TigerFund

Market Cap

is the total dollar value of a company's outstanding shares of stock. For example, if a company has 1 million shares of outstanding stock and the stock currently trades at $50 per share, then its current market cap is $50 million.

Shares outstanding

Are all the shares issued and sold by a company that are not held by the company itself. Outstanding shares include a company's common stock held by individual investors, institutional investors and restricted shares held by company officers and insiders.

Current ratio

It is a liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets. Above 1 is good, with below 1 being not ideal

Debt ratio

It is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. Below 30% is excellent. Above 40% is critical. Lenders could deny you a loan.

Interest coverage

Is a debt and profitability ratio used to determine how easily a company can pay interest on its outstanding debt. The higher the ratio indicates stronger financial health.

Total asset turnover

Measures the efficiency with which a company uses its assets to produce sales. A ratio above 1 is good.

Fixed asset turnover

How efficiently a company is generating net sales from its fixed-asset. 2.5 or more is good.

Gross profit

Measures the money your goods or services earned after subtracting the total costs to produce and sell them.

Operating profit margin

Measures how much profit a company makes on a dollar of sales after paying for variable production costs, such as wages and raw materials, but before paying interest or taxes. It is a better indicator of business health than net profit.

Net profit margin

It is the percentage of sales revenue you have left after deducting operating expenses, depreciation, amortization, interest, and income taxes.

Return on assets

A metric that indicates a company's profitability in relation to its total assets. 5% or better is considered good.

Return on equity

It is the measure of a company's net income divided by its shareholders' equity. provides investors with insight into how efficiently a company (or more specifically, its management team) is handling the money that shareholders have contributed to it. 15% to 20% is considered good

P/E ratio

Measures a company's current share price relative to its per-share earnings. 20 to 25 being a good number.

Market to Book

It is a financial valuation metric used to evaluate a company's current market value relative to its book value. Around 1 is good, less than 1 implies that a company can be bought for less than the value of its assets. Higher than 3 would suggest investing in a company will be expensive.

Dividend yield

Shows how much a company pays out in dividends each year relative to its stock price. 2% to 5% is good, depending on market conditions.