This guide explains each metric used in the Company Quality Calculator, what it measures, and where to find the data using reliable free financial websites.

Primary Recommended Data Sources

• Yahoo Finance – Financial statements and statistics tabs
• Finviz – Quick fundamental overview
• MacroTrends – Long-term historical trends
• TradingView – Financial statements section

Return on Equity (ROE)

Measures how efficiently management generates profit from shareholder equity.
Best Source: Finviz (Fundamentals section) or Yahoo Finance → Statistics tab.
Look for: ‘Return on Equity’ under profitability metrics.

Operating Margin

Shows how much operating profit is generated per dollar of revenue.
Best Source: Yahoo Finance → Financials → Income Statement.
Also available directly in Finviz under ‘Operating Margin’.

5-Year EPS Growth

Measures earnings growth trend over time.
Best Source: MacroTrends → EPS Growth chart.
Alternative: Yahoo Finance → Analysis tab → Earnings Growth estimates.

Debt-to-Equity Ratio

Measures financial leverage and balance sheet risk.
Best Source: Finviz → Fundamentals section.
Alternative: Yahoo Finance → Statistics tab.

Free Cash Flow (FCF)

Cash generated after capital expenditures. Indicates financial strength.
Best Source: Yahoo Finance → Financials → Cash Flow tab.
If not listed, calculate as Operating Cash Flow minus Capital Expenditures.

Interest Coverage Ratio

Measures ability to pay interest expenses.
Best Source: Finviz → Fundamentals section.
If unavailable, calculate using EBIT divided by Interest Expense from Yahoo Finance Income Statement.

Revenue Trend (5 Years)

Indicates consistency of top-line growth.
Best Source: MacroTrends → Revenue chart.
Alternative: Yahoo Finance → Financials → Income Statement.

Share Count Trend

Tracks dilution or share buybacks.
Best Source: MacroTrends → Shares Outstanding chart.
Alternative: Yahoo Finance → Balance Sheet → ‘Common Stock Shares Outstanding’.

Insider Ownership

Indicates alignment of management with shareholders.
Best Source: Finviz → Fundamentals section.
Alternative: Yahoo Finance → Statistics tab.

Forward P/E Ratio

Price-to-earnings ratio using forward earnings estimates.
Best Source: Finviz → Fundamentals section.
Alternative: Yahoo Finance → Statistics tab.

Forward P/E Relative to Sector

Compares company valuation to industry peers.
Step 1: Find Forward P/E on Finviz.
Step 2: Click sector name in Finviz and review average sector Forward P/E.
Compare company value to sector average to determine valuation tier.

PEG Ratio

Valuation metric adjusting P/E for growth.
Best Source: Finviz → Fundamentals section.
Alternative: Yahoo Finance → Statistics tab.

52-Week Range Position

Indicates whether stock is near highs or lows.
Best Source: Yahoo Finance → Summary tab.
Look for: 52-Week Range and compare current price to midpoint.

Important Note

Always confirm trends over multiple years and cross-check data between sources. No single metric should determine investment decisions. This framework is designed to encourage structured evaluation, not replace independent research.