Income Statement

Revenue

Revenue, also referred to as sales or sales revenue, represents the total amount of money a company earns from its primary business operations. It includes all the income generated by selling goods or services to customers, excluding any discounts, returns, or allowances. Revenue is typically reported over a specific period, such as a fiscal quarter or year.

Net Income

Net income, also known as net profit or net earnings, is the remaining profit after deducting all expenses, taxes, and interest from a company's total revenue. It represents the profitability of a business after accounting for all costs associated with generating revenue. Net income is typically reported over a specific period, such as a fiscal quarter or year.

Balance Sheet

Liabilities

Liabilities represent the obligations or debts that a company owes to external parties. They can be categorized into two main types:

• Current Liabilities: These are obligations that are expected to be settled within a short period, usually one year or less. Examples of current liabilities include accounts payable (money owed to suppliers), short-term loans, accrued expenses, and current portions of long-term debt.
• Long-term Liabilities: These are obligations that are not due for settlement within the current year. Long-term liabilities typically extend beyond one year and may include long-term loans, bonds, lease obligations, and deferred tax liabilities.

Liabilities reflect the company's financial obligations and may provide insights into its ability to meet its payment obligations in the short and long term.

Assets

Assets represent the economic resources owned by a company, which have measurable value and the potential to generate future economic benefits. They are categorized into two primary types:

• Current Assets: These are assets that are expected to be converted into cash or used up within one year or the length of a company’s operating cycle, whichever is longer. Examples of current assets include cash and cash equivalents, accounts receivable (money owed to the company by customers), inventory, and short-term investments.
• Long-term Assets: Also known as non-current assets, these are resources that are not expected to be converted into cash within the current year. Long-term assets typically have a useful life longer than one year and may include property, plant, and equipment (PP&E), intangible assets (such as patents or trademarks), investments in other companies, and long-term investments.

Assets represent the company's economic resources, and many provide insight into its financial strength, value, and capacity to generate future cash flows.

Price and Volume

Volume 10-Day Average

The daily average of the cumulative trading volume for the last 10 days.

Market Capitalization (Market Cap)

Market capitalization, or market cap for short, refers to the total market value of a company. It is calculated by multiplying the current market price by the total number of shares outstanding. The share price of a stock does not represent a company's size. Instead, the market cap allows investors to compare the sizes of different companies. Market Cap is one of many metrics you can find on the tastytrade trading platform to help with your research.

Companies are often grouped by their market cap when evaluating them to other industry peers or the broader market. They can fall under a specific category based on their total value or market capitalization. Generally, micro and small-cap stocks can exhibit more price volatility than their large or mega-cap counterparts since they tend to be less diversified. For example, a company that has been around for a few decades with multiple lines of business could exhibit less price volatility during economic downturns when compared to a new small-cap company that may not have various lines of business or a consistent history of profitability.

Investors can look up the market cap of any U.S. exchange-listed stock or ETF by referring to the quote details on all tastytrade platforms. Investors that like to track stocks on a watchlist can also view the market cap of every symbol displayed.

Enterprise Value

Unlike book value, which measures the value of a company's assets (based on its balance sheet), enterprise value (EV) measures the total value of a company by adding the current market cap + total debt + minority interest + preferred stock - cash and cash equivalents. It is often a metric used to measure a company's true value since it considers all stakeholders other than the value of its common stock (market cap). It can be helpful when comparing its value with others in the same industry. You can find the Enterprise Value of stock in the Research tab on the tastytrade platform. 

Income Statement

Revenue

TTM Revenue represents the total revenue generated by a company over the most recent twelve-month period. Investors commonly refer to TTM revenue when researching a stock as it allows them to assess a company's revenue growth, trends, and overall financial health over a meaningful time frame. By analyzing TTM revenue, investors can evaluate a company's ability to generate consistent sales and measure its performance against industry peers. For example, if a company's TTM revenue shows consistent growth over several quarters, it may indicate a healthy and expanding business.

EBITDA

TTM EBITDA refers to a company's "Trailing Twelve Months" Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a financial metric that measures a company's operating performance by considering its earnings from core operations before accounting for non-operating expenses, interest, taxes, and non-cash expenses.

To calculate TTM EBITDA, the earnings before interest, taxes, depreciation, and amortization for the most recent consecutive twelve-month period are added together. This rolling calculation provides a snapshot of a company's profitability and cash generation over the past year. TTM EBITDA is commonly used in stock research because it may provide insights into a company's operational efficiency, cash flow generation, and overall financial health. 

