Financial Statement Analysis

The objective of the 10-K and other SEC-required forms is to provide shareholders and prospective shareholders with accurate, relevant, and timely information about the financial and operating performance
A 10-Q is a report of a company's performance that must be submitted quarterly by all public companies to the Securities and Exchange Commission (SEC)
The Form 13-F must be filed by institutional investors who exercise discretion over at least $100 million in investments.
Abandonment value refers to the value of a project or investment were it to be liquidated presently.
An abatement cost refers to the cost associated with the voluntary or compulsory removal of an undesirable result of a production process.
The Accelerated Cost Recovery System (ACRS) is a depreciation method that assigns assets periods of cost recovery based on specific IRS criteria. Since 1986, the Modified Accelerated Cost Recovery System
Accelerated depreciation is a depreciation method whereby an asset loses book value at a faster rate than the traditional straight-line method. Generally, this method allows greater deductions in the
An accountant is trained to compile, inspect, interpret, and/or report financial statements and tax returns that comply with governmental and regulatory authority requirements.
An accountant's opinion is a concise written statement by a certified accountant concerning the accuracy of a company's financial records.
Accounting is the process of systematically recording, measuring, and communicating information about financial transactions. At its highest level, accounting sets up the basics of record keeping and and
Accounting conventions are standards, customs or guidelines regarding the application of accounting rules.
Accounting earnings, or net income, represent the amount of money gained or lost after all costs, depreciation, interest , taxes and expenses have been deducted from a company's total sales.
An accounting error is an error in the process of systematically recording, measuring and communicating information about financial transactions.
An accounting period is the time interval reflected by the data in a financial statement.
Accounting research bulletins (ARBs) are publications from the Accounting Principles Board of the American Institute of Chartered Public Accountants.
The accounts payable turnover ratio is a company's purchases made on credit as a percentage of average accounts payable. The formula for accounts payable turnover ratio is: Accounts Payable Turnover =
/*-->*/ Accounts receivable (AR) are amounts owed by customers for goods and services a company allowed the customer to purchase on credit. Said another way, when a company delivers a product or
Accounts receivable aging is a report showing the various amounts customers owe a company and the length of time the amounts have been outstanding.
Accounts uncollectible, also called allowance for doubtful accounts (ADA), is a reduction in a company's accounts receivable. Accounts uncollectible equals the amount of those receivables that the company
To be accretive is to increase earnings per share.
Accrual accounting is an accounting method whereby revenue and expenses are recorded in the periods in which they are incurred.
Accruals are records of revenue and expenses in the periods in which they are incurred. They are a key component of the accrual method of accounting.
To accrue is to record revenue and expenses in the periods in which they are incurred. Accruals, the result of accruing, are key components of the accrual method of accounting.  
An accrued expense refers to any expense incurred and reported during an accounting period, but for which payment has not yet been made.
Accrued interest refers to interest that builds up on a company's outstanding payables and receivables.  This interest has been accounted for, but not yet transacted.
Accrued market discount refers to the steady increase in value of a discounted bond from the time of purchase until maturity.
Accumulated depreciation is the sum total of the depreciation recorded for certain assets.
Accumulated earnings is the sum of a company's profits, after dividend payments, since the company's inception. It can also be called retained earnings, earned surplus, or retained capital.
The accumulated earnings tax is a charge levied on a company's retained earnings. Also called the accumulated profits tax, it is applied when tax authorities determine the cash on hand to be an
Activity based management (ABM) is an administrative method which examines how a company incurs costs from the standpoint of its activities rather than its final products.
Adjusted basis refers to the increase or decrease in an asset's value due to depreciation or capital enhancements.
An adverse opinion refers to the conclusion by an auditor that a company's financial statements inaccurately characterize the company's financial standing.
After-tax operating income (ATOI) is a company's operating income after taxes. ATOI is very similar to net operating profit after tax (NOPAT)
After-tax profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a
Aggressive accounting refers to an accounting department's deliberate and purposeful tampering with its company's financials in order to outwardly characterize its revenues as higher than they truly are.
