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Amortization
Amortization is the write-down of an intangible (or the scheduled paydown of a loan) — two different words sharing a calendar.
Asset
An asset is a present economic resource controlled by an entity from which future cash or service is expected — the left-hand side of the balance sheet.
Balance Sheet
The balance sheet is the stock of assets, liabilities, and equity at a date — what the firm owns and owes, not the period’s flow.
Book Value
Book value is accounting equity — assets minus liabilities on the books, not what a willing buyer would pay tonight.
Cash Flow Statement
The cash-flow statement splits period cash into operating, investing, and financing — the bridge from accrual earnings to the bank account.
Depreciation
Depreciation is the allocation of a tangible asset’s cost over its useful life — a non-cash expense that still points at replacement capex.
Goodwill
Goodwill is the residual purchase-price premium over identifiable net assets in an acquisition — an accounting plug that must be tested, not amortized in US GAAP.
Income Statement
The income statement is the period’s revenues minus expenses — accrual earnings, not cash.
Liability
A liability is a present obligation to transfer economic resources — debt, payables, leases, and other claims that are not equity.
Net Asset Value
NAV is the fund’s assets minus liabilities, per share — the accounting price at which open-end vehicles deal.
Price-to-Book Ratio
Price-to-book is market cap divided by book equity — what the market pays per unit of accounting residual.
Return on Equity
Return on equity is net income divided by book equity — the accounting yield on residual capital, levered.
Shareholders' Equity
Shareholders' equity is residual interest in assets after deducting liabilities — book capital, not the market cap.
Piotroski F-Score Strategy
Within cheap stocks, buy high F-Score names — nine binary accounting tests as a quality overlay on value.
Book Value
Book value is accounting equity — assets minus liabilities on the books, not what a willing buyer would pay tonight.
Goodwill
Goodwill is the residual purchase-price premium over identifiable net assets in an acquisition — an accounting plug that must be tested, not amortized in US GAAP.
Net Asset Value
NAV is the fund’s assets minus liabilities, per share — the accounting price at which open-end vehicles deal.
Piotroski F-Score Strategy
Within cheap stocks, buy high F-Score names — nine binary accounting tests as a quality overlay on value.
Price-to-Book Ratio
Price-to-book is market cap divided by book equity — what the market pays per unit of accounting residual.
Return on Equity
Return on equity is net income divided by book equity — the accounting yield on residual capital, levered.