Field notes
The four ideas behind every filing.
What the 10-Q actually contains, GAAP vs the press release, the income statement, and cash flow. Short lessons, then a glossary for the words the filing assumes you know.
4 min
Beat or miss
The two words on every earnings headline, decoded.
5 min
GAAP vs adjusted
Why two EPS numbers exist, and which one to trust first.
6 min
The income statement
A lemonade stand, in the order the filing uses.
5 min
Cash flow
Profit on paper vs cash in the bank.
Glossary
- EPS
- Earnings per share — net income divided by diluted shares outstanding.
- Consensus
- The average of analyst estimates before the print. Also called 'the street.'
- YoY
- Year over year. This quarter versus the same quarter last year.
- Gross margin
- Gross profit as a percent of revenue. What is left after ingredients.
- Operating income
- Profit from the business before interest, tax, and one-off investment items.
- Free cash flow
- Cash from operations minus capital expenditure. What is left after keeping the lights on and building the next factory.
- Capex
- Capital expenditure — cash spent on long-lived assets like data centers and factories.
- Diluted shares
- Share count that assumes options and convertibles are exercised. The denominator for EPS.
- MD&A
- Management's Discussion and Analysis — the essay in the 10-Q/10-K where the company explains the numbers.
- CIK
- Central Index Key. The SEC's ID for a company, more stable than a ticker.