A term used to describe the price of a security when it is trading above its face value. A security usually trades at above par when its income distributions…

A stringent test that indicates whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory. The acid-test…

A technical analysis tool that represents the total difference between the number of advancing and declining security prices. This index is considered…

A financial performance ratio, calculated by dividing net income after taxes by net sales. A company's after-tax profit margin is important because it…

Interest that is calculated under the assumption that any interest paid is combined with the original balance and the next interest payment will be based…

The effective annual rate of return taking into account the effect of compounding interest. APY is calculated by: The resultant percentage number assumes…

A term describing the effects of securities retirement, securities conversion or corporate actions (such as acquisitions made through the issuance of…

An index of securities that uses an arithmetic sum to determine changes in the index without taking the relative size of the securities into account…

A short-term technical analysis breadth indicator calculated as the following: TRIN stands for TRaders' INdex. A ratio of 1 means the market is in balance…

A test that determines a company's ability to cover debt obligations with its assets after all liabilities have been satisfied. It is calculated as the…

1. A representative measure of a range of prices that is calculated by taking the sum of the values and dividing it by the number of prices being examined…

A ratio that indicates what portion of a person's monthly income goes toward paying debts. Total monthly debt includes expenses such as mortgage payments…

A statistical measure used to measure an investment manager's ability to meet or beat an index. Batting average is calculated by dividing the number of…

The ratio of a company's gross profits to operating expenses. This ratio is used as an indicator of a company's profits in a given period of time. A ratio…

An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what…

A metric used to measure the rate at which potential output levels are being met or used. Displayed as a percentage, capacity utilization levels give…

A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities. The general idea behind…

A method of determining the value of an organization by calculating the net present value (NPV) of expected future profits or cash flows. The capitalization…

The current value of marketable securities and cash, divided by the company's current liabilities. Also known as the cash ratio, the cash asset ratio…

A measure, used in Canada, that refers to the amount of cash payments made to individual unitholders of a specified income trust, as designated by the…

A measure of financial performance that looks at the cash flow generated by a company on a per share basis. This differs from basic earnings per share…

A measure of financial performance that looks at the company's ability to generate cash flow through its operations. It is calculated by adding back non-cash…

A measure of a firm's financial strength, calculated as follows:Many analysts, as well as some of the greatest investors of all time, place more weight…

A method of valuation that compares a company's cash return to its equity. Developed by the Deutsche Bank's global valuation group, CROCI provides analysts…

A statistical measure of the dispersion of data points in a data series around the mean. It is calculated as follows: The coefficient of variation represents…

A measure of profitability used by an insurance company to indicate how well it is performing in its daily operations. A ratio below 100% indicates that…

An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold.  The Commodity Channel Index…

The right that a beneficiary has to exchange one type of income for another. Commutation is offered to beneficiaries of annuities and life insurance policies…

The present value of the future series of cash flows required to fulfill a pension obligation. Commuted value is therefore the net present value of a…

The year-over-year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root…

In financial theory, the return that stockholders require for a company. The traditional formula for cost of equity (COE) is the dividend capitalization…

The aggregate amount that an investment has gained or lost over time, independent of the period of time involved.  Presented as a percentage, the cumulative…

A measurement of a company's issued shares that are currently shorted, expressed as the number of days required to close out all of the short positions…

An accounting and finance term used to describe how many days it will take for a company to convert its working capital into revenue. The faster a company…

A ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with…

A measurement of a company's financial leverage, calculated as the company's debt divided by its total capital. Debt includes all short-term and long…

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity…

An efficiency ratio that measures how many days a company can operate without having to access non-current (long-term) assets. The defensive interval…

A leverage ratio that summarizes the combined effect the degree of operating leverage (DOL), and the degree of financial leverage has on earnings per…

A leverage ratio summarizing the affect a particular amount of financial leverage has on a company's earnings per share (EPS). Financial leverage involves…

A type of leverage ratio summarizing the effect a particular amount of operating leverage has on a company's earnings before interest and taxes (EBIT)…

A capital budgeting procedure used to determine the profitability of a project. In contrast to an NPV analysis, which provides the overall value of an…

A procedure for valuing the price of a stock by using predicted dividends and discounting them back to present value. The idea is that if the value obtained…

The percentage of earnings paid to shareholders in dividends.Calculated as: The payout ratio provides an idea of how well earnings support the dividend…

A statistical measure of an investment manager's overall performance in down-markets. The down-market capture ratio is used to evaluate how well or poorly…

An indicator of a company's financial performance which is calculated in the following EBITDA calculation: EBITDA is essentially Net Income with interest…

A non-GAAP indicator of a company's financial performance calculated as:Depending on the company and the goal of the user, the indicator can either include…

An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: Consider a stated annual rate…

A common valuation measure used outside North America, particularly in the insurance industry. It is calculated by adding the adjusted net asset value…

A macroeconomic statistic that takes the ratio of the total working age of the labor force currently employed to the total working age population of a…