An allowance for doubtful accounts (ADA) is a reduction in a company's accounts receivable. The ADA equals the amount of those receivables that the company's management does not expect to actually collect
The Altman Z-Score (named after Edward Altman, the New York University professor who devised it) is a statistical tool used to measure the likelihood that a company will go bankrupt. Though Altman devised
Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time.
An analyst gathers and interprets data about securities, companies, corporate strategies, economies or financial markets. Analysts are sometimes called financial analysts, securities analysts, equity
An annual report is an audited corporate document that details the business activity and financial status of a publicly-held company over the previous year. 
An asset is an economic resource that can be owned by an individual, company, or country. Assets are expected to provide future economic benefits like:  Increased value for a company or country
In the tax world, an audit refers to the review of a taxpayer's tax return for accuracy.   In the accounting world, an audit is the examination and verification of a company's financial statements and
An audit trail refers to the complete record of events that occurred in the execution of a transaction.
An auditor's report is a statement included in a company's annual financial report that certifies the validity of a company's financial statements according to an outside auditor.
A back charge is an unpaid bill attributable to a prior period.
An accounting method whereby the costs associated with producing a good or service are recorded only after the good or service is actually produced, completed or sold.
Bad debt expense is the portion of accounts receivable that became uncollectable during a given period.
Bad debt reserve, also called an allowance for doubtful accounts (ADA), is a reduction in a company's accounts receivable. The bad debt reserve is the amount of receivables that the company does not
Beginning inventory refers to the value of goods that a company has for its use or sale at the start of an inventory accounting period.
Book value refers to the total amount a company would be worth if it liquidated its assets and paid back all its liabilities. Book value can also represent the value of a particular asset on the company's
The bottom line represents the number of sales dollars remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a
The calendar year is the period between January 1 and December 31.
/*-->*/ For firms, a capital asset is an asset that has a useful life longer than one year and is not intended for sale during the normal course of business. For individuals, capital asset typically
Capital expenditures, or capex, is money used to purchase, upgrade, improve, or extend the life of long-term assets. Long-term assets are typically property, infrastructure, or equipment with a useful
In the business world, capitalization has two meanings. The first meaning, also called market capitalization, refers to the value of a company's outstanding shares. The formula for market capitalization
Capitalizing refers to the accounting practice of characterizing the costs of an asset purchase as a long-term asset on the balance sheet instead of an expense on the income statement. 
Under cash accounting, a business records revenue and expenses in the period in which they are actually received or paid, rather than in the period in which they are incurred.
Cash and cash equivalents (CCE) are company assets in cash form or in a form that can be easily converted to cash.
Cash budget is a review or projection of cash inflows and outflows. It can be used as a tool for analyzing the revenues and costs of a company or individual.
The cash conversion cycle, also called the net operating cycle, is the number of days it takes a company to generate revenues with assets.
Cash flow is simply the cash expected to be generated by an investment, asset or business. 
Cash flow after taxes (CFAT) is a measure of a company's ability to generate positive cash flow after deducting taxes.
The section of the cash flow statement titled Cash Flow from Financing Activities accounts for inflows and outflows of cash resulting from debt issuance and financing, the issuance of any new stock,
Cash from investing activities is a section of the cash flow statement that provides information regarding a company's purchases or sales of capital assets.
Cash flow from operating activities measures the cash-generating abilities of a company's core operations (rather than its ability to raise capital or buy assets).  Put another way, cash flow from
Cash flow per share represents the portion of a company's cash flow allocated to each share of common stock.
A cash flow statement is the financial statement that measures the cash generated or used by a company in a given period.
The certified public accountant (CPA) designation is a professional designation granted by the American Institute of Certified Public Accountants (AICPA). It is given to individuals who pass the Uniform
A common-size balance sheet is a balance sheet in which each line item is expressed as a percentage of assets.
A common-size financial statement is an income statement or balance sheet in which each line items are expressed as a percentage of sales or assets, respectively.
A common-size income statement is an income statement in which each line item is expressed as a percentage of sales.
In the accounting world, to consolidate means to combine the financial statements of a company and all of its subsidiaries, divisions or suborganizations.
Consolidated financial statements are the combined financial statements of a company and all of its subsidiaries, divisions, or suborganizations.
