It measures the liquidity of the company. This ratio shows how often the receivables are generated and collected during the year on average.
: Adjusted net profit provides a better idea of a company’s performance from its normal operations by considering non-cash and exceptional items. Such items can include profit/loss on the sale of fixed assets, certain tax reliefs, donations made to charities through Gift Aid, and pension contributions, among others.
: An ascending or rising channel pattern can be identified as price movement between two upward sloping parallel lines. In general, the prices are expected to move upside from the lower band and downside from the higher band of the channel until it breaks.
An ascending triangle is characterized by higher lows and similar highs price and will take a few weeks to form. The pattern consists of two converging lines, where the lower band is downward sloping, and the upper band is a horizontal line. The ascending triangle is a bullish chart pattern, and the target can be estimated by measuring the widest difference in the pattern. After a price breakout, an increase in the trading volume is the key indicator for future direction.
Asset turnover is the financial ratio that helps measure the efficiency of the company’s use of its assets in garnering sales revenue.
The Asset to Equity Ratio is computed by dividing total assets by stockholders’ equity, and it determines the relationship between the firm’s total assets to the part-owned by shareholders. It indicates the company’s leverage (debt) to finance the firm.
The ratio shows the average number of days that the company takes to pay off the creditor's bills and invoices. A lower ratio depicts the company's ability to manage its cash outflows effectively.
The average accounts receivable days indicate the average number of days the customer takes to pay back the company for sales goods/services on credit. The shorter days indicates a shorter cash conversion cycle favoring the company. Receivable turnover in days is computed by dividing 365 by the average Receivable turnover ratio.
Average Inventory Days is measured by multiplying (Average inventory / Cost of sales) by the number of days in the period. It determines the average days that a company takes to turn its inventory, including goods that are a work in progress, into sales. A higher day indicates that the firm is not optimally managing its inventory or has an inventory that is difficult to sell.
A bar chart displays the Open, High, Low, and Close (OHLC) prices for each selected period. The left and right notches of the bar represent the open and close, respectively, while the high and low are the securities high and low for the selected period.
The bearish engulfing pattern is a bearish reversal pattern generally found in an upward trend. The pattern includes two candlesticks where first is the smaller bullish candle that appears on day 1 followed by a second larger bearish candlestick that appears on the 2nd day and completely covers (engulfs) the prior bullish candle body. A higher volume at the time of formation of the bearish candlestick signifies that the bears are overpowering and indicates a potential downside reversal.
A Bearish Flag pattern gets created when a steep fall in the price is followed by trading in a narrow price range, usually opposite to the current price trend known as a flag and then finalized with a second steep fall. Volume usually declines during the flag formation and rises when the price breaks the flag trading range.
It is a two candles bearish reversal pattern that forms at the end of an uptrend. According to this pattern, prices trade higher on day 1 and make a new high giving a positive close compared to the prior day. However, on day 2, prices unexpectedly opened lower and sustained a bear trend throughout the day. The second-day red candle's real body remains in the real body of the previous day's green candle. A bearish candle on the following day is required to confirm trend reversal.
Bearish Pennant is just the opposite of the bullish pennant. Bearish pennant is a continuation pattern that forms in a strong downtrend. The pattern is characterized by a steep fall in the price followed by a consolidation period with converging trend lines and then finalized with a second steep fall. It is always starting with a flagpole that is a steep drop in prices.
John Bollinger developed the Bollinger Bands indicator. It is a combination of three different bands. The middle band is formed with the help of 20-period Simple Moving Average (SMA). The upper band is calculated as 20-period SMA plus 2*20-period standard deviation, whereas the lower band is 20-period SMA minus 2*20-period standard deviation. It can be used to identify support/ resistance or to gauge an oversold or overbought status. Note: https://www.bollingerbands.com/
Book Value Per Share is computed by totaling the Company's assets, subtracting all debts, liabilities, and the liquidation of preferred stock, and then dividing the result by the number of outstanding shares of common stock. In other words, this measures a company's net worth divided by the outstanding number of shares.