Net Income Available to Common Shareholders

The annual dollar amount accruing to common shareholders from dividends and retained earnings. TTM Net Income Available to Common Shareholders may provide investors with insight into a company's profitability and earnings generated for common shareholders over the past twelve months. It also may help individuals evaluate the company's ability to generate profits and assess its financial performance relative to industry peers.

Income Available to Common Shareholders is calculated as annual Income After Taxes plus Minority Interest and Equity in Affiliates and General Partner Distributions. Any adjustments (ie. Preferred Stock Dividends) would be subtracted from Income After Taxes.

Per Share Data

EPS Excluding Extraordinary Items

TTM EPS (Earnings Per Share) Excluding Extraordinary Items refers to the company’s "Trailing Twelve Months" earnings per share, excluding any extraordinary or one-time items from a company’s earnings calculation. Extraordinary items are events or transactions that are considered unusual, infrequent, and significant, such as gains or losses from the sale of assets, restructuring charges, or one-time legal settlements. The TTM EPS Excluding Extraordinary may provide investors a clearer picture of a company's ongoing operational performance by excluding non-recurring items that may distort the earnings figure in a particular period.

Cash Flow/Share

Ever heard of the saying that someone is rich but cash poor? The same can apply to publicly traded companies since they can be cash poor despite having a large market cap. Cash flow per share can help inform investors of the amount of free cash flow (FCF) available on a per-share basis. Cash flow per share is represented on a dollar basis and measured quarterly. It is calculated by taking (Cash Flow from Operations - Preferred Dividends, if applicable) ÷ (Total Number of Shares Outstanding). You can view the Trailing Twelve Month (TTM) Cash Flow / Share metric and other Per Share Data of a company on the tastytrade trading platform. 

Since it "takes money to make money," companies that generate sufficient FCF can reflect how efficiently a company generates revenue. Companies with high debt loads may have gains eroded by carrying costs associated with debt servicing, and this can lead to a low cash flow per share metric due to less capital efficiency. Conversely, a company with a high cash flow per share can indicate that it efficiently generates cash to sustain its operations without needing to tap debt. In short, factors other than debt levels and capital efficiency can affect a company's FCF.

The cash flow per share metric is widely tracked by dividend investors. Since dividend investors aim to target underlyings that pay a consistent and reliable stream of dividends, cash flow per share can help determine whether the dividend is at risk and can be maintained without negatively impacting the business. Cash flow per share can inform investors of a company's general cash flow health. Generally, a dividend-paying company facing any financial distress due to the lack of cash could reflect a low cash flow per share metric and have its dividend cut or eliminated. 

Dividend Per Share (Dividend/Share)

The metric is displayed as a dollar amount. As the name suggests, it represents the cash dividend it will or did distribute per share. A company that distributes dividends can pay them on an annual, quarterly, or monthly basis, with quarterly being the most common for common stock. For example, a company declaring a $4 annual dividend, distributed quarterly, will show a $1 dividend per share based on its most recent distribution. 

Generally, a company will announce how much it will pay annually. Depending on the frequency of when a company or ETF pays out a dividend will determine how the dividend will be presented. The tastytrade trading platform displays both so investors can research how much income they may receive annually or quarterly over a fiscal year. A fiscal year is a company's "financial year." Most companies align their financial year with a calendar year, but it doesn't apply to all companies. When a company decides to pay a dividend, a fixed amount is usually paid evenly over a fiscal year, usually quarterly.

Although the total dollar amount can inform investors what they may receive if they are entitled to the dividend, the dividend yield is generally the metric that garners more attention as that can tell investors how much they could expect in return through dividends based on the market price of the stock. It is important to note that the dividend distributions can vary for ETFs as the asset composition of an ETF can vary between distributions. As a result, determining the dividend per share for ETFs may be challenging. Investors can refer to prior distributions for a ballpark figure, but it is not always a reliable source due to the dynamic compositions of ETFs.

Quarterly Cash Flow Per Share

Quarterly Cash Flow Per Share is a financial metric that represents a company’s cash flow generation on a per-share basis over a specific quarter. It is derived by dividing the company's total cash flow from operating activities by the weighted average number of shares outstanding during the quarter. Cash flow from operating activities represents the cash generated or used by a company's core business operations. It includes cash received from customers, payments made to suppliers and employees, and other operating expenses. 