Contribution margin is a measure of profit per unit; it is used to tell a business how profitable each of their products is by calculating how much each product can contribute to revenues. The
Core earnings are the net income a company generates from the principle products and services it provides.
Cost of goods sold (COGS) is an accounting term to describe the direct expenses related to producing a good or service. COGS is listed on the income statement.
Cost per unit is a measure of a company's cost to build or create one unit of product.
Current assets (sometimes called current accounts) are any company assets that can be converted into cash within one fiscal year. There are multiple ways these assets can be converted, including sale,
Days sales of inventory is a ratio of inventory to sales. The formula is: Days Sales of Inventory = (Inventory/Cost of Sales) x 365
Days sales outstanding (DSO) is the ratio of receivables to the daily average of credit sales.
Days working capital is the ratio of working capital to sales. The formula is: Days Working Capital = (Average Working Capital x 365)/Annual Sales
Debt load is the total amount of debt that a company has on its balance sheet. All publicly traded companies must file financial statements, including balance sheets, every quarter.
Deferred revenue refers to payments received in advance for services which have not yet been performed or goods which have not yet been delivered. These revenues are classified on the company's balance
Deferred tax liability (DTL) is a balance sheet line item that accounts for the temporary difference between taxes that will come due in the future and taxes paid today. 
A depletion allowance is a tax deduction allowed in order to compensate for the depletion or "using up" of natural resource deposits such as oil, natural gas, iron, timber etc.  The allowance is a form of
Depreciated cost is the cost of an asset minus its accumulated depreciation. Another term for this concept is net book value. The formula for depreciated cost is: Depreciated Cost = Original Asset Price
Depreciation is an accounting method that measures the reduction in an asset’s value over the course of its useful life. It also represents how much of an asset’s value is depleted due to usage, wear and
Diluted earnings per share is a measure of profit. The formula for diluted earnings per share is: Fully Diluted Earnings Per Share = (Net Income - Preferred Stock Dividends) / (Common Shares Outstanding
Earned surplus is the sum of a company's profits, after dividend payments, since the company's inception. It can also be called retained earnings, retained capital, or accumulated earnings.
Earnings are the corporate profits of a company over a specific time period after taxes and other expenses have been paid.
An earnings announcement is a public statement of a company's profits, usually on a quarterly basis.
Earnings before interest after taxes (EBIAT) is a measure of a company's operating performance. EBIAT is a measure of how profitable a company would be if it paid taxes on its operating profit without the
Earnings before interest and depreciation (EBID) are a post-tax measure of a company's operating performance.
Earnings Before Interest and Taxes (EBIT) measures the profitability of a company without taking into account its cost of capital or tax implications.
Earnings before interest, tax, depreciation and amortization (EBITDA) is a measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance without having to
Earnings before tax (EBT) measures a company's operating and non-operating profits before taxes are considered. It is the same as profit before taxes.
The earnings multiplier, also called the price-to-earnings ratio (P/E), is a valuation method used to compare a company’s current share price to its per-share earnings.
The term earnings per share (EPS) represents the portion of a company's earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock. The figure can be calculated
Earnings before Interest, Depreciation, and Amortization (EBIDA) is a post-tax measure of a company's operating performance.
Earnings before interest, tax and depreciation (EBITD) is a pre-tax measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance without having to factor in
EBITDA margin is a measurement of a company's EBITDA (its earnings before interest, taxes, depreciation, and amortization) as a percentage of its total revenue.  
Earnings before interest, taxes, depreciation, amortization and exceptional items (EBITDAE) are a measure of a company's operating performance.
Earnings before interest, taxes, depreciation, amortization, and special losses (EBITDAL) is a measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance
EBITDAR, which stands for earnings before interest, tax, depreciation, and either restructuring or rent costs (depending on what you're measuring) measures a company's profitability without taking into
A variation of EBITDA, EBITDAX is a measure used by natural resource exploration companies to reflect ongoing or core profitability. The acronym stands for earnings before interest, taxes, depreciation,
Economic profit is a measure of performance that compares net operating profit to total cost of capital
Economic value added (EVA) is an internal management performance measure that compares net operating profit to total cost of capital. Stern Stewart & Co. is credited with devising this trademarked
The EDGAR Public Dissemination Service (PDS) System is an electronic system that receives SEC filings.
