Formulas and definitions

Other assets include long-term investments, deferred charges, and non-current prepaid expenses not classified as cash, receivables, or inventory.

Total long-term assets are the sum of property, plant, equipment, intangible assets, investments, and other long-term assets.

Long-term assets (other) are long-term assets that are not classified under property, plant, equipment, intangible assets, or investments.

Tax assets are items on a balance sheet that are expected to reduce future tax payments, including deferred tax assets, tax credits, and carryforwards.

Long-term investments are investments that are not expected to be converted into cash within one year.

Goodwill and intangible assets are the combined value of goodwill and intangible assets on a company's balance sheet.

Other current assets are current assets that are not classified under cash, short-term investments, receivables, or inventory.

Current assets are assets that are expected to be converted into cash or used within one year.

Property, plant, equipment (Net) is the net value of a company's tangible assets, such as buildings, machinery, and equipment, after deducting accumulated depreciation.

Goodwill is the value attributed to intangible assets, such as brand reputation or customer relationships, acquired in a business combination.

Intangible assets are non-physical assets, such as patents, trademarks, or copyrights, that provide long-term value to a company.

Total Investments refers to the sum of all financial assets held by a company, including stocks, bonds, and other securities, representing the company's investment portfolio.

Cash is the amount of money and cash equivalents held by a company.

Short-term investments are investments that are expected to be converted into cash within a year.

Total Stockholders' Equity and Liabilities represents the aggregate value of shareholders' equity and the company's debts, indicating the total financing sources for the company's assets.

Total equity is the total net value owned by shareholders in a company, calculated as the difference between total assets and total liabilities. It represents the residual interest in the assets of the entity after deducting liabilities and is reported on a company's balance sheet.

Minority interest, or non-controlling interest (NCI), is the share of a subsidiary's equity owned by investors other than the parent company, reflecting their stake in the subsidiary's assets and earnings.

Shareholders' equity are the residual interest in the assets of a company after deducting liabilities, representing the shareholders' ownership claim.

Additional paid-in capital is the amount of capital contributed by shareholders in excess of the par value of the company's common stock.

Accumulated other comprehensive income is the cumulative gains or losses from non-owner sources that have not yet been recognized in the income statement.

Retained earnings are the accumulated profits or losses retained by the company since its inception, minus any dividends or distributions.

Common stock is the net value of the company's common stock after deducting any repurchased shares or treasury stock.

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock.

Total liabilities are the total amount of a company's debts and other obligations.

Total liabilities are the total amount of a company's debts and other obligations.

Net debt is the difference between a company's total debt and its cash and cash equivalents.

Inventory is the value of goods held by a company for sale or used in the production process.

Tax payables it the amount of taxes a company owes to various tax authorities but has not yet paid.

Total non-current liabilities are the sum of long-term debt and other non-current liabilities.

Capital lease obligations are the long-term lease obligations that require the lessee to assume substantially all the risks and rewards of ownership.

Non-current liabilities (other) are non-current liabilities that are not classified under long-term debt.

Receivables are the amounts owed to the company by customers for goods sold or services rendered.

Total debt is the sum of short-term debt and long-term debt.

Cash and short-term investments are the sum of cash and short-term investments, representing the company's liquid assets.

Non-current deferred tax liabilities are taxes that are accrued but not due for payment within the next twelve months.

Non-current deferred revenue is the income a company has received for goods or services it has yet to deliver or perform, expected to be recognized beyond one year or the operating cycle, whichever is longer.

Long-term debt is bebt obligations with maturities beyond one year.

Current liabilities are obligations that are expected to be settled within one year, including accounts payable, short-term debt, and other current liabilities.

Other current liabilities are current liabilities that are not categorized under accounts payable, short-term debt, or current revenue deferred.

Current revenue (deferred) is revenue received in advance but not yet recognized as income due to the fulfillment of obligations or passage of time.

Short-term debt are debt obligations that are due within one year.

Accounts payable are amounts owed by the company to suppliers or vendors for goods or services received but not yet paid.

