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Financial Metrics Library
Every metric SledgeKey uses to screen stocks — what it measures, how to calculate it, and how to use it in your strategy.
Valuation
P/E Ratio
How much investors pay per dollar of earnings. The most widely used valuation metric.
P/B Ratio
Stock price relative to book value per share. A cornerstone of value investing.
P/S Ratio
Price relative to revenue. Especially useful for unprofitable growth companies.
EV/EBITDA
Enterprise value relative to operating earnings. Preferred by institutional analysts.
EV/Revenue
Enterprise value relative to sales. Useful for unprofitable companies and across capital structures.
PEG Ratio
P/E adjusted for growth rate. Bridges the gap between value and growth investing.
Size & Enterprise Value
Profitability
Return on Equity (ROE)
How efficiently a company turns shareholder equity into profit.
Return on Assets (ROA)
How effectively a company uses its total assets to generate earnings.
Return on Invested Capital (ROIC)
Returns generated on all invested capital. Often considered the cleanest measure of business quality.
Operating Margin
Operating income as a percentage of revenue. Measures core business profitability before financing decisions.
Net Profit Margin
The percentage of revenue that becomes profit after all expenses.
Gross Margin
Revenue remaining after cost of goods sold, a measure of production efficiency.
Growth
Leverage & Liquidity
Debt-to-Equity
Total debt relative to shareholder equity. A key measure of financial leverage and risk.
Current Ratio
Current assets divided by current liabilities. Tests a company's short-term solvency.
Quick Ratio
Current assets minus inventory, divided by current liabilities. A stricter test of liquidity than the current ratio.
Interest Coverage
Earnings relative to interest expense. Shows whether a company can service its debt.
Cash Flow & Income
Free Cash Flow
Cash generated after capital expenditures. Often considered a truer measure of profitability than earnings.
Operating Cash Flow
Cash generated from core business operations, before capital expenditures and financing.
Capital Expenditures
Spending on long-term assets. The bridge between operating cash flow and free cash flow.
Dividend Yield
Annual dividends as a percentage of stock price. The key metric for income-focused investors.
Income Statement Line Items
Revenue (TTM)
Trailing twelve-month total sales. The top line of the income statement and the starting point of every fundamental analysis.
Gross Profit (TTM)
Revenue minus cost of goods sold. What's left to cover everything else and produce profit.
Operating Income (TTM)
Earnings from core operations, before interest and taxes. Also known as EBIT.
EBITDA (TTM)
Earnings before interest, taxes, depreciation and amortization. A capital-structure-neutral profitability measure.
Net Income (TTM)
The bottom line. What's left for shareholders after every cost, including taxes and interest.
Balance Sheet Line Items
Total Assets
Everything the company owns. The denominator in ROA and the foundation of the balance sheet.
Total Equity
What shareholders own after subtracting liabilities from assets. The denominator in ROE.
Coming Soon
Total Debt
All interest-bearing obligations, short and long term. The numerator in debt-to-equity and a leverage indicator.
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Cash & Equivalents
Liquid reserves on the balance sheet. Used to compute net debt and assess balance-sheet flexibility.
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