Used in 06
Read more DSO, DIO, DPO and the cash conversion cycle, worked through
- DIO ระยะเวลาถือครองสินค้าคงเหลือ
- Days inventory outstanding: closing inventory ÷ monthly cost of sales × days in the month, an approximation.
Used in 06
Read more DSO, DIO, DPO and the cash conversion cycle, worked through
- DPO ระยะเวลาจ่ายเจ้าหนี้
- Days payables outstanding: closing trade payables ÷ purchases for the month × days in the month. An approximation of how long the business takes to pay its suppliers.
Read more DSO, DIO, DPO and the cash conversion cycle, worked through
- Scenario สถานการณ์จำลอง
- Base, Upside and Downside cases that run different driver sets through the same formulas. They are illustrations, not probabilities.
Used in 09
- Cash conversion cycle วงจรเงินสด
- DSO + DIO − DPO: the number of days the business funds its own trading cycle, from paying suppliers to collecting from customers.
Read more DSO, DIO, DPO and the cash conversion cycle, worked through
- Price effect / Volume effect ผลด้านราคา / ผลด้านปริมาณ
- A revenue variance split by cause. Volume effect = (actual − budget quantity) × budget price; price effect = (actual − budget price) × actual quantity.
Used in 03
Read more Price-volume analysis: was it fewer units or lower prices?
- Rolling forecast ประมาณการต่อเนื่อง
- A forecast that always covers the same number of months ahead, typically twelve, and moves forward each time a month closes.
Read more Rolling forecast versus annual budget: what each one is for
- Trial balance งบทดลอง
- A list of every account's balance at a date, with total debits equal to total credits. The starting point for financial statements.
Used in 08
- Elimination การตัดรายการระหว่างกัน
- Removing revenue, cost or balances between companies in the same group when combining them, so that only transactions with outside parties remain.
Used in 10
- Commitment ภาระผูกพัน
- An amount ordered or contracted but not yet paid, shown apart from capital spending already incurred so it can be planned for.
Used in 07
Reading and editing essentials
- Always check the company, reporting period and currency scale. A displayed value of 1,000 in a THB-thousands table means THB 1,000,000.
- Actual means recorded results, Budget means plan, and Forecast means estimate. Do not describe a forecast as an achieved result.
- The usual arithmetic variance is Actual minus Budget. Higher revenue or profit is generally favourable; higher costs require investigation of overspending and activity levels.
- Revenue and profit are flows that can be summed across months. Cash, receivables and inventory are balances measured at a particular date.
- Calculate aggregate margin as total profit divided by total revenue. A value of n.a. means a ratio cannot be calculated under the applicable conditions; it should not be replaced with zero without justification.
- Thai and English workbooks are independent files. Editing one does not update the other. Choose a working master, retain backups and refresh related files consistently.
- Before using company data, reconcile the accounts and check dates, version names and formula ranges. Adding rows or months may require extending formulas, charts and controls.
- Read the Checks sheet, but do not treat OK as assurance over everything. Source coverage controls focus on the selected actual month; budget and forecast coverage also need review.
- All data is illustrative. Adapt costing, tax, calendar and funding policies to the business. The pack is a starting point for management reporting.
The same terms, worked through
Several of these terms have an article that works through them with figures from the sample files, among them variance, YTD, DSO and rolling forecast.
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Every report's Excel workbook is free to download, in Thai and English.