Ratio Analysis

  

The devil (and the financial value a lot o' times) lives in the details. You find 'em in the metrics, and they fly all over the place on The Street (Wall, not Sesame).

Some key thoughts: what was the growth rate of revenues year over year, quarter over quarter...and was their seasonality? What were profit margins (gross, operating, and net) this year compared with last and last and last? What volume of product units were sold? What market share do they have today versus last year versus last?

Yeah, so those are a handful of key metrics. A ton more exist that investors track and spend enormous time...analyzing.

Find other enlightening terms in Shmoop Finance Genius Bar(f)