Revenue The total amount of income generated from the business. Gross Profit Gross profit is revenue minus the cost of goods sold. For Ex: If flipkart has a revenue of Rs 1 Crore and the actual cost of goods sold is Rs 80 Lakh; then the gross profit is Rs 20 Lakh. What is EBITDA? EBITDA means Earnings before Interest Expense, Tax, Depreciation & Amortization. When you remove Operational Expense which general administrative expense, salaries, research & development, etc. Let's break it down. 1. Interest Expense - This is the interest that needs to be paid for any borrowings/debt. This value does not include the principal amount of the debt, but only interest on it. 2. Tax - This is the corporate tax a company needs to pay on its earnings for the year to the government. 3. Depreciation - Companies that have assets like manufacturing plants, vehicles, machinery, etc when they are bought are considered assets in the balance sheet. But they are expensed over time. For Ex: If ...
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