Quick Ratio
A measure of a company's financial liquidity calculated by dividing its cash and equivalents plus its receivables by its current liabilities. Also called acid test ratio.
Back to TopReceivables
Amounts owed to a company, net of any provision for bad debts.
Back to TopRetained Earnings
The portion of net income that has been retained for reinvestment in the company rather than being paid in dividends to shareholders.
Back to TopReturn on Assets (ROA)
The rate of investment return a company achieves on its assets. ROA is calculated by dividing the sum of net income over the past four quarters by the average of total assets over the past four quarters. The result is shown as a percentage. Unlike ROE, ROA ignores a company's liabilities.
Back to TopReturn on Invested Capital
The rate of return a company achieves on the things it owns and the money it has borrowed. ROIC is calculated by dividing the sum of a company's net income over the past four quarters by the average of its invested capital over the past four quarters. The result is shown as a percentage. Unlike ROE ROE, ROIC adds debt to its denominator, thus exposing companies which borrow heavily to boost their returns.
Back to TopReturn on Equity (ROE)
The rate of return a company achieves on the things it owns. ROE is calculated by dividing the sum of a company's net income over the past four quarters by the average of its common stock equity over the past four quarters. The result is shown as a percentage. Unlike ROA, ROE subtracts a company's liabilities in its denominator.
Back to TopRevenues
Also called sales. A companies top-line income, so-called because it appears on the top line of their income statements, before various cost deductions and accounting adjustments have been made. Net revenues include sales minus promotional discounts, such as rebates.
Back to TopSales
See revenues.
Back to TopShareholders' Equity
The difference between a company's total assets and total liabilities. Sometimes call net worth or book value, shareholders equity represents the shareholders' ownership of the company. See Price/Book ratio.
Back to TopShares Outstanding
Shares of common stock that are currently owned by investors.
Back to TopShort Interest
A technical analysis tool used in evaluating market sentiment. The short interest ratio is calculated by dividing the total shares sold short of a stock by its average daily trading volume. Shorted shares are those borrowed and sold by investors who think the same shares will be available later for repurchase at a lower price. A short interest ratio of greater than 2.0 is often considered a sign that a stock's price will soon go higher. The rationale is that the large short position must be covered in the future, thereby creating buying pressure and driving the stock price up.
Back to TopTotal Assets
Total current assets plus total noncurrent assets.
Back to TopTotal-Debt/Equity
A measure of a company's leverage, calculated by dividing the sum of its short- and long-term debt by its shareholders' equity, using figures from its most recently reported balance sheet.
The lower a company's debt/equity ratio, the less encumbered it is by debt. Whereas debt/capital ratios show debt relative to the value of things a company owns and the money it has borrowed, debt/equity ratios show debt relative to just the things it owns.
Back to TopTotal Liabilities
Total current liabilities plus long-term debt and deferred income taxes.
Back to TopTotal Non-Current Assets
Equals intangibles plus other non-current assets.
Back to TopTotal Return
The price change plus dividend return for a stock over the last 12 months or three years (whichever is indicated).
Back to TopTrailing P/E Ratio
Latest closing share price divided by earnings per share based on the last reported 12 months of earnings. Companies with negative earnings receive an "NA," for not applicable.
The P/E ratio is one of the most widely used measures of a stock's valuation. Generally speaking, the lower a stock's P/E ratio is, the less expensive its shares are relative to its profits. There are several different types of P/E ratios, each of which uses a different earnings figure. Trailing P/E is considered the most conservative, since it uses earnings that have already been booked. Forward P/Es use analysts' earnings projections for either the current, not-yet-completed fiscal year, or the next fiscal year.
P/E comparisons are best made between companies in like industries, since growth rates vary widely from industry to industry. Alternatively, investors may use the price/earnings-to-growth, or PEG (PEG), ratio, which normalizes a stock's P/E for its projected growth rate.
Trailing P/E can be calculated using either GAAP of pro forma earnings per share.
Back to Top