The Bullish Engulfing pattern is a major reversal pattern formed by the two opposite-colored candlesticks. This pattern consists of a large bullish candle that engulfs the real body of a previous small bearish candle during a downtrend. A higher volume at the time of formation of the bullish candlestick signifies that the bulls are overpowering and indicates a potential upside reversal.
A Bullish Flag is a continuous price pattern formed when a steep rise in the price is followed by trading in a narrow price range, usually opposite to the current price trend known as a flag, and then finalized with a second steep rise. Volume usually declines during the flag formation and rises when the price breaks the flag trading range.
Bullish Harami is a bullish reversal pattern, which refers to the bull taking over the market ahead. This pattern is formed by two candlesticks where the first candle is a long bearish candlestick, and the second candle is a small bullish candle within the bearish candle. When the second candle is a Doji, these patterns are called Harami Cross.
Candlestick charts are the Japanese version of the bar chart. The Japanese candlestick displays four prices as the traditional bar chart- the open, the close, the high, and the low. For example, if the candle closes up (green) or down (red), it indicates the market sentiment as bullish or bearish for that period.
Capital expenditures (Capex) are expenses incurred for goods or services that are capitalized on a company’s balance sheet. Capex is crucial to maintain existing plants & equipment and to invest in new technology and other long-term assets for growth.
Cash Cycle (Days) measures how much time a company takes to convert its investments in inventory to cash. The formula is Days Inventory Outstanding (DIO) plus Days Sales Outstanding (DSO) minus Days Payable Outstanding (DPO).
Cash from financing activities (CFF) calculates the cash movement within a firm and its owners, investors, and creditors. This indicates the net flow of funds used to commence the business, including debt, equity, and dividends.
Cash from investing activities depicts how much money has been used in (or generated from) making investments like purchasing of long-term assets (PPE), acquisitions/disposals, investments in securities, etc.
Cash from operations represents the amount of cash generated (or consumed) from a company's operating activities over time. It is arrived at by considering a company’s net income, adjusting for non-cash items, and accounting for changes in working capital.
Cashflow per share is measured by dividing (Operating Cash Flow – Preferred Dividends) by Common Shares Outstanding. It determines the firm's financial strength. Adding back depreciation expenses, a cash flow per share keeps cash flow numbers from being artificially deflated.
Whenever the MACD line moves below the centerline (zero), it is known as a bearish centerline crossover and indicates selling in the stock. Similarly, if the MACD line moves above the centerline (zero), it is known as a bullish centerline crossover and indicates buying in the stock.
When a financial asset's prices move in horizontal price movement where trend neither going up or down is termed as a sideways trend.
Current assets are a balance sheet item comprised of all the assets that can be liquidated, consumed, used, or exhausted in one year, like cash, cash equivalents, accounts receivable, stock inventory, and marketable securities.
Current Liabilities are the amounts due to be paid to creditors within twelve months, and include accounts payable, short-term debt, income taxes payable, etc.
The current ratio measures how quickly the company can pay its current liabilities from current assets. It is derived by dividing Current Assets by Current Liabilities.
The Dark Cloud Cover is a potential bearish reversal pattern that forms at the end of an upward trend. It consists of a large green upward candle on day 1, followed by a red bearish candle on day 2. Prices witnessed a gap-up opening on the second day in the initial session, but bears took over the markets from higher levels and created selling pressure, resulting in gap-filling. Prices retrace into the previous day's gains and close below the 50% mark of the previous day's bullish candle real body. A volume surge during the bearish candlestick's formation signifies the possibility of a downside reversal.
The Debt-to-Equity ratio calculates the weight of total debt and financial liabilities over total shareholders’ equity and indicates the capital structure proportion toward debt or equity financing. It is derived by Total Debt by Shareholders’ Equity.
Depreciation is used in the financial books to allocate the cost of a tangible or physical asset over its estimated life. It also tells the depleting value of a tangible asset (such as plant, machinery, and equipment) every year due to constant use for business purposes.
