Glossary

    Accounts payable
    Accounts payable represents the amount of money a company owes to suppliers and vendors for goods or services received but not yet paid for.
    Asset turnover
    Asset turnover is a measure of a company's efficiency, calculated as revenue divided by total assets.
    Bloomberg composite code
    A code that identifies a composite of markets, e.g. a group of stock exchanges in one country or region. Defined by Bloomberg.
    Bloomberg exchange code
    A code that uniquely identifies a market, e.g. a stock exchange. Defined by Bloomberg.
    Capex
    Capex (capital expenditure) is the money spent by a company to acquire or upgrade physical assets such as property, buildings or equipment.
    Cash and cash equivalents
    Cash and cash equivalents are highly liquid assets that can be readily converted to cash, including cash on hand, checking accounts, and short-term investments with maturities of three months or less.
    Cash and short-term investments
    Cash and short-term investments include cash, cash equivalents, and marketable securities with maturities typically of one year or less.
    Cash at end of period
    Cash at end of period is the amount of cash and cash equivalents a company has at the end of a specific reporting period, typically shown on the cash flow statement.
    CEO
    Chief Executive Officer. The highest-ranking executive in a company, head of the board of directors or of the executive board.
    CIK
    Central Index Key. A code that uniquely identifies a company that is required to file with the SEC.
    Common stock
    Common stock represents ownership shares in a corporation, giving shareholders voting rights and a claim on the company's assets and earnings.
    Cost of goods sold
    Cost of goods sold is the total cost of manufacturing and delivering products or services to customers.
    Current assets
    Current assets are assets that are expected to be converted into cash or used up within one year or within the company's operating cycle, whichever is longer. This includes cash, accounts receivable, inventory, and other short-term assets.
    Current liabilities
    Current liabilities are obligations that are expected to be settled within one year or within the company's operating cycle, whichever is longer. This includes accounts payable, short-term debt, and other short-term obligations.
    Current ratio
    Current ratio is a measure of a company's liquidity, calculated as current assets divided by current liabilities. It indicates the company's ability to pay its short-term obligations with its short-term assets.
    Debt-to-equity ratio
    Debt-to-equity ratio is a measure of a company's financial leverage, calculated as total debt divided by total equity. It indicates the proportion of debt used to finance the company's assets relative to the equity provided by shareholders.
    Debt repayment
    Debt repayment refers to the principal payments made to reduce outstanding debt obligations, typically shown as a cash outflow in the financing section of the cash flow statement.
    Deferred tax liabilities
    Deferred tax liabilities represent taxes owed in future periods due to temporary differences between book and tax accounting methods.
    D&A
    Depreciation and amortization are accounting methods of allocating the cost of tangible and intangible assets over time.
    Dividend payout ratio
    Dividend payout ratio is the percentage of a company's earnings that is paid out as dividends to shareholders.
    EBIT
    EBIT (LBIT) is a measure of a company's operating performance, calculated as earnings (losses) before interest and taxes.
    EBIT margin
    EBIT margin is the percentage of revenue that exceeds the cost of goods sold, operating expenses, depreciation and amortization.
    EBITDA
    EBITDA (LBITDA) is a measure of a company's operating performance, calculated as earnings (losses) before interest, taxes, depreciation and amortization.
    EBITDA margin
    EBITDA margin is the percentage of revenue that exceeds the cost of goods sold and operating expenses.
    EBT
    EBT (LBT) is a measure of a company's operating performance, calculated as earnings (losses) before taxes.
    EBT margin
    EBT margin is the percentage of revenue that exceeds the cost of goods sold, operating expenses, depreciation, amortization and interest.
    Efficiency ratio
    Efficiency ratio is a measure of a company's efficiency, calculated as operating expenses divided by revenue.
    Enterprise value
    Enterprise value is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. It is calculated as market capitalization plus debt, minority interest, and preferred shares, minus total cash and cash equivalents.
    Ex-dividend date
    The ex-dividend date is the date on which a stock begins trading without the right to receive the next dividend payment. It is typically set one business day before the record date.
    FCF margin
    Free cash flow margin is the a company's free cash flow as a percentage of revenue.
    FCF yield
    Free cash flow yield is a valuation ratio that compares a company's stock price to its free cash flow per share.
    Foreign exchange effects
    Foreign exchange effects represent the impact of currency fluctuations on a company's cash flows when operations are conducted in multiple currencies.
    Free cash flow
    Free cash flow is the amount by which a business's operating cash flow exceeds its working capital needs and capex. It is that portion of cash flow that can be extracted from a company and distributed to creditors and securities holders without causing issues in its operations.
    Goodwill

    Goodwill is an intangible asset that represents the excess of the purchase price over the fair value of identifiable assets in an acquisition. It reflects the value of a company's brand, customer relationships, and other intangible factors that contribute to its earning power. Goodwill is recorded on the balance sheet when a company acquires another company and the purchase price differs from the fair value of the acquired assets and liabilities. It can be negative (badwill) if the purchase price is less than the fair value of the acquired assets and liabilities. In this case, it reflects potential issues with the acquired company that lead to a lower purchase price.

