Financial Lexicon

Explanations of important financial terms and metrics related to quarterly earnings, company reports and stock market analysis.

Analyse & Kontext

Free Cash Flow (FCF) Definition: More important than Net Income?
Cash is King! Free Cash Flow shows true financial power. How to calculate it and why it is crucial for dividends.
Guidance Definition: What does Outlook mean in Stocks?
Guidance often moves stock prices more than current numbers. What does 'guidance raised' or 'lowered' mean?
Market Consensus: What implies Beat vs. Miss?
Why do stocks fall despite record profits? All about analyst estimates (consensus), whisper numbers, and market reaction.
YoY vs. QoQ Meaning: Comparing Quarterly Earnings Correctly
Year-over-Year (YoY) or Quarter-over-Quarter (QoQ)? When to use which comparison for stocks and how to spot seasonality.

Corporate Events

Ad-hoc Announcement Definition: Mandatory Disclosure Requirements
Publishing price-sensitive facts immediately. What an ad-hoc announcement is and how investors should react.
Earnings Call Process: What happens in the conference?
The mandatory event after the numbers. How an earnings call works, who can ask questions, and what investors should listen for.
Share Buyback Meaning & Impact on EPS
Why do companies buy back their own shares? Pros, cons, and how buybacks artificially boost Earnings Per Share (EPS).

Fundamentale Kennzahlen

EBIT vs. EBITDA Difference: Definition & Formula Explained
Which is better: EBIT or EBITDA? We explain the definitions, the differences, and why companies use these metrics in quarterly reports.
EPS (Earnings Per Share) Definition: Understanding Profit per Share
EPS moves stock prices. All about Earnings Per Share, the difference between diluted & basic, and P/E calculation.
Fiscal Year vs. Calendar Year: Understanding FY and Q1-Q4
Why does Apple's fiscal year end in September? All about the Fiscal Year (FY), quarters, and why companies deviate from the calendar.
Revenue vs. Profit: Top-Line and Bottom-Line Difference
Revenue is not profit! Understand the Income Statement, margins, and why growth is not always profitable.

Spezifische Metriken

Book-to-Bill Ratio: Key Metric for Semi & Industry
A leading indicator for tech stocks. What a Book-to-Bill ratio above 1.0 says about future orders and revenue.
CAGR Formula & Calculation: Compound Annual Growth Rate Explained
The Compound Annual Growth Rate (CAGR) smooths growth curves. How to calculate average revenue and profit growth.
Operating Margin Definition & Calculation
How profitable is the core business? The operating margin shows how much profit remains from each dollar of revenue before tax.
Same Store Sales Definition: Comparable Store Sales Explained
Why Same Store Sales are more important than total revenue for retailers. The key metric for organic growth in retail.

Stammdaten & Profile

CEO Definition & Responsibilities: What does the Chief do?
What does CEO stand for? The duties of the Chief Executive Officer, accountability to shareholders, and why 'Tone at the Top' matters.
CIK Number (SEC): Search & Meaning Explained
The Central Index Key (CIK) is a US company's fingerprint. How to use the CIK to find financial reports (10-K) in the EDGAR database.
Dividend & Yield: Definition and Explanation
Profit sharing for shareholders. What is a dividend, how to calculate dividend yield, and what do Ex-Date and Pay-Date mean?
Extended Hours Trading: Pre-Market & After-Hours Explained
What are extended hours? All about Pre-Market and After-Hours trading, trading hours, and why prices fluctuate outside regular market hours.
IPO Date: Meaning of Initial Public Offering
Initial Public Offering (IPO) is the first step onto the exchange. All about issue price, lock-up periods for insiders, and risks.
Market Cap Definition & Calculation: Company Valuation
Is the company expensive? Market Capitalization shows market value. Differences between Large-, Mid-, and Small-Cap stocks.
NYSE (New York Stock Exchange): The Wall Street
The largest exchange in the world. History of the NYSE, trading hours, the famous 'Floor', and listing requirements for companies.
Stock Exchange: How the Stock Market Works
Marketplace for shares. The functions of a stock exchange, the difference between primary market (IPO) and secondary market (trading).
Stock Price: How is the share price determined?
Why do prices fluctuate every second? How the current stock price is formed by supply, demand, and psychological factors.