Specific financial statements showing the company’s revenues and expenses during a particular period:
Sales revenue = Sum of all submitted invoices
Direct Expenses = Cost of sales and purchase/production of sold products
Total Direct Cost = Direct Expenses + Depreciation/Amortization
Gross profit = Sales revenue − Total Direct Cost
EBITDA (earnings before interest, taxes, depreciation and amortization) = Gross profit − overheads
EBIT (earnings before interest and taxes) = EBITDA - Depreciation/Amortization = Sales revenue − Direct Expenses − overheads
EBT (earnings before taxes, also called pretax profit) = EBIT - Interest
Net profit = EBT − tax
Retained earnings = Net profit − Dividends
Free Cash Flow = Net profit +/- Changes in working capital (changes in current assets – changes in current liabilities) +/- Changes in the gross book value of Fixed assets (in other words purchase of fixed assets. Fixed assets being equipment, machinery, R&D, etc…)
Synonym: Statement of Income = Profit and Loss = P&L
Specific Financial Statement showing the Company’s Revenues and Expenses during the Accounting Period:
See also
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Business / Business Administration / Financial Management / Financial Accounting / Financial Statement
[ Balance sheet ] [ Changes in Equity ] [ Profit and Loss (P&L) ] [ Cash Flow ]
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