Return on Investment (ROI)
Net profit as a percentage of invested capital. Useful for simple comparison, but it does not reflect cash-flow timing.
Formula / expression:
Net Profit ÷ Invested Capital × 100Investment Glossary
Practical reference for terms used across JUANA studies and calculators. Definitions explain use; they do not turn a metric into investment advice.
Internal Rate of Return (IRR)
The discount rate that makes the net present value of cash flows equal to zero, so timing is built into the measure.
Formula / expression:
NPV = 0Used in sectors: Energy & Efficiency · Infrastructure & Smart Cities
Net Present Value (NPV)
The present value of future cash flows discounted at an appropriate rate, less the initial investment.
Formula / expression:
Σ CFₜ/(1+r)ᵗ − Initial InvestmentUsed in sectors: Land & Development · Energy & Efficiency · Mining & Mineral Processing · Infrastructure & Smart Cities
Capital Expenditure (CAPEX)
Spending to acquire, build or improve long-lived assets and equipment.
Used in sectors: Land & Development · Manufacturing · Agriculture · Logistics & Warehousing · Healthcare & Medical Tourism · Energy & Efficiency
Operating Expenditure (OPEX)
Recurring costs required to operate an asset or business, such as labour, energy, maintenance and management.
Used in sectors: Manufacturing · Agriculture · Livestock · Logistics & Warehousing · Healthcare & Medical Tourism · Energy & Efficiency
Working Capital
Liquidity needed to fund inventory, receivables and daily operations before cash is collected.
Formula / expression:
Current Assets − Current LiabilitiesUsed in sectors: Manufacturing · Agriculture · Livestock · Healthcare & Medical Tourism · Franchise Investment · Education & Training
Cash Flow
Cash entering and leaving an investment during a period; it can differ materially from accounting profit.
Used in sectors: Livestock · Tourism & Hospitality · Technology & AI · Franchise Investment · Education & Training · E-commerce & Digital Export
Free Cash Flow (FCF)
Cash remaining after operating needs and required capital expenditure, available for debt reduction or distribution.
Formula / expression:
Operating Cash Flow − CAPEXGross Yield
Annual gross income divided by asset cost before vacancy, operating expenses and taxes.
Formula / expression:
Annual Gross Income ÷ Asset CostUsed in sectors: Real Estate Investment · Tourism & Hospitality
Net Yield
Net operating income after relevant expenses divided by total capital invested.
Formula / expression:
NOI ÷ Total Invested CapitalUsed in sectors: Real Estate Investment · Tourism & Hospitality · Logistics & Warehousing
Payback Period
Time required for cash flows to recover the initial investment; a simple measure, not a substitute for IRR or NPV.
Break-even Point
Sales, occupancy or output level at which operating revenue covers costs with no operating profit or loss.
Formula / expression:
Fixed Costs ÷ Contribution per UnitUsed in sectors: Manufacturing · Agriculture · Livestock · Tourism & Hospitality · Healthcare & Medical Tourism · Franchise Investment
Debt Service Coverage Ratio (DSCR)
Ability of operating cash flow to cover scheduled principal and interest payments.
Formula / expression:
Operating Cash Flow ÷ Debt ServiceUsed in sectors: Logistics & Warehousing · Energy & Efficiency · Infrastructure & Smart Cities
Loan-to-Value (LTV)
Debt divided by asset value; higher leverage increases equity sensitivity to a decline in asset value.
Formula / expression:
Debt ÷ Asset ValueUsed in sectors: Real Estate Investment · Logistics & Warehousing
EBITDA
Earnings before interest, tax, depreciation and amortisation; useful for operating comparison, but not cash flow.
Used in sectors: Manufacturing
Gross Margin
Revenue less direct cost as a percentage of revenue, showing product economics before overhead.
Formula / expression:
(Revenue − Direct Cost) ÷ RevenueUsed in sectors: Manufacturing · Healthcare & Medical Tourism · Technology & AI · Franchise Investment · Education & Training · Recycling & Circular Economy
Contribution Margin
Selling price less variable cost per unit; used to evaluate break-even and the economics of volume growth.
Formula / expression:
Price per Unit − Variable Cost per UnitUsed in sectors: Manufacturing · Franchise Investment · E-commerce & Digital Export · Industrial Automation & AI
Customer Acquisition Cost (CAC)
Total sales and marketing cost required to acquire a new customer over a defined period.
Formula / expression:
Sales & Marketing Cost ÷ New CustomersUsed in sectors: Technology & AI · Education & Training · E-commerce & Digital Export · Media & Digital Production · FinTech · Gaming
Customer Lifetime Value (LTV)
Expected economic value of a customer over the relationship, considering margin and retention.
Used in sectors: Technology & AI · E-commerce & Digital Export · Media & Digital Production · FinTech · Gaming
Occupancy Rate
Occupied rooms, units or space divided by the amount available during the period.
Formula / expression:
Occupied Capacity ÷ Available CapacityUsed in sectors: Real Estate Investment · Tourism & Hospitality · Logistics & Warehousing
Average Daily Rate (ADR)
Room revenue divided by rooms sold during the period.
Formula / expression:
Room Revenue ÷ Rooms SoldUsed in sectors: Tourism & Hospitality
Revenue per Available Room (RevPAR)
Room revenue divided by all available rooms, combining rate and occupancy in one measure.
