This is a very succint post where we explain briefly the various terminologies you might encounter when reading up a company’s balance sheet. Here it is –

Balance Sheet Metrics

1. Fiscal Date Ending – The date marking the end of the financial reporting period for which the metrics are reported.
2. Reported Currency – The currency in which a company’s financials are reported.
3. Total Assets – The sum of a company’s assets, including cash, investments, property, etc.
4. Total Current Assets – The total value of all assets that can be reasonably converted to cash within one year.
5. Cash and Cash Equivalents at Carrying Value – The company’s holdings in cash and assets that can be quickly converted to cash.
6. Cash and Short-Term Investments – A company’s assets held in cash or investments that will be liquidated in less than a year.
7. Inventory – The total value of a company’s goods ready for sale.
8. Current Net Receivables – The amount the company has a right to collect from its customers in the short term.
9. Total Non-Current Assets – Assets that are not expected to be converted into cash or used up within the next year.
10. Property, Plant, Equipment (PPE) – The cumulative value of a company’s assets in terms of property, plants, and equipment.
11. Accumulated Depreciation/Amortization PPE – The total depreciation and amortization charges for a company’s property, plant, and equipment.
12. Intangible Assets – Non-physical assets like patents, trademarks, and brand recognition.
13. Intangible Assets Excluding Goodwill – The portion of intangible assets excluding goodwill.
14. Goodwill – The excess value paid for an acquisition above the acquired assets’ fair market value.
15. Investments – A company’s financial assets acquired intending to earn a return in the future.
16. Long-Term Investments – Investments held for a period exceeding one year.
17. Short-Term Investments – Investments that are expected to be held for less than a year.
18. Other Current Assets – Other short-term assets not classified under the common current asset categories.
19. Other Non-Current Assets – Other long-term assets not classified under the common non-current asset categories.
20. Total Liabilities – The total amount of debts and obligations owed by the company.
21. Total Current Liabilities – The total amount of debts and obligations due within one year.
22. Current Accounts Payable – The amount a company owes to its suppliers or creditors within a short term.
23. Deferred Revenue – Revenue received by a company for goods or services that have not yet been delivered or rendered.
24. Current Debt – The total debt that a company has to pay within a year.
25. Short-Term Debt – Debts that are scheduled to be paid within a year.
26. Total Non-Current Liabilities – The total of a company’s liabilities that are not expected to be settled within one year.
27. Capital Lease Obligations – The obligations that come under a capital lease, indicating a longer-term lease agreement.
28. Long-Term Debt – Debts and loans that are due in a period longer than one year.
29. Current Long-Term Debt – The portion of long-term debt that is due within the current fiscal year.
30. Long-Term Debt Noncurrent – The portion of long-term debt that is not due within the current fiscal year.
31. Short Long-Term Debt Total – The combined total of short-term and long-term debt the company owes.
32. Other Current Liabilities – Other short-term liabilities not classified under the common current liabilities categories.
33. Other Non-Current Liabilities – Other long-term liabilities not classified under the common non-current liabilities categories.
34. Total Shareholder Equity – The total equity of the company, which is the difference between total assets and total liabilities.
35. Treasury Stock – The shares that a company holds in its own treasury, often repurchased in the market.
36. Retained Earnings – The cumulative net income retained by a company for reinvestment or to pay debt, rather than being paid out as dividends.
37. Common Stock – The total value assigned to the common stock (equity) of the company.
38. Common Stock Shares Outstanding – The number of shares of common stock currently held by all its shareholders.

Income Statement Metrics

1. Gross Profit – The profit a company makes after subtracting the costs associated with making and selling its products, or providing its services.
2. Total Revenue – The total amount of money generated by a company from its primary operations.
3. Cost of Revenue – The total cost incurred to generate revenue, including the cost of goods sold and the cost of services rendered.
4. Cost of Goods and Services Sold – The direct costs attributable to the production of goods sold by a company.
5. Operating Income – The profit realized from a business’s operations, including all revenues and expenses.
6. Selling General and Administrative – The total of all direct and indirect selling expenses and all general and administrative expenses of a company.
7. Research and Development – The costs associated with the research and development of a company’s goods or services.
8. Operating Expenses – The expenses related to the normal operations of a business.
9. Investment Income Net – The net income derived from a company’s investments.
10. Net Interest Income – The difference between the revenue generated from a company’s interest-bearing assets and the expenses associated with paying on its interest-bearing liabilities.
11. Non-Interest Income – The income earned by a business from non-financial assets and market resources.
12. Other Non-Operating Income – Income derived from activities not related to a company’s core business operations.
13. Depreciation – The reduction in the value of an asset over time, typically applied to physical assets.
14. Depreciation and Amortization – The reduction in the value of an asset, including both the physical assets (depreciation) and intangible assets (amortization).
15. Income Before Tax – The company’s earnings before the payment of income taxes.
16. Income Tax Expense – The amount of income tax a company is liable to pay.
17. Interest and Debt Expense – The expenses associated with interest payments on debt and other related costs.
18. Net Income from Continuing Operations – The net income derived from a company’s continuing operations, not including one-time charges or credits.
19. Comprehensive Income Net of Tax – The total change in equity from transactions and other events, excluding changes resulting from transactions with the company’s owners.
20. EBIT – Earnings Before Interest and Taxes; a measure of a company’s profit that includes all expenses except interest and income tax expenses.
21. EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of a company’s operating performance.
22. Net Income – The total profit of a company, calculated by subtracting all costs and expenses from the total revenue.