Total assets are the total value of all assets owned by a company, representing its resources.

Common stock repurchased is cash used to buy back the company’s own shares from the market.

Other financing activities is any other cash used or provided by financing activities not classified elsewhere.

Net cash used/provided by financing activities are the total cash inflows and outflows related to activities that finance the company’s operations, including debt, equity, and dividends.

Effect of forex changes on cash is the impact of changes in foreign exchange rates on cash and cash equivalents held in foreign currencies.

Net change in cash is the overall increase or decrease in cash and cash equivalents during the reporting period.

Cash at beginning of period is the amount of cash and cash equivalents held by the company at the beginning of the financial period.

Cash at end of period is the amount of cash and cash equivalents held by the company at the end of the financial period.

Operating cash flow is cash generated from the company’s regular business operations.

Capital expenditure is cash spent on acquiring or maintaining fixed assets, such as property, plants, and equipment (PP&E).

Free cash flow is the amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Debt repayment is cash used to pay down the company’s debt obligations.

Depreciation and amortization are expense that reduces the value of tangible and intangible assets over their useful lives for tax and reporting purposes.

Deferred income tax are taxes that are accrued but not yet paid or received, resulting from temporary differences between the accounting and tax bases of assets and liabilities.

Stock based compensation is a form of compensation given to employees and executives in the form of equity shares as part of their remuneration package.

Change in accounts receivables is the increase or decrease in the company's accounts receivables from one period to the next, indicating the change in money owed by customers.

Change in inventory is the difference in inventory levels from one period to the next, showing how much inventory was added or sold.

Change in accounts payables is the increase or decrease in the company's obligations to suppliers from one period to the next, indicating the change in money owed to suppliers.

Other working capital are adjustments to working capital that do not fit into the standard categories of inventory, receivables, or payables.

Change in working capital is the difference in the working capital from one period to the next, indicating the change in current assets minus current liabilities.

Other non-cash items are expenses or incomes that do not result in a physical movement of cash during the reporting period, such as depreciation or amortization.

Net cash provided by operating activities is cash generated from a company's core business operations, excluding investing and financing activities.

Investments in property, plant, and equipment is cash spent on acquiring or upgrading physical assets such as buildings, machinery, and equipment.

Net acquisitions is cash spent on acquiring other businesses minus any cash received from selling businesses.

Purchases of investments is cash used to purchase investments like stocks, bonds, or other securities.

Sales/maturities of investments is cash received from selling investments or from the maturity of investments.

Other investing activities is any other cash used or provided by investing activities not classified elsewhere.

Net cash used for investing activities is total cash inflows and outflows related to activities intended to generate future income and cash flows from investments.

Common stock issued is cash received from issuing new shares of the company’s common stock.

Dividends paid is cash paid to shareholders as a distribution of profits.

Costs and expenses are the sum of all costs incurred by a company, including both operating expenses and non-operating expenses.

Operating expenses are the ongoing expenses incurred by a company in its day-to-day operations, including salaries, rent, utilities, and other administrative costs.

Selling, general, and administrative (SG&A) expenses are the expenses related to the sales and marketing efforts, as well as general and administrative functions of a company.

Selling, general, and administrative (SG&A) expenses are the combined payroll costs of all non-manufacturing employees, office rents, marketing, and other overheads.

Selling and marketing (S&M) expenses are the costs incurred to promote and sell products or services, including advertising and sales staff.

Research and development (R&D) expenses are the costs associated with the development of new products, technologies, or improvements to existing products.

Gross Profit Ratio is the ratio of gross profit to net sales, indicating the percentage of revenue that exceeds the cost of goods sold and reflects the efficiency of a company in managing its production or procurement and sales.

Gross profit is the difference between revenue and the cost of revenue, representing the profit earned from core business operations.

Cost of revenue are the expenses directly associated with producing or delivering the goods or services sold by a company.

Revenue is the total amount of money generated from the sales of goods or services by a company during a specific period.

