Additional Paid-In Capital
Capital received from investors in exchange for stock, as distinguished from capital generated from earnings or donated.
Back to TopAddress
The headquarters address of the company as provided in the latest 10-Q or 10-K SEC forms or newswire announcement.
Back to TopAfter-Hours Last Trade Volume
The total number of shares of a stock exchanged in the last reported after-hours trade.
Back to TopAfter-Hours Price
The price per share of the last reported after-hours trade.
Back to TopAfter-Hours Trade
A stock trade that takes place after the regular trading session closes. See extended-hours trading.
Back to TopAmortization
The repayment of a loan by installments.
Back to TopAsset Turnover
The ratio at which each dollar of assets has generated a dollar in revenues, calculated by dividing the sum of the past four quarters' revenues by the average of the past four quarter's total assets. Also called asset turns.
Back to TopAverage Volume
Total volume for the previous three months, divided by the number of trading days of the previous three months. Compare this number to the daily volume to see if investor interest in the stock has increased or decreased.
Back to TopBarra Risk Factor
Measures a stock's predicted risk relative to the overall market, to its sector and to its industry. Barra bases its Risk Factor analysis on 40 different data items, including market information (things such as dividend yield, market capitalization), fundamental measures (earnings, sales, assets) and technical indicators (relative strength, standard deviation, share turnover).
The resulting number indicates the percentage of stocks that are less risky than the stock being assessed. The lower the number, in other words, the less risk. For example, a company with a Risk Factor of 14, a sector Risk Factor of 10 and an industry Risk Factor of 7 would be riskier than just 14% of Barra's universe of more than 6,200 stocks, riskier than 10% of stocks in its sector and riskier than 7% of stocks in its industry.
Beta is often used as a gauge of risk, but it has limitations. It looks only at price performance, not at things like financial stability, and thus is more a measure of volatility than risk. Plus, it's based on past volatility, so it often unduly punishes fast-growing companies that have recently become profitable, and more stable. Barra Risk Analysis, then, may be considered a more comprehensive measure of actual risk than beta.
Back to TopBeta
A measure of share-price volatility. Beta is calculated using a statistical technique called regression analysis, which measures the historical relationship between variables to predict their future relationship. SmartMoney.com betas are calculated using 36-month regressions vs. the Standard & Poor's 500 index. The index is assigned a beta of 1.0. A stock with a beta of 1.5 would be said to exhibit 50% more volatility than the index, meaning that it the index rises (or falls) 8%, the stock would be expected to rise (or fall) 12%. A stock with a beta of 0.8 would be 80% as volatile. One with a negative beta would be negatively correlated--it would be projected to "zig" when the market "zags."
Beta is often thought of as a measure of risk, although strictly speaking, it's not. For one thing, it says nothing about a stock's financial risk to the extent that risk is not exhibited in share price movements. Also, it's based on the past, which unduly punishes young companies that have become more stable over the past three years. Alternatives to beta include so-called "bottom-up" betas, such as the Barra Risk Factor, which are calculated using fundamental data rather than just past stock movements.
Back to TopBook Value
The difference between a company's total assets and total liabilities, as reported an its most recent balance sheet. Also called shareholder's equity.
Back to TopCash and Equivalents
On-hand currency, bank balances and bullion (not counted for mining companies) as reported on a company's most recent quarterly balance sheet.
Back to TopCash Flow
Net earnings before depreciation, amortization and non-cash charges. Sometimes called cash earnings, cash flow is calculated by adding depreciation to net earnings and subtracting preferred dividends. It is useful for determining how solvent a company is.
Back to TopChief Executive Officer (CEO)
The highest ranking executive who manages the day-to-day operations of the firm, updated according to the latest annual report or newswire announcement.
Back to TopCommon Equity
This is the amount of shareholders' equity attributable to common stock. Common stock equity generally consists of the following items: common stock at par value, capital surplus and retained earnings.
Back to TopCommon Stock Equity
The amount of stockholders equity attributable to common stock. Common stock equity generally consists of the following items:
1. Common stock (all issues) at par value.
2. Capital surplus or additional paid-in capital.
3. Retained earnings or earned surplus (net of foreign exchange gains/losses).
Consensus Earnings Estimate
The average of analysts' per-share earnings forecasts for the indicated period.
