Financial analysis glossary
The words of a Belgian balance sheet, defined simply, with their formula and the National Bank heading code.
- A
- Abridged format
The annual accounts format for small companies, more condensed than the full format.
- Alarm bell procedure10/15
The procedure that requires directors to convene the general meeting when the company's net assets become insufficient.
- Amounts payable within one year42/48
What the company must repay or pay within twelve months: suppliers, taxes, salaries, the short-term part of loans.
- B
- Balance sheet20/58 = 10/49
The snapshot of what a company owns (assets) and how it is financed (liabilities), on the year-end date.
- C
- Cash50/58
Money available and easily realised investments on the year-end date.
- Cash flow9904 + 630/634
The cash the year's business generated to repay, invest or distribute.
- D
- Depreciation630/634
The yearly charge that spreads the cost of an investment (machine, vehicle, software) over its useful life.
- E
- Enterprise numberBCE/KBO
The unique identifier of every Belgian enterprise, given by the Crossroads Bank for Enterprises: ten digits, in the format 0XXX.XXX.XXX.
- Equity10/15
What the company owns outright: shareholders' contributions, reserves and profits kept in the business, minus losses.
- G
- Gross operating margin9900
The difference between sales and the cost of purchases and services, shown instead of turnover in the abridged and micro formats.
- I
- Income statement60/79
The story of the year: what the company sold, what it spent, and the resulting profit or loss.
- Intangible fixed assets21
Assets without physical substance: software, patents, goodwill, capitalised development costs.
- Inventory3
The goods, materials and products the company holds to sell or transform.
- L
- Leverage17/49
The share of the company's financing that comes from debt rather than equity.
- Liquidity29/58 ÷ 42/48
A company's ability to pay its debts falling due with what it can collect quickly.
- M
- Months of cash50/58
The number of months the cash covers the company's costs, without new income.
- N
- Net assets10/15
What remains to the company once all its debts are deducted from its assets: in practice, its equity.
- O
- Operating result9901
The profit or loss of the ordinary business, before financial income and costs and one-off items.
- R
- Receivables40/41
Amounts others owe the company: mainly its customers, but also the tax authority or related companies.
- Result for the year9904
The final profit or loss of the year, after all costs and taxes.
- Return on equity9904 ÷ 10/15
What each euro of equity yields over the year.
- S
- Solvency(10/15 − 21) ÷ 20/58
The share of what the company owns that is financed by its own means rather than by debt.
- T
- Total assets20/58
The sum of everything the company owns, equal to the sum of what finances it.
- W
- Working capital10/15 + 16 + 17 − 20/28
The margin between stable resources (equity, provisions, debts due after one year) and fixed assets.
- Working capital requirement3 + 40/41 − 44 − 45
The money tied up by the business between paying its suppliers and being paid by its customers.