Shares (diluted, weighted) are the number of outstanding shares used to calculate earnings per share (EPS) assuming the conversion of all potentially dilutive securities.

Shares (basic, weighted) are the number of outstanding shares used to calculate earnings per share (EPS) without considering potential dilution.

EPS (Diluted) reflects the company's earnings per share adjusted for the potential dilution that could occur if all convertible securities were converted to common stock, providing a more conservative profitability measure.

EBIT means earnings before interest and taxes, it is calculated as operating income plus non-operating income.

Depreciation and amortization is the systematic allocation of the cost of tangible and intangible assets over their useful lives.

EBITDA Ratio is the proportion of Earnings Before Interest, Taxes, Depreciation, and Amortization to total revenue, assessing a company's operational profitability before non-operating expenses and non-cash charges.

EBITDA means earnings before interest, taxes, depreciation, and amortization, which measures a company's operating performance by excluding non-operating expenses.

Net Income Ratio, also known as the profit margin, is the ratio of net income to net sales, showing the percentage of revenue that remains as profit after all expenses are deducted.

Net income is the total profit earned by a company after deducting all expenses, including taxes and non-controlling interest.

Income after tax is the net income earned by a company after deducting income taxes.

Tax rate (effective) is the average tax rate paid by a company on its taxable income.

Income tax expense is the amount of income tax expenses recorded by a company in a given period.

EBT Ratio (Earnings Before Tax Ratio) is the fraction of earnings before taxes to total revenue, indicating the company's profitability before the impact of tax expenses.

EBT are the earnings before taxes and is calculated as operating income plus non-operating income minus non-operating expenses.

Non-operating income/expense is the income or expenses generated from non-core business activities, such as investments or one-time gains/losses.

Interest income is the income a company generates from its cash investments in interest-bearing accounts, bonds, or other financial instruments.

Operating Income Ratio is the proportion of a company's operating income to its net sales, measuring the efficiency of its core business operations in generating profits.

EPS (Earnings Per Share) is the portion of a company's profit allocated to each outstanding share of common stock, indicating the company's profitability on a per-share basis.

EBIT ratio is the ratio of EBIT to revenue, measuring a company's operating profitability without considering non-operating income or expenses.

Interest expense is the cost of borrowing funds or the interest paid on outstanding debt.

Operating income is the profit earned by a company from its normal business operations before interest and taxes are deducted.

Net income before taxes evaluates profit before taxes; aids in profitability assessment and jurisdiction comparison.

Return on net assets measures profit against net assets; higher returns indicate efficient asset use for profit.

Return on net Investment assesses profit relative to net investment; higher values show efficient capital use.

Return on sales represents profitability margin against revenue; higher ROS indicates better profitability and cost efficiency.

Return on tangible equity measures profit against tangible equity; higher returns suggest superior tangible value creation.

Total liabilities to total assets ratio compares the liabilities to the assets; higher suggests greater financial risk and leverage.

Working capital to current liabilities ratio evaluates the working capital against the liabilities; higher indicates healthier liquidity.

Working capital to sales ratio assesses the working capital efficiency against the revenue; higher suggests better working capital use.

Working capital turnover ratio measures the working capital efficiency in generating revenue; higher indicates efficient utilization.

Quick ratio measures the short-term obligations coverage with liquid assets; higher ratio indicates strong liquidity position.

R&D expense ratio measures R&D expenses to revenue; higher indicates more innovation and growth focus.

Retained earnings to equity ratio gauges retained earnings to equity; higher shows more reinvestment or future distribution.

Retention ratio shows earnings retained after dividends; higher suggests more reinvestment, indicating growth potential.

Return on assets measures profitability against assets; higher ROA indicates efficient asset use and profitability.

Return on capital employed assesses profitability against invested capital; higher ROCE signals efficient capital use.

Return on common equity evaluates profit for common equity; higher values suggest better shareholder value creation.

Return on equity measures profit against shareholder equity; higher ROE indicates superior profitability and value creation.

