Financial Metrics

Accounts Receivable Turnover Ratio: Measure of Collection Efficiency
The Accounts Receivable Turnover Ratio evaluates how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.
ACSOI: Adjusted Consolidated Segment Operating Income
An in-depth exploration of ACSOI, a non-standard accounting metric that capitalizes marketing and customer acquisition costs, its implications, historical context, and controversies.
Actual Profit: The Real Measure of Business Success
Understanding Actual Profit, its importance in financial assessment, calculation methods, related terms, and implications for businesses.
Adjusted Earnings: Comprehensive Overview
Adjusted earnings are a financial metric that presents a company's earnings by excluding certain expenses, gains, and losses. This measure aims to provide a clearer picture of the company's core operational performance.
Adjusted EPS: Understanding Adjusted Earnings Per Share
Adjusted EPS (Earnings Per Share) is a refined metric often used to provide a more accurate reflection of a company's profitability by excluding irregular or non-recurring items. Learn about its significance, calculations, and comparisons.
Annual Percentage Yield (APY): A Comprehensive Explanation
An in-depth analysis of Annual Percentage Yield (APY), its calculation, implications, historical context, and applications in finance and investments.
Annual Recurring Revenue (ARR): Insight into Financial Health
Annual Recurring Revenue (ARR) measures the money a company expects to earn from subscription-based products or services in a year, providing insight into long-term financial health.
Annual Recurring Revenue (ARR): Revenue Normalized Over a Year from Recurring Subscriptions
Annual Recurring Revenue (ARR) is a key performance metric for subscription-based businesses, representing the normalized revenue generated from recurring subscriptions on an annual basis.
Annualizing: Calculating Annual Figures Based on Shorter Periods
Annualizing refers to the process of converting short-term financial or economic data into an annual rate. This allows for easier comparison and analysis of performance over a full year.
ARPU (Average Revenue Per User): Analyzes Revenue Generation Relative to User Base
ARPU represents the average revenue generated per user, providing insights into the financial performance of businesses, especially those in telecommunications, media, and subscription-based industries.
ARR: Accounting Rate of Return
A comprehensive guide to the Accounting Rate of Return (ARR), including its historical context, calculation methods, importance, applicability, examples, related terms, comparisons, and more.
Basic Earnings Per Share: Understanding Company Earnings
An in-depth look at Basic Earnings Per Share (EPS), a key financial metric used to assess a company's profitability without considering the potential dilution from outstanding obligations.
Beta: Measures the Volatility of an Investment Relative to the Market
'Beta' is a financial metric that measures the volatility of an investment in comparison to the overall market. It is essential for understanding systematic risk and is widely used in portfolio management.
Bid-to-Cover Ratio: Demand Indicator in Auctions
The Bid-to-Cover Ratio is a critical measure of demand in auctions, representing the ratio of total bids received to the amount offered.
Book Value: Understanding Financial Metrics
Book value, often termed as net book value or net asset value, is a financial metric indicating the value of a company's total assets less intangible assets and liabilities. It provides an essential benchmark for investors, though it may not always reflect market conditions.
Book Value Per Share: Equity Available to Common Shareholders
An in-depth look at Book Value Per Share, a financial metric that represents the equity available to common shareholders divided by the number of outstanding shares.
Break-Up Value: Understanding Its Significance
Break-Up Value refers to the value of a company's assets on the assumption that the company will not continue in business, often determined per share. It is crucial for assessing the potential liquidation value of a company’s assets.
Breakeven Point: Understanding the No-Profit, No-Loss Threshold
An in-depth exploration of the breakeven point, including its definition, historical context, calculation methods, importance, and application in various fields.
Cash Conversion Cycle: Optimizing Financial Efficiency
Understanding the Cash Conversion Cycle (CCC) - a critical metric in assessing a company’s efficiency in managing its cash flow by integrating inventory management, accounts receivable, and accounts payable.