Back to TopCost of Sales
All expenses directly associated with the production of goods or services a company sells (such as material and overhead) excluding depreciation, depletion, amortization and SG&A.
Typical accounts: cost of goods sold, materials and production expenses, gas purchased, fuel and power purchased, exploration and well drilling expense, mining expense and oil and gas property abandonments.
Back to TopCurrent Assets
Assets that can be converted to cash within a relatively short period of time, usually 12 months. These include cash and equivalents, receivables, inventories and other current assets.
Back to TopCurrent Liabilities
Obligations that must be paid within 12 months. These include accounts payable, short-term debt and interest on long-term debt.
Back to TopCurrent Ratio
A measure of a company's abilities to meet its short-term obligations, calculated by dividing its total current assets by its total current liabilities, as found on its most recent quarterly balance sheet.
Back to TopCurrent Share Price
Most recent market price of the shares. Our quote feed is on a 20-minute delay.
Back to TopDay High
The high price of the last trading day.
Back to TopDay Low
The low price of the last trading day.
Back to TopDebt/Total Capital
This ratio indicates how much financial leverage a company has. It is calculated by dividing total debt by total-invested capital. Total debt is long- and short-term debt obligations, including bonds, notes payable, mortgages, lease obligations, and industrial revenue bonds. Total invested capital is the sum of common and preferred stock equity, long term debt, deferred income taxes, investment credits, and minority interest.
Back to TopDepletion
The using up of an asset. Items which can be physically reduced, like the output of coal mines, are accounted for using depletion rather than depreciation.
Back to TopDepreciation (and Amortization)
A non-cash charge that represents a reduction in the value of fixed assets due to wear, age or obsolescence. This figure also includes amortization of leased property, intangibles and goodwill, and depletion.
Back to TopDividends
Cash payments made to a company's shareholders from its current or retained earnings. If a company's board has committed to dividend payments in the future, the latest reported dividend rate equals the number of times the company pays dividends per year times the latest dividend, expressed in dollars. If a company's board has not committed to dividend payments in the future, the latest reported dividend rate equals the total dividends paid in the past 12 months.
Dividends are typically paid by mature companies whose growth rates have slowed, and which no longer need to reinvest all of their earnings. The payments are taxable to shareholders as income.
Back to TopEarnings Per Share
Net earnings divided by common shares outstanding. May be diluted to account for the potential creation of common shares from convertible securities. See earnings per share, diluted.
Back to TopEarnings Per Share, Diluted
Net earnings divided by common shares outstanding, adjusted for the assumed conversion of all potentially dilutive securities into common stock. Securities having a dilutive effect may include convertible debentures, warrants, options and convertible preferred stock.
Back to TopEbit
Earnings before deductions for interest and taxes. Also called operating income.
Back to TopEBITDA
Earnings before interest, taxes, depreciation and amortization. Roughly equal to operating cash flow, but calculated using the income statement, rather than the cash flow statement.
Ebitda is useful for evaluating companies that are subject to large depreciation charges for their fixed assets, or those that have significant amounts of goodwill that the must amortize. Such charges would normally distort a companies underlying earnings power; Ebitda is designed to gauge operational cash flow by excluding these items. The measure is useful for evaluating companies that have low earnings because of large restructuring, capital build-out or acquisition costs.
Back to TopEnterprise Value
Total purchase price of a company, net of its debt and cash. Equal to market capitalization (share price times number of shares outstanding) plus long- and short-term debt and preferred stock, minus cash. Commonly used in merger and acquisition analysis.
Back to TopEPS
See earnings per share.
Back to TopEstimated EPS Growth
The mean estimate of earnings-per-share growth (for the indicated period) as derived from all polled estimates from Wall Street analysts. This information is provided by Zacks Investment Research.
Back to TopExtended-Hours Trading
Nasdaq can now transact "after-hours" trades. These are trades that take place after the regular market close at 4:00 p.m. ET up until 6:30 p.m. ET. There is also a "premarket window" permitting Nasdaq trades before the regular trading session begins at 9:30 a.m. ET. These trades can take place as early as 8.00 a.m. ET.
Trades outside of regular trading hours are classified as "Form-T" trades. Form-T trades don't impact last, high, low or closing prices, but are reckoned in volume reporting. Nasdaq has specified that the "closing quote" of the regular session will be identified separately from extended-trading-hours quotes.
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