Knowledge base Β· 37 free Β· 3 Pro Β· 9 categories
Speak fluent finance.
Short reads on the numbers that run every earnings report, pitch deck, and broker app β revenue, EBITDA, P/E, free cash flow, and more. Each entry: a one-line definition, the formula, and a worked example. Explanation, never advice.
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Get membershipWhere did the money come from and where did it go?
- Income Statement
Revenue (Top Line)
Total money a company collected from selling its product or service β before any costs are taken out.
- Income Statement
Cost of Goods Sold (COGS)
What it cost the company to make or buy the products it sold during the period β raw materials, factory labour, packaging.
- Income Statement
Gross Profit
Revenue minus the direct cost of making the product. The first profit number on the income statement.
- Income Statement
Operating Expenses (OpEx)
Day-to-day costs of running the business that aren't directly tied to making the product β rent, marketing, salaries, R&D.
- Income Statement
Operating Income (EBIT)
Profit from the core business β gross profit minus operating expenses. Also called EBIT.
- Income Statement
EBITDA
Operating income before non-cash charges are taken out β a rough proxy for cash-generating power.
- Income Statement
Net Income (Bottom Line)
What's left after every cost β operating, interest, taxes, everything. The 'profit' headline.
- Income Statement
Earnings Per Share (EPS)
Net income divided by shares outstanding β the slice of profit attributable to each share.
Is the company actually making money?
- Profitability
Gross Margin
Gross profit as a percent of revenue β how much of every $100 of sales is left after the direct cost of making the product.
- Profitability
Operating Margin
Operating income as a percent of revenue β how much of every sale survives all operating costs.
- Profitability
Net Margin (Net Profit Margin)
Net income as a percent of revenue β the truly final slice of profit per dollar of sales.
- Profitability
Return on Equity (ROE)
Net income as a percent of shareholders' equity β how much profit the company generated on each dollar shareholders put in.
- Profitability
Return on Assets (ROA)
Net income as a percent of total assets β how productive the company is at squeezing profit from everything it owns.
- Profitability
Return on Invested Capital (ROIC)
Operating profit (after tax) as a percent of all the capital β debt and equity β invested in the business.
Is this priced fairly?
- Valuation
Market Capitalization
Share price Γ total shares outstanding. The market's implied price tag for the whole company's equity.
- Valuation
P/B Ratio (Price-to-Book)
Market cap divided by shareholders' equity β how much the market is paying compared to the accounting book value.
- Valuation
P/S Ratio (Price-to-Sales)
Market cap divided by revenue β useful for companies that aren't profitable yet but are growing fast.
- Valuation
PEG Ratio
P/E divided by the company's expected earnings-growth rate β adjusts the P/E for how fast profits are growing.
- Valuation
EV / EBITDA
Enterprise value divided by EBITDA β a debt-adjusted multiple commonly used in M&A and across capital structures.
Is real cash actually coming in?
- Cash Flow
Operating Cash Flow (OCF)
Real cash the core operations generated in a period β net income adjusted back to a cash basis.
- Cash Flow
Free Cash Flow (FCF)
Operating cash flow minus what the company spent on physical and intangible investment β the cash left over for everything else.
- Cash Flow
Capital Expenditures (Capex)
Cash spent on long-lived physical or intangible assets β factories, machines, vehicles, software platforms.
What does the company own and owe?
- Balance Sheet
Working Capital
Short-term assets minus short-term liabilities β the cash buffer the business has for its day-to-day operations.
- Balance Sheet
Current Ratio
Current assets divided by current liabilities β a quick read on whether short-term bills can be paid with short-term assets.
- Balance Sheet
Debt-to-Equity Ratio (D/E)
Total debt divided by shareholders' equity β how much the company funds itself with borrowing vs. with shareholder capital.
Is the business expanding?
How does the stock trade?
- Market ConceptsPro
IPOs in History
- Market ConceptsPro
CM Focused Model Portfolio: Final Review andΒ Rebalance
- Market Concepts
Beta (Ξ²)
How much the stock tends to move when the broader market moves β a measure of market-linked volatility.
- Market Concepts
Dividend Yield
Annual dividends per share divided by the share price β what an investor would receive in dividends per dollar invested, at today's price.
- Market Concepts
Trading Volume
The number of shares traded in a period β a measure of how actively the stock is changing hands.
- Market ConceptsPro
Price-to-Earnings Ratio
What does the chart say?
- Technical Indicators
Moving Average (SMA)
Average of the last N closing prices β a smoothing line that filters out day-to-day noise so the trend shows up.
- Technical Indicators
Exponential Moving Average (EMA)
A moving average that weights recent prices more heavily β reacts faster than a simple moving average.
- Technical Indicators
Relative Strength Index (RSI)
A momentum gauge from 0 to 100 β how much the recent gains weigh against the recent losses.
- Technical Indicators
MACD (Moving Average Convergence Divergence)
Twelve-day EMA minus 26-day EMA, with a 9-day EMA signal line β built to highlight changes in trend direction.
- Technical Indicators
Support & Resistance
Price levels the stock has tended to bounce up from (support) or pull back down from (resistance) in the past.
- Technical Indicators
Fibonacci Retracement
Horizontal lines drawn between a recent high and low at 23.6%, 38.2%, 50%, 61.8%, and 78.6% β areas chart-watchers expect price attention to return to.
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