Quarterly Cash Flow Per Share is a relevant metric because it provides information on a company's ability to generate cash from its core operations and how effectively it utilizes its capital. A higher Quarterly Cash Flow Per Share may indicate stronger cash flow generation and potentially indicates that the company has sufficient cash to cover its operating expenses, invest in growth opportunities, and potentially return value to shareholders through dividends or share repurchases.

Revenue Per Share

TTM Revenue Per Share, in terms of stock research, is a metric that represents a company's revenue generated on a per-share basis over a trailing twelve months (TTM) period. It is calculated by dividing the company's total revenue over the past twelve months by the weighted average number of shares outstanding during that period.

Quarterly Book Value/Share

Quarterly Book Value Per Share represents a company’s net worth on a per-share basis for a specific quarter. It is calculated by dividing the company's total shareholders' equity by the number of common shares outstanding at the end of the quarter. Quarterly Book Value Per Share is a useful metric as it may help investors assess a company's financial health, asset base, and the value that shareholders may receive if the company were to be liquidated.

Other Ratios

Return on Equity (ROE)

Return on Equity (ROE) can measure how well a company can generate a return or profit based on a shareholder's investment. ROE is calculated by taking a company's net income ÷ shareholder's equity. The Trailing Twelve Month (TTM) ROE % and other financial ratios can be found on the tastytrade trading platform.

A company's net income refers to the money left over or the profit after deducting expenses, taxes, and interest (if applicable) from its revenue. By dividing a company's net income by its shareholder's equity, it measures how well a company generates a profit based on the funds provided by shareholders. A company with a high ROE may indicate that it effectively generates a larger profit per dollar of shareholder equity contributed. In contrast, a lower ROE can suggest that a company may not be using its equity efficiently to generate profits.

Like Return on Assets, ROE can also help measure a company's profitability, especially when compared to other companies in the same industry, like an airline or healthcare company, so it is essential to consider more than one factor when researching.

Price-to-Book

Companies make money and profit using their assets, whether they offer a tangible goods or an intangible service. The price-to-book (P/B) ratio measures a company's stock price compared to the value of a company's assets. P/B is calculated by taking the market capitalization ÷ the book value of a company's assets. Investors can also refer to a company's assets as their balance sheet, as in the same balance sheet used in accounting where Assets = Liabilities + Stockholder's Equity. The Price to Book Value metric and many other financial ratios are in the tastytrade trading platform to help you with your analysis.

Price-to-book ratios can inform investors of the multiple they are paying for a company's assets in relation to a share of stock. As a result, a company with a high P/B may be making good use of its assets and growing, which the market can applaud with an appreciating share price. Conversely, a low P/B can infer that the company may not be utilizing its assets to their full potential, and as a result, the stock price may be trading near its book value, which usually occurs with a dwindling stock price. In short, the P/B ratio can help inform investors of the value a company creates with its assets to shareholders. You can find the Price to Book Value on the Research tab on the Research tab of the tastytrade trading platform.

Price to Earnings Ratio (P/E)

The price-to-earnings ratio or P/E ratio measures a company's stock price compared to its profitability. The P/E ratio is calculated by taking the stock's market price ÷ Earnings Per Share (EPS). P/E's can help investors determine whether a company's stock is over or undervalued and where it stands amongst industry peers. Generally, each market sector has an average P/E and can inform investors whether a stock is potentially under or overvalued from its industry peers.

It is worth noting that the P/E ratio does not indicate a company's financial health since it usually excludes and does not consider debts and other financial obligations. In short, P/E only informs investors of the multiple they are paying for a share of stock to share of stock. You can find the Price to Earnings Excluding Extraordinary Items, on the Research tab of the tastytrade trading platform.

Price to Revenue Per Share

Price-to-revenue per share evaluates how much revenue a company generates per share of stock. It is calculated by dividing the total revenue by the share outstanding of the most recent fiscal year. Users can find the Trailing Twelve Month (TTM) Price to Revenue / Share and other financial ratios on the tastytrade trading platform.

Unprofitable companies, such as early-stage tech companies or biotech companies with a negative price-to-earnings (P/E) ratio, can use the price-to-revenue per share to check their overall performance. In short, early-stage companies that may not be profitable yet but are generating revenue can indicate that the company is viable.

