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+# Financial Metrics Reference
+
+## Profitability Metrics
+
+**Gross Profit Margin**
+- Formula: (Revenue - COGS) / Revenue × 100
+- Measures: Production efficiency and pricing power
+- Higher is better; compare to industry average
+
+**Operating Profit Margin**
+- Formula: Operating Income / Revenue × 100
+- Measures: Operational efficiency
+- Excludes financing and tax effects
+
+**Net Profit Margin**
+- Formula: Net Income / Revenue × 100
+- Measures: Overall profitability after all expenses
+- Bottom line efficiency
+
+**Return on Equity (ROE)**
+- Formula: Net Income / Shareholders' Equity × 100
+- Measures: Profitability relative to shareholder investment
+- DuPont Analysis: ROE = Net Margin × Asset Turnover × Equity Multiplier
+
+**Return on Assets (ROA)**
+- Formula: Net Income / Total Assets × 100
+- Measures: Efficiency in using assets to generate profit
+
+**Return on Invested Capital (ROIC)**
+- Formula: NOPAT / Invested Capital × 100
+- NOPAT = Net Operating Profit After Tax
+- Invested Capital = Total Debt + Total Equity - Cash
+- Measures: Return on all capital (debt + equity)
+
+## Valuation Metrics
+
+**Price-to-Earnings (P/E) Ratio**
+- Formula: Stock Price / Earnings Per Share
+- Trailing P/E: Uses past 12 months earnings
+- Forward P/E: Uses estimated future earnings
+- Interpretation: Higher P/E = higher growth expectations or overvaluation
+
+**Price-to-Earnings-to-Growth (PEG) Ratio**
+- Formula: P/E Ratio / Earnings Growth Rate
+- Interpretation: PEG < 1 potentially undervalued; PEG > 1 potentially overvalued
+
+**Price-to-Book (P/B) Ratio**
+- Formula: Stock Price / Book Value Per Share
+- Book Value = Total Assets - Total Liabilities
+- Useful for asset-heavy industries
+
+**Price-to-Sales (P/S) Ratio**
+- Formula: Market Cap / Total Revenue
+- Useful for unprofitable companies or comparing revenue multiples
+
+**Enterprise Value (EV)**
+- Formula: Market Cap + Total Debt - Cash
+- Represents total company value
+
+**EV/EBITDA**
+- Formula: Enterprise Value / EBITDA
+- EBITDA = Earnings Before Interest, Tax, Depreciation, Amortization
+- Capital structure neutral valuation metric
+
+**EV/Sales**
+- Formula: Enterprise Value / Revenue
+- Useful when comparing companies with different profitability
+
+**Dividend Yield**
+- Formula: Annual Dividend Per Share / Stock Price × 100
+- Measures: Income return from stock
+
+## Growth Metrics
+
+**Revenue Growth Rate**
+- Formula: (Current Revenue - Prior Revenue) / Prior Revenue × 100
+- YoY (Year-over-Year), QoQ (Quarter-over-Quarter)
+
+**Earnings Per Share (EPS) Growth**
+- Formula: (Current EPS - Prior EPS) / Prior EPS × 100
+- Track both reported and adjusted EPS
+
+**Compound Annual Growth Rate (CAGR)**
+- Formula: (Ending Value / Beginning Value)^(1/Years) - 1
+- Smoothed growth rate over multiple years
+
+## Liquidity Metrics
+
+**Current Ratio**
+- Formula: Current Assets / Current Liabilities
+- Measures: Short-term liquidity
+- > 1.5 generally considered healthy
+
+**Quick Ratio (Acid-Test)**
+- Formula: (Current Assets - Inventory) / Current Liabilities
+- More conservative than current ratio
+- > 1.0 generally considered healthy
+
+**Cash Ratio**
+- Formula: Cash and Cash Equivalents / Current Liabilities
+- Most conservative liquidity measure
+
+## Leverage Metrics
+
+**Debt-to-Equity (D/E) Ratio**
+- Formula: Total Debt / Total Equity
+- Measures: Financial leverage
+- Industry-dependent; lower generally safer
+
+**Debt-to-Assets Ratio**
+- Formula: Total Debt / Total Assets
+- Shows proportion of assets financed by debt
+
+**Interest Coverage Ratio**
+- Formula: EBIT / Interest Expense
+- Measures: Ability to pay interest
+- > 2.5 generally considered safe
+
+## Efficiency Metrics
+
+**Asset Turnover**
+- Formula: Revenue / Average Total Assets
+- Measures: Efficiency in using assets to generate sales
+
+**Inventory Turnover**
+- Formula: COGS / Average Inventory
+- Higher = more efficient inventory management
+
+**Receivables Turnover**
+- Formula: Revenue / Average Accounts Receivable
+- Days Sales Outstanding (DSO) = 365 / Receivables Turnover
+
+## Cash Flow Metrics
+
+**Free Cash Flow (FCF)**
+- Formula: Operating Cash Flow - Capital Expenditures
+- Available cash for dividends, buybacks, debt repayment
+
+**FCF Yield**
+- Formula: Free Cash Flow Per Share / Stock Price × 100
+- Similar to dividend yield but for total cash generation
+
+**Cash Conversion Rate**
+- Formula: Free Cash Flow / Net Income
+- Should be close to or > 100%
+- Lower ratio may indicate earnings quality issues
+
+## Per Share Metrics
+
+**Earnings Per Share (EPS)**
+- Formula: Net Income / Weighted Average Shares Outstanding
+- Basic EPS vs Diluted EPS (includes options, convertibles)
+
+**Book Value Per Share**
+- Formula: (Total Assets - Total Liabilities) / Shares Outstanding
+
+**Cash Flow Per Share**
+- Formula: Operating Cash Flow / Shares Outstanding
+
+## Share Metrics
+
+**Shares Outstanding**
+- Total shares issued and held by investors
+- Track dilution over time
+
+**Float**
+- Shares available for public trading
+- Excludes insider and restricted shares
+
+**Share Buybacks**
+- Track net share reduction/increase
+- Buybacks can boost EPS without earnings growth