13 terms
Sector-specific metrics
- Adjusted funds from operations
- Funds from operations less recurring maintenance capital spending and adjusted for straight-lined rent; the closest REIT equivalent of free cash flow.
- Annual recurring revenue
- The annualised value of subscription contracts in force at a point in time, excluding one-off fees, services and usage overages.
- Average revenue per user
- Revenue divided by the number of active users or accounts in a period; a way of separating growth from more users and growth from more spending.
- Backlog
- The value of orders received but not yet delivered or recognised as revenue; a forward indicator of the next several quarters of sales.
- Book-to-bill ratio
- Orders received in a period divided by revenue billed in the same period; above 1 means the backlog is growing, below 1 means it is shrinking.
- Funds from operations
- The standard REIT earnings measure: net income with property depreciation added back and gains on property sales removed.
- Gross merchandise value
- The total value of goods or services transacted across a marketplace, most of which belongs to sellers rather than to the platform.
- Loan loss provision
- The charge a bank takes against profit for loans it expects will not be repaid, building a reserve on the balance sheet against the loan book.
- Net interest margin
- A bank's interest income less interest paid, divided by average earning assets; the core profitability measure of lending.
- Price to tangible book
- Market cap divided by tangible book value; a balance-sheet valuation used mainly for banks, insurers and asset-heavy businesses.
- Same-store sales
- Sales growth at locations open for at least a year, which separates genuine demand from the growth that simply comes from opening more stores.
- Take rate
- The share of transaction value a platform keeps as its own revenue, calculated as revenue divided by gross merchandise value.
- Tier 1 capital
- A bank's highest-quality loss-absorbing capital, mainly common equity and retained earnings, measured against risk-weighted assets.
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