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