Accounting

Weighted Average Shares Outstanding

What is Weighted Average Shares Outstanding? Weighted Average Shares Outstanding (WASO) is a company’s average shares outstanding during a specific period, weighted by duration.

Weighted Average Cost of Capital (WACC)

What is Weighted Average Cost of Capital? Weighted Average Cost of Capital (WACC) is the average rate of return that different investors in a company require, weighted by how much they invested.

Treasury Stock

What is Treasury Stock? Treasury Stock is stock that a company has repurchased from shareholders.

Single-Step Income Statement

What is Single-Step Income Statement? Single-Step Income Statement is an Income Statement format that shows the calculation from Revenue to Net Income through a single step.

Shareholder’s Equity

What is Shareholder’s Equity? Shareholder’s Equity is the value of a company’s assets that belong to the shareholders after deducting all its liabilities. It’s also called “Book Value”.

Share Capital

What is Share Capital? Share Capital is the total sum of money investors have invested into the company through share issuances. Said differently, it’s the total amount of money a company raised from investors by issuing shares. It’s called “Share Capital” because it’s the capital…

SG&A

What is SG&A? SG&A stands for Selling, General & Administrative. SG&A is a major expense on the Income Statement reflecting cost of marketing its products and managing the company.

Revenue

What is Revenue? Revenue is the value of products a company sells to customers.

Retained-Earnings

What is Retained Earnings? Retained Earnings is the cumulative profit a company has earned that it hasn’t returned to shareholders through dividends yet. Said differently, it’s the cumulative amount of profit a company has retained within the company after paying dividends. Therefore, it’s called “Retained…

Restructuring Charge

What is Restructuring Charge? Restructuring Charge is expenses a company incurs to make significant changes to how it conducts business.

Research & Development Cost (R&D)

What is Research & Development Cost? Research & Development Cost (R&D) is expenses a company incur to create new products or improve upon existing products.

Property, Plant & Equipment (PP&E)

What is Property, Plant & Equipment? Property, Plant & Equipment (PP&E) is the physical assets a company owns, aside from inventory and cash.

Prepaid Expenses

What are Prepaid Expenses? Prepaid Expenses are expenses the company has paid in advance, before they are incurred.

Par Value of Common Stock

What is Par Value of Common Stock? Par Value of Common Stocks is the minimum price that a company may sell each share of its common stock.

Paid-In Capital

What is Paid-In Capital? Paid-In Capital is the total amount of money equity investors have invested into the company during stock issuances. Said differently, it’s the total amount of cash a company has raised from investors through stock issuances. It’s called “Paid-In Capital” because it’s…

Non-Controlling Interest

What is Non-Controlling Interest? Non-Controlling Interest (NCI) is the portion of equity in a parent-controlled subsidiary that the parent does not own.