RMD

At 18.0x, the price is a reasonable multiple of the company's annual profit.

Share price divided by earnings per share: what you pay for each $1 of yearly profit. Roughly 15 to 25 is typical, above 40 is richly priced, and negative means the company is losing money.

A 27.2% margin is strong; the company keeps a healthy slice of every revenue dollar.

The share of revenue left as profit once every cost is paid. Above 15% is strong; below 5% leaves little cushion against a bad year.

A 23.5% return on equity is strong; the company compounds owners' capital well.

Profit earned on each dollar of shareholder equity: how well the company compounds its owners' capital. Above 15% is strong.

A 17.1% return on assets is strong; the company squeezes good profit from its assets.

Profit earned on each dollar of assets: how efficiently the whole asset base is used. Above 8% is strong.

At 0.37, the company carries less in liabilities than in equity, a conservative balance sheet.

Total liabilities divided by shareholder equity: how heavily the company leans on borrowing. Below 1 is conservative; above 2 is highly leveraged.

At 3.44, short-term assets comfortably cover short-term bills.

Current assets divided by current liabilities: whether short-term resources cover short-term bills. Above 1.5 is comfortable; below 1 is tight.

Net income grew 37.2% from the prior year: strong profit expansion.

Change in annual net income from the prior fiscal year: whether profit is expanding. Above 10% is strong; below 0 means profit is falling.