Aubrey Wood, MTPC

Aubrey is the Head of Content at Stock Analysis. She holds a Master of Technical and Professional Communication (MTPC) degree, as well as a Bachelor of Arts in Professional Writing and Communication (PWC). Prior to Stock Analysis, she was an editorial director at Healthline Media and the Managing Editor of Authority Nutrition. Originally from the U.S., she lives in Iceland with her partner, toddler twins, Icelandic Sheepdog, and two horses. 

Edited by Aubrey

Jan 27, 2023

Forward P/E Ratio

The forward price-to-earnings (P/E) ratio is a valuation metric that compares a stock’s share price to its forecasted earnings per share. Here is a complete guide.

Jan 17, 2023

Market-to-Book Ratio

The market-to-book ratio is a metric that compares the price of a stock to its book value. It tells you the price the market is putting on the company's assets.

Jan 13, 2023

Marketable Securities

Marketable securities are short-term assets that can be sold quickly and converted into cash. Here is an overview including examples and how they're used in formulas.

Jan 6, 2023

Intangible Assets

Intangible assets are the non-physical resources that a company owns. Here is an overview, examples, and information on how to value intangibles.

Jan 3, 2023

Effective Tax Rate

The effective tax rate is the percentage of income a company or individual pays in taxes. Here's how it compares to the corporate income and marginal tax rates.

Jan 1, 2023

What Time Do Stock Markets Around the World Open and Close?

Stock market opening hours for the main stock exchanges in the US and globally. Includes a list of all scheduled US stock exchange holidays in 2022.

Dec 30, 2022

Gross Margin

Gross margin measures the percentage of revenue a company retains after deducting the costs of producing the goods or services it sells. Here's how to calculate it.

Dec 27, 2022

Working Capital

Working capital is a measure of a company’s liquidity, specifically its short-term financial health and whether it has the cash on hand for normal business operations.

Dec 22, 2022

Net Profit Margin

Net profit margin is a profitability metric that shows net income as a percent of revenue. Here's a complete guide, including how it compares to gross profit margin.

Dec 20, 2022

Types of Costs in Accounting

In accounting, costs are categorized to help analyze how well a business is generating profits from revenue. Here are the different types and how they're used.

Dec 14, 2022

Shares Outstanding

Shares outstanding is a financial number that represents all the shares of a company’s stock that shareholders currently own. Here's how to find and use it.

Dec 12, 2022

Debt-to-Equity (D/E) Ratio

The debt-to-equity (D/E) ratio shows how much debt, relative to equity, a company is using to finance its operations. This guide includes the formula and examples.

Dec 9, 2022

Free Cash Flow per Share

Free cash flow shows how much cash a company has left after paying to run its core business and maintain its capital assets. FCF per share is this amount, per share.

Dec 7, 2022

Dividend Payout Ratio

The dividend payout ratio shows how much of a company’s net income goes to paying dividends. Here is a complete overview including how to calculate and use it.

Dec 5, 2022

Corporate Income Tax

Here is a comprehensive overview of U.S. corporate income tax, including federal and state rates, how it works, how to calculate it, and historical trends.

Dec 2, 2022

Operating Expenditure (OpEx)

Operating expenditure (OpEx) accounts for the day-to-day expenses of a business. Here's a complete guide, including the formula and how it compares to CapEx.

Nov 30, 2022

Cost of Revenue

Cost of revenue represents the total cost of making and delivering a service or product. It’s normally used for service companies in place of the cost of goods sold (COGS).

Nov 28, 2022

Pretax Income

Pretax income refers to total income before taxes are deducted. It's commonly known as income before taxes, pretax profit, or earnings before taxes.

Nov 23, 2022

Revenue Growth

Revenue growth is a term used to describe a company’s increase in revenue over a period of time, usually quarter-over-quarter or year-over-year.

Nov 21, 2022

Selling, General, and Administrative (SG&A) Expenses

Selling, general, and administrative (SG&A) expenses are a company’s overhead costs for its day-to-day operations. Here is the definition, formula, and examples.