    In the IFRS and US-GAAP frameworks, goodwill is not amortized but is subject to annual impairment testing. If the carrying value of goodwill exceeds its fair value, an impairment loss is recognized, reducing the carrying value of goodwill on the balance sheet.

    Gross margin
    Gross margin is the percentage of revenue that exceeds the cost of goods sold.
    Gross profit
    Gross profit is the net revenue minus the cost of goods sold.
    IFRS
    International Financial Reporting Standards. A set of accounting standards developed by the International Accounting Standards Board (IASB) that provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. Widely used in the EU and other countries, but not in the US, where US-GAAP is used.
    Intangible assets
    Intangible assets are non-physical assets that provide value to a company, such as patents, trademarks, copyrights, and brand recognition.
    Interest expenses
    The interest expense is the money a company pays in interest on its total debt. This figure only includes payments by the company. If the company also acts as a lender and receives interest on its cash and cash equivalents, this income is not included in the interest expenses.
    Inventory
    Inventory represents goods and materials held by a company for sale, production, or use in the normal course of business.
    IRR

    Internal Rate of Return. This is the effective compounded annual interest rate of an investment. It provides a neutral basis for comparing the performance of investments over different periods.

    For example, consider an investment in a stock that initially cost $100, pays an annual dividend of $1, and after three years is worth $125. The IRR is the interest rate that a hypothetical bank account would need to pay to realize the same performance, meaning after depositing $100, and withdrawing $1 each year, finally $125 should remain after three years. In this case, the IRR is approximately 8.7%.

    For a negative example, consider an investment in two shares that together cost $100 and pay no dividend. After two years, one share is sold for $45. After three years, the remaining share is worth $40. The IRR is the negative interest rate that a hypothetical bank account would have to charge realize the same loss, meaning after depositing $100 and withdrawing $45 after two years, finally $40 should remain after three years.In this case, the IRR is approximately -6.5%.