Return on fixed assets relates profit to fixed assets; a higher return signals efficient fixed asset profit generation.

Return on gross Investment calculates profit from total investments; higher returns denote efficient capital use.

Return on Investment gauges overall investment profitability; higher ROI reflects better investment efficiency.

Return on total capital evaluates profit against total capital; higher returns signal efficient debt and equity use.

Revenue per share indicates revenue generated per share; higher ratios suggest stronger performance and value.

Sales to fixed assets ratio examines sales efficiency against fixed assets; higher ratios indicate better utilization.

Sales to operating cash flow ratio compares sales to operating cash; higher ratios signify better revenue efficiency.

Sales to total assets ratio measures revenue efficiency against assets; higher suggests better asset utilization for revenue.

Sales to working capital ratio gauges revenue generation against working capital; higher indicates efficient working capital use.

SG&A expense ratio compares selling, general, and administrative expenses against revenue; higher means more resources towards SG&A.

Short-term debt to equity ratio shows the short-term debt relative to the equity; higher suggests reliance on short-term debt financing.

Short-term debt to total assets ratio measures the short-term debt against assets; higher indicates significant short-term debt reliance.

Tangible asset value ratio indicates the tangible assets' proportion of total assets; higher shows a greater tangible asset focus.

Tangible book value per share provides the tangible asset value per share; aids in assessing tangible asset investment value.

Total debt to capital ratio assesses the total debt against the total capital; higher indicates more debt financing reliance.

Accounts payable turnover ratio measures how often a company pays off its payables. Higher ratio indicates quicker payment to suppliers, reflecting efficient payment management.

Accounts receivable turnover ratio indicates the efficiency in collecting customer payments. Higher ratio means faster conversion of credit sales to cash, showing effective credit management.

Asset coverage ratio assesses if tangible assets cover debts. Higher ratio means lower financial risk, as tangible assets adequately support debt obligations.

Asset turnover ratio measures the revenue generation from assets. Higher ratio shows effective asset use in sales production, suggesting efficient operations.

Average collection period represents the average days to collect payments. Lower period signals efficient collection and better cash flow, while higher suggests potential liquidity issues.

Book value per share represents the net value per share of common stock, indicating intrinsic share value. Useful for comparing stock value to market price.

Capital expenditure ratio represents the proportion of revenue spent on long-term assets. Higher ratio indicates significant investment in asset expansion and improvement.

Cash dividend coverage ratio represents the operating cash flow's ability to cover dividends. ratio above 1 indicates healthy dividend coverage, below 1 signals potential payout issues.

Cash flow coverage ratio represents the ability to cover interest expense after capital expenditures from operating cash. Higher ratio denotes better interest payment capacity and stability.

Cash interest coverage ratio represents the operating cash flow's coverage of interest expenses. Higher ratio indicates better ability to meet interest obligations.

Cash per share represents the cash available per share of common stock, indicating per-share cash position for assessing liquidity and shareholder distributions.

Cash ratio represents the measures immediate obligations coverage with cash. Higher ratio signifies better short-term liquidity and ability to cover liabilities.

Cash return on assets ratio represents the profitability from assets based on operating cash flow. Higher ratio indicates efficient asset utilization for generating cash.

Cash return on equity ratio represents the operating cash flow efficiency relative to shareholders' equity. Higher ratio shows better cash generation compared to equity investment.

Cash return on invested capital ratio represents the operating cash flow's efficiency relative to capital invested, excluding short-term liabilities. Higher ratio means better cash generation from invested capital.

Cash return on investment ratio represents the effectiveness of cash flow generation from total investments. Higher ratio indicates more efficient investment cash flow generation.

Cash taxes represents the total cash paid for income taxes. Reflects cash outflows related to taxes, affecting overall cash position and liquidity.

Cash to debt ratio represents the ability to cover total debt with cash. Higher ratio shows stronger liquidity and capacity to meet debt with cash reserves.

