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Showing posts from February, 2021

Organic growth vs inorganic growth

  Organic growth and inorganic growth  both represent the growth in revenues over the previous year but differ for a key element:  organic growth  excludes the effect of currency fluctuations, mergers and acquisition (M&A), and divestitures;  inorganic growth  is the revenue  growth that a company is able to achieve by acquiring resources and capabilities from other companies, through mergers and acquisitions (M&A).

Reported growth vs operational growth

  Reported growth and operational growth both represent the growth in revenues over the previous year but differ for a key element: reported growth is the the growth in revenue as represented in compliance with accounting standard; operational growth is the revenue  growth that strips out the effect of currency fluctuations, mergers and acquisitions (M&A) and divestments. You might be interested in: Operational growth

Operational growth

  Operational growth is the growth that strips out the effect of currency fluctuations, mergers and acquisitions (M&A) and divestments.  Operational growth   is commonly used to describe the underlying growth of a business.

Operating earnings

  Operating earnings are net earnings adjusted for non-recurring costs and charges.  Operating earnings  do not comply with the Generally Accepted Accounting Principles (GAAP).  Operating earnings   usually exclude stock-based compensation, currency fluctuations, restructuring charges and one-off items.   Operating earnings  might   better reflect the underlying performance of the business.   Operating earnings   are usually   compared with analyst estimates.

Stock market spike

A stock market   spike  is a term used to describe a sudden variation in the stock market, usually after a market moving news is disseminated to the market.

12 months ended

  12 months ended is a phrase commonly used in financial reporting to describe the period over which the income statement, balance sheet and cash flow is calculated. The date the follows the phrase 1 2 months ended may differ from previous years.  

TTM revenue

TTM revenue is the revenue generated by a company in the previous twelve months. TTM revenue is usually calculated as the sum of the revenue generated in the latest four quarters.

Spike (finance)

 In finance, spike is a term used to describe a sudden variation in the price of a security, usually after a market moving news is disseminated to the market. 

SSS (finance)

 In finance, SSS stands for Same Store Sales , which   are sales generated by stores opened for more than 12 months.  SSS  strip outs the sales growth that is due to an increase in the number of stores.  SSS  better reflect the underlying momentum of the business.  SSS  are usually reported in terms of growth in percentage points over the previous year.

Comparable store sales

   Comparable store sales  are sales generated by stores opened for more than 12 months.  Comparable store sales  strip outs the sales growth that is due to an increase in the number of stores.  Comparable store sales  better reflect the underlying momentum of the business.  Comparable store sales  are usually reported in terms of growth in percentage points over the previous year.

Organic revenue growth

Organic revenue   growth strips out the effect of currency fluctuations, the bump in revenue given by mergers and acquisition (M&A), and the slump in revenue due to disposals.  Organic revenue   growth  is commonly used to describe the underlying growth of a business.

Stock market bubble

 A stock market bubble  is a sustained increase in stock prices fueled by optimism on the future. A  stock market bubble  is powered by a seemingly irrational mass behavior that pushes stock prices to a level that cannot be explained by economic fundamentals. A  stock market bubble  is sustained in time by expectation of further increases in prices. 

Bubble (finance)

 In finance, a bubble is a sustained increase in asset prices fueled by optimism on the future of a given financial asset. A bubble is powered by a seemingly irrational mass behavior that pushes asset prices to a level that cannot be explained by economic fundamentals. A bubble  is sustained in time by expectation of further increases in prices.