    ISIN
    International Securities Identification Number. A code that uniquely identifies a security.
    Issuance of common stock
    Issuance of common stock refers to the sale of new shares by a company to raise capital, typically shown as a cash inflow in the financing section of the cash flow statement.
    LEI
    Legal Entity Identifier. A code that uniquely identifies a legal entity participating in financial transactions.
    Long-term debt
    Long-term debt consists of borrowings and obligations that are due more than one year from the balance sheet date.
    Long-term investments
    Long-term investments are assets that a company intends to hold for more than one year, such as bonds, stocks, or real estate.
    Market capitalization
    Market capitalization is the total value of a company's outstanding shares of stock. It is calculated by multiplying the number of outstanding shares by the current share price. If a company has multiple classes of stock, the market capitalization of the company is the sum of the market capitalization of each class of stock.
    MIC
    Market Identifier Code. A code that uniquely identifies a market, e.g. a stock exchange. Defined by ISO 10383.
    Minority interest
    Minority interest refers to the portion of a subsidiary company’s equity that is not owned by the parent company. It is reported on the consolidated balance sheet of the parent company.
    Net change in cash
    Net change in cash represents the total change in a company's cash position over a specific period, calculated as the sum of operating, investing, and financing cash flows plus foreign exchange effects.
    Net deferred tax
    Net deferred tax represents the difference between deferred tax assets and deferred tax liabilities, reflecting timing differences between financial and tax reporting.
    Net financing cash flow
    Net financing cash flow represents the total cash flows from financing activities, including debt issuance and repayment, equity transactions, and dividend payments.
    Net income
    Net income is the total amount of income generated by a company after deducting all expenses.
    Net investing cash flow
    Net investing cash flow represents the total cash flows from investing activities, including capital expenditures, acquisitions, and investment transactions.
    Net margin
    Net margin is the percentage of revenue that exceeds all expenses including taxes.
    Net revenue
    Net sales or revenue is the total amount of income generated by a company after deducting sales returns, allowances and discounts.
    Non-cash items
    Non-cash items are expenses or income recognized in financial statements that do not involve actual cash transactions, such as depreciation, amortization, and stock-based compensation.
    Operating cash flow
    Operating cash flow represents the cash generated or used by a company's core business operations, excluding investing and financing activities.
    P/B ratio
    The price-to-book ratio is a valuation ratio that compares a company's stock price to its book value per share.
    P/E ratio
    The price-to-earnings ratio is a valuation ratio that compares a company's stock price to its earnings per share.
    PermID
    PermID is a unique identifier for a financial instrument, person, or organization. Invented by Thomson Reuters and now used by London Stock Exchange Group Data & Analytics.
    P/FCF ratio
    The price-to-free-cash-flow ratio is a valuation ratio that compares a company's stock price to its free cash flow per share.
    Preferred shares
    Preferred shares are a class of ownership in a company that has a higher claim on assets and earnings than common stock. They typically pay fixed dividends and have priority over common shares in the event of liquidation.
    Property, plant & equipment
    Property, plant & equipment represents the tangible, long-term assets used in business operations, such as land, buildings, machinery, and equipment. These assets are typically recorded at historical cost and depreciated over their useful lives.
    P/S ratio
    The price-to-sales ratio is a valuation ratio that compares a company's stock price to its revenue per share.
    R&D expenses
    R&D expenses are the costs associated with research and development activities.
    Record date
    The record date is the date on which a company determines which shareholders are entitled to receive a dividend or distribution. In most countries, shares have a settlement cycle of two business days (T+2), therefore investors who wish to receive the dividend must purchase the shares two days before the record date. Therefore the ex-dividend date is typically set one business day before the record date.
    Retained earnings
    Retained earnings represent the cumulative net income of a company that has been retained rather than distributed to shareholders as dividends.
    RIC
    Refinitiv Identification Code (previously Reuters Instrument Code). A code that uniquely identifies a financial instrument, including a suffix that identifies the exchange the instrument is traded on. Invented by Reuters, now used by LSEG Data & Analytics.
    ROA
    Return on assets is a measure of a company's profitability, calculated as net income divided by total assets.
    ROE
    Return on equity is a measure of a company's profitability, calculated as net income divided by total equity.
    SEC
    Securities and Exchange Commission. The US government agency responsible for enforcing the federal securities laws and regulating the securities industry.
    SG&A expenses
    SG&A expenses are the costs associated with selling, general and administrative activities. This includes marketing, advertising, accounting, legal, and other administrative expenses.
    Short-term debt
    Short-term debt consists of borrowings and obligations that are due within one year from the balance sheet date.
    Tax expenses
    Tax expenses are the taxes paid by a company. This is usually a negative figure, but may be positive if the company receives a tax refund or a tax credit that it expects to use in the future. It may also be positive if the company changed its future income expectation and now expects to be able to use a tax credit that it previously expected to expire unused.
    Total assets
    Total assets is the sum of all resources owned or controlled by a company. In the case of banks and investment management companies, the total assets include the assets under management.
    Total cash dividends paid
    Total cash dividends paid represents the total amount of cash distributed to shareholders as dividends during a specific period.
    Total current assets
    Total current assets represent the sum of all assets that are expected to be converted to cash or used within one year, including cash, receivables, and inventory.
    Total current liabilities
    Total current liabilities represent the sum of all obligations that are due within one year, including accounts payable, short-term debt, and other current liabilities.
    Total debt
    Total debt is the sum of all short-term and long-term debt obligations of a company. It includes loans, bonds, and other forms of debt that the company is obligated to repay.
    Total equity
    Total equity is the total value of a company's assets minus its total liabilities.
    Total liabilities
    Total liabilities are the sum of all debts and obligations owed by a company. It is the sum of the total debt and other liabilities such as accounts payable, accrued expenses, and deferred revenue.
    Total assets is the sum of all resources owned or controlled by a company. In the case of banks and investment management companies, the total assets include the assets under management.
    Total liabilities and shareholders' equity
    Total liabilities and shareholders' equity represents the sum of all liabilities and equity, which must equal total assets according to the fundamental accounting equation.
    Total non-current assets
    Total non-current assets represent the sum of all assets that are expected to provide benefits beyond one year, including property, plant & equipment, intangible assets, and long-term investments.
    Total non-current liabilities
    Total non-current liabilities represent the sum of all obligations that are due beyond one year, including long-term debt, deferred tax liabilities, and other long-term obligations.
    Total receivables
    Total receivables represent the total amount of money owed to a company by customers and other parties for goods or services provided.
    US-GAAP
    United States Generally Accepted Accounting Principles. A set of accounting standards used in the United States, developed by the Financial Accounting Standards Board (FASB). US-GAAP is used by public companies in the US for financial reporting, while IFRS is used in many other countries.
    Working capital
    Working capital is the difference between a company's current assets and current liabilities. A positive working capital indicates that a company can cover its short-term obligations and has additional capital for short-term investments or operating expenses. A negative working capital may indicate that a company can only meet its short-term obligations by taking on more debt. A negative working capital can also be a sign of high efficiency if the company sells products quickly and has shorter payment terms from its customers than it has with its suppliers.

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