EDGAR, the Electronic Data Gathering, Analysis and Retrieval system, is an automated system of submission used by public companies required to file forms with the U.S. Securities and Exchange Commission (
Ending inventory is the book value of inventory at the end of a financial or accounting reporting period.
Enterprise multiple is a financial indicator used to determine the value of a company. It is equal to a company’s enterprise value divided by its EBITDA (Earnings Before Interest, Taxes, Depreciation and
  Enterprise value represents the entire economic value of a company. More specifically, it is a measure of the theoretical takeover price that an investor would have to pay in order to acquire a
Enterprise value to cash flow from operations (EV/CFO) is the ratio of the entire economic value of a company to the cash it produces. The formula for EV/CFO is: EV/CFO = (Market Capitalization + Total
An exceptional item is an unusually large and uncommon transaction charge that must be disclosed on the balance sheet in accordance with GAAP.
An extraordinary item is an accounting term used to describe expenses that are infrequent, unusual and significant in size.
The Financial Accounting Standards Board (FASB) is an independent non-profit body responsible for the institution and interpretation of Generally Accepted Accounting Principles (GAAP).
A financial analyst gathers and interprets data about securities, companies, corporate strategies, economies, or financial markets. Financial analysts are sometimes called securities analysts, equity
Financial engineering is the quantitative, technical development of financial strategies and products.
First in, first out (FIFO) is an accounting method for inventory valuation that assumes that goods are sold or used in the same chronological order in which they are acquired.
A fiscal quarter is a consecutive three-month period within a company’s fiscal year. These calendar divisions are used by publicly-traded companies to schedule the release of financial reports and the
A fiscal year is an accounting period of 365(6) days that does not necessarily correspond to the calendar year beginning on January 1st. The fiscal year is the established period of time when an
A fixed asset is anything that has commercial or exchange value, generates revenue, has a life longer than one year and has a physical form.
Forensic accounting is a form of investigative accounting which examines financial records in order to find evidence for a lawsuit or criminal prosecution.
Forensic auditing examines individual or company financial records as an investigative measure that attempts to derive evidence suitable for use in litigation.
Forward earnings are the profits a company (or companies) expect to generate during a future period of time.
The forward price-to-earnings ratio (forward P/E) is a valuation method used to compare a company’s current share price to its expected per-share earnings.
Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing
Free cash flow to the firm (FCFF) is the cash available to pay investors after a company pays its costs of doing business, invests in short-term assets like inventory, and invests in long-term assets like
A full-service broker executes trades for clients, but also provides research, advice, retirement planning and tax assistance.
With a fully depreciated asset, the accumulated depreciation equals the original cost of the asset.
Fundamental analysis attempts to understand and predict the intrinsic value of stocks based on an in-depth analysis of various economic, financial, qualitative, and quantitative factors.
Funds from Operations (FFO) is a measure of cash generated by a real estate investment trust (REIT). It is important to note that FFO is not the same as Cash from Operations, which is a key component of
Funds from operations per share (FFOPS) is a measure of cash generated by a real estate investment trust (REIT). It is important to note that FFOPS is not the same as Cash from Operations Per Share, which
Generally Accepted Accounting Principles (GAAP) is a framework of accounting standards, rules and procedures defined by the professional accounting industry, which has been adopted by nearly all publicly
Going concern refers to the assumption that a company has the resources to continue operating in the foreseeable future. A bankrupt company or a company near bankruptcy is the opposite of a going concern.
Also known as work in process (WIP), goods in process are the component of a company's inventory that is partially completed. 
Goodwill is the excess of purchase price over the fair market value of a company's identifiable assets and liabilities. 
Generally, a goodwill impairment occurs when a company A) pays more than book value for a set of assets (the difference is the goodwill), and B) must later adjust the book value of that goodwill.
