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Home > QFINANCE Dictionary > Definition of preceding year

Definition of

preceding year

Accounting

previous fiscal year the year before the fiscal year in question

preceding year - Related Articles
  • Creating a Cash Flow Statement

    Calculations

    Cash inflows and cash outflows over a specific period of time, typically a year.

  • Cost of Goods Sold

    Calculations

    Determining these estimates requires details of the gross profit margin (retailers typically use the preceding year’s figure). This figure is then used to calculate the cost ratio.

  • Cyprus

    QFINANCE Country Profiles

    on January 1, 2008. An aggressive austerity program in the preceding years, aimed at paving the way for the euro, helped turn a soaring fiscal deficit (6.3% in 2003) into a surplus of 1.2% in 2008. This prosperity will come under pressure in 2009, as construction and tourism slow in the face of reduced

  • Debt/Equity Ratio

    Calculations

    The debt/equity ratio is calculated by dividing debt by owners’ equity, where equity is, typically, the figure stated for the preceding calendar or fiscal year. Debt, however, can be defined either as long-term debt only, or as total liabilities, which include both long- and short-term debt.

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Definitions of ’preceding year’ and meaning of ’preceding year’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’preceding year’ and other financial terms with our online QFINANCE Financial Dictionary.

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