Glossary

Whether a company can cover what it owes in the next year with what it can turn into cash in the next year. Above 1 generally means yes.

Like the current ratio, but stricter, it leaves out inventory, since inventory doesn't always turn into cash quickly.

Shareholders' equity, expressed per individual share, what one share is worth on the company's own books.

What would be left for shareholders if a company sold everything it owns and paid off everything it owes.

How much of every naira or dollar in revenue actually turns into profit after every cost is paid.

How much profit the company generates for every naira or dollar shareholders have invested. Higher generally means the company uses its money more efficiently.

How efficiently a company turns the total capital invested in it, debt and equity both, into profit.

The actual cash a company has left after running the business and investing in it, the cash it could return to shareholders, pay down debt with, or reinvest.

How much investors are currently paying for one naira or dollar of the company's annual earnings. Higher usually means more growth is already priced in.

How much a company's revenue has grown compared to the same period a year earlier.

How much a company pays out in dividends each year, as a percentage of the current share price.