Learn: stock and financial statement terms explained
In brief
StockFactsheet's learn section has 10 pages that explain terms used in company filings and how to read the filings themselves. Each term page gives a definition, the formula and a worked example: from a covered company's own statements where StockFactsheet publishes the measure, and from a fictional company where it does not. The pages are in English.
Reading financial statements
Margins and cash flow
Dividends
C
- Cost-to-income ratio
- The cost-to-income ratio is a bank's operating expenses divided by its operating income (total net revenue at US banks), the sum of net interest income and non-interest income.
F
- FCF cover
- FCF cover is free cash flow for a period divided by the dividends paid in that period, shown as a multiple.
- Free cash flow (FCF)
- Free cash flow (FCF) is cash from operations minus capital expenditure: the cash a business generates in a period after paying for property, plant and equipment.
G
- Gross margin
- Gross margin is gross profit as a percentage of revenue, where gross profit is revenue minus cost of revenue.
H
- How to read a 10-K
- To read a Form 10-K, a US company's annual report to the SEC, start with the cover and its fiscal year end.
- How to read a 10-Q
- To read a Form 10-Q, a US company's quarterly report to the SEC, start with the cover, which names the quarter.
L
- Loan-to-deposit ratio
- The loan-to-deposit ratio is a bank's loans, net of the allowance for credit losses, divided by its deposits.
N
- Net debt
- Net debt is total debt minus cash and short-term investments at a balance-sheet date.
- Net margin
- Net margin is net income attributable to the parent company's shareholders, as a percentage of revenue.
O
- Operating margin
- Operating margin is operating income as a percentage of revenue: the share of revenue left after the costs of running a business, before finance costs and tax.