DEFINITION of Daily Average Revenue Trades - DARTs
Daily Average Revenue Trade (DART) is a metric used in the brokerage industry. It represents average trades per day that generate commissions or fees.
BREAKING DOWN Daily Average Revenue Trades - DARTs
The DART is closely monitored by analysts who follow the brokerage industry because it measures how well a brokerage is doing in generating revenue from commissions. Commissions are a significant source of profits, especially for discount brokerages, and can, therefore, be used to predict quarterly earnings. Increasing DART values suggest that earnings will be strong while a declining DART indicates that earnings may decline.
To learn more about DARTs, check out What does the Daily Average Revenue Trade (DART) tell me about a brokerage?
Industries typically have their own non-financial operating metrics that indicate how a company is performing. In the retail industry, for example, companies report "same-store sales," representing how stores that were open for a full 12 months in the past year have performed. Sales per square foot is another measure retailers employ to gauge single-store performance. In the hotel industry, RevPar, or revenue per available room, is a common operating metric, and in the airline industry, carriers typically report their revenue per seat/mile along with standard financial results. Operating metrics such as these enable analysts and others to compare performance across companies and assess the direction of performance trends.