Unit: Millions of Dollars
Accumulated depreciation is the total carrying value on the balance sheet of past depreciation expenses.
The total of cash and short-term investments as of the last reported quarter.
The cash ratio is a liquidity ratio that measures a company’s ability to pay off short-term liabilities with highly liquid assets. This the most conservative measure of a company’s liquidity position and a ratio of at least 0.5 to one is often preferred. A ratio above 1 means that the company will be able to pay off its current liabilities with cash and cash equivalents but excess cash may also be inefficient.
The sum of cash and short term investments as a percent of total assets.
Cash and short-term investments as a percent of market capitalization. Financial institutions report cash differently than other companies so this metric should only be used to compare similar businesses.
Cash divided by Total Assets is a liquidity measurement for the portion of a company’s assets held in cash or marketable securities. Although a high ratio may indicate some degree of safety from a creditor’s viewpoint, excess amounts of cash may be viewed as inefficient.
The assets that could be converted to cash in less than one year. These are assets that can be easily liquidated and are a source of funds for day-to-day operations.
The sum of all money owed by a company and due within one year. It is also called payables or current debt.
A measures of the company’s ability to pay short-term obligations, calculated as current assets divided by current liabilities. As a rule of thumb, safe investments have a current ratio above 2.
An efficiency measure estimating how many days it might take to sell the current inventory. This is effectively the number of days an item is held as inventory before it is sold.
An efficiency measure showing the average number of days to collect revenue after a sale has been made.
This broad measure of financial leverage compares a companies debt to its assets. Both long term and short term debt is included, as are intangible assets.
Debt/Equity is sometimes called D/E, Financial Leverage, or Gearing and it is the ratio of Total Debt to Equity. A high ratio indicates a risky business and a low ratio makes a buyout more likely.
Total Debt divided by the difference between Current Assets and Current Liabilities
Total assets minus total liabilities, preferred stock and intangibles (such as goodwill). Equity is commonly used as an indicator of the company’s net worth or book value.
Gross PP&E is the sum of assets that are either Property, Plant or Equipment. These assets are usually critical to the company’s operations and not easily liquidated. The gross value is not adjusted for accumulated depreciation.
The sum of non-monetary assets, such as goodwill, client lists, and brand names.
Intangibles as a percent of total assets shows how great a portion of the company’s value is in hard-to-value, non-physical assets.
Interest Coverage calculates a company’s ability to make payments on debt. It is computed as earnings before interest and taxes divided by interest expense.
The estimated value of all unsold inventory.
Inventory as a percent of current assets is an efficiency measure, the lower the better.
The sum of all a company’s loans or financial obligations lasting more than one year, as stated in the last reported quarter.
This variation of the traditional Debt / Equity Ratio computes the proportion of a company’s long term debt divided by its available capital. Capital includes both equity and debt.
Total Debt minus Cash.
Net PP&E is the sum of assets that are either Property, Plant or Equipment. These assets are usually critical to the company’s operations and not easily liquidated. The value is net of the accumulated depreciation on these assets.
The percent of total assets that are either Property, Plant or Equipment. These assets are usually critical to the company’s operations and not easily liquidated.
Cash and short-term investments minus total debt as a percent of market capitalization. Financial institutions report cash differently than other companies so this metric should only be used to compare similar businesses.
The total financial obligations that are not due in the current fiscal year.
Quick ratio is also called acid-test or liquid ratio and it measures a company’s ability to meet its short-term obligations with its most liquid assets. It is calculated as (Current Assets – Inventory) / Current Liabilities. As a rule of thumb, safe investments have a quick ratio above 1.
The value of all payments due to the company for goods sold.
Receivables as a percent of current assets is an efficiency measure, the lower the better.
The Sloan Ratio identifies companies with high accrual ratios, or high non-cash income or expenses. Sloan found that over a 40 year period buying low accrual companies and shorting high accrual one generated a return of more than twice the S&P 500. The ratio is computed by subtracting operating and investment cash flow from net income and dividing by total assets. If the result is between -10% and 10% the company is in the safe zone but if the result is greater than 25% or less than -25% earnings are likely to be made up of accruals. Accruals that continue accross several quarters are a signal for doctored earnings.
The solvency ratio is a measure of whether a company generates enough cash to stay solvent. It is calculated by summing net income and depreciation and dividing by current liabilities and long term debt. A value above 20% is considered good.
The company’s total net worth or book value minus certain intangible assets that would have little or no value in the event of liquidation.
The sum of current and long-term assets owned by this company.
Total Debt is the sum of short-term and long-term debt.
The sum of this company’s liabilities and long-term debt.
The total of all liabilities and shareholders’ equity.
The total long term assets of the company, expected to be kept for more than a year.
The portion of shares that a company keeps in their own treasury. Treasury stock may have come from a repurchase or buyback from shareholders or it may have never been issued to the public in the first place. These shares don’t pay dividends, have no voting rights, and are not included in shares outstanding calculations.
This difference between Current Assets and Current Liabilities is the capital used in day-to-day operations.