Moreover, the price to revenue per share can also indicate whether a company may be under or overvalued. A company with a low price to revenue per share may suggest that it is undervalued and vice-versa. When evaluating a company by this metric, it is essential to consider other factors when determining its growth prospects, profitability, and industry trends.

Dividend Yield

The relationship between a stock price and the dividend yield is inverse–similar to bonds. The dividend yield measures the annual cash dividend paid per share on a percentage basis based on the market value of a stock. As a stock price increases, its dividend yield percentage will decrease, and vice-versa. The tastytrade platform displays the dividend yield along with the dividend per share on the tastytrade trading platform.

For example, if the value of XYZ common stock is trading at $100 and pays a $5 annual dividend per share, its dividend yield is 5% ($5 ÷ $100). If XYZ increases to $110, the dividend yield will be 4.5% ($5 ÷ $110).

Conversely, if XYZ drops to $90, the dividend yield will be 5.5% ($5 ÷ $90). The dividend yield can help investors seeking income (and potential stock price appreciation). It's important to note that the dividend yield on an ETF may not be as consistent as a company paying a dividend directly to shareholders since the composition of an ETF may change between each dividend distribution, which will affect the overall dividend yield.

Forecast

The forecast section of the research tab provides a breakdown of analyst sentiment towards a specific company. The analysis provided by Refinitiv includes:

• Analyst Consensus
• Analyst Target Price
• Analyst Projections (EPS. Sales, Profit, P/E… etc)

News

A list of market, business, and generally interesting broader news on a specific company. Our news provider, Refinitiv, offers news from several different sources including Reueters. Market and business news is available on our desktop, web, and mobile platform

About

About Company

A brief description of the company's background, operations, products or services, and its position within the industry. Additionally, researchers can view a company’s address, sector, industry, number of employees, and the exchange it trades on. 

Financial Summary

A concise breakdown of a company's financial performance and key financial metrics over the past year as a result of internal and external adjustments and factors.

Company Officers and Directors

A list of key individuals who hold executive positions within the organization. These officers and directors play a crucial role in shaping the company's strategic direction and decision-making processes. Here is a glossary entry that explains the key elements typically found in the Company Officers section:

Chief Executive Officer (CEO):

The CEO is the highest-ranking executive in the company. They are responsible for overall leadership, setting strategic goals, and making major corporate decisions. The CEO represents the company to stakeholders, including shareholders, board members, and the public.

Chief Financial Officer (CFO):

The CFO is responsible for managing the company's financial operations. They oversee financial planning, budgeting, accounting, and reporting. The CFO plays a vital role in ensuring the company's financial health and compliance with financial regulations.

Chief Operating Officer (COO):

The COO is in charge of the company's day-to-day operations. They oversee various operational aspects, such as production, supply chain, human resources, and technology. The COO works closely with other executives to implement the company's strategies and ensure operational efficiency.

Chief Marketing Officer (CMO):

The CMO is responsible for developing and executing the company's marketing and branding strategies. They oversee marketing campaigns, product positioning, market research, and customer engagement. The CMO plays a crucial role in driving the company's sales and market presence.

Chief Technology Officer (CTO):

The CTO is responsible for overseeing the company's technology strategy and innovation. They manage the development and implementation of technological initiatives, ensure data security, and drive digital transformation. The CTO plays a key role in keeping the company competitive in a rapidly evolving technological landscape.

Other Officers:

The Company Officers section may also include other key officers, such as the Chief Legal Officer (CLO), Chief Human Resources Officer (CHRO), Chief Strategy Officer (CSO), and Chief Risk Officer (CRO). These officers have specialized responsibilities within their respective areas and contribute to the company's overall success.

Additional Information

Status

Refers to the current standing or condition of a company. It indicates whether the company is actively operating or in a different state, such as dissolved, bankrupt, or undergoing a merger. The status provides insights into legal compliance, financial health, and market position, impacting investment decisions.

Type

Classification of a stock based on its specific characteristics and rights, such as common stock, preferred stock, growth stock, value stock, dividend stock, blue-chip stock, or small/mid/large-cap stocks. Helps investors assess investment strategies and risks.

Total Float

The number of shares available for public trading in the market, excluding those held by insiders. It determines stock liquidity and influences price volatility. Higher total float may indicate more liquidity, while lower total float can potentially lead to greater price fluctuations.