Glossary of Analyst Research Report Terms

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Rate of Return Annual return on an investment. Rate of return may refer to the dividend yield or it may refer to the total return rate.
Ratio Analysis The examination of the relationships between a firm's accounting numbers and trends over time.
Retained Earnings Earnings a company reinvests in its core business or to retire debt, after it pays dividends.
Return on Assets (ROA) A ratio calculated by dividing the company's EBIT (net income) by total assets. The ROA is one of the most commonly used profitability ratios.
Return on Equity (ROE) A ratio calculated by dividing the company's net income before common stock dividends are paid by the company's shareholder's equity. This ratio measures how much a company earns in relation to the amount invested in its common stock.
Return on Sales A ratio calculated by dividing pre-tax profit by total sales. This relationship measures the efficiency of operations by showing the profits earned per dollar of sales.
Revenue Money collected for providing a product or service. Companies that provide services, such as telecommunications, generally use the term revenue; whereas companies that manufacture products, such as automobiles, often use the term sales.