Nov 16, 2022

Depreciation and Amortization

Depreciation and amortization are two methods for expensing the cost of an asset over time. Here are detailed overviews of both, including their differences and formulas.

Nov 16, 2022

Operating Income

Operating income is the profit left after paying for all expenses related to a company's core operations. It is a commonly used measure of profitability.

Nov 11, 2022

Research and Development (R&D)

Research and development (R&D) represents a company’s efforts to develop new products or improve existing offerings. Here's why it matters and how the R&D tax credit works.

Nov 9, 2022

Trailing Twelve Months (TTM)

TTM is a financial term that stands for trailing twelve months. It represents a company's financial numbers over the past four quarters.

Nov 7, 2022

Cost of Goods Sold (COGS)

The Cost of Goods Sold (COGS) is the cost required to produce the goods a company sells. Here is a detailed definition, formula, uses, and downsides.

Nov 4, 2022

Earnings Per Share (EPS)

Earnings per share (EPS) is a commonly used number to describe a company's profitability. It represents the portion of earnings allocated to each share.

Nov 4, 2022

Earnings Before Interest and Taxes (EBIT)

Earnings Before Interest and Taxes (EBIT) is a measure of a company’s earnings. Here are the uses and limitations of EBIT, as well as how to calculate it.

Oct 31, 2022

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a measure of a company’s earnings. Here's how to calculate and use EBITDA.

May 20, 2020

How Berkshire Hathaway's Class A and Class B Shares Are Different

Berkshire Hathaway has two different classes of stock. Class A shares have the ticker symbol BRK.A, but class B shares have the symbol BRK.B.

May 13, 2020

The 10 Best Safe and Low-Risk Investments

Investing can be risky, but there are also many investment options that have virtually zero risk. Here are the 10 best safe and low-risk investments.

May 8, 2020

Is It Really True That Almost No One Can Beat the Market?

The stock market is the market for buying and selling stocks. It consists of stock exchanges, indexes, investors, and speculators, to name a few.

May 1, 2020

Stocks vs. Bonds: Differences and Similarities

Stocks and bonds are two completely different types of investments. Stocks represent ownership in a business, while bonds represent money owed to the investor.

Apr 22, 2020

Can You Invest in YouTube Stock?

YouTube is the world’s biggest online video streaming platform with over 2 billion users. You can gain exposure to YouTube by investing in Alphabet stock.

Apr 16, 2020

ETF vs. Mutual Fund: What’s the Difference Between Them?

ETFs and mutual funds are the two most popular types of investment funds. They are similar in many ways, but also have some important differences.

Apr 10, 2020

What Happens If a Stock You Own Goes Bankrupt?

The stocks of companies that file for bankruptcy decline to zero or several pennies per share. Shareholders usually lose 100% of their investment.

Apr 7, 2020

How Did Warren Buffet Make so Much Money?

Warren Buffett is the world’s most famous investor and one of the richest people alive. But how did he make so much money?

Apr 1, 2020

What's The Difference Between Recessions and Depressions?

A recession is an economic decline that is a normal part of the business cycle. An economic depression is like a recession, except longer and more severe.

Mar 30, 2020

How to Short Stocks: A Beginner's Guide to Short Selling

Shorting is a way to bet against a stock and make a profit when the price goes down. Here's a simple beginner's guide to short selling.

Mar 23, 2020

Who Determines When a Recession Begins and Ends?

A recession is a broad decline in the economy that lasts for at least a few months. An organization called the NBER determines when recessions begin and end.

Mar 17, 2020

VOO vs. VTI: Which ETF Is a Better Investment?

VOO and VTI are two popular index funds from Vanguard. This article looks at the differences between them and explores which one is better to invest in.

Mar 2, 2020

What's The Difference Between Revenue and Income?

Revenue and income have different meanings. Revenue is the total amount of money received from sales, while income is what's left after paying all expenses.

Feb 24, 2020

What Does a Negative PE Ratio Mean for Stocks?

A negative PE ratio means that a stock has negative earnings. In other words, the company was unprofitable and lost money in the past 12 months.