Cash Flow Coverage Ratio: Measuring a Company's Ability to Cover Its Liabilities
The Cash Flow Coverage Ratio is a financial metric that measures a company's ability to cover its liabilities, including long-term debt, using its operating cash flow.
Cash Flow Yield: A Broader Measure of Generated Cash Flow
Cash Flow Yield refers to a financial metric that assesses the cash generated by a company or investment vehicle relative to its size or market value. It provides insights into the efficiency and profitability of an entity in generating cash.
Cash Ratio: An Essential Liquidity Metric
A detailed analysis of the Cash Ratio, a liquidity metric that gauges an entity's ability to cover its total liabilities with cash or cash equivalents.
Comparative Amount: Overview and Significance in Financial Analysis
A comprehensive guide to understanding Comparative Amounts, their importance in financial analysis, methodologies for comparison, and applications in various fields including economics, finance, and accounting.
Convexity: A Measure of Curvature in Bond Pricing
Convexity is a measure that captures the curvature of the relationship between bond prices and yields, providing a second-order adjustment to duration and accounting for non-linear price changes due to interest rate variations.
Core Earnings: Earnings from Primary Business Activities
Core Earnings refer to the earnings obtained from a company's primary business activities, excluding the impact of one-time items or extraordinary events. This metric offers insight into the sustainable profitability of a business.
Covenants: Conditions Imposed by Lenders to Safeguard Their Loans
Covenants are conditions stipulated by lenders in a loan agreement to ensure that the borrowing party adheres to specific terms and maintains certain financial metrics to safeguard the lender's interests.
Cumulative Average Growth Rate (CAGR): Mean Annual Growth Rate of an Investment Over a Specified Period
The Cumulative Average Growth Rate (CAGR) is a crucial financial metric used to measure the mean annual growth rate of an investment over a specified period longer than one year, providing a smoothed annual rate that removes the volatility inherent in periodic growth rates.
Current Ratio: Measuring Business Liquidity
Understanding the current ratio, a financial metric that evaluates the liquidity of a business by comparing its current assets to current liabilities. Learn how to calculate and interpret this ratio, along with its significance and potential pitfalls.
Current-Cost Operating Profit: An In-depth Explanation
Understanding Current-Cost Operating Profit in current-cost accounting, incorporating cost of sales, depreciation, and working-capital adjustments to conventional accounting profit.
Customer Lifetime Value (CLTV): Total Revenue Expectation from a Single Customer
Customer Lifetime Value (CLTV) refers to the total revenue a business can expect from a single customer account over the duration of their relationship. This metric is crucial for determining the overall financial value that a customer brings to a company.
Day’s Range: Measuring Daily Price Variability
The term 'Day’s Range' refers to the difference between the highest and lowest prices of a security on a given trading day, providing an insight into its daily price volatility.
Days' Sales in Inventory: Evaluating Inventory Efficiency
Days' Sales in Inventory (DSI) is a key financial metric used to measure the average number of days it takes for a company to sell its inventory. This article delves into its significance, calculation methods, implications, and related financial terms.
Debt Servicing Ratio: A Key Financial Metric
Understanding the Debt Servicing Ratio, its importance, calculation, and application in finance, banking, and personal finance.
Debt to Equity (D/E) Ratio: Evaluating Financial Leverage
A comprehensive overview of the Debt to Equity (D/E) Ratio, its historical context, significance, mathematical formula, examples, related terms, and much more.
Debt-to-Equity Ratio (D/E): A Measure of Financial Leverage
An in-depth look at the Debt-to-Equity Ratio (D/E), a key financial metric indicating a company's financial leverage. This metric is calculated by dividing a company's total liabilities by its stockholders' equity.
Debt-to-Income Ratio: A Measure of Financial Health
The Debt-to-Income Ratio (DTI) is a key financial metric that measures a borrower's monthly debt payments relative to their gross monthly income, used to assess their ability to manage and repay debts.
