Financial Analysis Glossary

Annual Price Range:	The Annual Price Range is a measure of a stock's average annual price movement to a high and low from a mean price for each year. For example, a stock's Annual Price Range of ą12% indicates that the stock's annual high and low price has shown an historical variation of ą12% from its annual average price. The Annual Price Range is generally computed from the average of the high-low price variations over the last 5-6 years. The Average Annual Price Range of the stocks which make up the S&P Industrial Average is ą23% based on an unweighted average as distinguished from a ą9% Average Annual Price Range of the S&P Industrials as reported by Standard & Poor.
Closely Held Shares:	The percentage of total outstanding common shares reported as held by officers, directors, their families, trusts, foundations, and shareholders individually owning more than 5%.
Common Equity:	Shareholder's total equity at corporate book values.
Corporate Information:	This section will usually present (1) the company's executive office address and telephone number; (2) identifies each principal corporate officer by name and position followed by three numbers indicating (a) age, (b) number of years with the company, and (c) number of years in present position; and (3) provides a summary description of the company's business, including a breakdown of sales by (a) product line and (b) domestic and foreign distribution. Number of employees is also usually shown.
Country:	The country in which this company is registered.
Current Ratio:	The ratio of current assets to current liabilities. For Utilities and Financial companies, long-term debt as a % of total capital is substituted.
Data Reported In:	The local currency of the country where this company is registered.
Dividend Yield:	Annual dividends per share as a percent of the average annual High-Low price. Current yield is based on last 12 months' or on indicated annual dividend rate whenever possible.
Dividends % of Earnings:	Each year's cash dividends per share as a percent of earnings per share reported for the same year. Dividends include all cash extras (but not stock dividends).
Dividends 12 Months:	Cash dividends declared per share for the last 12 months. All stock dividends are noted and all per share items are adjusted (as of ex-dividend date) proportionately.
Earned Equity Growth:	The annual rate, as a % of equity, at which retained earnings, after dividend payout, are added to equity capital at the beginning of the year.
Earnings Change %:	The percent increase or decrease in earnings per share from those of the preceding calendar year. The 5-10 year average percent changes are expressed as compound annual rates.
Earnings Stability:	The complement of the standard deviation of annual earnings from those which would be plotted on reconstructed regression slope lines determined by the stock's annual rate of growth of earnings.
Equity Capital at Beginning of Year:	Net worth per share of common shareholder's equity investment (including retained earnings) at corporate book value.
Institutional Investors	The number of financial institutions, e.g. investment companies, fire, casualty, and life insurance companies, holding the stock.
Long-Term Debt:	Total of all debt due after one year including bonds at face value.
Long-Term Debt as a % of Total Capital:	Long-term debt including capitalized leases expressed as a percentage of total capital (common and preferred stock plus long term debt). It reflects the use of leverage by the company.
Major Exchange:	Indicates listing on established national or regional stock exchange.
Major Industry:	Each company is classified by its primary business.
Market Capitalization:	Total market value in millions of dollars (or local currency) is calculated as market price times public common shares outstanding.
Market Price:	Annual High, Low, and Last prices. 5-10 year average "Last" prices are the averages of the annual high and low prices for the period and are so noted.
Preferred Stock:	Total dollar amount. Generally based on redemption or liquidation price.
Profit Rate:	Annual Earnings per share after taxes as a percentage of shareholders' equity capital per share at corporate book value at the beginning of the year.
Profitablity Stability:	The complement of the standard deviation of annual profit rates from those which would have be plotted on reconstructed regression slope lines.
Quarterly Dividend Rate:	Amount of last quarterly dividend declared in each calendar year.
Ratio of Average Price to Equity:	The ratio of average annual High-Low prices to equity capital per share at corporate book value at the beginning of each calendar year.
Ratios of High-Low Prices to Earnings:	High-Low prices as a multiple of earnings per share.
Reported Earnings:	Net income (after deducting preferred dividends) per common share. Fiscal year earnings are adjusted to calendar year earnings by combining the four fiscal quarterly earnings which most closely correspond to a calendar year. These are primary earnings as reported by the company, based on either average or outstanding shares and "common equivalents" unless otherwise noted.
Sales or Revenues:	Total sales or revenues (fiscal year basis).
Share Type:	Represents the security whose prices and dividends are shown with the fundamental data.
Tax Rate %:	The percent of pretax income deducted for corporate income taxes (prorated for calendar years if fiscal years differ).
Total Common Shares:	The total number of common shares outstanding.
Trading Volume:	The average volume (in thousands and local currency) of common shares traded during the last three years and one year on the major exchange that the shares are listed on. For U.S. companies it is the New York Stock Exchange.
Working Capital:	The difference between current assets and current liabilities. It is a measure of liquidity and solvency.

FINANCIAL ANALYSIS TERMINOLOGY