Gross margin is a required income statement entry that reflects total revenue minus cost of goods sold (COGS).  Gross margin is a company's profit before operating expenses, interest payments and taxes.
Gross profit is a required income statement entry that reflects total revenue minus cost of goods sold (COGS).  Gross profit is a company's profit before operating expenses, interest payments and taxes.
A hard asset is a physical, or tangible, asset. It is the opposite of an intangible asset.
Headline earnings are a measurement of a company's earnings based solely on operational and capital investment activities. It specifically excludes any income that may relate to staff reductions, sales of
Hedge accounting is a portfolio accounting method that combines the values of both a security and its offsetting hedge instrument.
Held-to-maturity securities refer to debt securities which an investor holds until maturity.
A hurdle rate is an investor's minimum rate of required return on an investment.
Income from operations is income that is generated by the normal operations of a business.
The income statement is one of the three primary financial statements used to assess a company’s performance and financial position (the two others being the balance sheet and the cash flow statement).
An intangible asset is an asset that lacks a physical substance. 
Inventory is the collection of unsold products waiting to be sold. Inventory is listed as a current asset on a company's balance sheet. See also inventory management.
Inventory management is the process of ensuring that a company always has the products it needs on hand and that it keeps costs as low as possible.
An inventory reserve is an accounting entry that reflects a reduction in the market value of a company's inventory.
The inventory turnover ratio measures the rate at which a company purchases and resells products to customers. There are two formulas for inventory turnover:           Sales               OR
Last fiscal year (LFY) refers to a company's most recent completed fiscal year.
Last twelve months (LTM), also known as trailing twelve months (TTM), is the 12-month interval occurring before a given point in time. 
Last-in, first-out (LIFO) describes a method for accounting for inventories. Under this system, the last unit added to an inventory is the first to be recorded as sold.
Liquidation value refers to the value of a project or investment if it were to be sold or abandoned immediately.
The term margin has two main definitions. The first refers to the ratio of profit to revenue. The second refers to money borrowed from a brokerage firm in order to leverage an investment.
Mark-to-management is an accounting practice that prices an asset based on what management estimates its potential value to be under normal market conditions. It is the opposite of mark-to-market.
Mark-to-market (MTM) is an accounting method that records the value of an asset according to its current market price.
Mark-to-market losses are losses in an asset's value caused solely by a decline in market price.
Mark-to-model is an accounting method where asset prices are assigned using the results of a financial model.
Market Value Added is the difference between the capital contributed to the company by bondholders and shareholders and the final market value of the product.
Market value of equity is the total market value of all of a company's outstanding shares.
Marketable securities are financial instruments that can be sold or converted into cash (at reasonable value) within one year. They are highly liquid investments that are generally issued by businesses to
In the finance world, the mosaic theory refers to a research approach whereby the analyst arrives at a conclusion by piecing together bits of publicly available information.
A negative assurance is an auditor's written statement that an audit did not uncover any signs of fraud or violations of accounting rules.
Negative equity occurs when liabilities exceed the value of assets.
Negative goodwill, also called a bargain-purchase amount, occurs when a company buys an asset for less than its fair market value. Negative goodwill is the opposite of goodwill.
Net Advantage to Leasing (NAL) refers to the money a company or individual saves from leasing an asset rather than buying it.
Net assets are what a company owns outright, minus what it owes. Net assets provide a rough guide for the value of company resources. Typically, the higher a company's net asset value, the higher the
Net book value is the value at which a company carries an asset on its balance sheet. It is equal to the cost of the asset minus accumulated depreciation. 
Net cash flow refers to the difference between a company's cash inflows and outflows in a given period. In the strictest sense, net cash flow refers to the change in a company's cash balance as detailed
The net current asset value per share (NCAVPS) equals a company's current assets divided by its number of shares outstanding.
Net debt is a company's total debt less cash on hand.
Net earnings represent the amount of sales revenue left over after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company'
For businesses, net income indicates how well a company is managing its profit (both earnings and expenses). For individuals, this number is defined more loosely: it can refer to your gross income net of
Net income after taxes (NIAT) is the number of sales dollars remaining after all operating expenses, interest, depreciation, taxes and preferred stock dividends have been deducted from a firm's total
Net interest cost (NIC) is a way to compute the average annual interest expense for a bond issue. 
