MARKETS / GLOSSARY
Glossary
The 18 figures this site publishes — what each one means, how it is computed, and what it leaves out.
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Every metric
18 definitions
Revenueas reported in the income statementNet incomerevenue − all costs, expenses, interest and taxesNet marginnet income ÷ revenueGross margin(revenue − cost of revenue) ÷ revenueOperating marginoperating income ÷ revenueReturn on equitynet income ÷ average shareholders' equityReturn on assetsnet income ÷ average total assetsFree cash flowcash from operations − capital expenditureEBITDAoperating income + depreciation and amortisationDiluted earnings per sharenet income attributable to common shareholders ÷ diluted sharesDividend per sharedividends declared ÷ shares outstandingPayout ratiodividends paid ÷ net incomeDividend coverageearnings per share ÷ dividend per shareDividend growth streakconsecutive fiscal years in which the dividend per share roseNet debt to equity(total debt − cash) ÷ shareholders' equityCurrent ratiocurrent assets ÷ current liabilitiesShareholder returndividends paid + net share buybacksShareholders' equitytotal assets − total liabilities
Each page states the formula, the unit and the blind spot. The last one is the part most glossaries skip, and the reason a number can be arithmetically correct and still mislead.