Delta: Rate of Change of the Option's Price
'Delta' measures the rate of change of the option's price with respect to changes in the underlying asset's price. It is a key metric in options trading, reflecting the sensitivity of the option's price to movements in the underlying asset's price.
Diluted Earnings Per Share (Diluted EPS): Earnings Measurement Including Convertible Securities
Diluted Earnings Per Share (Diluted EPS) is a metric used in financial analysis to determine the earnings per share (EPS) of a company if all convertible securities such as options, warrants, and convertible bonds were exercised.
Dividend Coverage Ratio: Financial Metric Explained
A comprehensive exploration of the Dividend Coverage Ratio, including its definition, significance in financial analysis, calculations, examples, historical context, and related terms.
Dividends Per Share (DPS): Measuring Company Payouts
Dividends Per Share (DPS) refers to the sum of declared dividends issued by a company for every ordinary share outstanding. It is a key financial metric for evaluating the return on investment from owning shares in a company.
Duration: The Average Life of Discounted Cash Flows
An in-depth look at Duration, its significance in bond valuation, historical context, calculation, importance, examples, and related financial terms.
Earnings at Risk (EaR): Potential Risk to a Firm's Earnings
Earnings at Risk (EaR) is a financial metric that quantifies the potential risk to a firm's earnings due to changes in market conditions, interest rates, or other variables.
Earnings Per Share: Understanding EPS
Comprehensive coverage on Earnings Per Share (EPS) - a major determinant of share prices, including historical context, formulas, examples, and significance in investment.
Earnings Per Share (EPS): A Key Financial Metric
Earnings Per Share (EPS) is a critical measure of a company's profitability, indicating the profit attributable to each ordinary share. This metric is essential for investors to gauge the financial health and performance of a company.
Earnings Yield: A Key Financial Metric
The earnings yield is the ratio of the earnings per share of a company to the market price of the share, expressed as a percentage. This metric provides insight into the earnings power of a company in relation to its share price.
EBIT: Earnings Before Interest and Taxes
EBIT (Earnings Before Interest and Taxes) is a measure of a firm's profitability that excludes financial and tax expenses but includes both operating and non-operating income.
EBIT: Earnings Before Interest and Tax
Comprehensive guide on EBIT, its historical context, calculations, importance, applicability, examples, considerations, and related terms.
EBITDA Coverage Ratio: Financial Health Indicator
A comprehensive guide to the EBITDA Coverage Ratio, including historical context, importance, mathematical formulas, and real-world applications.
EBITDA Margin: Understanding Earnings Efficiency
EBITDA Margin measures a company's earnings before interest, taxes, depreciation, and amortization as a percentage of its revenue, providing insights into profitability and operational efficiency.
EBT: Earnings Before Taxes
Earnings Before Taxes (EBT) is a financial metric that indicates a company's profitability before accounting for taxes. It is used in finance and accounting to assess a company's operational performance.
EPS: Earnings Per Share
Comprehensive Guide to Understanding Earnings Per Share (EPS) Including Its Calculation, Importance, and Application in Finance
EPS (Earnings Per Share): A Measure of Profitability
Earnings Per Share (EPS) is a key financial metric indicating a company's profitability on a per-share basis, providing critical insights for investors and stakeholders.
Equity Ratio: Proportion of Total Assets Financed by Shareholders' Equity
Equity Ratio is a financial metric that measures the proportion of a company’s total assets financed by shareholders' equity, indicating the financial health and stability of a company.
EV/EBITDA: Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization
The EV/EBITDA ratio is a financial metric that assesses a company's enterprise value relative to its earnings before interest, taxes, depreciation, and amortization. It provides insights into valuation, profitability, and financial health, and is particularly useful for comparing companies with different capital structures.
EV/EBITDA Multiple: Enterprise Value over EBITDA
The EV/EBITDA Multiple is a commonly used valuation metric in financial analysis, which compares the enterprise value (EV) of a company to its earnings before interest, taxes, depreciation, and amortization (EBITDA).
