Fundamental Analysis

Fixed income instruments are defined as financial securities generating returns that do not vary according to the performance of those securities. The three main categories of fixed income instruments are fixed-interest bonds, preferred stock, and Treasury bills and notes.

Calculating the dividend payout ratio

A diluted share generally is bad news for current shareholders, and is used to refer to the loss of value accruing to each existing share when the company issues new shares of stock. Because each share represents a small but equal portion of the company’s equity, the addition of more shares reduces each individual share’s equity and, consequently, its value.

The dividend per share is defined as the total of declared dividends for each share of stock issued. Dividends are essentially profit-sharing mechanisms allowing the distribution of company profits to the shareholders who actually own the company.

What are Capitalization Ratios?

Also known as Form 10-Q, the quarterly report is an SEC-required filing by public companies outlining the financial condition, management goals, and materials events of the company for each quarter of operation. Only three quarterly reports are filed each year, since the fourth quarterly report is included in the company’s annual report.

Capitalization Rate Definition

Annualize definition

Burn rate definition

The company annual report is the most commonly employed means for publicly-held companies to communicate financial and other information to their shareholders.

Accretion Definition

The cash asset ratio of a company is defined as the current market value of its liquid assets, usually in the form of securities and cash on hand, divided by its current outstanding liabilities. It is generally used in determining a company’s financial health and short-term ability to meet its obligations.

EBITDAR Definition

Accumulated earnings, also known as retained earnings, are profits produced by a company that are not distributed to shareholders as dividends. Essentially, they are company earnings that are reinvested in the company or used to pay off outstanding debt.

After tax income is defined as the sum of money an individual or company receives after all applicable taxes have been deducted. This includes federal, state, and withholding taxes. After tax income is sometimes referred to as disposable income, since it is the amount that a company or individual has left over to dispose of as desired.