How to read a quarterly earnings report without getting lost

Latest analysis

• Economy

  The jobs report, explained: payrolls, the unemployment rate and revisions

  The monthly US jobs report comes from two different surveys. Here is what each measures, why they can disagree, and why the first number is often revised.

• Economy

  CPI vs PCE: why the US has two main inflation measures

  The Consumer Price Index and the PCE price index both track inflation, but they differ in scope, weights and method. Here is why the Federal Reserve targets PCE.

• Finance

  How a Federal Reserve rate decision reaches your loans and savings

  The Fed sets one overnight interest rate. Here is how that decision flows through to credit cards, car loans, savings accounts and mortgages, and why some rates barely move.

• Real Estate

  Why mortgage rates follow the 10-year Treasury, not the Fed

  Thirty-year mortgage rates are set in the bond market. Here is how the 10-year Treasury yield, mortgage-backed securities and the spread between them determine what borrowers pay.

• Small Business

  Profit vs cash flow: why profitable small businesses still run out of cash

  A small business can show a profit and still be unable to pay its bills. Here is how receivables, inventory, loan payments and taxes open a gap between profit and cash, and how to manage it.

• Finance

  The inverted yield curve: what it does and does not tell you

  An inverted yield curve has preceded US recessions for decades, but it is not a timer. Here is how the curve works, which spreads economists watch, and the limits of the signal.

• Energy

  What goes into the price of a gallon of gasoline

  Crude oil, refining, distribution and taxes each take a share of the pump price. Here is how the pieces fit together and why pump prices can lag behind oil.

• Politics

  Who actually pays a tariff?

  A tariff is paid at the border by the importer, but the cost can land on consumers, businesses or foreign exporters. Here is how tariffs work and what research on recent US tariffs found.

• Business

  Gross, operating and net margin: what each one tells you about a business

  Profit margins show how much of each dollar of sales a company keeps. Here is how gross, operating and net margin differ, how to compare them fairly, and what changes in each usually mean.

• Economy

  What GDP measures, and what it leaves out

  Gross domestic product is the most quoted number in economics. Here is how the U.S. measures it, how to read a quarterly GDP report and what the figure was never designed to capture.

• Finance

  The Fed's balance sheet: quantitative easing and tightening explained

  The Federal Reserve sets interest rates, but it also buys and sells trillions of dollars of bonds. Here is how its balance sheet works, why it grew so large and what shrinking it means.

• Finance

  How FDIC deposit insurance works, and where its limits are

  Deposit insurance is why a bank failure rarely costs ordinary savers money. Here is what the FDIC covers, how the $250,000 limit is counted, and what it does not protect.

• Economy

  Who decides when a recession starts, and why it takes so long

  The 'two quarters of falling GDP' rule is not the official US definition. Here is how the NBER dates recessions, which indicators it watches and why its calls come months late.

• Finance

  Why bond prices fall when yields rise

  Bond prices and yields move in opposite directions. Here is the arithmetic behind that rule, what duration measures, and why it matters for savers, banks and the government.

• Politics

  The debt ceiling, explained: what it limits and what it does not

  The federal debt limit does not authorize new spending. It caps borrowing to pay for spending Congress already approved. Here is how it works and why standoffs over it matter.

• Earnings

  Stock buybacks vs dividends: two ways companies return cash

  Companies return profits to shareholders through dividends or share repurchases. Here is how each works, how they are taxed, what rules apply and what to watch in an earnings release.

• Finance

  How Treasury auctions work, and why markets watch them

  The US government borrows by auctioning bills, notes and bonds on a published schedule. Here is how the auctions run, what bid-to-cover and tails mean, and how individuals can take part.

• Finance

  How credit scores are calculated, and what actually moves them

  A credit score is a summary of your credit report, not your income or savings. Here is what goes into FICO and VantageScore models, what they ignore and how lenders use them.

• Small Business

  Working capital and the cash conversion cycle, in plain terms

  Working capital is the cash tied up in running a business day to day. Here is how to calculate it, how the cash conversion cycle works and practical levers small businesses can pull.

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