Financial Metrics Glossary

What this resource does

Financial metrics are useful only when their definitions travel with them. ShareKeyX uses this glossary to distinguish reported values, derived values, market observations, and model outputs.

Each metric should retain a period, currency, unit, consolidation basis, formula version, and source. When a provider definition differs, the interface should show the difference rather than silently merge values.

Methodology

1. Profitability: define revenue, operating margin, net margin, ROE, and ROCE with period and average-balance choices.
2. Per-share: reconcile basic and diluted EPS with the weighted-average share count.
3. Cash flow: distinguish operating cash flow, capital expenditure, and the chosen free-cash-flow definition.
4. Market: timestamp price, market capitalization, enterprise value, volume, return, and volatility.

How to interpret it

ROE relates profit to equity, while ROCE relates operating performance to a broader capital base. Neither is comparable until numerator, denominator, and averaging conventions match.

EPS can grow because profit rises or share count falls. Free cash flow can improve because operations strengthen or because investment is deferred.

Limitations and failure modes

• Providers can use different formulas for the same label.
• Point-in-time denominators can distort return ratios.
• Adjusted metrics require a reconciliation to reported figures.
• Metrics do not replace the notes, business model, or risk review.

Research workflow

1. Open the metric definition.
2. Confirm the period and source.
3. Recalculate when inputs are available.
4. Record exceptions and unavailable values.

Questions and answers