Financial Data Definitions

Income Statement

Revenue - Revenue equals total sales from operations. (Note: For financial institutions, Morningstar displays net revenue; Hoover's Products/Operations charts are based on gross revenue.)

Cost of Goods Sold - Cost of Goods Sold includes all expenses directly associated with the production of goods or services the company sells (such as material, labor, overhead). It does not include SG&A or depreciation.

Gross Profit - Gross Profit equals Revenue minus Cost of Goods Sold. It identifies the amount available to cover other operating expenses.

Gross Profit Margin - Gross Profit Margin equals Gross Profit divided by Revenue, expressed as a percentage. The percentage represents the amount of each dollar of Revenue that results in Gross Profit.

SG&A Expense - Selling, General, and Administrative Expenses include all salaries, indirect production, marketing, and general corporate expenses.

Depreciation & Amortization - Depreciation &Amp;Amortization is a non-cash charge that represents a reduction in the value of fixed assets due to wear, age, or obsolescence. This figure also includes amortization of leased property, intangibles, goodwill, and depletion.

Operating Income - Operating Income equals Gross Profit minus SG&A Expenses. It is the income from current operations.

Operating Margin - Operating Margin equals Operating Income divided by Revenue, expressed as a percentage. The percentage represents the amount of each dollar of Revenue that results in Operating Income.

Nonoperating Income - Nonoperating Income is a residual category into which miscellaneous nonoperating revenues and expenses are netted.

Nonoperating Expenses - Nonoperating Expenses is the combination of "Other Taxes" and "Interest Expense." For most companies, "Other Taxes," also known as other operating expenses, includes taxes other than income taxes (except excise taxes, which the company does not actually pay, but only collects on behalf of the government). For financial companies, all expenses other than interest expense and income taxes are included in Other Taxes. "Interest Expense" is all fixed interest expenses net of capitalized interest. This category also includes dividends on preferred stock of unconsolidated subsidiaries.

Income Before Taxes - Income Before Taxes is the income from total operations (continuing + discontinued operations).

Income Taxes - Income Taxes include any taxes on income, net of any investment tax credits.

Net Income After Taxes - Net Income After Taxes includes income taken after taxes and before the following: Preferred Dividends, Extraordinary Gains and Losses, Income from Accumulative Effects of Accounting Change, Non-Recurring Items, Income from Tax Loss Carryforward, and Other Gains/Losses.

Continuing Operations - Continuing Operations includes income taken after taxes and before the following: Preferred Dividends, Extraordinary Gains and Losses, Income from Accumulative Effects of Accounting Change, Non-Recurring Items, Income from Tax Loss Carryforward, and Other Gains/Losses.

Discontinued Operations - Discontinued Operations represents the net (gain or loss) resulting from the selling or closing of discontinued operations of the company. This excludes income from extraordinary gains/losses.

Total Operations - Total Operations is the income from the total operations (continuing + discontinued operations) after taxes and minority interest and before extraordinary gains/losses.

Total Net Income - Total Net Income is the income after accounting for all corporate actions: Income from Continuing Operations + Income from Discontinued Operations + Income from Extraordinary Items + Income from Accumulative Effect of Accounting Changes + Income from Tax Loss Carryforward + Income from Other Gains/Losses.

Net Profit Margin - Net Profit Margin equals the Total Net Income divided by Revenue, expressed as a percentage. The percentage represents the amount of each dollar of Revenue that results in Total Net Income.

Diluted EPS from Continuing Operations - Diluted EPS from Continuing Operations equals the earnings from continuing operations divided by the Shares Outstanding, assuming full dilution.

Diluted EPS from Discontinued Operations - Diluted EPS from Discontinued Operations equals the earnings from discontinued operations divided by Shares Outstanding, assuming full dilution. This excludes income from extraordinary gains/losses.

Diluted EPS from Total Operations - Diluted EPS from Total Operations equals Diluted EPS from Continuing Operations plus Diluted EPS from Discontinued Operations.

Diluted EPS from Total Net Income - Diluted EPS from Total Net Income is the Diluted EPS after accounting for all corporate actions: EPS from Continuing Operations + EPS from Discontinued Operations + EPS from Extraordinary Items + EPS from Accumulative Effect of Accounting Changes + EPS from Tax Loss Carryforward + EPS from Other Gains/Losses.

Dividends per Share - The cash payment, per share, made by the company to its shareholders. Payment is usually made quarterly, but can be paid biannually (ADRs).

Balance Sheet

Cash - Cash consists of cash and may include cash-like items such as short-term investments that can be quickly converted to cash.

Net Receivables - Net Receivables are amounts owed to the company, net of any provisions for bad debts.

Inventories - Inventories is merchandise bought for resale or supplies and raw materials purchased for use in revenue producing operations.

Other Current Assets - Other Current Assets includes prepayments, deferred charges, and amounts (other than trade accounts) due from parents and subsidiaries. It also includes any other current assets that are not assigned to cash and cash equivalents, receivables, or inventories.

Total Current Assets - Total Current Assets equals Cash and Equivalents + Receivables + Inventories + Other Current Assets. Total Current Assets is the total amount of assets that are considered to be convertible into cash within a relatively short period of time, usually a year.

Net Fixed Assets - Net Fixed Assets are the assets of a company that are of a relatively permanent nature and are not intended for resale, such as property, plants, and equipment. The figure is stated as cost minus accumulated depreciation and amortization.

Other Noncurrent Assets - Assets that are not assigned to Net Fixed Assets or intangibles.

Total Assets - Total Assets equals Total Current Assets + Total Noncurrent Assets.

Accounts Payable - The sum of all payables owed and expected to be paid within one year.

Short Term Debt - All borrowings due within one year including current portions of long-term debt and capital leases as well as short-term debt such as bank loans and commercial paper.

Other Current Liabilities - Other obligations that are due within one year.

Total Current Liabilities - Accounts payable + Short term debt + Other current liabilities.

Long-Term Debt - All borrowings due after one year but excluding the portions scheduled to be repaid within one year. Long-term debt includes notes payable, bonds payable, mortgage loans, convertible debt, subordinated debt, long-term portion of capital lease obligations and other types of long term debt.

Other Noncurrent Liabilities - Other obligations that are due after one year.

Total Liabilities - Total Current Liabilities + Long term debt + Other noncurrent liabilities.

Preferred Stock Equity - Preferred stock at par value.

Common Stock Equity - Common stock at par value + additional paid-in capital + retained earnings + treasury stock. The residual value of the company after deducting its liabilities.

Total Equity - Equal to Preferred Stock Equity + Common Stock Equity.

Shares Outstanding - Equal to Shares issued and outstanding at the period end.