In a descending or falling channel pattern, prices continue to trade between two downward sloping parallel lines. In general, the prices are expected to move upside from the lower band and downside from the higher band of the channel until it breaks.
The descending triangle is characterized by lower highs and similar lows price formation. The descending triangle is formed in downtrends, and it is a bearish pattern. The pattern consists of two converging lines: the upper band slows downward, and the lower band is a horizontal line. The target can be estimated by measuring the widest difference in the pattern. After a price breakout, an increase in the trading volume is the key indication that new lows may form.
Diluted earnings per share (diluted EPS) identifies a company’s earnings per share if all convertible/dilutive securities were exercised into common stock. Dilutive securities include convertible preferred stock, stock options, convertible bonds, warrants, ESOPS, or restricted stock units (RSU) etc. Dilutive securities are not common stock, but securities that can be converted to common stock if the holder exercises that option.
Divergence is a scenario with a difference in prices and indicators direction. If prices make higher highs, but the indicator makes lower highs, it is known as a negative divergence. Vice-versa, when prices make lower lows, but the indicator makes higher lows, it is known as a positive divergence. Divergence plays a critical role in trend reversal identification and using it with price action helps better identify the trend.
Doji candlestick is formed when securities open and close prices are nearly at the same level for the selected period. The pattern indicates an indecisive situation between bulls and bears. A Doji formation at the end of a prolonged bullish or bearish phase indicates the possibility of a trend reversal.
Double bottom is a reversal price pattern that occurs following an extended downtrend. The pattern is characterized by a pair of troughs at an almost equal low. The formation of the first trough is observed with a rise in the volume; however, the formation of the second trough usually happens with low volumes and prices start to rise. A horizontal line at the higher end of the pattern is known as the neckline and once the neckline is broken, it signals a trend reversal towards an upside.
The double top is a reversal price pattern following an extended uptrend. The pattern is characterized by a pair of peaks at an almost equal height. The formation of the first peak is observed with a rise in the volume; however, the formation of the second peak usually happens with low volumes and prices start to fall. A horizontal line at the lower end of the pattern is known as the neckline, and once the neckline is broken, it signals a trend reversal towards the downside.
When a financial asset's prices form a series of lower highs and lower lows and create an overall downside move in price is known as a downtrend.
A Downward Trend Line is constructed by joining two or more highs where the second high must be lower than the first and thus has a negative slope. At least 2 lower highs are required to draw a downward trend line, but the third high is compulsory to validate.
The Dragonfly Doji is a very rare candlestick pattern with a long lower shadow. It is very similar to the Hammer pattern, but in Dragonfly Doji the opening, closing, and high prices are nearly at the same level. The formation of a Dragonfly Doji at the end of an existing bull or bear phase acts as a reversal candlestick pattern.
Basic earnings per share entail the amount of a company’s profit that can be allocated to one share of its common stock. This ratio is useful for the firm with simple capital structures, where only common stock has been issued. It does not factor the dilutive effects of convertible securities such as stock options, warrants, or Restricted Stock Units (RSU).
Earnings before interest and taxes (EBIT) is a measure of the company's profitability. EBIT can be calculated as revenue minus expenses, excluding taxes and interests. EBIT is also known as operating earnings, operating profit, and profit before interest and taxes.
EBITDA, or earnings before interest, taxes, depreciation, and amortization, is an important tool to evaluate the company's overall financial performance. It is a more precise tool as it shows earnings before the influence of accounting and financial deductions.
EBITDA Margin is a measure of operating efficiency. It is calculated by dividing EBITDA and the revenue for a specific time, such as quarterly, and or annual. It is expressed in a percentage and is used to measure a company’s operating profitability.
Enterprise Value to Sales multiple equates the total market worth of a company's capital sources to the total sales that it had generated in the last twelve months or recent full-year period. Enterprise value (EV) is the market worth of the company's debt, common stock, and preferred stock, less cash and investments.
