Knowledge base · 6 free · 9 categories
Speak fluent finance.
Short reads on the numbers that run every earnings report, pitch deck, and broker app — revenue, EBITDA, P/E, free cash flow, and more. Each entry: a one-line definition, the formula, and a worked example. Explanation, never advice.
Is the company actually making money?
- Profitability
Gross Margin
Gross profit as a percent of revenue — 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 — how much of every sale survives all operating costs.
- Profitability
Net Margin (Net Profit Margin)
Net income as a percent of revenue — the truly final slice of profit per dollar of sales.
- Profitability
Return on Equity (ROE)
Net income as a percent of shareholders' equity — 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 — 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 — debt and equity — invested in the business.