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General Finance Keyword

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Submitted By canecane
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INCOME STATEMENT
REVENUE, $ The amount of money the company made last quarter from business activities. Those activities are usually sales of goods and services but can vary from business to business and industry to industry.
TOTAL EXPENSES, $ The amount of costs the company had last quarter. Expenses are cash outflows and can be basically anything a company pays for, including salaries, inventory, machinery etc...
EBITDA, $ EBITDA stands for Earnings before Interest, Taxes, Depreciation and Amortization. EBITDA is a useful tool when comparing companies in different industries where interest, taxes, depreciation and appreciation vary greatly.
NET INCOME, $ Net Income is revenue minus all expenses and can also be known as "profit" or "earnings
RATIO
BETA, x.xx The amount a stock varies from the rest of the market. A score of 1 means the stock moves exactly the same as the market, while a score of 2 means it will double the market's gains and losses or, in other words, is twice as volatile.
CURRENT RATIO, x.xx The current ratio is the company's ability to pay its short-term expenses. It is calculated by dividing current assets by current liabilities. Current implies assets and liabilities that are due within 12 months
QUICK RATIO, x.xx The quick ratio is the company's ability to pay its extremely short-term expenses. It is calculated by dividing current assets less inventory by current liabilities. The reason inventory is excluded is because it takes longer to liquidate.
PRICE/BOOK, $ The company's price relative to the value of its assets. It is calculated by dividing the company's stock price by its assets
BALANCE SHEET
ASSETS, $ The total value of all of the property the company possesses. Assets can include land, inventory, accounts receivables etc...
LIABILITIES, $ Liabilities are the total value of all costs a company is responsible for paying but

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