Gross margin is a company’s total sales revenue minus its cost of goods sold (COGS), divided by total sales revenue, expressed as a percentage. The…
Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is…
A deferred annuity is a type of annuity contract that delays income, installment or lump-sum payments until the investor elects to receive them. This type…
The discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve’s discount window.
Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger factory will produce…
Free cash flow (FCF) is a measure of a company’s financial performance, calculated as operating cash flow minus capital expenditures. FCF represents the cash that…
The quick ratio is an indicator of a company’s short-term liquidity, and measures a company’s ability to meet its short-term obligations with its most liquid…
Leverage is the investment strategy of using borrowed money: specifically, the use of various financial instruments or borrowed capital to increase the potential return of…
The Enterprise Value, or EV for short, is a measure of a company’s total value, often used as a more comprehensive alternative to equity market…
A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors, paid to a class of its shareholders.…