This section outlines some helpful, basic investment and accounting definitions to boost your general understanding.

Click the term and read to learn!

Income Statement terms

Revenue    Costs of sales    Gross Profit & Margin      Operating Expenses

Selling, General&Administrative      Research and Development

Other operating expenses      Operating profit & Margin

Net Interest Income/(Expense)      Income Taxes      Net Profit & Margin

Interest Coverage

Balance Sheet terms

Current Assets        Non-Current Assets       Current liabilities

Non-Current Liabilities      Equity      Profitability Ratios     Efficiency Ratios

Liquidity Ratios      Solvency Ratios

Cash Flow Statement terms

Cash flow from operations      Cash flow from investments     Cash flow from financing           Free Cash Flow        Free cash flow to sales         Investing to operating cash flow

 

* There are many books and online resources from where more detail can be obtained.

“Accounting is the language of business and is therefore crucial for any investor to understand.”

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