EV/EBITDA multiple compares the company's value to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). The multiple narrates how much investors are willing to pay for each dollar of EBITDA that the company generated over the last twelve months or in a recent full-year period. The multiple can be compared to peers in the same industry or can be compared to the past historical periods.
Evening Star is a technical indicator and represents a bearish candlestick pattern that appears at the end of the uptrend, signalling the reversal of the trend. The pattern consists of three candlesticks: a bullish candlestick, a small-bodied candle, and a bearish candlestick. The first candlestick should be a long bullish candlestick that is in line with the existing upward trend. The second-day candlestick is a small red or green candle that creates uncertainty in the minds of bulls and shows the signs of a peak of the upward trend. The third-day candlestick should be a long bearish candle which indicates that bears take over the control of the market from bulls which further creates panic selling among market participants. A surge in volume during the formation of the bearish candlestick signifies the possibility of a downside reversal.
The Fixed Asset Turnover ratio is derived by dividing net sales by average net fixed assets. Net fixed assets is gross fixed assets less accumulated depreciation. The ratio reflects the company's ability to generate revenues from each dollar invested in fixed assets. A higher ratio implies efficient utilization of fixed assets.
Fixed assets refer to long-term assets (tangible or intangible) that a firm owns and uses to generate income.
Free cash flow (FCF) is the residual money available to the company after paying its operating expenses and capital expenditures. FCF can be used for dividend distribution, to repay debt, and to fund growth opportunities.
Funds from Operations (FFO) is the actual amount of cash flow generated from a company's operations. The ratio is predominately used in analyzing a REIT stock. It is arrived at by adding non-cash expenses (depreciation, amortization, etc.), losses on the sales of assets, and subtracting any gains on the sales of assets and interest income, to the net income.
Goodwill represents an intangible asset such as proprietary or intellectual property or brand value. Sometimes, it is also recorded when the acquisition cost paid is higher than the target company’s fair value.
A Gravestone Doji is a technical indicator representing a bearish candlestick reversal pattern that can be identified when the open and closing prices coincide with the low point for the trading period. The long upper shadow of the candle signifies that the bulls manage to take the prices up at the beginning, but the bears take over the market by the end and thus form a long upper wick candle. A Gravestone Doji formation at the end of a prolonged bullish trend indicates the possibility of a downside trend reversal.
The Gross Margin ratio is a profitability metric that compares the company’s gross profit to its revenues.
Gross Profit is the financial gain that a company makes after deducting the cost of goods sold from its total revenue. The cost of goods refers to the direct costs of producing the goods sold by a company. Generally, gross profit considers only variable costs and does not take into account fixed costs.
The Hanging man is a technical indicator representing a candlestick pattern is the bearish reversal pattern that occurs mainly at the top of the uptrend and gives an indication of a potential trend reversal to the downside. The Hanging man can be identified when the open, high, and close prices coincide with each other during the trade. Usually, the red hanging man candlestick pattern provides a stronger bearish signal than the green one.
Head and Shoulders Top pattern is part of a technical indicator that occurs at the end of an uptrend and signals trend reversal. It consists of three peaks, two shoulders, and a head. In an uptrend, the formation of a left shoulder is accompanied by high volumes. When the price reaches the peak point of the left shoulder, it retraces with low volumes. Thereafter price makes a new high above the left shoulder, forming the head with lower volumes than what it took to form the left shoulder. After correcting around the previous low, prices again move upside, but this time fails to break the high of the head and then retraces to the point where the head formation has started. The line that connects the base of the shoulders and the head is known as the neckline. Once the neckline is broken, it signals a trend reversal to the downside.
A horizontal or rectangle channel pattern is part of a technical indicator that is formed when prices tread inside the two parallel horizontal lines. In general, the prices are expected to move upside from the lower band and downside from the higher band of the channel until it breaks.
The inventory turnover ratio is an efficiency ratio measured by dividing the cost of goods sold by total or average inventory to calculate how often inventory is “turned” or sold during a period. This ratio determines if there are excessive inventory levels compared to sales.
