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Glossary of Analyst Research Report Terms | FINRA, the self-regulatory organization of the securities industry, has prepared this Glossary to help you better understand many of the investment terms found in analyst research reports about stocks, bonds, and other investments.
To gain an understanding of analyst recommendations more broadly, you should read with care the FINRA Guide to Understanding Securities Analyst Recommendations.
Note: If you can't find the definition of a word here, you may want to also try our main glossary.
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Accounts Payable
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Money a company owes to its to suppliers. Accounts payable are a liability of the company.
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Accounts Receivable
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Money a company is owed by its customers. Accounts receivable are an asset of the company.
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Accounts Receivable Turnover (also known as Receivables Turnover)
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A figure used to measure how quickly customers pay their bills. It is calculated by dividing credit sales for a specific period by the average accounts receivable.
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Accrual Basis Accounting
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A method of accounting that reports income when it is earned (although not necessarily yet received) and expenses when incurred (even if bills are paid later). This is in contrast to cash-basis accounting, which reports income when it is actually received and expenses when they are actually paid.
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Accumulated Earnings
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See Retained Earnings.
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Acid-Test Ratio
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See Quick Ratio.
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Allowance for Bad Debt
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Money a company sets aside to cover the possibility that some customers may not pay their debts.
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Amortization
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Allocation and charge to expenses of the cost of intangible assets over their useful life. It also refers to the process of accounting for the reduction of debt through regular payments over a set time period and/or in accordance with a pre-determined schedule.
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Annual Report
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A colorful, glossy brochure that a company sends out to shareholders, which includes audited financial statements and a report from management. The Form 10-K that the company must file with SEC contains more detailed information.
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Asset
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Anything that a company owns that has monetary value. Examples of assets include buildings and equipment, cash, accounts receivable, short- and long-term investments, inventories, or prepaid expenses. Assets are listed on the company's balance sheet.
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