Financial Stability Measures: Quantitative Measures for Assessing Financial Health
Financial Stability Measures are essential quantitative tools that help determine a company's or group's ability to meet its financial obligations. These measures include the gearing ratio and interest cover, among others.
Float-Adjusted Market Capitalization: Overview and Implications
Float-Adjusted Market Capitalization adjusts for shares not likely to trade by excluding restricted shares, ensuring a more accurate reflection of a company's market valuation.
Forward Earnings: Future Earnings Estimate Based on Current Data
An in-depth exploration of forward earnings, including its definition, historical context, applicability in finance, comparisons with other metrics, and key considerations.
Forward P/E Ratio: Understanding Future Valuations
The Forward P/E Ratio uses projected earnings per share to help investors value stocks based on forecasted earnings for the next 12 months. It is a vital metric for assessing potential future performance.
Free Cash Flow (FCF): Comprehensive Definition
Understanding Free Cash Flow (FCF), a crucial financial metric that represents the cash generated by a company after accounting for operating expenses and capital expenditures.
Fully Diluted EPS: Comprehensive Overview and Analysis
Fully Diluted Earnings Per Share (EPS) is a financial metric that provides a conservative estimate of a company's earnings per share, considering all possible sources of conversion into common stock, such as convertible securities, options, and warrants.
Funds From Operations (FFO): Measure of Cash Generated by a REIT
Funds From Operations (FFO) is a key financial metric used to evaluate the performance of Real Estate Investment Trusts (REITs) by measuring the cash generated from their operations.
Gamma (Γ): Measures the Rate of Change of Delta
Gamma (Γ) is a financial metric that measures the rate of change of delta with respect to the underlying asset's price. It is particularly significant in options trading to evaluate the sensitivity of delta.
Gearing: Understanding Debt-to-Equity Ratio
Exploration of the financial metric gearing, which measures the ratio of a company's debt to its equity, and its implications for financial stability and risk.
Gross Margin Return on Inventory Investment (GMROI): Measure of Inventory Profitability
Gross Margin Return on Inventory Investment (GMROI) is a key financial metric that evaluates the profitability of an entity's inventory by comparing the gross margin with the average inventory cost, providing insights into inventory efficiency.
Gross Operating Income (GOI): Total Income Before Deductions
Gross Operating Income (GOI) is the total income received from a property before deducting operating expenses, often used in real estate and property management.
Gross Profit Margin: Financial Health Assessment Metric
Gross Profit Margin is a key financial metric used to assess a company's core profitability by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS).
Gross Redemption Yield: Comprehensive Analysis
Explore Gross Redemption Yield: A detailed analysis covering its historical context, mathematical models, practical applications, and relevance in finance.
Home Affordability Index (HAI): A Broader Measure of Housing Affordability
The Home Affordability Index (HAI) offers a comprehensive assessment of housing affordability in a specific market, factoring in income, interest rates, and property prices.
Income vs. Cash Flow: Distinguishing Financial Metrics
Understand the distinction between income and cash flow, two critical financial metrics in business and finance, and their significance in assessing financial health.
Initial Yield: Gross Annual Income from an Asset Divided by Initial Cost
An in-depth exploration of Initial Yield, a crucial financial metric representing the gross annual income from an asset divided by its initial cost. Includes historical context, types, key events, explanations, and more.
Intrinsically Overvalued: Asset Prices Exceeding Fundamental Values
An in-depth exploration of the term 'Intrinsically Overvalued,' highlighting the significance of asset prices that exceed fundamental values based on metrics such as earnings, dividends, or other financial indicators.
Invested Capital: Key to Understanding Business Value
Invested Capital refers to the total amount of money that has been invested in a company by its shareholders and creditors, excluding excess cash. It is a crucial metric for assessing a company's financial performance and valuation.

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