Stock P/E (Price-to-Earnings Ratio): Indicates how cheap or expensive a stock is. Lower values suggest cheaper stocks.

ROCE (Return on Capital Employed): Measures how well a company utilizes its assets. Higher values indicate better performance.

ROE (Return on Equity): Shows how efficiently a company converts equity into profits. A higher ROE (15-20%) is generally favorable.

Cash Conversion Cycle: The number of days it takes to convert inventory into sales. Shorter cycles are preferable.

Operating Profit/EBITDA: Total profits minus production and indirect expenses. A higher operating profit indicates efficiency.

OPM (Operating Profit Margin): Profit per item sold. High margins, like those in software companies, are ideal.

Debtor Days: The time taken to receive payments from customers. Fewer days are better.

Price to Book: Compares share price to book value. Higher values may indicate overvaluation.

Net Debt: Cash remaining after all debts are paid. Indicates liquidity.

Equity: Assets minus liabilities. Represents shareholder ownership.

Debt to Equity: Ratio of total liabilities to shareholder equity. Helps assess financial leverage.

Understanding these terms will help you make better investment decisions and identify potential red flags in companies.