Fire Your Stock Analyst!

356Fire Your Stock Analyst!Bond Rating: A grade evaluating the quality of a bond. AAA is generallythe highest, or most creditworthy rating.Book Value: Total shareholder’s equity from balance sheet divided bythe number of shares outstanding.Capitalization-Weighted: The largest companies in terms of marketcapitalization influence an index or other calculation the most.Capitalize: Costs of items such as buildings, equipment and other itemswith a useful lifetime exceeding one-year are categorized as assets to bedepreciated over a number of years, rather than being expensed in theyear of purchase.Cash Burner: A firm consistently reporting negative operating cashflow.Cash Flow: After tax income minus preferred dividends and generalpartner distributions plus depreciation, depletion, and amortization(Multex Investor’s Snapshot Report definition). See Operating CashFlow and Free Cash Flow.Conference Call: A multiparty telephone call hosted by a company, primarilyfor analysts, shortly after making an earnings announcement.Consensus Estimate or Rating: The average of analysts’ individualearnings forecasts or buy/sell ratings.Current Ratio: Current assets divided by current liabilities.Debt to Equity (Long Term): Total long-term debt divided by totalshareholder equity.Debt to Equity (Total): Total (short- and long-term) debt divided by totalshareholder equity.Dividends: Cash or stock paid to shareholders, usually on a quarterlyschedule.Earnings per Share (EPS): After tax annual earnings divided by the