Formula / expression:
ADR × Occupancy RateUsed in sectors: Tourism & Hospitality
Capitalisation Rate (Cap Rate)
Annual net operating income divided by property value or purchase price; financing is normally excluded.
Formula / expression:
NOI ÷ Property ValueUsed in sectors: Real Estate Investment
Gross Development Value (GDV)
Expected aggregate value of a completed development before deducting development costs.
Used in sectors: Land & Development
Buildable Area
Area that planning and zoning rules actually allow to be developed; it is not the same as land area.
Used in sectors: Land & Development
Highest & Best Use (HBU)
The legally permissible, physically possible and financially feasible use that produces the highest supported asset value.
Used in sectors: Land & Development
Sensitivity Analysis
Changing one or more assumptions to measure how strongly the result depends on key drivers.
Used in sectors: Land & Development · Agriculture · Livestock · Technology & AI · Energy & Efficiency · Mining & Mineral Processing
Stress Test
Testing the investment under harsher conditions than the base case, such as lower revenue, higher cost and delay.
Used in sectors: Energy & Efficiency · Mining & Mineral Processing · Infrastructure & Smart Cities
Base Case
Central scenario built on reviewable and defensible assumptions, not the most optimistic outcome.
Downside Case
A conservative scenario with weaker conditions used to test margin of safety and resilience.
Used in sectors: Agriculture · Livestock
Due Diligence
Legal, financial, tax, operating and technical review of evidence before final capital commitment.
Used in sectors: Healthcare & Medical Tourism · Franchise Investment · Mining & Mineral Processing · FinTech · Life Sciences & MedTech
Data Confidence
Assessment of source strength, freshness and auditability, separate from the attractiveness of the investment.
Used in sectors: Healthcare & Medical Tourism · FinTech · Life Sciences & MedTech
Opportunity Score
Score of economic and market attractiveness and value-creation potential; it does not replace risk or data confidence.
Risk Score
Separate assessment of legal, operating, financial, market, liquidity and execution risks.
Used in sectors: Healthcare & Medical Tourism · Franchise Investment · Education & Training · Media & Digital Production · FinTech · Life Sciences & MedTech
Investment Liquidity
Ability to convert an asset into cash within a reasonable time and acceptable discount, not merely the existence of a quoted price.
Used in sectors: Real Estate Investment · Land & Development · Tourism & Hospitality · Logistics & Warehousing · Marine & Yacht Industries
Exit Strategy
Plan defining who may buy the asset or stake, when exit can occur, and under what conditions and costs.
Used in sectors: Real Estate Investment · Land & Development · Agriculture · Livestock · Logistics & Warehousing · Energy & Efficiency
Special Purpose Vehicle (SPV)
Legal entity dedicated to a specific asset or transaction to ring-fence ownership, accounts and risks under the chosen structure.
Joint Venture (JV)
Co-investment structure between two or more parties defining capital, control, profit/loss allocation and exit.
Escrow
Arrangement where a neutral party holds funds or documents until agreed conditions are satisfied.
Working Capital Cycle
Time between paying suppliers and collecting cash from customers after inventory or service delivery.
Formula / expression:
Inventory Days + Receivable Days − Payable DaysUsed in sectors: E-commerce & Digital Export
Discount Rate
Rate used to convert future cash flows into present value; it should reflect time, risk and capital characteristics.
Used in sectors: Infrastructure & Smart Cities
Weighted Average Cost of Capital (WACC)
Weighted cost of debt and equity based on the financing mix, often used as a discount rate for businesses and projects.
Used in sectors: Infrastructure & Smart Cities
Net Operating Income (NOI)
Asset income after direct operating expenses and before financing and investor-level income taxes under the stated definition.
Formula / expression:
Operating Revenue − Operating ExpensesUsed in sectors: Real Estate Investment
Customer Retention
Share of customers or users who continue using the product or service over time; a key driver of recurring-business value.
Used in sectors: Technology & AI · Education & Training · Media & Digital Production · FinTech · Gaming
Churn Rate
Share of customers or recurring revenue lost during a period; high churn weakens growth economics even when acquisition is fast.
Used in sectors: Technology & AI · E-commerce & Digital Export · Media & Digital Production · FinTech · Gaming
Monthly Recurring Revenue (MRR)
Expected monthly recurring or subscription revenue from active customers.
Used in sectors: Technology & AI · Media & Digital Production · FinTech · Gaming
Capacity Utilisation
Actual output divided by achievable capacity during the period, considering downtime, maintenance and quality constraints.
Formula / expression:
Actual Output ÷ Achievable CapacityUsed in sectors: Manufacturing · Recycling & Circular Economy · Industrial Automation & AI · Marine & Yacht Industries
Feed Conversion Ratio (FCR)
Feed required to produce a unit of weight gain or animal output; lower values generally indicate better efficiency.
Used in sectors: Livestock
Yield per Area
Output achieved per decare or hectare during a defined cycle, linked to crop, water, climate and maturity.
Used in sectors: Agriculture
Editorial review
JUANA Investment Research Desk · Methodology review of sources, model logic, separation of evidence from assumptions, and evidence links.