- Economic Order Quantity (EOQ) – The amount of orders that minimizes total variable costs required to order and hold inventory.
- Earnings – Revenues minus cost of sales, operating expenses, and taxes, over a given period of time. Earnings are the reason corporations exist, and are often the single most important determinant of a stock’s price. Earnings are important to investors because they give an indication of the company’s expected future dividends and its potential for growth and capital appreciation. That does not necessarily mean that low or negative earnings always indicate a bad stock; for example, many young companies report negative earnings as they attempt to grow quickly enough to capture a new market, at which point they’ll be even more profitable than they otherwise might have been.
- Earnings Per Share (EPS) – Total earnings divided by the number of shares outstanding. Companies often use a weighted average of shares outstanding over the reporting term. EPS can be calculated for the previous year (”trailing EPS”), for the current year (”current EPS”), or for the coming year (”forward EPS”). Note that last year’s EPS would be actual, while current year and forward year EPS would be estimates.
- Equity – Total assets minus total liabilities; here also called shareholder’s equity or net worth or book value.
- Fixed Assets – A long-term, tangible asset held for business use and not expected to be converted to cash in the current or upcoming fiscal year, such as manufacturing equipment, real estate, and furniture.
- G&A Overhead (General & Administrative Overhead) – The costs necessary for operations but not directly associated with developing a product or providing a service.
- GAAP (Generally Accepted Accounting Principles) – Generally Accepted Accounting Principles. A widely accepted set of rules, conventions, standards, and procedures for reporting financial information, as established by the Financial Accounting Standards Board.
- Gross Profit – Calculated as sales minus all costs directly related to those sales. These costs can include manufacturing expenses, raw materials, labor, selling, marketing and other expenses.
- Growth Rate - Year-over-year change, expressed as a percentage.
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