Inverse Head and Shoulders or Head and Shoulders Bottom pattern occur at the end of a downtrend and signals trend reversal. In a downtrend, the formation of a left shoulder is accompanied by high volumes. When the price reaches the trough point of the left shoulder, it retraces a bit with low volumes. Price makes new low below the left shoulder forming the head with lower volumes than what it took to form the left shoulder. Prices again move downside, but this time fails to break the previous low of the head and then retraces to the point where the head formation has started. The formation of the right shoulder is accompanied by lower volumes. The line that connects the base of the shoulders and the head is known as the neckline. Once the neckline is broken, it signals a trend reversal towards an upside.
Inverted Hammer is a technical indicator reflecting a candle pattern with an upper wick and a small body at the lower end. The size of the wick of the candlestick should be more than the body. These types of candlesticks after a downtrend indicates that bears are losing strength to the bulls. The next candle close should be above the high of the Inverted Hammer candlestick for confirmation of the reversal.
A line chart typically displays closing prices of a specified period where each closing price is linked to the previous one to make a continuous chart.
When a Doji candlestick has very long upper and lower shadows or wicks, it is known as a Long-Legged Doji.
Minority Interest is the rights of not more than 50% of an enterprise held by an investor other than the parent enterprise.
Momentum Indicators are leading indicators that gauge the momentum of the securities trend. They inform about the current trend's strength or if a reversal will occur. They help in early entry and exit in the securities due to the leading nature. Some major momentum indicators are the Relative Strength Index (RSI), Stochastic, Average Directional Index (ADX), etc.
: The Morning Star is the opposite of the evening star candlestick pattern and forms in the downtrend. It is a bullish reversal pattern made up of three candlesticks. A big bearish candle is followed by a second candle with a small real body that gaps below the first candle's real body. A third bullish candle is formed that closes inside of the first bearish candle's real body. A surge in volume during the formation of the bullish candlestick signifies the possibility of an upside reversal.
MACD is a trend-following (lagging) indicator Developed by Gerald Appel. It is an oscillator that fluctuates above and below the centerline (zero value) and includes a MACD line and a signal line for representation. MACD is used in three ways to confirm the trade signal, i.e., centerline crossover, signal line crossover, and divergence.
: Net Income is the amount of accounting profit left after deducting the expenses from the total revenue of the company (including the cost of goods sold, SG&A, depreciation, amortization, interest expenses, taxes, and other expenses).
Net income applicable to Shareholders is the income that could be given to shareholders after taxes, non-controlling interest, and dividends on preferred stock are deducted.
The net profit margin, or net margin, measures how much net profit or income is generated as a percentage of revenue. This can be computed for the entire business or business segments. It determines management’s efficiency in generating profit from sales and checks how operating costs and overhead costs are contained.
Net worth is the sum of all assets per the books of account, minus the total outside liabilities.
Normalized EPS is the residual left for one stock after adjusting for one-off expenses and other income or expenses charged to the income statement.
Normalized EBIT represents a company’s operating earnings that remove the effects of nonrecurring charges or gains. To obtain a company’s true cash generating abilities, EBIT may have to be adjusted or “Normalized” to ensure that only the revenues and expenses directly related to the business are considered. Nonrecurring and/or non-core revenues and expenses should be identified and added back or deducted to arrive at a Normalized EBIT. "
Normalization removes non-recurring expenses or revenue from a financial metric like EBITDA, EBIT, or earnings. Therefore, to arrive at a Normalized EBITDA, EBITDA needs to be adjusted for non-recurring and/or non-core revenues and expenses. Once earnings have been normalized, the resulting number represents the future earnings capacity of a Company.
On Balance Volume (OBV) is one of the simplest and powerful volume indicators. It measures cumulative buying and selling pressure in stocks and using it in conjunction with price helps in meaningful trend analysis. To confirm the trend, OBV should be in the same direction as price action. Any opposite move in OBV compared to price indicates a divergence that may lead to a probable reversal of the trend.