Current assets to total assets ratio represents the proportion of current assets to total assets. Indicates liquidity and convertibility of assets to cash in the short term.

Current liabilities ratio represents the proportion of current liabilities to total assets. Assesses short-term solvency and immediate obligation coverage capability.

Current liabilities to total liabilities ratio represents the current liabilities as a percentage of total liabilities. Evaluates liability structure and short-term obligations importance.

Current ratio represents the short-term liquidity measurement, showing current assets' coverage of liabilities. Higher ratio implies better ability to meet short-term obligations.

Days in inventory ratio represents the average days to sell inventory. Efficiency indicator; lower days suggest better inventory management and quicker sales conversion.

Days inventory outstanding ratio represents the average days to sell inventory. Lower suggests quicker turnover and efficient management. Calculated by dividing inventory by cost of revenue.

Days payables outstanding ratio represents the average days to pay suppliers. Longer period may offer working capital benefits. Reflects payment efficiency to suppliers.

Days sales outstanding ratio represents the average days to collect payments from sales. Shorter period shows effective collections and cash flow management.

Debt to asset ratio represents the proportion of assets financed by debt. Higher ratio indicates more leverage and potential financial risk.

Debt to capital ratio represents the debt's share of total capitalization. Higher ratio shows greater reliance on debt financing.

Debt to EBITDA ratio represents the debt level relative to operating earnings. Higher ratio signals higher debt burden and financial risk.

Debt to equity ratio represents the financing from debt versus equity. Higher ratio indicates more debt reliance, suggesting potential risk.

Debt to income ratio represents the debt level relative to net income. Higher ratio suggests more debt burden compared to income.

Debt to tangible net worth ratio represents the debt relative to tangible net worth. Higher ratio indicates higher leverage excluding intangibles.

Dividend coverage ratio represents the ability to cover dividends with net income. Greater than 1 suggests sufficient income for dividends.

Dividend payout ratio represents the percentage of net income paid as dividends. Higher ratio means more earnings distributed to shareholders.

Dividend per share represents the dividends distributed per share. Indicates dividend yield potential on a per-share basis.

EBIT to fixed assets ratio represents the operating earnings per dollar of fixed assets. Higher suggests efficient earnings generation from fixed assets.

EBIT to total assets ratio represents the efficiency of total asset use to generate operating earnings. Higher ratio indicates better profitability and asset utilization.

EBITDA coverage ratio represents the ability to cover interest expenses with EBITDA. Higher indicates better financial stability and cash flow.

EBITDA per share represents the EBITDA allocated per share. Used in valuation to assess per-share earnings before interest, taxes, depreciation, and amortization.

Equity multiplier asset represents the financing from equity. Higher ratio indicates more debt use and higher financial risk.

Equity to assets ratio represents the equity financing share of total assets. Higher ratio suggests lower financial risk and greater stability.

Free cash flow margin is the percentage of revenue as free cash flow. Higher margin indicates better cash generation from operations.

Free cash flow per share is the free cash flow generated per share. Indicates investment potential based on cash flow generation.

Free cash flow to equity is the cash available for equity shareholders after expenses. Assesses cash distribution or reinvestment potential.

Free cash flow to firm is the cash flow available to all capital providers. Indicates total cash generation ability including debt and equity.

Gross profit per share indicates the per-share value of gross profit; useful in valuation; higher values suggest better opportunities.

Gross profit to fixed assets ratio measures profit per fixed asset dollar; higher ratios suggest better profitability and efficiency.

Operating income per share gauges income from core operations per share; useful for performance evaluation.

Gross profit to tangible assets ratio gauges profit from tangible assets; higher ratios imply efficient asset utilization.

Gross working capital highlights current assets over liabilities for short-term obligations; reflects liquidity and financial health.

Interest coverage ratio assesses earnings' ability to cover interest expenses; higher ratios signal lower risk.

Interest expense to sales ratio shows revenue portion for interest expenses; higher ratios indicate greater financial burden.

Inventory turnover ratio evaluates sales and inventory replacement speed; higher ratios mean efficient management.

