GLOSSARY

ROA

Measures profitability relative to total assets, calculated by dividing Net Income by Total Assets

ROE

Measures profitability relative to shareholder investment, calculated as Net Income divided by Shareholder Equity, measured in a percentage

Turnover

A measure of annual trading activity in the fund's portfolio, expressed as a percentage of the fund's average total assets.

Debt/Equity

A measure of a company's financial leverage, calculated by taking Total Liabilities divided by Shareholder Equity

Free Cash Flow (FCF)

Measures a company's financial performance by calculating Operating Cash Flow less Capital Expenditures

Operating Cash Flow

Measures the cash generated from a company's business operations

Debt Coverage

A measure of cash flow available to meet current debt obligations

Gross Margin

Measured in a percentage, calcuated by Total Sales less Cost of Goods Sold

Operating Margin

Operating Margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. It is calculated by dividing Operating Income by Net Sales.

Profit Margin

Measures profitability, expressed in a percentage, calculated as Net Income divided by Revenue

EPS

Earnings Per Share, calculated as Net Profit divided by Outstanding Common Stock, used as a measure of profitability

P/E Ratio

Price to Earnings Ratio, sometimes called the "multiple," is a valuation tool used to determine the price paid for earnings generated on a per-share basis.

A valuation ratio of a company's current share price compared to its per-share earnings.