Net interest income is the difference between interest received from assets and interest paid on liabilities. 
Net investment is the measure of a company's investment in capital assets, such as the property, plants, software and equipment that it uses for operations.
Net investment income is what an investment company receives in capital gains, dividends and interest payments, less administrative fees. 
A company reports a net loss when its expenses exceed revenues during a specific period of time. A net loss is the opposite of net income or net profit, which is when a organization's revenue is greater
Net margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's total
A net operating loss (NOL) is a negative profit for tax purposes. It usually occurs when a company's tax deductions exceed its taxable, making the company unprofitable.
Net operating profit after tax (NOPAT) is a measure of profit that excludes the costs and tax benefits of debt financing. put another way, NOPAT is earnings before interest and taxes (EBIT) adjusted for
Net operating profit less adjusted taxes (NOPLAT) is a measure of profit that includes the costs and tax benefits of debt financing. put another way, NOPLAT is earnings before interest and taxes (EBIT)
Net Present Value of Growth Opportunities (NPVGO) is the simply the present value of additional cash flows associated with an acquisition, net of the purchase price of the acquisition. Essentially, the
Net profit impacts the “take-home” profit of a company. It’s used to calculate net profit margin, which puts a value metric on a company. For this reason, net profit and net profit margin are useful for
Net profit margin is the percentage of revenue remaining after all operating expenses, interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a company's
Net receivables refers to the net amount of money remaining after deducting the provision for bad debt. It is primarily used in businesses that sell on credit.
A non-cash item is an entry on an income statement or cash flow statement correlating to expenses that are essentially just accounting entries rather than actual movements of cash.
A non-financial asset has a value based on its tangible characteristics and properties.
A non-operating asset is an asset that generates income, but is unrelated to the core operations of the company.
Obsolete inventory is inventory that is essentially useless and/or unsellable.
Off-balance-sheet financing is an accounting method whereby companies record certain assets or liabilities in a way that keeps them from appearing on the balance sheet.
Operating cash flow (OCF) is a measure of the cash generated or used by a company in a given period solely related to core operations. OCF is not the same as net income, which includes transactions that
Operating earnings is a measure of profitability that tells investors how much of revenue will eventually become profit for a company. The formula for calculating operating earnings is: Operating Earnings
An operating expense is a day-to-day expense incurred in the normal course of business. These expenses appear on the income statement.
Operating income is the amount of revenue left after subtracting operating expenses and cost of goods sold (COGS). Operating income is a measure of profitability directly related to a company’s operations
Operating income before depreciation and amortization (OIBDA) is a measure of the income generated or used by a company in a given period exclusive of the company's capital spending decisions and its tax
Operating margin is a measure of profitability. It indicates how much of each dollar of revenues is left over after both costs of goods sold and operating expenses are considered. The formula is for
Operating profit is a measure of income that tells investors how much of revenue will eventually become profit for a company.
Operating revenue is the sales associated with a company's core, day-to-day operations.
Ordinary income is not a capital gain, dividend or other income subject to special taxation.  
Pass-through income is sent from a pass-through entity to its owners. The income is not taxed at the corporate level -- it is only taxed at the individual owners' level. A pass-through entity is a special
Per share basis is a carefully scrutinized metric that is often used as a barometer to gauge a company's profitability per unit of shareholder ownership. In many cases, cash flow per share is one of the
Pre-tax operating income is a company's operating income before taxes. The formula for pre-tax operating income is: Pre-Tax Operating Income = Gross Revenue - Operating Expenses – Depreciation
Profit and loss (P&L) statements are one of the three financial statements used to assess a company’s performance and financial position. The two others are the balance sheet and the cash flow
Profit before tax measures a company's operating and non-operating profits before taxes are considered. It is the same as earnings before taxes.
A profit warning is a public communication from a company that its earnings will fall below expectations.
A qualified opinion is a cautionary written notice from an auditor stating that a company has not complied with generally accepted accounting principles (GAAP). 
