Galaxy Digital (GLXY)

The money customers paid, before any costs are taken out. Each bar is one quarter or, on the annual view, a full financial year; the last annual bar may be the trailing twelve months, which the footnote marks.

What good looks like. Growth that repeats, rather than one strong year carrying the chart, and a trailing twelve months keeping pace with the last full year.

If it rises or falls. Revenue is the hardest line to flatter, so a rise is the most trustworthy kind of growth. A fall puts pressure on every margin below it, because costs rarely come down as quickly as sales do.

What is left after every cost, including tax and interest. The bottom line of the income statement.

What good looks like. Profit growing at least as fast as revenue, which means the business is keeping more of each sale as it gets bigger.

If it rises or falls. Profit can move for reasons revenue cannot explain - a one-off charge, a tax change, a write-down - so a single sharp year is worth checking against the margin chart before reading it as a trend.

What survives at three points on the way down the income statement: after the direct cost of the product, after the cost of running the company, and after everything.

What good looks like. Margins that hold or widen as the business grows. The level itself varies enormously by industry, so the shape over time tells you more than the number.

If it rises or falls. A widening margin means pricing power or costs under control. A compressing one means the opposite, and it compounds: on large revenue, two points of margin is a great deal of profit.

Reported profit against the cash the business actually collected from operating. Profit is an accounting judgement; cash is not.

What good looks like. Cash at or above profit, year after year. Depreciation and other non-cash charges usually push cash above profit, so roughly 100% or more is healthy.

If it rises or falls. Cash falling behind profit for more than a year is the classic early warning: the sales are booked but the money has not arrived, and it shows up in receivables and inventory. For a lender the comparison behaves differently, because a growing loan book consumes cash.

Two returns side by side: on shareholders' capital (ROE), and on all the capital in the business including debt (ROCE).

What good looks like. Both comfortably above roughly 10%, and close together. A wide gap means borrowing, not operations, is doing the work.

If it rises or falls. A high ROE built on debt looks like quality until the debt has to be refinanced. ROCE is the harder number to flatter, which is why both are shown.

Total borrowings against cash on hand, with debt as a multiple of shareholders' equity, and how many times profit covers the interest bill.

What good looks like. Interest covered comfortably - roughly eight times or more - and debt that is not a large multiple of equity.

If it rises or falls. Debt is only a problem when it has to be repaid or refinanced in a bad year, so cover matters more than the amount. Rising debt with rising cover is a business borrowing to grow; rising debt with falling cover is the combination that ends badly.

Operating cash flow as a share of revenue: of every dollar sold, how much reached the bank before capital spending.

What good looks like. A high share, holding up or improving. It is the clearest sign that reported profit is real.

If it rises or falls. It falls when customers take longer to pay or stock builds up, and it can stay high while profit falls - which is usually the more reassuring of the two.

What would be left for shareholders if every asset were sold at its book value and every debt repaid. Book value, in other words.

What good looks like. Equity growing as retained profits build up, unless the company is deliberately returning more than it earns.

If it rises or falls. Equity falls for two very different reasons: buybacks, which return money to you, and losses, which do not. The distinction is the whole story, and negative equity means liabilities now exceed assets, which makes debt-to-equity and return on equity meaningless rather than alarming.

The share count and revenue per share over the same years, both indexed to 100 at the start, so the two lines can be compared directly.

What good looks like. The per-share line above the share-count line: whatever the company did with its shares, more business ended up behind each one.

If it rises or falls. Issuing shares is not automatically bad. It is bad when the money raised buys less growth than the dilution cost, which is exactly what the gap between these two lines shows.

Open-market buys and sells by the company's own officers and directors, from their Form 4 filings. Grants, option exercises and shares withheld for tax are excluded, because they are compensation rather than decisions.

What good looks like. Buying with their own money, which is the one insider action that is hard to explain away.

If it rises or falls. Selling is weak evidence: insiders sell to diversify, to buy houses, and on pre-scheduled plans set months ahead. Buying is stronger evidence, because there is only one reason to do it. The absence of any buying over a long stretch is itself worth noticing.