Feb 17, 2020

How Does Facebook Really Make Money? 7 Main Ways

Facebook is free for users, but instead makes a lot of money from online advertising. Here are the 7 main ways that Facebook makes money.

Jan 27, 2020

What Do Stock Analyst Ratings Mean? Buy, Sell, Hold, and More

Stock analysts often use confusing terms to describe their buy, sell and hold ratings. Here are some quick explanations of what their ratings mean.

Dec 23, 2019

How Often Do Stocks Pay Dividends? And When?

Most dividend stocks pay out every three months. There are several important dates to be aware of regarding dividend payments.

Dec 4, 2019

Alphabet's GOOG vs. GOOGL Stock: What's The Difference?

Google parent company Alphabet Inc has two types of stocks that you can buy: GOOG and GOOGL. The main difference between them has to do with voting power.

Oct 27, 2019

What Are the Average Stock Market Returns by Month?

Some months have better average stock market returns than others. The stretch from November to May tends to be positive, while June to September is often flat.

Mar 7, 2019

How to Buy Stocks Online: 3 Simple Steps

It is incredibly easy to buy stocks on the internet these days. No matter which country you live in, you can easily buy stocks from all over the world.

Feb 27, 2019

What's The Best S&P500 ETF? SPY vs VOO vs IVV

According to the latest stats, 92% of professional fund managers are unable to beat the market. In this case, "the market" refers to the S&P500 index.

Feb 19, 2019

5 Ways That Stock Buybacks Can be Bad

Stock buybacks are the preferred method of many companies to return money to shareholders. This involves the companies buying back their own shares on the open market.

Feb 14, 2019

Why Stock Buybacks Are Good for Investors

Stock buybacks are a way for companies to return cash to shareholders, which is great for long-term investors for various reasons.

Feb 8, 2019

Where to Park Cash to Maximize Interest in Your Brokerage Account

Most brokerages pay little to no interest on the idle cash in your account. Here are several simple ways to put that money to work.

Feb 4, 2019

PEG Ratio: The Price/Earnings to Growth Ratio Explained

A negative PE ratio means that a stock has negative earnings. In other words, the company was unprofitable and lost money in the past 12 months.

Balance Sheet

A balance sheet is a financial statement that shows what a company owns (assets), what it owes (liabilities) and the difference between the two (equity).

Cash Flow Statement

The cash flow statement is a financial statement that shows how cash flows in and out of a company through operating, investing, and financing activities.

Dividend

A dividend is a cash payment that a company sends to investors who own its stock. Dividends are usually paid each quarter and deposited into brokerage accounts.

Enterprise Value

Enterprise value (EV) is the total value of a publicly-traded company, adjusted by the net cash or net debt position.

Free Cash Flow (FCF)

Free cash flow (FCF) is a measure of profitability that tells you how much cash a company has left after spending on maintaining and growing the business.

Gross Profit

Gross profit, also called gross income, is a company's profit after the cost of goods sold has been subtracted from the revenue.

Income Statement

The income statement shows how a company's revenue and expenses turn into profits or losses. Publicly traded companies release income statements every quarter.

Market Capitalization (Market Cap): Definition and Formula

Market capitalization is the total value of all of a company’s outstanding stock. It is calculated by multiplying the number of shares by the stock price.

Net Income

Net income is the amount of money left as profits after subtracting all expenses from the total revenue or gross income. It is also called earnings or profits.

Price-to-Earnings Ratio (PE Ratio)

The PE Ratio (Price-to-Earnings) is a commonly used valuation metric for stocks. It is calculated by dividing the stock price with the earnings per share.

Revenue

Revenue is the money that a company gets from its business activities. Unlike profits, revenue does not take any expenses into account.

Return on Equity (ROE)

Return on equity (ROE) is a financial ratio that is calculated by dividing net income by shareholders' equity. It is a commonly used measure of profitability.

YoY (Year-Over-Year)

YoY stands for year-over-year, which is a way of measuring how a number has changed compared to the same period a year earlier.