Average Volume
Average volume is the total volume for the previous three months divided by the number of trading days of the previous three months. Compare this number to the daily volume to see if investor interest in the stock has increased or decreased.

Cash Flow
Net earnings before depreciation, amortization and non-cash charges. Sometimes called cash earnings, cash flow is calculated by adding depreciation to net earnings and subtracting preferred dividends. It is useful for determining how solvent a company is.

Common Equity
This is the amount of shareholders' equity attributable to common stock. Common stock equity generally consists of the following items: common stock at par value, capital surplus and retained earnings.

Current Assets
Assets that can be converted to cash within 12 months. These include cash, marketable securities, accounts receivable and inventory.

Current Liabilities
Obligations that must be paid within 12 months. These include accounts payable, short-term debt and interest on long-term debt.

Current Share Price
Most recent market price of the shares.

Debt/Total Capital
This ratio indicates how much financial leverage a company has. It is calculated by dividing total debt by total invested capital. Total debt is long- and short-term debt obligations, including bonds, notes payable, mortgages, lease obligations, and industrial revenue bonds. Total invested capital is the sum of common and preferred stock equity, long term debt, deferred income taxes, investment credits, and minority interest.

Depreciation
Depreciation is a non-cash charge that represents a reduction in the value of fixed assets due to wear, age, or obsolescence. This figure also includes amortization - or expensed portion - of leased property, intangibles, goodwill, and depletion.

Dividends
This is the cash payment, per share, made by the company to its shareholders usually every quarter. It is usually the part of profits that was not reinvested in the company. Dividends are taxed as income, not capital gains.

Forward P/E
This is calculated using the latest closing price of the stock divided by the latest earnings-per-share estimate as provided by Zacks Investment Research. In the first three quarters of a company's fiscal year we use the EPS estimate for the current fiscal year. Starting in the fourth quarter we use the next fiscal year estimate. The EPS estimate is the mean estimate of EPS growth, as derived from all polled estimates from Wall Street analysts.

Interest Coverage
This ratio measures a firm's ability to pay interest on its debt. It is calculated by dividing net earnings before interest and taxes by the interest expense on bonds and other contractual long-term debt. A low coverage ratio can indicate a company is over-leveraged. A high ratio indicates a margin of safety from default.

Inventory
The monetary value of a company's raw materials, work in process, supplies used in operations and finished goods. A company with excess inventory on its balance sheet could indicate a slow-down in sales and a lack of pricing power.

Liquidity Ratio
This ratio is a measure of how much dollar volume is required to move a stock's price up or down by one percentage point. A high ratio indicates a stock that requires relatively heavy trading to move its price. A low liquidity ratio indicates a stock that moves on relatively light volume. The ratio is calculated by adding the daily percentage changes of a stock's closing price for each trading day of the month. Then the total dollar volume for the month is divided by this total percentage change figure.

Long-Term Debt
Liabilities that are expected to paid after 12 months from the date of the last balance sheet. A company's long-term debt could be in the form of bank debt, mortgage bonds, debenture bonds or other obligations.

Market Value
The total market value of a company or stock. Also called market capitalization, it is calculated by multiplying the number of shares outstanding by the latest closing price of the stock. Generally speaking, small cap stocks have market values below $1 billion, while large-caps have values in excess of $5 billion. Mid-cap fall in between.

Net Earnings
Also known as the bottom line, this is the profit a company realizes after all costs, expenses and taxes have been paid. It is calculated by subtracting business, depreciation, interest and tax costs from revenues. Also called net income or net profit.

Net EPS
Net Earnings-Per-Share (EPS) is the portion of a companies net earnings allocated to each share of stock. It is calculated by dividing net earnings by common shares outstanding adjusted for the assumed conversion of all potentially dilutive securities. Securities having a dilutive effect may include convertible debentures, warrants, options and convertible preferred stock.

Net Margin
A company's profitability after all costs, expenses and taxes have been paid. The net margin is calculated by dividing net earnings by revenues and then multiplying by 100. The result is expressed as a percentage. It is used to measure operating efficiency at a company.

Operating Margin
A company's profitability before non-cash charges. The operating margin is calculated by dividing EBITDA (earnings before interest expense, taxes, depreciation and amortization) by revenues and then multiplying by 100. It is a measure of operating efficiency at a company.

PEG
The PEG ratio (price-to-earnings-growth) is calculated by dividing a stock's forward P/E by its projected three- to five-year annual EPS growth rate. It is used to find companies that are trading at a discount to their projected growth. A PEG ratio of less than one is considered a sign that a stock is a good value. Generally speaking, the higher the PEG, the pricier the stock.

Pre-Tax Margin
The profitability of a company before taxes are paid. The pre-tax margin is calculated by dividing pre-tax earnings by revenues and then multiplying by 100. The result is expressed as a percentage.

Price/Book
The ratio of a stock's latest closing price divided by its book value per share. Book value is the total assets of a company minus total liabilities. It is also called shareholders' equity. To get the book-value-per-share figure, shareholders' equity is divided by total shares outstanding.

Price/Sales
The ratio of a stock's latest closing price divided by revenue per share. (Sales are the same thing as revenues.) Revenue per share is determined by dividing revenue for the past 12 months by the number of shares outstanding. This ratio is particularly useful for companies that have little or no earnings.

Revenues
Revenues include all net sales of the company plus any other revenues associated with the main operations of the business (or those labeled as operating revenues). It does not include dividends, interest income or non-operating income.

Return on Assets (ROA)
The rate of investment return a company earns on its assets. ROA is determined by dividing net income from the past 12 months by total assets. The result is shown as a percentage. Unlike ROE, ROA ignores a company's liabilities.

Return on Equity (ROE)
The rate of investment return a company earns on shareholders' equity. An indicator of profitability, ROE is determined by dividing net income from the past 12 months by shareholders' equity. This statistic shows how effectively a company is using its investors' money. Contrast with ROA.

Shareholders' Equity
The difference between a company's total assets and total liabilities. Sometimes call net worth or book value, shareholders equity represents the shareholders' ownership of the company. See Price/Book ratio.

Shares Outstanding
Shares of common stock that are currently issued and owned by investors. (Includes stock options in the money).

Short Interest
A technical analysis tool used in evaluating market sentiment. The short interest ratio is calculated by dividing the total shares sold short of a stock by its average daily trading volume. Shorted shares are those borrowed and sold by investors who think the same shares will be available later for repurchase at a lower price. A short interest ratio of greater than 2.0 is often considered a sign that a stock's price will soon go higher. The rationale is that the large short position must be covered in the future, thereby creating buying pressure and driving the stock price up.

Total Assets
Total current assets plus total non-current assets. Non-current or long-term assets include property, plant and equipment, and other non-current receivables and investments.

Total Liabilities
Total current liabilities plus long-term debt and deferred income taxes.

Total Return
The price change plus dividend return for a stock over the last 12 months or three years (whichever is indicated).

Volume
The total number of shares traded of a stock during a specific time period. Unusually high volume days typically correspond with the announcement of company news, either positive or negative. In the absence of news, high volume can indicate institutional (or professional) buying and selling.

Yield
The annual rate of return on a stock as paid in dividends. Yield can calculated by dividing the latest dividend rate by the latest closing price and multiplying by 100. The latest dividend rate is the total dividends paid in the past 12 months. As a stock's price rises, its yield will go down. As a stock's price decreases, its yield will go up.