Operating Income is the amount of profit left after deducting direct and indirect operational expenses. It is also referred to as Earnings Before Interest & Taxes. The operating expenses include SG&A, depreciation, amortization, and other operating expenses.
Operating margin helps measure how efficiently the company can extract profits by running its core operations. It is calculated by dividing operating income and revenue. Higher margins are considered to be better than lower margins
Indicators that move above & below a centerline or within an upper and lower band knows as Oscillators. Indicators such as Relative Strength Index (RSI), Stochastic, Moving Average Convergence/ Divergence (MACD) are also known as oscillators.
The Piercing Line pattern is a bullish reversal pattern that forms at the end of a downtrend or during the throwback in a strong uptrend. The piercing pattern occurs when a bullish candle closes above the middle of the previous day's bearish candle in a bearish trend. A surge in volume during the formation of the bullish candlestick signifies the possibility of an upside reversal.
P/E multiple indicates the company is undervalued or overvalued vis-a-vis its peers or industry. It is derived by share price or market capitalization divided by earnings per share or net income. Lower multiples are generally favoured at the time of investment.
Companies use the price-to-book value relation (P/B ratio) to compare firm’s market capitalization against Net Worth of the company. It is calculated by dividing the company's market value per share by its book value per share (BVPS).
The quick ratio measures how quickly the company can pay its current liabilities from most liquid assets without selling its inventory. It is derived by dividing (Cash and Equivalents Plus Marketable Securities Plus Account Receivable) by Current Liabilities.
RSI is a leading momentum indicator developed by J. Welles Wilder. It moves in a range of 0 to 100, and due to the range-bound feature, RSI is also known as an oscillator. As per Wilder's definition, a reading above 70 levels is considered overbought, whereas a reading below 30 is oversold. The default period of RSI is 14 days and can be used in different ways for analysis perspectives such as divergences, overbought, oversold, and centerline crossovers.
Return on equity (ROE) measures the company's financial performance and is derived by dividing net income by shareholders' equity. It measures how well the management team manages the shareholders' money. Higher ROE indicates more efficiency.
ROIC is expressed as income after taxes divided by total long-term capital. Total long-term capital is the sum of total equity, total long-term debt, deferred income tax, and other liabilities. A higher ratio represents the company's ability to generate profits from capital employed in the business.
Outstanding shares mean the number of the company’s shares traded on the secondary market. Therefore, these shares are available to the market participants. Outstanding shares consist of all the restricted shares held by officers and insiders of the company, as well as the equity portion purchased by the institutional investors.
The shooting star is a one-candle pattern with the same physical appearance as the inverted hammer but differs in place of appearance. This candle used to have a long upper wick and a short body at the lower end with no or small lower wick. The colour of the body can be either red or green, which signifies the same interpretation.
Signal line crossover occurs if there is a crossover between the MACD line and the signal line when the MACD line turns up and crosses the signal line, known as a bullish crossover, whereas when the MACD line turns down and crosses the signal line, known as a bearish crossover.
A Simple Moving Average (SMA) is a widely used trend-following (lagging) indicator based on the past price. It also serves as the basis for other technical indicators and thus keeps an important place in the technical analysis. It is simply the average of the closing price over the specified timeframe. The most common time frames used when creating moving averages are the 15, 21, 50, 100, and 200-period. It can be used to identify a stock trend and support/ resistance levels.
Multiple financial valuations that compare the market value of a company with its operating cash flow are called the price-to-cash flow-based relative multiple. In essence, the price-to-cash flow ratio assesses how much a company's stock is currently worth in relation to the cash it generates.
Stock Price/Sales or Price/Sales is measured by dividing the stock's market price by full-year sales per share. This is a valuation ratio and indicates the value that financial markets have determined on each dollar of a company's sales or revenues. In other words, how much are investors willing to pay per dollar of sales for a stock. Notably, a low ratio may possibly indicate the stock is undervalued.
A symmetrical Triangle is a price pattern characterized by higher lows and lower highs price formation. The pattern consists of two converging lines, one upward sloping, and another downward sloping. During the price pattern formation, volumes usually decline as the traders wait for decisive closing on either side for future direction.
