What a dividend yield measures — annual dividend divided by share price

What earnings per share (EPS) measures — net income divided by shares outstanding

EPS measures net income per outstanding share

What the yield curve shows — interest rates across different bond maturities

The yield curve illustrates the relationship between bond yields and their maturities

What the debt-to-income ratio measures — monthly debt payments divided by gross monthly income

Debt-to-income ratio measures monthly debt payments as a percentage of gross monthly income

What the Sharpe ratio measures — excess return per unit of risk: (R - Rf) / σ

Sharpe ratio: Excess return per standard deviation of portfolio returns

What a stock split does — increases share count while proportionally reducing price

Stock splits increase the number of shares, proportionally decreasing the price per share

What Buffett's annual letters consistently emphasize — focus on return on equity, not earnings per share

Buffett's letters stress long-term value creation via high return on equity