Net Income – The company’s net income is the earnings it reports quarterly. Sales minus expenses, interest, and taxes are how to calculate net income, and there is a lot of accounting going into this number.
Free Cashflow – Free cash flow is the cash company generates after accounting for cash outflows to support operations and maintain its capital assets. Free cash flow is a measure of profitability, and the free cash shows how much working capital is on the balance sheet and its changes. The free cash can show fundamental problems in the company before they show up on the net income statement as if it’s decreasing, it could indicate problems for the companies profits.
Shares Outstanding – Shares outstanding is how much stock is held by all shareholders. In essence, the shares equal 100% ownership of the company if added together. It shows how large the company is, and we use it to figure out how much earnings there are per share. The shares may change over time.