Term
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Definition
| A standard against which performance is measured |
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Term
| Common-size financial statement |
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Definition
| A financial statement in which each number is expressed as a percent of a base number, such as total assets or total revenues. |
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Term
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Definition
| The risk that a firm will not be able to pay its debt obligations as they come due. |
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Term
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Definition
| The use of debt in a firm's capital structure; the more debt, the higher the financial leverage. |
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Term
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Definition
| A number from a financial statement that has been scaled by dividing by another financial number. |
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Term
| Financial statement analysis |
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Definition
| The use of financial statements to evaluate a company's overall performance and assess its strengths and shortcomings. |
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Term
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Definition
| The inability to pay debts when they are due. |
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Term
| North American Industry Classification System (NAICS) |
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Definition
| A classification system for businesses introduced to refine and replace the older SIC codes. |
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Term
| Standard Industrial Classification (SIC) System |
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Definition
| A numerical system developed by the U.S. Government to classify businesses according to the type of activity they perform. |
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Term
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Definition
| Analysis of trends in financial data. |
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