Glossary
| Term | Definition |
|---|---|
| Gross Margin | Gross Profit ÷ Revenue. |
| Operating Margin | EBIT ÷ Revenue. |
| Net Margin | Net Income ÷ Revenue. |
| One-Off Item | A non-recurring gain or loss that distorts the true picture of operating performance. |
| Current Ratio | Current Assets ÷ Current Liabilities. |
| Quick Ratio | (Current Assets − Inventory) ÷ Current Liabilities. |
| Debt-to-Equity | Total Debt ÷ Total Equity. |
| Earnings Quality | How well accounting net income converts into actual cash flow. |
| ROE (Return on Equity) | Net Income ÷ Total Equity. |
| Common-Size Analysis | Expressing every line item as a percentage of revenue (or assets) to make comparisons easier. |