Fundamentals Glossary

Every free fundamental analysis on this site pulls directly from companies' own SEC filings (10-K annual reports and 10-Q quarterly reports) via the SEC's public EDGAR database. Below is what each metric means and exactly how we calculate it — no vendor-provided "black box" numbers, just plain math from the numbers companies themselves report to regulators.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's core operating profitability, before accounting effects like debt financing or asset write-downs.

How we calculate it: Operating Income + Depreciation & Amortization

Gross Margin

The percentage of revenue left after subtracting the direct cost of producing goods/services (cost of goods sold). Higher is generally better — it shows pricing power and production efficiency.

How we calculate it: Gross Profit ÷ Revenue

Operating Margin

The percentage of revenue left after subtracting both production costs and operating expenses (R&D, sales, admin, etc.), before interest and taxes. Shows how efficiently a company runs its core business.

How we calculate it: Operating Income ÷ Revenue

Net Margin

The percentage of revenue that ultimately becomes profit, after every expense — including interest and taxes. The "bottom line" profitability figure.

How we calculate it: Net Income ÷ Revenue

Current Ratio

A liquidity measure — can the company cover its short-term obligations (due within a year) with its short-term assets? A ratio below 1.0 means short-term liabilities exceed short-term assets, which can be a warning sign, though some large, cash-generative companies operate this way deliberately.

How we calculate it: Current Assets ÷ Current Liabilities

Debt-to-Equity

How much a company relies on debt versus shareholder equity to finance its operations. Higher ratios mean more financial leverage — which can amplify both gains and risk.

How we calculate it: Total Liabilities ÷ Total Stockholders' Equity

Capital Expenditures (CapEx)

Money a company spends acquiring, upgrading, or maintaining physical assets — factories, equipment, property, data centers, and similar long-term investments. High CapEx can signal a company investing heavily in future growth (or, depending on the return on that spending, a business that's capital-intensive with less cash left over for shareholders).

How we calculate it: Pulled directly from the "Purchases of Property, Plant & Equipment" (or equivalent) line in the company's reported Cash Flow Statement

Revenue / EBITDA Growth (YoY)

How much a metric changed compared to the same period one year earlier — the standard way to judge whether a business is expanding or contracting, independent of its absolute size.

A note on data timing

Annual figures come from each company's most recent 10-K and reflect their full fiscal year (which doesn't always align with the calendar year — Apple's fiscal year, for example, ends in late September). Where available, we also show the most recent quarterly (10-Q) snapshot, which is more current than the annual figures but covers a shorter period.

Disclaimer

This content is generated from publicly filed data for informational purposes only and does not constitute financial advice. We do not estimate or fabricate any figure not directly present in a company's filings — if a metric isn't available in the source data, we say so rather than guess.