Glossary

Investing and Financial Analysis Book of Reference

Ratios

• Capitalization ratio
• Cash flow to debt ratio
• Cash ratio
• Current ratio
• Debt coverage ratio
• Debt ratio
• Debt to equity ratio (D/E)
• Dividend payout ratio
• EV/EBIT ratio
• EV/EBITDA ratio
• EV/sales ratio
• Equity multiplier
• Interest coverage ratio
• Inventory turnover ratio
• Net debt/EBITDA ratio
• Net working capital
• Price to book ratio (P/B)
• Price to earnings ratio (P/E)
• Price to sales ratio (P/S)
• Quick ratio
• Retention ratio
• Return on assets (ROA)
• Return on capital employed (ROCE)
• Return on equity (ROE)
• Return on invested capital (ROIC)
• Return on sales (ROS)
• Solvency ratio

Metrics

• Book value per share
• Dividend per share
• Dividend yield
• Earnings per share (EPS)
• Enterprise value
• Inflation rate
• Net debt
• Net profit margin
• Shareholders equity

Financial analysis

• Capital gains yield
• Contribution margin
• Degree of operating leverage
• EBIT
• EBITDA
• EBITDA margin
• Free cash flow
• Free cash flow per share (FCF)
• Gross margin
• Market capitalization
• Operating (EBIT) margin
• Payback period
• Present value
• Real rate of return
• Revenue
• Risk premium
• Shares outstanding
• Tangible book value per share (TBVPS)
• Total assets
• Total debt
• Total liabilities
• Total stock return
• Yield to maturity

Market Analysis

• EBITDA multiples by industry
• Profit margin by industry
• PE ratio by industry
• PS ratio (Revenue Multiple) by industry
• Net debt to EBITDA ratio by industry
• Debt to equity ratio by industry
• Current ratio by industry
• EBITDA margin by industry
• Quick ratio by industry
• Return on Assets (ROA) by industry
• Return on Equity (ROE) by industry
• Return on Invested Capital (ROIC) by industry
• Buffett indicator