Specific financial statements showing the company’s revenues and expenses during a Accounting Period:
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 Income = EBT − Income Tax
Retained earnings = Net Income − Dividends
Free Cash Flow = Net Income +/- 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…)
Cash Balance = Previous Cash Balance + Free Cash Flow - Dividends
See also
Business / Business Administration / Financial Management / Financial Accounting