A quarterly report is a set of financial statements issued by a company every three months. Public companies in the United States file this report via the Securities and Exchange Commission (SEC) Form 10-
Quick assets are assets that can be converted to cash quickly. Typically, they include cash, accounts receivable, marketable securities, and sometimes (not usually) inventory.
The receivables turnover ratio is a company's sales made on credit as a percentage of average accounts receivable. The formula for receivables turnover ratio is: Receivables Turnover = Net Credit Sales/
Recurring revenue is revenue that a company has reasonable assurance will occur at regular intervals in the future.  
A redundant asset is an asset that generates income, but is not linked to the fundamental operations of the company.
Retained capital is the sum of a company's profits, after dividend payments, since the company's inception. It can also be called retained earnings, earned surplus, or accumulated earnings.
Retained earnings are the sum of a company's profits, after dividend payments, since the company's inception. They are also called earned surplus, retained capital, or accumulated earnings.
Return on assets (ROA) is a financial ratio that can help you analyze the profitability of a company. ROA measures the amount of profit a company generates as a percentage relative to its total assets. 
Also referred to as “return on net assets”, return on equity (ROE) is a measurement of how effectively a business uses equity – or the money contributed by its stockholders and cumulative retained profits
Return on net assets is a metric which measures a company's financial performance with regard to fixed assets combined with working capital.
Revenue per employee measures the average revenue generated by each employee of a company. 
The rolling EPS is a variation of the earnings per share (EPS) metric which measures a company's profitability.
A rounding error is a mistake made when rounding a number up or down.  
Same-store sales measures the increase in revenue over a particular period for the same set of stores in each period.
Scrap value, also called salvage value, is the value of an asset after it has come to the end of its useful life.
SEC Form 10-Q is a quarterly performance report that public companies must submit to the SEC.
A securities analyst gathers and interprets data about securities, companies, corporate strategies, economies or financial markets. Securities analysts are sometimes called financial analysts, equity
Shareholders equity is a measure of how much of a company's net assets belong to the shareholders.
The statement of income is one of the three primary financial statements used to assess a company’s performance and financial position at the end of an accounting period (the two others being the balance
The statement of operations is one of the three primary financial statements used to assess a company’s performance and financial position (the two others being the balance sheet and the cash flow
Tangible book value per share (TBVPS) equals a company's net tangible assets divided by its number of shares outstanding. A tangible asset is anything that has commercial or exchange value and has a
Tangible common equity (TCE) is the common equity listed on the balance sheet minus preferred stock and intangible assets. 
Tax accounting focuses on the preparation, analysis and presentation of tax returns and tax payments.
Tax expense is the amount of tax owed in a given period. It appears on the income statement.
The times interest earned, also known as interest coverage ratio, is a measure of how well a company can meet its interest-payment obligations. The formula for times interest earned is: Earnings Before
The Tobin's Q ratio is a measure of firm assets in relation to a firm's market value. The formula for Tobin's Q is: Tobin's Q = Total Market Value of Firm / Total Asset Value of Firm
Trailing twelve months (TTM), sometimes referred to as last twelve months (LTM), is the 12-month interval of a company's financial performance that occurs before a designated point in time. 
A turnaround occurs when a company takes successful steps to correct a period of deteriorating financial performance.
A useful life is the number of years in which an asset can reliably produce benefits.
A Venn diagram is an illustration of common characteristics.
Voodoo accounting refers to any accounting practices that artificially inflate the profits reported on a company's financial statements.
Wage expense is the total compensation a company pays its employees during a particular accounting period.
Weighted average cost of capital (WACC) is the average rate of return a company expects to compensate all its different investors. The weights are the fraction of each financing source in the company's
Window dressing is a term that describes the act of making a company's performance, particularly its financial statements, look attractive.
Working capital is money that’s available to a company for its day-to-day operations. Simply put, working capital indicates a company's operating liquidity and efficiency.  A company's working capital
A write-down is the accounting term used to describe a reduction in the book value of an asset due to economic or fundamental changes in the asset. A write-down is the opposite of a write-up.
Year to date refers to the period extending from the beginning of the year to the present. In business, note that the beginning of the year is not always January 1; many companies have fiscal years