Accounts Payable   The total of all monies owed by the company to suppliers or vendors for raw material, products or other goods and services. Accounts Receivable   The money owed to the company that is not yet collected for products or services sold or performed. Accruals   Taxes, wages or other costs that are charged against current profits but not yet paid. Amortization   The decrease in the value of intangible assets--such as goodwill, patents, and trademarks--over their estimated useful lives. The annual decreases are recorded as expenses on the Income Statement. Average Assets   Calculated as Total Assets at the beginning of the year plus Total Assets at year-end divided by 2. Assets include cash, inventory, receivables, land, buildings, equipment, patents, goodwill and other prepaid assets. Average Stockholders' Investment   Calculated as Stockholders' Investment at the beginning of the year plus Stockholders' Investment at year-end divided by 2. Book Value per Share  Calculated as Stockholders' Investment at the end of the year divided by Class A plus Class B Common Shares outstanding at year-end. CAGR   Compound Annual Growth Rate. Capital Expenditure  Outlay of cash to acquire or improve capital assets such as buildings, machinery, computers and computer-related equipment. Capital expenditures are depreciated over their estimated useful life. Core or Base Business   A business owned by Brady at least one year. Cost of Products Sold   The costs incurred in manufacturing including materials, labor, manufacturing supervision, utilities, delivery costs, depreciation of assets used in production, etc. Current Assets   Cash, accounts receivable, inventory and other assets that are likely to be converted into cash, sold, exchanged, or expensed in the next 12 months. Current Liabilities   Notes payable, accounts payable, accrued compensation, income taxes payable and other obligations likely to require the use of cash within the next 12 months. Current Ratio   Current assets divided by current liabilities. Debt to Equity Ratio   Calculated as Long-Term Debt divided by Total Stockholders' Investment. Depreciation  The decrease in the value of fixed assets over their estimated useful lives. The decreases are classified as expenses on the Income Statement. Fixed assets include buildings, machinery and equipment. Dividend Payout Ratio   Percentage of earnings per share paid to stockholders in cash. Calculated as dividends per share divided by earnings per share. Dividend Yield   Percentage rate of return paid on common stock in dividends. Calculated as dividends per share (indicated annual rate) divided by year-end closing stock price. Dividends   The amount of net income declared for distribution to stockholders on a per-share basis. Earnings Per Share (Basic)   Net income before cumulative effect of accounting change divided by weighted average shares outstanding. Earnings Per Share (Diluted)   Calculated as Net Income after any preferred and preferential dividends divided by the sum of Weighted Average Common Shares Outstanding and the additional shares represented by "in the money" stock options, as defined in Financial Accounting Standard 128. Financial Leverage   Debt in relation to equity in a firm's capital structure. It is typically measured by the debt-to-equity ratio. Fiscal Year   Begins August 1 and ends July 31 each year. Free Cash Flow   Calculated as Net Income plus depreciation and amortization minus capital expenditures and dividends. Goodwill   An Intangible Asset that arises from acquisitions, where the price paid for an acquisition exceeds the fair value of net assets (equity) of that acquired business. Goodwill is amortized as a Selling, General and Administrative expense over a number of years. Gross Income   Calculated as Net Sales minus Cost of Products Sold. Intangible Assets   Nonphysical resources or rights that are presumed to enhance the company's position in the marketplace. Intangible assets include goodwill, copyrights, patents, and trademarks. Inventory   The sum of the value of finished goods on hand, raw material, and work in process. Leverage   Total debt divided by total capital (net of cash and cash equivalents). Liabilities   The amount of money the company owes for items including wages, taxes, leases, accounts payable, etc. Long-Term Debt   All debt obligations due beyond one year. Long-Term Debt to Equity Ratio   Calculated as Long-Term Debt divided by Total Stockholders' Investment. MD&A   Management's discussion and analysis of results of operations and financial condition. Net Income   Profit after taxes. Calculated as Net Sales plus other income minus operating expenses, other expenses, and taxes. Net Income Per Share (Basic)   Calculated as Net Income after any preferred and preferential dividends divided by the Weighted Average Common Shares Outstanding. Net Income Per Share (Diluted)   Calculated as Net Income after any preferred and preferential dividends divided by the sum of Weighted Average Common Shares Outstanding and the additional shares represented by "in the money" stock options, as defined in Financial Accounting Standard 128. Net Sales   Gross sales minus deductions such as cash discounts and returns and allowances. Operating Income   Calculated as Net Sales minus Operating Expenses including the cost of products sold; selling, general and administrative expenses; research and development expenses; and any other nonrecurring items. Other Income and Expense   Gains and losses related to foreign exchange, interest income, interest expense and other miscellaneous non-operating expenses. P/E Ratio   The price-to-earnings ratio is calculated as the stock price divided by Earnings Per Share for a 12-month period. A Trailing P/E relates to earnings reported for the latest year. A Forward P/E relates to earnings projected for the upcoming year. Research and Development:   Expenses related to the development of new products and manufacturing processes, including the wages of chemists, materials scientists, mechanical engineers, software engineers and other R&D personnel; materials and depreciation of equipment used in the development of new products and processes; patents, trademarks and copyright expenses; etc. Return on Average Assets   Calculated as Net Income divided by Average Assets. Return on Average Equity   Calculated as Net Income divided by Average Stockholders' Investment. SG&A   Selling, General and Administrative expenses including items such as salespersons' salaries and commissions; advertising and promotions; wages of administrative and executive personnel; and information technology expenses relating to office functions and electronic commerce. SG&A expenses also include the amortization of goodwill. Short-Term Debt   All debt obligations coming due within the next 12 months. Shareholder (or Stockholder) of Record   One whose name is registered as owning shares rather than holding stock in "street name." Stockholders' Investment   Also known as Shareholders' Equity. It is represented on the Balance Sheet as the difference between Total Assets and Total Liabilities. Total Capital   The sum of Total Debt and Total Stockholders' Investment. Total Debt   The sum of Short-Term Debt and Long-Term Debt. Weighted Average Shares Outstanding (Basic)   The daily average of the Class A plus Class B Common Shares outstanding. Weighted Average Shares Outstanding (Diluted)   The sum of the daily average of the Class A plus Class B Common Shares outstanding and the daily average of the additional shares that would become outstanding with the exercise of stock options that are "in the money," as defined in Financial Accounting Standard 128.