Invested capital reflects total operations' capital, indicating long-term resource use; essential for evaluating structure.

Liabilities to equity ratio reveals liabilities proportion to equity; higher ratios suggest more leverage and risk.

Long-term debt to equity ratio measures long-term debt against equity; higher ratios highlight greater debt reliance.

Long-term debt to total assets ratio indicates long-term debt against assets; higher ratios show increased risk.

Net current asset value calculates current assets over liabilities; assesses liquidity and potential liquidation value.

Net debt to EBITDA ratio levels net debt against EBITDA; higher ratios suggest repayment challenges.

NOPAT shows operating profit after taxes; evaluates core profitability across different tax environments.

This ratio's proportion of net working capital to assets; higher values indicate liquidity and operational funding.

Indicates non-current assets proportion; higher ratios suggest long-term investment and stability.

Shows long-term liabilities proportion; higher ratios mean significant long-term commitments.

Operating cash flow per share evaluates cash generation from operations per share; essential for operational efficiency analysis.

Measures operating cash's ability to cover current liabilities; higher ratios denote strong liquidity.

Operating cash flow to debt ratio assesses cash flow against total debt; higher values indicate better servicing capability.

Proportion of operating cash to sales revenue; higher ratios reflect profitability and cash management prowess.

Operating expense ratio compares expenses to revenue; lower ratios highlight efficiency and control.

Operating income to total debt ratio's ability of income to cover debt; higher ratios suggest financial strength.

Payables turnover indicates accounts payable management efficiency; higher ratios signal quick supplier payments.

Pre-Tax margin shows earnings before taxes against revenue; higher margins indicate efficiency and profitability.

Share price reflects current trading price of a company's stock; influenced by market dynamics and company performance.

Market capitalization represents total company value in stock market; higher suggests larger, more established company.

Share price volume indicates total traded shares in a period; higher volumes signal increased market activity and interest.

Price to FCFF ratio compares the stock price to the firm's free cash flow; higher indicates positive market sentiment for cash generation.

Price to operating cash flow ratio compares the stock price to the operating cash flow per share; higher suggests positive sentiment for cash generation.

Price to operating income ratio compares the stock price to the operating income; higher indicates expectations for future profitability.

Price to sales ratio compares the stock price to the sales per share; higher suggests positive sentiment for future revenue growth.

Price to tangible book ratio compares the stock price to the tangible book value per share; higher indicates positive sentiment for tangible assets.

Price to tangible book value ratio compares the stock price to the tangible book value; higher suggests positive market sentiment for tangible assets.

Cash flow yield compares the operating cash flow to the market cap; higher yield indicates attractive investment profitability.

Dividend yield measures the dividend per share relative to stock's price value; higher yield suggests higher dividend return.

Enterprise value shows the total company value including equity and debt; used for theoretical takeover price.

EV/EBITDA ratio compares the enterprise value to the EBITDA; lower suggests more favorable company valuation.

EV/Sales ratio compares the enterprise value to the revenue; lower indicates potentially more favorable valuation.

EV/Free cash flow ratio compares the enterprise value to the free cash flow; lower suggests better valuation.

EV/Operating income ratio compares the enterprise value to the operating income; lower indicates more favorable valuation.

Free cash flow yield compares the return from free cash flow to the market cap; higher yield suggests attractive investment.

Market value added shows to which extent the market cap is exceeding shareholders' equity; positive value indicates investor confidence and value creation.

Price to book ratio compares the stock price to the book value per share; above 1 indicates market values company more than its book value.

Earnings yield shows the earnings per share as a percentage of market price; higher may indicate undervalued stock.

Price to earnings ratio compares the stock price to earnings per share; higher P/E suggests expectations for future earnings growth.

Price to FCFE ratio compares the stock price to the free cash flow to equity holders; higher ratio indicates positive investor sentiment.

Price to free cash flow ratio compares the stock price to the free cash flow; higher suggests positive sentiment for future cash flow.