Technical analysis is a method of evaluating stock, commodity, or currency by analyzing the charts formed by market activities such as price, volume, and open interest. It is the study of past market action to predict how the market may perform in the future.
Technical indicators are data series that derive the value by mathematical calculation on the stock data such as open, high, low, close, volume, and open interest. Indicators are used in conjunction with price action to confirm the trend or to get an indication of a possible reversal. Indicators are critical to technical analysis and play an important role in automated trading systems due to quantitative quality.
It is a bearish reversal candlestick pattern that can be identified in a primary uptrend. The pattern consists of three consecutive red candles with longer bodies. The first red candle can be a small or long bearish red candle. The second candle should also close in red, and the opening prices of the second candle should lie within the body of the previous first red candle. Also, the second candle’s high should not exceed the first day’s high. The third candlestick opening prices should lie within the body of the previous second red candle and give closing in the red. The increasing volumes during the formation raise the reliability of the pattern.
The Three White Soldiers candlestick pattern is formed by three successive bullish candles that occur at the bottom of a downtrend. This candlestick pattern should have real big bodies and small shadows. The first bullish candle is followed by a second bullish candle whose opening price remains within the previous candle's body and closes above the previous candle's closing price. The last bullish candle opening price also remains within the second candle's body and the closing price above the second candle's closing price. The increasing volumes during the formation raise the reliability of the pattern.
Total Assets are the sum of a company's current and long-term assets. It includes fixed assets (example: Plant, Property, Furniture and Equipment), current assets (cash, marketable securities, accounts receivable, prepaid expenses, inventory, among others), and intangible assets like goodwill.
Total debt incorporates the company's short and long-term liabilities, including loan payments, credit cards, and accounts payable balances.
Total revenue (also referred to as sales) shows the total revenue incurred from recurring and non-recurring business streams. Since revenue is key for growth, it is a metric that all investors and businesses need to track and understand.
Trend-following indicators compare the prices to an established baseline to measure the strength of the trend. Some of the major trends following indicators are Moving Average (MA), Moving Average Convergence Divergence (MACD), Parabolic SAR, etc.
Underlying EBIT is calculated internally by a company to show what it believes to be an accurate reading of its operating profit position. It excludes the impact of non-recurring costs, and one-time charges.
Underlying EBITDA refers to EBITDA adjusted for extraordinary items. For example, these can be expenses and income that are of a one-time nature. Such items can distort the sustainable profitability of a segment and, from the Group’s perspective. Therefore, it could have a material impact on the net worth, financial position, and earnings of the Group.
When a financial asset's prices form a series of higher highs and higher lows and create an overall higher move in price is known as an uptrend.
An Upward Trend Line is constructed by joining two or more lows where the 2nd low must be higher than the 1st one and thus has a positive slope. At least 2 higher lows are required to draw an upward trend line, but the third low is compulsory to validate it.
The volatility indicator measures the rate of price movement based on how the stock deviates from its mean directional value. It provides no clue about the direction of the stock and generates indication on a volatility basis. Average True Range (ATR) is a good example of a volatility indicator.
The volatility indicator measures the rate of price movement based on how the stock deviating from its mean directional value. It provides no clue about the direction of the stock and generates indication on a volatility basis. Average True Range (ATR) is a good example of a volatility indicator.
Volume signifies the number of shares or contracts that have been traded in a certain time frame. Stocks with high volumes are considered more liquid, and liquidity in stocks helps in easier and faster order execution. In general, the volume is displayed by histogram and is usually available below the price action on a standard chart.
Volume indicators track the changes in volume with changes in the price and indicate how volume supports the price action. On Balance Volume (OBV) and Chaikin Money Flows are the important volume indicators.
Subtracting Current Liabilities from Current Assets measures the working capital. It indicates how much is the short-term liquid assets available to the company after short-term liabilities have been paid off. A company has negative working if its current assets to liabilities ratio is less than one.
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